Starting a new business is an exciting but potentially nerve-wracking and expensive time.
The factors that influence how successful your business becomes vary greatly, and many of them you may not instantly be aware of.
To help ensure your new hardware startup has the best chance of flourishing in an extremely competitive market, we’ve got a few tips that are worth bearing in mind.
Think about the customer
Almost half of startups (42%) fail because there is simply no demand for their products or services.
Before you start your new business, you need to make sure that what you will be offering is both needed and wanted by potential customers.
After all, without clients how are you going to make any money? Conduct market research and make sure you have a thorough business plan before launching.
Collaborate with manufacturers
The manufacturers you’ll use to make your goods will probably have an array of resources that you could tap into if you establish a strong relationship with them. They could provide help with design tweaks, modelling and prototyping during your development stage.
A heightened degree of closeness could also get you access to their contacts. This could include potential suppliers of components or packaging and shipping experts.
Market your product early
A key way to enhance your success is by getting people talking about your brand.
There are plenty of things you can do to get this to happen, such as teasing out advertising on billboards, TV and social media, as well as creating a branded hashtag.
Identify potential influencers and get them to promote your product to their followers – they’ll have direct access to your target market and the trust and loyalty they receive online will be indirectly transferred to you.
Plan for contingencies
To avoid setbacks, it’s best to overestimate how much time you’ll need to spend on product development.
It can be a long and arduous process, with prototypes requiring significant fine-tuning to make sure they are ready for launch.
You’ll be highly unlikely to get everything right the first time around, so anticipate issues with the coding, software or the printed circuit boards you use in your product.
Finally, before sending your product out to customers, make sure you have some stringent quality assurance processes in place.
The last thing you want is to be dealing with a series of refunds due to faulty goods. Worse still, you could be forced to recall an entire batch if there is found to be a consistent issue across the board.
This would be extremely expensive, costing money that you might not yet have in reserve, and could do significant damage to your reputation.