Manufacturing Facts Hardware Entrepreneurs Need To Know

Developing a product is exhilarating, however when the time comes to start the manufacturing phase of the product development process, many entrepreneurs aren’t exactly sure where to begin. Below are some pieces of advice that every hardware startup should know about the manufacturing process.

mfg3Understand your cash flow.

Many startups are strapped for cash—especially during the early days—that is why understanding your company’s cash flow is crucial. Depending on your hardware product, you may be required to purchase certain components six months to a year before your launch. Work with your manufacturer to setup a realistic payment option that won’t leave your startup in the red.

Find an experienced manufacturer.

All manufacturers have experience, but your goal is to find a manufacturer that has experience building a product similar to yours. Chances are that if they have experience building a similar product, the number of challenges that arise will diminish. Also, ask to see product samples so that you can get a feel on the quality of work they produce.

If your goal is to manufacturer your product in the U.S., prepare to pay a little bit more. However, some entrepreneurs don’t mind paying more for the comfort of being able to visit the manufacturing facility on a regular basis. During the early production runs you are going to want to be on-site to talk with the engineers to make sure things are running smoothly.

Be prepared to compromise.

You might have visions of making your product from recycled materials, or certain sustainable materials, however, these may not be the best options for your product. Your product is going to need to meet certain thresholds and tolerances, which means that using the correct material is imperative. Be prepared to compromise on things such as materials, the manufacturing timeline and other variables that will undoubtedly arise.

Start with small production runs.

While you are putting final touches on the design and working out the “kinks”, it is a good idea to start with small production runs. The minimum (around 5,000 units) run will give you a chance to fix any issues that come up without experiencing potentially dire financial consequences.

If you are planning on running a crowdfunding campaign, a small production run might not be feasible if you have a wildly successful campaign. In that case, you can consider the option of running multiple manufacturing lines. While this can complicate the manufacturing process, it will help you stick to the timeline you laid out for customers. If you would rather stick with the small product run method, let your customers know that you plan on starting with small batches and scaling up gradually, which will mean a longer wait time—keep in mind that most customers are willing to wait when the startup is transparent about their timeline from the get-go.

Do you have additional questions about the manufacturing phase of the product development cycle? Let us help! Contact us by e-mail at info@3d-innovations.comor or by phone at 1-808-772-8667.


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

Startup Connector is a Manufacturing Accelerator helping companies commercialize—turning ideas into products.

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June 2024

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