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Hardware Startups have it 10x harder to sell a hardware product
Why?
First, they have the typical challenges of a Startup
- Limited amount of resources: you cannot build a 1M laboratory the first week. The stereotype photo of the first days of a Startup has their founders working long hours in the garage of one of them. You need to build something great with the tools you have around and if you are lucky, with some tools you receive from generous donors.
- Pressure from investors to get high profit fast: investors gave money to you not (only) because they liked you. They want their money back, with interests.
- Constant iterations of the MVP until reaching the Product Market Fit: Startups are inherently uncertain. Building a new product while finding the market is hard. Working with the long cycles of Hardware development makes it hardware than with other products.
If that was not enough, be ready to add complexity specific to Hardware founders:
- A lot of hype around building the next coolest gadget: everybody is expecting that you become the next Tesla or Apple, in the tenth part of the time. The social pressure is high.
- Founders come from Software Startups, carrying biased expectations: investors, advisors, founders and employees often have experience in the Software world. They have built a cool app. Sure, it worked and they deserve the merit, but the rules here are different.
I am a CTO or a founder of Hardware Startup. How can I make it until the end?
You are not alone. There are people out there that have been in the same situation as you are. Talk to them, join the community. Do not try to play the solo founder hero game. It will not end up well.
- Involve partners for specific fields, like EMC or Cibersecurity: fill the knowledge gaps at the early beginning with specialized partners. Plan ahead and involve them at early stages.
- Do not blindly trust previous experience: it is easy to trust the people saying “being there, done that”. The problem? it is never a 100% “been there”. Of course, you need people that can learn from past experiences and adapt, but always check for new patterns.
- Plan, plan, plan: yes, Startups are uncertain, yes, electronics can be uncertain. There is always room for planning and there is always room for second and third options. Consider alternatives and leave room for adjustments.
Are you building a Hardware Startup? How are you dealing with the uncertainty?
Happy building! ⚒️
Ignacio
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