Posts Tagged "niche market"

Hardware Startups: Crowdfunding — The Power of ‘The Crowd’

As the popularity of crowdfunding has grown, hardware startup entrepreneurs in particular have found success tapping into ‘the crowd’ and moving their products from concept to shelves. A successful crowdfunding campaign begins with one key component: planning. Start planning and preparing for your campaign months in advance so that when it is time to go live, you have a well-polished campaign that highlights your brilliant product.

If you are ready to tap into the power of ‘the crowd’ below are four essential items that can’t be overlooked:

student_trainingA Working Prototype

A functional prototype is necessary when you are trying to get people excited about a new product. While people can indeed envision a product from a great description, there is no substitute for the actual thing. This prototype not only shows potential investors what your product can do, it is also necessary for the marketing material on your crowdfunding page.

An Exciting Video

Our second point correlates directly with the previous one, you can’t have an exciting video unless you have a functional prototype. The video portion of your page is where you let your product shine. The more descriptive and creative your video is, the more people are going to get truly excited to contribute to your campaign.

Early Customer Connections

Don’t wait for your crowdfunding page to go live before you start connecting with your customer base—this is too late. Connect early-on with potential customers to help build anticipation for your product and campaign. This is the time where you tap into your connections to form key partnerships. Do you know any industry influencers? If so, connect with them and work on forming a partnership in which they will be willing to help share your campaign with their connections. Remember, crowdfunding is all about tapping into ‘the crowd’, so the more people that see your campaign the better your chances are for success.

Content Creation

Let your creativity run wild! This includes all videos, photos and text; make your content unique and memorable. Also don’t forget to include the “ask” in your pitch. This piece is often overlooked so the message gets lost. A clear and concise “ask”, coupled with a creative campaign means that you are on your way to crowdfunding success.

Setting up your crowdfunding campaign will take planning and hard work, but remember that it is also supposed to be fun. Show potential backers the fun side of your product and your team.

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

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Hardware Startups: Defining Your Niche Market

August 22, 2016
3D Innovations

Launching hardware startups, or any type of business for that matter, is a gamble—but defining and finding your niche market doesn’t have to be. Knowing your niche market is one way for hardware startups to quickly get their product into the hands of consumers and find success.

What is a niche market?

niche_market“A small but profitable segment of a market suitable for focused attention by a business. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them.” (Business Dictionary)

Developing a product that specifically targets a segment of the market that is not having their needs met is a great way to scale a business quickly. The competition is low and the barriers to entry are minimal, which is an ideal landscape for launching a hardware startup.

Defining a Niche Market

Defining your niche market means that you need to have a deep understanding of both your product and the consumers you are marketing your product towards. Below are a few ideas on how to define a niche market for your hardware startup.

  • Define The Gap. What is missing and how will your product address it? Identify “the gap”, or problem, in an existing larger market that you aim to solve.
  • Understand Your Ideal Customer. With whom do you want to do business? Be as specific as you can. Create a “wish list” and narrow your ideal customer down as much as possible. For example, a small niche would be: customers located in Northern California, which make $60,000+ a year and are avid outdoor biking enthusiasts. This focus will help you develop your product and find your target market.
  • Focus. Clarify the product that you want to develop and sell. Have a clear understanding of your product and how it meets the needs of your ideal consumer. For example, you don’t want to say that you are going to design a GoPro accessory; instead you can say that you want to sell a GoPro accessory that easily attaches to a baseball hat.
  • Identify Your Strengths. What sets your hardware startup apart? Three factors to consider, what makes your startup unique, identifiable and is it scalable? You should be able to apply these three characteristics to both your startup and your buyer personas. While your business might be starting out in a small niche, having a product that is scalable will translate into long-term growth and success.

Once you have a clear understanding of the niche market you are aiming your product towards, take time to test this market and be ready to re-evaluate if necessary. In the end, having a firm understanding of your niche market will mean that your startup is taking a calculated risk, and not just a gamble.

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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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