Introduction
We are seeing a vast rise in startups working on some of today’s most disruptive technology. However, statistics show that many startups are constantly failing to get to market. There doesn’t seem to be a proven source for this failure, but rather a mixture of bad mistakes, and unforeseeable circumstances startups neglect to prepare for. Perhaps by highlighting these issues, startups can better plan for the long product development journey ahead.
Resources
As a startup, you will look toward accelerators, incubators, and/or set up an office in a maker/coworking-space. Regardless of where you begin, you’ll be lacking the necessary resources which can accelerate your product to market.
Don’t get me wrong, these types of spaces are fantastic, and have been proven to elevate/nurture startups through their very early stages. But, what happens after? Startups fail to realize that getting to a prototype/proof of concept (POC) is only the first real step towards completion. I meet many founders who think the next logical step after a prototype is Chinese manufacturing, this is, of course, a misaligned illusion which leaves startups scratching their heads.
Make sure that there is a path paved out once getting to your prototype. A prototype is nothing more than a validation point, it is not a product, and is more than likely not fit for the market. There are many more validation points you will need to achieve before hitting the market, so prepare for this journey, make sure you have access to the necessary resources that will get you there.
Partners
Perhaps you have hired a good team who understands the process, regardless, you will need the infrastructure, and knowledge to get your product to market. The above paragraph outlines the difficulty startups will face once leaving early-stage institutes, a solution to this is outsourcing to a trusting partner. You must find a partner who is capable of getting your product through the next stages of product development and has the resources/infrastructure to do so.
Startups usually attempt to keep their product development internal, or are unable to trust a 3rd party to help. But this can be a huge mistake. By not outsourcing or working alongside a 3rd party, after getting to prototype, you’ll either stagnate or discover many barriers which will ultimately fail your startup. Once outsourcing part of the work to experts in the hardware field, it frees up a large amount of the workload, allowing you to focus on other key areas of your startup’s development.
Investment
Investment is a huge part of a startup’s success. Without initial capital, your company will have many difficulties or even be dead in the water. So, not only is raising investment crucial, but also how you spend it too. If we look into the past we can see numerous startups successfully raise capital, but ultimately fail. Why is that?
One reason is that they didn’t know where to spend it. Growing a startup, especially in the hardware space, is expensive. You’ll find many people suggesting you can get from idea to market within a $100K USD budget. This is ridiculous, and anyone who understands hardware will agree. Now, don’t get me wrong, I am not talking about simple consumer products, but rather the industry changing sectors such as medical, sustainable, agricultural, and AIOT technology.
There is a vast amount of startups who are constantly chasing the money rather than building the product itself. Once receiving your first round of funding get yourself to a validation point (prototype). Prove your product is generating market traction, and outline your next steps for getting it to the market. Only then will investors be more inclined to invest in you.
Conclusion
Regardless of where you are, and how you’re starting up, there are many platforms in-place ready to assist you through your startup’s development process. It takes time, but if you’re smart in utilizing resources, partners, and your investment, then you’ll have a higher chance of getting to market. Remember, globalization has accelerated the pace of development. Think globally rather than locally. If you’d like more information/advice, you can contact us by emailing [email protected]. Time to get it made.
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