How to run a Hardware Startup? (Indian Perspective) - Part 2

Crowdfunding is highly recommended for most consumer hardware-tech

Thanks for your great response and insights on Part 1 of this post! [first published on LinkedIn]

Today, we achieved new milestones in GPS accuracy (even in cloudy weather) & Swing Angle detection! In hardware, you won't believe how hard it is to come by these small successes. Hence this excitement :) Anyway, back to my post...

6 - Customers pay for perceived benefits, not "cool tech"

We made this mistake early, and as founders close to the product, you might too. Even if you identify the right problems to solve and solve them the right way, you need to present them to the customer as a solution. So "World's Best AI-Powered Sports Wearable" is a poorer pitch compared to "Get high-impact performance-insights tailored for your game". In fact, what would work even better? A specific problem that your product solves. E.g. "Hit precise cover-drives off every half-volley".

As you can see, this shapes your thesis, your product-pitch, ad-copy & creatives.

7 - Protect your IP. Patenting is an ongoing process, not a one-time thing

It's possibly true that VCs increasingly look at secret-sauces & trade-secrets, rather than "patents" while evaluating companies. However, it is still critical that you protect your IP - trademarks, patents, etc - in all jurisdictions of your interest for two reasons: (1) to protect your business against copycats if you're successful, and (2) to feel more comfortable working on your own product without being slapped with an infringement suit.

Also to be noted, Patenting isn't a one-time thing. It's an iterative, incremental (expensive) process.

8 - Consult experts / similar businesses to structure your transactions

Especially useful for international trade businesses.

Make sure you're getting your transactions into the right country, into the right bank account, paying the correct amount of taxes etc. Also, ensure that you aren't subjecting yourself or your customers to excessive Customs Duties, VAT etc.

India isn't the easiest place to do business, and GST Laws complicate this further. For example, if you receive money in India, but manufacture out of China and drop-ship directly to the customer, which Customs Office do you deal with? Which country's taxes are imposed? Are these treated as exports (do you get the benefits)? All these are questions that merit serious thought.

9 - Crowdfunding validates product-market fit

If you're a hardware founder, you NEED to explore Kickstarter and Indiegogo. Kickstarter is the more credible older sibling, that usually offers All-or-Nothing funding (i.e. you keep your money only if you hit your target) but caters to only a handful of countries: India is not one of them. Indiegogo is more flexible, and supports most countries worldwide. However, due to failed projects in the past (which raised millions of dollars), there is some amount of distrust among backers.

Please remember this: a successful Kickstarter or Indiegogo project is not just essential for good cash-flow. It's a tremendous confidence boost. PEOPLE WANT YOUR PRODUCT! And they're willing to take the "crowdfunding risk" and wait a long time to get it. Now it's your job to deliver.

10 - Customer-Service > Tech

It doesn't matter how good your tech is; your customer support needs to be better! People love hands-on teams that are responsive to any problems they face. A customer with a bad review might end up loving you if you handle his/her query well. And this results in awesome word-of-mouth publicity!

Take feedback with humility. Be responsive, and be nice. And solve problems fast. Keep the communication channels open: Messenger/FB Groups > Email > Contact Us Webpage > Phone Call (in most startup cases).

MORE COMING SOON. In case you have any questions / suggestions / comments up to this point, I'd love to hear from you. Cheers.