Page 46 - 10 Most admired Hardware and Devices Startup 2020

Here’s How to Make Hardware

Startups More Than Just a Fad

EVERYONE IS TALKING about hardware. Dozens of articles while still delivering a simple but good product. Because
have shared all kinds of optimism about how hardware – hardware is a cash-flow business, and that filter drives a lot
recently labeled “the double black diamond of startups” of product decisions.
– is cool again.
>Hardware is a cash-flow business, and that drives a lot
We’ve already heard the reasons why: The cost to of product decisions.
bring hardware to market is cheaper than ever before.
Crowdfunding enables brands nobody has heard of to We can’t ship “beta” hardware and then iterate on features
become overnight successes. More people than ever until someone buys it, as we do with software MVPs. And
before have a computer in their pockets with high speed promising features on Kickstarter that hardware companies
internet at their fingertips, creating an ecosystem of can’t deliver on isn’t a way to validate what should go in
smartphone-connected devices. E-tail is crushing retail, the box, either.
which means hardware companies don’t always have to
rely on big-box retailers. What most hardware entrepreneurs underestimate is
just how hard it is to bring a whole system – engineering,
But here’s what we don’t know, and what we really need to design, testing, packaging, supply chain, certifications,
talk about if we want the current hardware renaissance to documentation, logistics, and so on – together into
be more than just a fad reserved only for niche products. a product ready for mass adoption. It takes multiple
The below things need to change for what’s going on right iterations to make a hardware product truly amazing, so
now to truly become a “hardware revolution”... it’s a mistake to expect hardware startups to deliver Apple-
like quality when they don’t have that type of experience.
With hardware, you can’t get away with a minimum viable That’s why we always hear stories about much-hyped
product that sucks. Kickstarter projects’ failed deadlines.

The purpose of a minimum viable product or “MVP” The key to a great hardware MVP is focusing on a single
is to get to market quickly, learn from customers, and feature (delivering it better than anyone else) and getting
iterate based on the results. Unlike in software, though, to market quickly (most companies have no idea how well
a hardware MVP isn’t about searching for a repeatable a hardware product will sell until customers start paying) –
business model: People either buy the product, or they all while driving positive cashflows. For example:
don’t.
Fitbit started with a single pedometer that wasn’t wireless
A great hardware MVP is about the fastest path to cash – and didn’t have subscription revenue.

46 March 2020