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How to Avoid Common Hardware Startup Failure Traps
Yes, hardware startups fail and no, that doesn’t mean that yours will. By making yourself aware of the common reasons hardware startups fail, you are preparing yourself, your team and your startup to avoid these roadblocks. The adage may say that “hardware is hard”, but that doesn’t mean it’s impossible—we would even dare say that launching a hardware product has never been easier than it is today.
If you are in the preliminary stages of product development or still considering whether to pursue the innovative product idea you have, the list below will give you an idea on what challenges will arise and how to navigate the hardware landscape.
Not Considering DFM (Design for Manufacturability)
Design for Manufacturability not only matters, it can truly make or break your startup. DFM is the process of being proactive during the product design phase by considering the manufacturing stage of product development at the start of the design cycle. Early consideration of the manufacturing phase shortens product development time, minimizes development costs and ensures a smooth transition into production for quick time-to-market.
Overall development costs are minimized when DFM is utilized because the product design, from the onset, aims to reduce the number of parts that need to be manufactured which speeds up assembly. The entire goal of DFM is to produce a product that is easily and economically manufactured.
If you start down the road to product development without DFM in mind, you are embarking on a much more expensive journey that is full of delays and unnecessary frustrations.
Underestimating Product Development Expenses
Developing a product from scratch comes with costs. There are ways of minimizing costs, but you will still face expenses on the path to commercialization.
The cautionary tale of the Coolest Cooler shows what can happen when you don’t accurately estimate your costs—the company raised nearly $13 million dollars on Kickstarter, yet the Coolest Cooler almost shut down. The startup miscalculated not only costs, but their development timeline as well and ended up having a lot of angry customers and major delays.
Lack of Target Market Research & Validation
Research is vital—you should be constantly researching your target market and the industry you are venturing in to. Too many startups build their products in a vacuum, only to realize later that they are not meeting the needs of their targeted consumers.
Understand your customer base and obtain their feedback throughout the development process. This validation will not only allow you to modify your product to meet their needs, but to also validate each product iteration. At the end of the day, you want to be sure that you have customers that are as excited about your product as you are.
Unwillingness to Change Your Initial Hardware Product Idea
The product that you dream of developing might be drastically different than the product you end up developing. Your design might change because of customer preferences, manufacturing constraints or simply because there is a better and more streamlined design option. No matter what the reason, be open to change. It is great to love an idea, that is why you are embarking on this journey in the first place, but be prepared to modify that idea.
Wrong Manufacturing Partner
When the time comes to manufacture your hardware product, having the right manufacturing partner on your team makes all the difference. Speed, accuracy, reliability and open communication are all characteristics to look for when picking a contract manufacturer. Building a supply chain from scratch is challenging and the pressure is high to find the right match.
Make sure that you are evaluating factories that have proper documentation, strong referrals and the ability to communicate effectively and in a timely manner with you. Many startups realize that it is advantageous to work with smaller factories at the beginning so that their product gets the attention it deserves. A large factory that produces millions of parts a month might not be willing to take on smaller batches or give you product adequate attention.
Now that you are aware of these common pitfalls, navigating the hardware landscape just became a bit easier. If you still find yourself with product development questions, send us an email at info@3d-innovations.com, we are happy to help!
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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: Working in Lean Startup Mode
The very heart of the Lean Startup approach focuses on the overarching goal of producing a top-quality product (or service) and delivering it at a minimal cost while providing a great customer experience. In the business world, and particularly with hardware startups, the Lean Startup approach is synonymous with creativity, risk taking and quick acceleration.
Here we discuss three reasons why your business, at any stage, should embrace the Lean Startup method for product development.
Create order. Organization and order are fundamental pieces of the Lean Startup approach. A detailed, organized and methodical approach to product development creates order and ultimately saves hardware startups time and resources—thus adhering to the Lean Startup principals. “Using the Lean Startup approach, companies can create order not chaos by providing tools to test a vision continuously. Lean isn’t simply about spending less money. Lean isn’t just about failing fast, failing cheap. It is about putting a process, a methodology around the development of a product. (The Lean Startup Methodology)”
Not all ideas are going to be great right off the bat, but with customer research, market feedback and adequate product testing you can build upon your initial idea and create a product that is true to the needs of your audience.
Continuous innovation. Startups embracing this lean approach understand the importance of failing fast and learning from past missteps. Quick adaptation based on customer feedback is something that lean startups thrive on. By continuous product testing and communication with the target market, lean startups can innovate at a rapid pace to meet customer needs.
With the help of the build-measure-feedback loop, startups are constantly gleaning new information about their product market fit and learning ways to augment the design so that the optimal, and most innovative, product is achieved.
Building a product is hard work—however, with the right tools in hand, strong partnerships and a “work smarter, not harder” business approach, you can successfully bring your product to market.
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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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5 Major Challenges of Manufacturing Your Product Abroad
The manufacturing phase of product development is one of the stages that causes hardware startups the most stress. By the time you reach the manufacturing phase, you have a solid design in place, funding efforts are either underway or nearing completion and you now find yourself with the (daunting) task of securing a manufacturing partner. Keep in mind that manufacturing, either locally or abroad, comes with obstacles—however, these obstacles don’t have to be a crushing deal breaker for your startup.
If you have decided to manufacture your product abroad, there are a few additional obstacles that need be accounted for. Below we discuss five challenges your hardware startup will face while manufacturing your product abroad.
Cultural Differences
It’s no secret that business is done differently all over the world. In one country a handshake can seal the deal, while in another a deal may quickly vanish if you find yourself late to a meeting. Before you start connecting with manufacturers, learn the culture. Research cultural etiquette and, if possible, talk to others that have done business in the country before. A little research ahead of time, can save you major heartache later on.
When you are not in the same country as your manufacturer it is very easy to lose product quality. Things usually start off well, yet as days turn into weeks and weeks turn into years, quality can fade without your awareness. To protect yourself and the integrity of your product, be sure to include quality clauses in your contract and continuously examine and test your product.
Large Quantities
Most of the time you will need to order large quantities to receive a price break and make it worth while for your business. Quantities of this size can cause a bit of a cash crunch for a hardware startup just gaining its footing. With larger quantities also comes longer wait times. You may find yourself waiting months for your product to make it to the United States.
Choosing the Right Manufacturer
Whether you are manufacturing abroad or at home, this is always a challenge. Ideally you want a manufacturing partner that has experience manufacturing similar products to yours who is easy to communicate with. Vet prospective manufactures and select a factory that has the best reputation. If you are not able to inspect the manufacturer and factory on your own, consider outsourcing an audit. Before the contract is signed, do your due diligence so you can be confident that your product is in the right hands.
Logistical Costs
If you are manufacturing your product in another country there will be the additional costs associated with logistics. These fees can vary widely and become shockingly high if not researched properly. Before finalizing your decision of manufacturing abroad, take this cost into consideration to be sure that it isn’t a deal breaker for you.
Manufacturing abroad comes with certain trade-offs. Do your research and reach out for experienced expert advice before you delve into this phase of product development.
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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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Why the ‘One-Size-Fits-All Approach’ Doesn’t Work for Product Development
A one-size-fits-all approach can be utilized for a lot of things however, product development is not one of them. Throughout development, the stages of the “Product Development Cycle” will remain relatively unchanged (Concept, Design, Prototype, Test/Validate, Manufacture and Commercialize), but the approach and time spent in each stage will fluctuate based on the individual needs of your product.
When it comes to the development of a product, there is a great deal of time, energy and effort that goes into both the specialty design and product launch. Just like the fact that each product is unique, product development needs to be unique and customized in order to be successful.
Below we discuss three examples of why the “one-size-fits-all approach” just doesn’t work.
Highly Specialized Products
Chances are that if you are working on a highly specialized product, a one-size-fits-all approach would be detrimental to its outcome. Medical equipment, custom manufacturing tools and prosthetics are examples of products that need specialized attention and where precision and accuracy are of the upmost importance. When it comes to the development of these products, your product design will need to be extremely detail oriented and there is no room for error.
Customized Products
With the help of 3D printing technology, one-of-a-kind products are now feasible and quickly gaining in popularity. In a world full of customers, individuals want to stand out and have their unique style recognized. Customers are shying away from the “big box retailer” approach to purchasing products and instead opting for products that suit their specific needs. Hardware products that are highly customized range from in-ear headphones, replacement car parts to orthopedics. With the onset of mass customization, the phrase “one size fits none” is becoming more of a reality for hardware startups and manufacturers alike.
Licensing & Intellectual Property
When it comes to licensing and intellectual property, a highly customized product development plan needs to be in place. Often times the product development cycle will also be slightly altered if you are aiming for a licensing agreement or focused on obtaining a patent.
With a license agreement, you will not focus as much on the commercialization stage of product development, since this will be taken care of by the licensee. Instead, your energy will be on developing a product that meets the needs of customers while simultaneously appealing to potential licensees.
If obtaining a patent is your goal, you are going to need to focus more energy early in the development cycle on items such as: patent research and line drawings. Depending on the type of patent you are trying to get, the process can take months or even years, so from the start you will need to communicate to your team what your goals are after obtaining your patent.
Developing a product is a very personal journey for many entrepreneurs—nurturing an idea and seeing that idea take form and eventually a place on store shelves is no easy undertaking. With the right product development approach and team by your side, reaching your end goal can be both feasible and enjoyable.
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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: Communicating Your ‘Unique Selling Point’ (USP)
Your hardware product doesn’t have to be the first of its kind to the market to be successful, but it must have a unique selling point (USP). A crowded market doesn’t mean that you can’t find success, it just means that you have to really hone in on what makes your product and startup truly unique.
Before the internet grew and globalization exploded, being first-to-market was a lot less challenging. To some extent the global economy has created a situation in which product duplication happens at record speed. Focusing on your hardware product’s USP will allow your startup to differentiate itself and standout in a crowded field as well as in the minds of consumers.
A USP Doesn’t Have to be Tangible
Many people have the idea that a USP must be tangible and visible to consumers—this is not always the case. For example, unparalleled customer service is a USP that cannot be seen, yet it’s an excellent way to drive customers to your business.
Patagonia is a company that has carved out its niche in a crowded industry thanks to its USP of being a sustainable and environmentally responsible company. Customers do not mind paying a premium for their products because the company shares values that closely align with their own. Building a loyal customer base starts with communicating your USP well from the beginning.
Know your audience—this is a crucial aspect of a USP. Who are you marketing your hardware product to…Women, men, students, techies, parents, people in their 30s? With a clear understand of your target market, you will be better able to define a USP that matters to them.
It is important to note that while your target market will be narrow, this doesn’t necessarily limit who will buy your product. A product aimed at techies might also be well suited for students. A product aimed at a younger age demographic might also work for older individuals who want to feel young. The important thing is that your USP is clear and consistent.
Maintain a Consistent Message
Your USP should be a consistent voice in all of your marketing and communications. It is fundamental to your startup’s identity. It doesn’t stop there though, your product should also reflect this message. For example, if your company is big on sustainability, your product should be manufactured with materials and in a manner that is closely aligned with this USP. The USP should be engrained into every fiber of your startup. Developing a consistent message, distinctive voice and brand personality is all part of becoming recognizable and unique.
A clear USP will help you differentiate your hardware product and startup, regardless of the industry you are breaking into.
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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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3D Innovations Blog: Guest Writers Welcome
Our 3D Innovations team is always on the lookout for individuals with exceptional writing skills and an interest in hardware startups, 3D printing and/or product design. If this sounds like you, we would love to have you as a guest contributor for our blog!
How to Get Started
Send us an e-mail, info@3d-innovations.com, with the following information:
After we receive your e-mail, we will be in touch to narrow down a blog post topic with you, discuss the length of your piece and schedule a posting date. If you have a blog topic idea that does not fit in the hardware startups, 3D printing or product design categories, but in a similar category, we would be open to discussing this with you to get clarification and check that it would be a good fit for our audience.
About 3D Innovations
We are a Product Development company located in Honolulu, Hawaii. 3D Innovations provides Product Development services assisting companies with all stages of development. Our suite of services includes product design/engineering, prototyping, 3D Printing, additive manufacturing, supply chain management, packaging design, and production manufacturing sourcing. Using our experience in Design For Manufacturing processes, we are able to develop custom solutions for clients that accelerate their commercialization activities.
We support various Commercial and Government industries that include Industrial, Military, Construction, Medical, Manufacturing, Automotive, R&D, Inventors, and many more. We provide 3D Printing and Rapid Prototyping services to quickly validate designs and make improvements for production manufacturing. Experience the benefits of 3D Design and see how 3D Innovations can develop innovative solutions to engineer, design, and manufacture your product.
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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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Connect with us on Twitter, Facebook & LinkedIn today
Four Must-Haves When Searching for a Product Development Firm
Experience
You are going to want an experienced firm. Whether you need them for a single stage in the product development cycle or for the entirety of it, you need a firm that has in-depth experience. This experience means that they will be able to foresee potential issues and help remedy them before they become major problems for your startup. Also, don’t be afraid to reach out to past clients of theirs to ask about their experience with the firm as well.
Industry Knowledge
Are you going into a niche industry? Search out a product development partner with experience in it. Not all firms can be an expert in every industry out there, we advise you to talk to your network and find a firm that has experience in your specific industry. This will not only assist you in the development of your product, but the additional knowledge brought to the table will help get you up to speed on the industry as a whole.
Professional Contacts
Find a product development firm with a large network and extensive “rolodex”. This network includes everything from Intellectual Property Attorneys to Public Relations Experts. Your startup is going to need assistance from a range of professionals as you work to get it off of the ground. Many first-time entrepreneurs quickly realize that they can’t do it all on their own, and need to bring other professionals on-board to keep things moving ahead.
Manufacturing Partnerships
Manufacturing a new hardware project can be a bumpy road. You are going to want, and need, a product development partner that has established relationships with manufacturers. Most product development firms have relationships with both local and international manufacturing companies, and can help you decide what direction will make the most sense for your business. Also, while the product development firm will have manufacturing partners, that doesn’t mean you are required to use them. If you have a manufacturer you feel will be a better fit, make sure your product development firm is willing to work outside their network.
Deciding on a product development firm to partner with is no small task. You are entrusting your idea and invention to another, and you want to be sure that it is going into the right hands. This crucial partnership during the early formative days, weeks, months of your hardware startup can make all the difference.
Have additional product development questions? Contact us at info@3d-innovations.com
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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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When is the Best Time to Consult a Product Development Firm?
Partnering with a product development firm early in the product development cycle can expedite your time-to-market; however, there are at least three other times in which this partnership is invaluable to your startup.
Technical Expertise
Often times startups are in need of a technical expert to get their idea off the ground. Whether you are a software or hardware startup, the right expertise is necessary and often the difference between success and failure.
An expert with experience in the industry you are trying to navigate will be able to provide you with instrumental insight and get your startup headed in the right direction from the start. As Steve Jobs once stated, “It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do.” While a technical expert won’t tell you what to do, their insight will help you make better informed decisions.
Manufacturing Phase
Manufacturing a product is an expensive undertaking, and becomes even more expensive with each misstep. You need to be sure that your design meets manufacturing requirements and is cost efficient from the very beginning. When working with a product development firm, you can prepare early for this step with a product design centered around Design for Manufacturability.
Design for Manufacturability (DFM) is the process of being proactive during the product design phase by considering the manufacturing stage of product development at the start of the design cycle. Early consideration of the manufacturing phase shortens product development time, minimizes development costs and ensures a smooth transition into production.
At the heart of Design for Manufacturability is a group of design guidelines structured to help the designer reduce costs and manufacturing difficulty. The following is a brief list of these guidelines:
Patent Preparation
The patent process is extremely regimented and your design documentation must adhere to strict guidelines. A product development firm can make certain that you have the necessary line drawings for the patent filing process. Often times product development professionals work directly with patent attorneys to ensure a streamlined and timely filing for your invention.
With the right partnerships in place, your startup can quickly realize its full potential and get your product into the hands of customers.
Have further questions about product development? Send them our way at info@3d-innovations.com
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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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Product Design: Building Products Customers Can’t Live Without
Problem Solver
Is your invention solving a common problem that a segment of the population experiences on a regular basis? People want solutions to everyday annoyances and chances are that if there is a problem you are experiencing frequently, there are others in the same “boat”. If your product is not solving a common problem, you are going to have the added task of explaining to your customers that they are experiencing this “problem” and don’t even realize it.
Price Point
Finding the perfect price is every startups dilemma. If you price it too low, you eat into your profit margin and customers might get the false idea that it is a “cheap” product. However, if you price it too high you risk alienating the customer base you are targeting. Work with focus groups to help determine the right price.
Ease of Use
Is your product easy to use or does a customer need to read instructions beforehand? Customers want products to have a degree of intuition designed into it. If your product is too complicated or made too cumbersome by unnecessary features, you should think about a re-design. “Design works best when it gets out of the user’s way.” –Neil Gajera
Existence
Is your target customer base aware that your product even exists? If you have a great product, but no one is aware that it is on the market, you have a problem. Getting ahead of this potential problem early-on is the best way to make sure this doesn’t happen. Test your product out with focus groups, give working prototypes to people who will share their feedback with you and their experience with others and don’t forget to market your product. You don’t have to have a large marketing budget to make your product known, grassroots marketing can be some of the most effective and cost efficient.
Great product design is the balance of simplicity and functionality.
Need assistance designing a product? We can help! Send our team an e-mail at info@3d-innovations.com so we can get started.
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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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How to Prepare for Your First Patent Attorney Meeting
Below are a few tips on how to prepare for your initial meeting with a patent attorney. Keep in mind that the first meeting can be free—being adequately prepared means that you will be able to glean as much knowledge as possible from this meeting.
Prepare a brief description of your invention.
The key to this description is to be concise. What does your invention do? What are the main functionalities of your invention? This written summary if often called an “invention disclosure statement”, however it doesn’t need to be formal and can be written in any form. Keep it to a page or less in length, and even a paragraph or two will be sufficient.
Write your description so that someone unfamiliar with the product can get an idea of what it does and the technology behind it. Patent attorneys deal with a variety of technology, but don’t always have an extensive technical background, so you want to be able to bring them up to speed quickly on your specific invention.
Bring drawings or a prototype.
Seeing your invention is a quick and efficient way of describing your product to the patent attorney. A prototype allows the patent attorney to assess the product and understand the exact intricacies behind your invention. Depending on the exact nature of your product, a functional prototype might be just what you need for the meeting. However, line drawings or sketches of your product will also work for your initial meeting. These drawings don’t have to be formal, but they should be thorough.
Conduct your own patent search.
This can sound slightly counter-intuitive since you are meeting with a patent attorney, however you should to conduct your own patent search beforehand. Search patent databases such as www.google.com/patents or www.uspto.gov using keywords from your “invention disclosure statement”.
Print the patent search results.
From your patent research, print and bring the patents that are most similar to your idea. You can either print out the patent references or compose a list of them, so that they can be easily retrieved. This will provide a research starting point for the attorney as they conduct a more formal patent search.
We also suggest organizing the above information into a single file folder and include a business card. This way the attorney will have all of your invention information and contact information in one place.
Adequate preparation for this meeting ensures that you will get the most out of your initial meeting and hopefully gain a better understanding as to whether this route makes the most sense for your invention and stage of business.
Have additional questions about patents, prototypes or line drawings? Please send us an e-mail, info@3d-innovations.com
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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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