Manufacturing hardware products can be riskier than developing software because once you create thousands of products, it is hard to make changes to them compared to the software world where updates can be made easily. Hence, the question becomes how to ensure that the right product is being built for the right audience. The founder of Prelaunch.com, Narek Vardanyan recommends studying customer behavior rather than their words to understand what they want. He suggests getting potential customers to buy or put down a deposit to evaluate real buying intent, which is more valuable than simply verbalizing it. By working with people who are risking their money, it acts as a filter and allows only potential customers to be considered.
Vardanyan also recommends finding a “core user” who loves your product and will help drive its growth. It is important to understand what the core users’ needs are so that the product can be designed accordingly. It is also necessary to find out the right channels to reach out to the core users through effective marketing.
One way to test hardware products is through crowdfunding platforms like Kickstarter and Indiegogo. They allow entrepreneurs to test whether their product can generate enough interest before they invest heavily in manufacturing. However, Vardanyan suggests that entrepreneurs should not be over-reliant on that as crowdfunding campaigns can give misleading results. Moreover, they need to ensure that they offer a fair value proposition to their backers and focus on delivering high-quality products.
Entrepreneurs can also look at the market demand and competition for similar products. They can analyze the pricing strategy of their competitors, the features they offer and their target market to understand the market gap, which they can target. Feedback from potential customers can help entrepreneurs to refine their product features accordingly. It is also important to understand the manufacturing process and associated costs to ensure that it is feasible.
One of the pitfalls in hardware development is that it can take longer to develop and test the product prototypes. As a result, Vardanyan suggests breaking down the development process into smaller phases and setting clear milestones. This will help them to validate their assumptions and gather feedback at each phase.
Entrepreneurs can also leverage social media platforms and other websites such as Reddit, Quora and Hacker News to test and evaluate demand for their product. They can conduct surveys, create landing pages for their product, and monitor the engagement levels to understand the interest level of potential customers.
Finally, once the product is developed, entrepreneurs should monitor customer feedback regularly and keep improving the product features to keep up with the changing market trends. It is important to build strong relationships with customers and address their queries or concerns promptly.
In summary, manufacturing hardware products can be a risky business, but entrepreneurs can minimize the risk by understanding the market demand, finding their core user, and monitoring customer behavior. With proper planning, research, and testing, entrepreneurs can ensure that they are building the right product for the right audience.
