Hardware Startups: The Challenges of Scaling Up

IP Licensing

Most entrepreneurs start out hitting the ground running and want to take their idea, build upon it, and scale it quickly; however, scaling hardware startups come with unique sets of challenges to consider. Growing any business has inherent obstacles and the basics must be considered, such as: funding, talent and competition—hardware startups also need to take into account additional vital aspects, such as: sourcing, manufacturing and intellectual property. Scaling is a tricky task—scale too quickly and you can get in over your head, scale too slowly and you risk losing momentum and opportunities.  Below are some common pitfalls to avoid when scaling your hardware startup.

Losing touch with your customer.

When you are growing a company it is imperative that you keep your current customers happy. These are the customers that have made it possible for you to scale your business in the first place and you don’t want to let them down with poor customer service now. It is also extremely easy to start to get “sloppy” as you introduce new product versions or product lines, and these errors will whittle away at your customer retention. The core elements of a successful business are customers and products, so even in times of growth, both should be at the front of your mind.

Manufacturer sourcing.

Manufacturing can be the Achilles heel for hardware startups. One misstep in the vetting process or in contract development with a manufacturer and your business can sink. If you don’t have experience going through the contract manufacturing sourcing process, it is critical to find advisors or consultants that have. You are going to want to embrace competition and have multiple manufacturers bidding on your project. Your meetings with manufacturers are as much about pitching to them to get them excited about your project, as it is about doing your due diligence on their facilities and experience.

Streamlining a strategy.

At the beginning, your hardware startup will have one goal in mind: To successfully develop a product and get it onto store shelves. All team members will work towards this single goal on a daily basis. As you begin scale, your strategy and goals will transform, change and multiply. The fluidity of your new goals can make it hard for founders to take their mindset from that of laser-focused product development to business high-level. As your list of goals begins to grow, your strategy will shift to taking the top three or four-high level goals and focus teams accordingly.

Scaling a business is rewarding. Taking the time now to plan and prepare for sustainable growth will serve your startup well.


3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.

Subscribe to the 3D Innovations newsletter on our Facebook page!

Connect with us on TwitterFacebook & LinkedIn today

April 2024

Most Viewed Posts

BabyToon Testimonial

error: Content is protected !!