HOPE 2010 - HOW TO RUN AN OPEN SOURCE HARDWARE COMPANY

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=HOW TO RUN AN OPEN SOURCE HARDWARE COMPANY= …

=HOW TO RUN AN OPEN SOURCE HARDWARE COMPANY=
In this session open source hardware pioneers Limor "Ladyada" Fried of Adafruit Industries and Phil Torrone of MAKE magazine show how anyone can start their own open source hardware business. The talk will show how Adafruit runs its open hardware business, top to bottom - from choosing a PCB (printed circuit board) manufacturer to selecting which open source online shopping cart works best for selling electronics online. Limor and Phil will also give a detailed overview of the top 10 open source hardware businesses, what they do and what you can learn from their projects and products. If you're considering turning your electronics hobby in to a full-fleged business this is a session not to miss.

=SPEAKERS=
Limor "Ladyada" Fried - Founder of Adafruit Industries and recipient of the EFF pioneer award for her work in open source hardware.
Phillip Torrone - Senior Editor of MAKE magazine, contributing editor to Popular Science and founder of Hack-a-day.

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  • 1. How to run an open source hardware company Businesses designing and selling open source hardware, making millions pt@makezine.com limor@ladyada.net
  • 2. What is open source hardware? Make:
  • 3. The designer will: • Provide design files (in the preferred format for making modifications to them). • Allow the modification and redistribution of the design files. • Allow the manufacture, sale, distribution, and use of devices from the design files or modifications of the design files. • Publish documentation and/or any software it has developed that is essential to the proper functioning of the device. Source: OSHW definition v 0.2 4/30/2010 Make:
  • 4. The designer may require others to: • Provide attribution when distributing design files based on the original designer's. • Provide attribution when manufacturing devices based on the original designer's design files or derivatives thereof. • Release as open-source hardware devices based on the original designer's design files or derivatives thereof. Source: OSHW definition v 0.2 4/30/2010 Make:
  • 5. Manufacturers of a derivate device must not: • Imply that the device is manufactured, tested, warrantied, guaranteed, or otherwise sanctioned by the original designer. • Make use of any trademarks owned by the original designer without explicit permission . Source: OSHW definition v 0.2 4/30/2010 Make:
  • 6. Open source hardware projects: Total projects 400 300 200 100 0 2005 2006 2007 2008 2009 2010 est. 2011 est. Source: OSHW annual - Torrone, MAKE magazine Make:
  • 7. Who is doing open hardware? Approaching $1m Over +$1m Over +$10m Make:
  • 8. Adafruit Industries New York, NY Educational electronics, Arduino products, tutorials & culture jamming Over one+ million in revenue Make:
  • 9. Arduino Italy, worldwide Open source physical computing platform. Open dev, documentation, ADC, I/O. Over 150,000 sold Over one+ million in revenue Make:
  • 10. BeagleBoard Worldwide Low cost fan-less, computer board. Expandable, 3rd party manufactures, Digikey, Mouser TI Over one million in revenue Make:
  • 11. Bug Labs New York, NY “LEGO” computers. Plug and play, modular system for building devices, rapid prototyping, VC funded Approaching one million in revenue, est. 2010 Make:
  • 12. Chumby San Diego, CA Open source ambient computer. Web connected, licensing to 3rd parties. Chumby patent, VC funded Over one+ million in revenue Make:
  • 13. Dangerous Prototypes Netherlands Open source reverse engineering tool, new to OSH, started as a community project on Hack-a-day Approaching one million in revenue, est. 2010 - 2011 Make:
  • 14. DIY Drones San Francisco, CA Open source micro-sized civil UAVs for aerial mapping and education. Community driven, project co-founder EIC Wired Approaching one million in revenue, est. 2010 Make:
  • 15. Evil Mad Scientist Labs Oakland, CA Open source educational projects. Craft and hack, hardcore OSH. Fully OSS tool chain. Fun projects Approaching one million in revenue, est. 2010 Make:
  • 16. MakerBot Industries Brooklyn, NY Open source 3D printer kit. Based on RepRap. Companion 3D repository “Thingaverse”, funded Over one million in revenue Make:
  • 17. Maker Shed Sebastopol, CA Bring making things to pop culture, Make magazine, TV show, Maker Faire - gift shop is the Maker Shed Over one+ million in revenue Make:
  • 18. Parallax Rocklin, CA Kit heritage (BASIC stamp, PIC). Robotics, education, tutorials, “New” entry in OSH Over one+ million in revenue Make:
  • 19. Seeed Studios Shenzhen, China Arduino derivatives, break out boards, sensors, rapid manufacturing & proximity to supply chains Over one million in revenue Make:
  • 20. Solarbotics Calgary, Canada Educational electronics, robot kits, BEAM robotics, solar kits, OSH - Arduino related Over one+ million in revenue Make:
  • 21. SparkFun Electronics Boulder, CO Educational electronics, break out boards, large selection, BatchPCB, rapid manufacturing Over TEN million in revenue Make:
  • 22. The numbers the future • These are just a few companies representing approx. $50 million • There are currently about 200 OSHW projects, 300+ in 2011 • Most of the $1m+ companies are rapidly approaching $5m Make:
  • 23. How we run our business Make:
  • 24. Open source Software LAMP Linux Apache MySQL PHP Adafruit.com Make:
  • 25. Hosting Provider ServInt VPS $80 plan Make:
  • 26. Shopping Cart Make:
  • 27. Make:
  • 28. Make:
  • 29. Make:
  • 30. Make:
  • 31. Make:
  • 32. Make:
  • 33. Make:
  • 34. Make:
  • 35. Credit Card processor Make:
  • 36. Paypal Payments Make:
  • 37. Paypal Payments Make:
  • 38. Embedded Content (blog) Wordpress Make:
  • 39. Embedded Content (blog) Wordpress Make:
  • 40. Measurements (Traffic, source, etc..) Make:
  • 41. Forums Customer support & community phpbb forums + tweaks Make:
  • 42. Documentation Customer support & community Make:
  • 43. Documentation Customer support & community Make:
  • 44. Documentation Customer support & community Make:
  • 45. Documentation Customer support & community Make:
  • 46. Documentation Customer support & community Make:
  • 47. Documentation Customer support & community Make:
  • 48. Documentation Customer support & community Make:
  • 49. Documentation Customer support & community Make:
  • 50. Documentation Customer support & community Make:
  • 51. Documentation Customer support & community Make:
  • 52. Documentation Customer support & community Make:
  • 53. Documentation Customer support & community Make:
  • 54. Documentation Customer support & community Make:
  • 55. Documentation Customer support & community Make:
  • 56. Documentation Customer support & community Make:
  • 57. Tools Shipping, office & beyond Make:
  • 58. Tools Shipping, office & beyond Make:
  • 59. Tools Shipping, office & beyond Make:
  • 60. Tools Shipping, office & beyond Make:
  • 61. Tools Shipping, office & beyond Make:
  • 62. Tools Shipping, office & beyond Make:
  • 63. • You need a skill or interest • • Think of a memorable name for your company Register the domain name, file a DBA Your turn • Get a digital camera • Get 2 to 4 projects under your belt • Take photos, take the “money shot” - show product in action • Put documentation online • For pricing, allow a 40% profit margin or about a 66% markup (resellers too) • Buy enough parts to make 25, start off with Paypal “buy it” button • Create a support network, mailing list / forums, make a FAQ, update it • Fill out the web site with all purchasing info, make it easy to copy/paste for lazy bloggers • Include contact information • Send emails to sites in your arena • Watch the web stats • Repeat • Profit Make: