by Arindam Paul of Atomberg Technologies
While having a great startup idea which addresses several problems is impressive, if you are not able to transform this idea into something productive, then it is entirely pointless. Many budding entrepreneurs with ingenious ideas are stuck in the middle of the ideation and execution stage.
A lot of hardware startups like Grey Orange Robotics, Atomberg, Ezetap underestimate how exhausting it can be to collaborate different ideas together. There are numerous processes to build a product for mass consumption namely engineering, testing, design, packaging, supply, documentation, certification, logistics, etc. It takes many attempts to create a hardware product that strikes a chord with people on a mass level. Therefore, the entrepreneurs must give considerable time and effort to their startup.
The foundation of a good hardware product is emphasising on a single feature and making the product consumer-friendly. Several hardware companies don’t know how capable a product is until they start selling it to the consumers and gather their feedback.
Here are the top six points to remember that can transform an idea into a bankable business:
1. Substantial Research.
Many hardware startups sometimes fail to pay attention to this significant aspect. At the initial stage, comprehending the wants and needs of your target audience can make all the difference between failure and success. Extensive research will help you evaluate all the pros and cons of the business you wish to pursue. It will also make you aware whether your idea has a possibility of flourishing in the market and help you generate powerful marketing.
2. Create a Minimum Viable Product (MVP).
Creating a minimum viable product showcases that the entrepreneur is focused on the idea, and on the way to bringing the project to life. Build a prototype and test it for any possible hazardous outcomes. Next, go to your potential buyers and request them to use the product. This process will help you document aspects such as usability requirements, functional requirements, performance metrics, constraints, etc. Understand the feedback as it will help you create a functional framework for the product. This is necessary to understand the capital required to start the business.
3. Build a Sound Business Plan.
A builder utilises a framework to make sure that a building will be constructed appropriately. The same way, it is important to create a structure for your business. This blueprint will help to ascertain your competitors, customers, market availability, marketing strategy and everything else. Since hardware startups are consistently evolving, they should focus on an overview of every section of a business layout like cost structure, resources, customer relationships etc.
3. Find Investment.
Determining good investment sources can be a big issue for new hardware startups that don’t have enough money to fund themselves. In a conventional format, startups pitch their idea to crowdfunding firms like Angel investors. Accelerator programs also help startups to raise funds. However, getting picked for these programs might be tough for numerous startups because there is a multitude of innovative ideas that are pitched in these programs every day. An alternative is to take loans and make use of it in your business.
4. Recruit an Efficient Team.
Now, that you are set with a sound plan and investors, spend some time to hire a good set of employees. An efficient team is the crux of a successful hardware startup. Build a team that will help your business rapidly grow. Having a good team is also important because the investors desire to invest in talented people who are committed to the business before you even have any cash flow.
The points mentioned above are the foundation of a good hardware startup. There are a hundred million bits that need to be accomplished between these. However, always focus on the end product and remember that renewal of hardware will not only shake up the industry, but it also has the potential to transform the meaning of a hardware startup.
Arindam Paul is a founding member of Atomberg Technologies, a startup working towards creating unique energy efficient and tech savvy products. He is currently heading the Marketing and Long term strategy division at Atomberg and is aiming to disrupt the world of household appliances.