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Setting Realistic Expectations for Your Hardware Startup
Setting realistic expectations for your hardware startup and your customer base is one of the keys to a successful product launch and long-term sustainability. Hardware startups typically falter when they over-promise and under-deliver—this can be on anything from features to shipping dates. Unrealistic expectations leave customers disappointed, and that is not the way build a successful business. By establishing attainable goals and giving consumers realistic expectations about your product, you set the stage for success.
Your customer base and product design are two main components that can make or break your startup. If you have a misstep on either in the early-stages, it is often a death sentence for a hardware startup. This is why honing in on your specific target market is necessary. Once you have a very narrow and specific target market, you can then match your product design to their specific needs and build your marketing message around what they can realistically expect from your product. Below are three ways in which you can communicate expectations for your product.
Narrow product scope. It is tempting to fill your product with a ton of features to make your customer happy. Our advice, don’t. Focus your product on doing one thing well and expand your feature-set on this. Finding this single feature to focus in on takes time, prototyping and testing.
Communicate benefits, not features. More often than not, customers want to know how your product will benefit them and don’t necessarily need to know the intricate details of how it all works. Through your marketing campaign, share with them the wonderful benefits that can be expected.
Iterate often for customer feedback. Small batches of units will let you get your product into the hands of your customers for testing and feedback. As your product changes, because it will during product development, don’t be afraid to share these changes with your test market to gauge their response.
When it comes to your hardware startup, setting realistic expectations internally is also a great idea. This will reduce stress for you and your team, so you can focus on what really matters. Below are two areas in which setting realistic goals and expectations is crucial.
Product development timeline. It’s no secret that product development takes time. Don’t try to force a product through the development cycle, only to find out after manufacturing that it is flawed. Take the time to get customer feedback often to reassure yourself, and others on board, that you are on the right path.
Manufacturing and shipping dates. Once you have a finalized design, you are off to manufacturing. This is a big leap, and is almost certain to be met with its own set of challenges. As we have seen with many Kickstarter campaigns (i.e. The Coolest Cooler), manufacturing delays lead to major headaches and frustrations, which translate into missed shipping dates. From the onset, set reasonable shipping date goals and share this openly with your pre-order customers.
Building a startup requires hard work, tenacity and open communication (internally and externally). The more honest you are with your customers about your product and business goals, the more responsive they will be to your brand.
Have additional hardware startup questions? We are happy to help! Send us an e-mail at firstname.lastname@example.org