{"id":2709,"date":"2015-10-01T13:27:55","date_gmt":"2015-10-01T11:27:55","guid":{"rendered":"http:\/\/www.wlappe.com\/en\/?p=2709"},"modified":"2020-01-22T12:15:47","modified_gmt":"2020-01-22T10:15:47","slug":"hardware-startups-and-lean-startup-a-complicated-but-successful-relationship","status":"publish","type":"post","link":"https:\/\/www.wlappe.com\/en\/2015\/10\/hardware-startups-and-lean-startup-a-complicated-but-successful-relationship.html","title":{"rendered":"Hardware startups and Lean Startup: a complicated but successful relationship"},"content":{"rendered":"<p>I\u2019ve been working with many startups recently, mainly using Lean startup methods, and it has been quite accepted. But one industry where things seem to be different is hardware. I\u2019ve been working with this kind of startup mainly in <a href=\"http:\/\/hardware.co\/\" target=\"_blank\" rel=\"noopener\">Berlin Hardware Accelerator<\/a>, but also in Startup Weekend (<a href=\"http:\/\/berlin.startupweekend.org\/events\/startup-weekend-makers-games\/\" target=\"_blank\" rel=\"noopener\">Berlin<\/a>, <a href=\"http:\/\/www.up.co\/communities\/france\/paris\/startup-weekend\/6002\" target=\"_blank\" rel=\"noopener\">Paris<\/a>\u2026), and some training programs. <img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-2698\" src=\"https:\/\/www.wlappe.com\/wp-content\/uploads\/2015\/10\/hardware_quote1.jpg\" alt=\"hardware_quote\" width=\"161\" height=\"206\" \/> I\u2019ve also been sharing ideas with other entrepreneurs and accelerators in the industry. Of course, hardware is so different than web or software: timeframes, investment needs, team composition\u2026 but many of the<strong> main Lean Startup principles are still useful<\/strong>, and what\u2019s more, really necessary for these hardware startups.<\/p>\n<p>The main problem with hardware startups is that they are <strong>focused on the product<\/strong>, many times more than on the business, and because they know or feel there\u2019s a long path, they feel confused and usually they don\u2019t have a clear plan.<\/p>\n<p>There is not a lot of specific information about this industry, and here I\u2019m not trying to show the complete solution, but I would like to highlight some areas or phases of the startup where the<strong> mix of Lean Startup principles, facts about the industry, and best practices<\/strong> could be helpful.<\/p>\n<ul>\n<li><b><a href=\"#hardware_business\">Hardware business by itself:<\/a> <\/b>as in all the industries some topics are quite special, probably well known, but also good to be reminded of.<\/li>\n<li><b><a href=\"https:\/\/www.wlappe.com\/en\/2015\/10\/hardware-startup-focusing-on-a-mass-market.html\">Massive market<\/a>: <\/b>it\u2019s likely if you\u2019re doing something for professional use in a B2B market you\u2019re familiar with, it won\u2019t be so complicated, but when you\u2019re going to a big B2C market you need to pay attention to some details. Making mistakes when thousands of units are involved and you\u2019re using months of work and thousands of euros is not a good idea.<\/li>\n<li><b><a href=\"https:\/\/www.wlappe.com\/en\/2015\/10\/crowdfunding-campaigns-for-hardware-products.html\">Crowdfunding campaigns<\/a> <em>(<a href=\"https:\/\/www.wlappe.com\/en\/2015\/10\/crowdfunding-and-hardware-startups-ii.html\">a<\/a><\/em><a href=\"https:\/\/www.wlappe.com\/en\/2015\/10\/crowdfunding-and-hardware-startups-ii.html\">nd II<\/a>): <\/b>this is the first idea many projects have, but it\u2019s a really unique way to get money, so be sure it\u2019s the right one for you and you launch it at the right moment.<\/li>\n<li><b><a href=\"https:\/\/www.wlappe.com\/en\/2015\/10\/how-to-validate-and-test-the-market-in-hardware-startups.html\">How to test<\/a>: <\/b>more than product testing it\u2019s about market and user needs fitting, as always in Lean Startup, but here with some differences.<\/li>\n<li><b><a href=\"https:\/\/www.wlappe.com\/en\/2015\/10\/how-to-validate-and-test-the-market-in-hardware-startups.html#complicated_products\">Complicated products<\/a><\/b>: some problems could also appear in B2B markets, especially when hardware is involved but it\u2019s not the business alone. And many projects are going there because hardware as a service is more attractive than selling gadgets.<\/li>\n<\/ul>\n<p>In the following posts I\u2019m going to go into these topics, starting here with the broad vision of the hardware business.<br \/>\n<a name=\"hardware_business\"><\/a><br \/>\n<b><i>Hardware business by itself:<\/i><\/b><\/p>\n<p>People say \u201c<strong>Hardware is hardware<\/strong>\u201d, but someone should do it. And I\u2019m sure there are many opportunities in this sector. So many products to change and old industries need to modify the way they work.<\/p>\n<p>There are so many <strong>barriers<\/strong> in this business. But these exist for you and for upcoming competitors, so each one you pass is an advantage in the market for your company. These barriers also make these projects go slower than wanted, but there\u2019s not a lot to be done about it.<\/p>\n<p>For <strong>investment<\/strong>, time and money needs are higher than for usual web projects, so special investors are needed. They should know it and accept it, and they exist, every day more, but probably not yet enough (e.g. <a href=\"https:\/\/medium.com\/point-nine-news\/haas-an-investment-thesis-for-hardware-startups-e3500c8d7007\" target=\"_blank\" rel=\"noopener\">Point Nine Capital focusing in HAAS<\/a>)<a href=\"https:\/\/medium.com\/point-nine-news\/haas-an-investment-thesis-for-hardware-startups-e3500c8d7007\" target=\"_blank\" rel=\"noopener\">.<\/a><\/p>\n<p><strong>Certifications<\/strong> such as <a href=\"https:\/\/en.wikipedia.org\/wiki\/CE_marking\" target=\"_blank\" rel=\"noopener\">CE stamp<\/a>, <a href=\"http:\/\/www.tuv.com\/en\/corporate\/business_customers\/product_testing_3\/our_ervices_1\/certification_3\/certification.html\" target=\"_blank\" rel=\"noopener\">T\u00dcV<\/a> in Germany\u2026 are needed, you only need them for the product, so if you find different uses for the same device is great. Also this is a problem for crowdfunding campaigns under 100K\u20ac because the cost of these certifications has a high impact on the total budget.<\/p>\n<p>Maybe in the prototyping and testing phases you can skip it, but if you start selling it\u2019s absolutely necessary. That also depends on the risk involved. It\u2019s not always the same. Something with a small battery is different than a plugged in device, and a toy is not the same as a medical device. So it\u2019s not only about regulations, many times there are ethical topics to be considered in case of failure.<\/p>\n<p>When we do <strong>financial plans<\/strong>, the first two years of hardware startups are difficult, or at least challenging. This is because it involves B2C (crowdfunding), manufacturing, B2B\u2026 also you can overlap some of these tasks, probably not 100% but reducing the total time of the project significantly.<\/p>\n<p>Despite the barriers and difficulties, hardware is an emerging area. it\u2019s more than a promising prospect but far from maturity with <strong>space for many innovative projects<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I\u2019ve been working with many startups recently, mainly using Lean startup methods, and it has been quite accepted. But one industry where things seem to be different is hardware. I\u2019ve been working with this kind of startup mainly in Berlin Hardware Accelerator, but also in Startup Weekend (Berlin, Paris\u2026), and some training programs. I\u2019ve also [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125,121],"tags":[],"class_list":["post-2709","post","type-post","status-publish","format-standard","hentry","category-hardware-en","category-insights"],"_links":{"self":[{"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/posts\/2709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/comments?post=2709"}],"version-history":[{"count":5,"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/posts\/2709\/revisions"}],"predecessor-version":[{"id":2777,"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/posts\/2709\/revisions\/2777"}],"wp:attachment":[{"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/media?parent=2709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/categories?post=2709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wlappe.com\/en\/wp-json\/wp\/v2\/tags?post=2709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}