Working with hardware can be hard, but it doesn’t mean you can’t succeed. Thankfully, there are strategies you can take to ensure that your hardware startup can grow sustainably.
Photo Credit: Laney Griner
Here are five ways to succeed with hardware:
1. Offering services (and software) is arguably the easiest way to hold on to your customers.
One of the most successful hardware companies integrates services like iTunes and iCloud across multiple platforms to increase switching costs.
Dell, in its heyday, used customisation and superior customer service to attract both retail and business customers.
In another industry, auto manufacturers maintain their customer relationships with car maintenance, service stations, and financing options.
Current trends among IoT hardware startups should look into this as a key strategy.
2. Catering to a specific niche audience can discourage potential competitors from entering your market space.
For an ambitious entrepreneur who has set their sights on conquering the world, this might be the most difficult thing to do.
However, it’s one of the best approaches to disrupting an industry. Amazon, Quidsi, and Zappos are great ecommerce examples of being able to scale by focusing on very niche consumer products: books, diapers, and shoes, respectively. Some recent hardware startup examples include GoPro (cameras for extreme sports), 3D Robotics (drones for the DIY community), and Nest (smart thermostat).
Conclusion
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