This document provides an overview of how to build a successful hardware startup. It discusses how rapid prototyping, crowdfunding, affordable manufacturing, and online community have lowered the barriers to entry for hardware startups. The document outlines the key steps in the hardware roadmap, including developing a winning idea, prototyping, fundraising, manufacturing, distribution, and scaling. It emphasizes the importance of validating ideas, building community, managing cash flow, and expecting challenges throughout the process.
4. Just a few years back, they would have
taken a corporate empire to design, build
and market these products + a looooot of
cash...
Thankfully you don’t need that in 2015...
5. The difference between a project and a
product is the difference between making
one and making many
6. 6
The 3rd Industrial Revolution IS UPON US!
01 RAPID PROTOTYPING AND SMALL BATCH
MANUFACTURING
03 GROWING HARDWARE ECOSYSTEM
02 CROWDFUNDING AND MORE VC FUNDING
04 ONLINE COMMUNITY
05 AFFORDABLE SUPPLY CHAIN
35. PROTOTYPE
MVP MFP DFM
Minimum Valuable
Product
Minimum Functional
Prototype
Designed For
Manufacturing,
assemble, test and cost
36. MINIMUM
• Build it at home – use Alibaba, maker
spaces, laser cutters
• Stock up on duck tape
• Use ready made solutions
• Iterate with customers as much as
possible – both look alike and work
alike prototypes
37. YOU DONT GET A
SECOND CHANCE
Iterate like your life depends on it
52. It’s NOT ONLY ABOUT MONEY
VALIDATION SOCIAL PROOFCOMMUNITY BUILDING
53.
54. Lessons Learned
FACTOR IN COSTS AND
DELAYS
CHECK YOUR MARGINS, FUNDED
DOES NOT MEAN PROFITS
PREPARATION IS THEY KEY
MASTER THE ART OF LAUNCH, PR and
MOMENTUM BUILDING
YOU HAVE 4 hours!
57. #2.
CONNECT AND LINE UP
JOURNALISTS, BLOGGERS
AND INDUSTRY INFLUENCERS
100 Bloggers on
board
24k Journalists
Contacted
10 Media
Appearances
5k email List
1 Private Group
For Supporters
1 Full time Assistant
58. #3.
KNOW YOUR NUMBERS
Be 100% sure you can build it and KNOW
HOW MUCH IT WILL COST!
Factor in ALL the costs + DELAYS
COGS /BOM
Manufacturing
Shipping + Distribution
60. FUNDING FORMULA
# EMAIL SIGNUPS AVERAGE PLEDGE CONVERSION RATEX X
=
100k
FUNDING GOAL
X $200 10
61. ANATOMY OF A 100k
KICKSTARTER PROJECT
$100k
- $5k (Kickstarter Fee - 5%)
- $5k (Amazon Payment Fee 5%)
- $30k COGS (1/3 of sales)
- $20k Tooling
= $40k for a team for a year
+ Other costs
Certifications, Returns, Fulfillment, Marketing
62. Ultimate Guide to Launching a Kickstarter:
How to have hundreds of blogs lined up on the
day of launch
Access our launch emails, email templates
for journalists, bloggers and more
How to Build and use your community to
optimize for virality and shareability
Step by step blueprint for crushing your goal:
http://sheisonfire.com/kickstarter
Just a few years ago, it would have taken a corporate empire to design, build, and market a hardware game-changer like Apple’s AAPL -1.00% iPhone. Today, there’s far more hope — and excitement — surrounding the little guy, and for good reason.
There are companies which ar emaking it easier
China has the hwhole chain
Distribution channels;Grand St, gadget marketplace Tindie, Shoplocket provide ,means to easily reacg cosumers without needing to go through big box retailers.
I wanna invote you to be a part of this revolution
Drag your picture and Send to Back
What most hardware entrepreneurs underestimate is just how hard it is to bring a whole system — engineering, design, testing, packaging, supply chain, certifications, documentation, logistics, and so on — together into a product ready for mass adoption. It takes multiple iterations to make a hardware product truly amazing, so it’s a mistake to expect hardware startups to deliver Apple-like quality when they don’t have that type of experience. That’s why we always hear stories about much-hyped Kickstarter projects’ failed deadlines.
Yuou ar eprototyping tolearn - it’s the mosyt important fundamental reason to do so.
- you should be leanring form each prototype – showing it to potential users, demoing it fo r VCs to proof concept, and leraning about the prices
Prototype is here to communicate your idea
Prototype early and often – craft your prototype to your audience
“if you bring I to a meeting of designers you can bring rough foamcore, if you are bringing it to a meeting with VCs make sure you brough something more clean
Show different prototypes to different audiences – look alike – like rendres, work alike
Don’t be afraid to show a very rough version
Get your hands dirty – go and do laser cutting in techshop
Get it out in the frnt if the users asap and learn form then
Use scla emodels if needed
Tools for quick prototyping – eg paper
Work alike and looks like prototypes
Works like – focuses on a core functionality of hthe product to make sure the technical challenges have been met and fundamental subsystems work – sensors mechanisms or connevtivity solutions
Looks like prototype focuses n the form, easthetics and esign language and ergonomics to emphasize the look and feel regardless of functionalitu
It helps to isolate the feedback and determine both the deisgna dn the functionality – hence its good toget feedback separately on both ofthese things
Use teardownd – taking apart competitors products can be helpful.
Ifixit is the best resources for well documented teardowns of common products
Component selclection
How each part has been manufactured
How the product ws assembled
You wanna start icorpoatinb DFM here and this si where things usually get hard
The purpose of a minimum viable product or “MVP” is to get to market quickly, learn from customers, and iterate based on the results. Unlike in software, though, a hardware MVP isn’t about searching for a repeatable business model: People either buy the product, or they don’t.
A great hardware MVP is about the fastest path to cash — while still delivering a simple but good product. Because hardware is a cash-flow business, and that filter drives a lot of product decisions.
Can be hard an dexpensive transition
Amaking amnay is a different game
During the oprototyping you will make decisions which will affetct that stage – its good toprototype with manufacturing I
The TIMING – if you apperach too early the might not take your seriousl – if its too late they might not be able to roduce what you want – and you will have to build it all over gaian
If you have done most of your work before the corwwfudnig launch you would thing that this part will be easy. That s