Typically, startups are guided by their interest and a big idea, but this is not enough to create a product that is in demand. When the founder has an idea, it is worth analyzing the markets where there are up and down trends. Here you should not consider competition as the main factor. The main thing is to evaluate the “forces” that will meet the needs of the end consumer and take a step towards the right segment.
Due to the boom in IT and software technologies, the development of “iron” startups often remains in the background. However, the market for hardware start-ups shows promise, as evidenced by the number of investments attracted and the demand for IoT hardware solutions. In this segment, startups produce real physical products that integrate with separate software and can connect to the Internet and exchange data. However, these guidelines will be needed to create such an “iron” startup.
While much of the time management literature has been written about the importance of setting clear and achievable goals, hardware product developers often disregard these recommendations. As a result, many projects remain in the development phase for years, never reaching the market entry stage. Understanding the end goal is key to good prioritization. In the hardware segment, a product can bring the first noticeable profit many months after entering the market, so it is better not to set short-term financial goals and focus on formulating a long-term benchmark.
Once you’ve determined your endpoint, keep that in mind and periodically review your steps against your main goal. And don’t forget to re-evaluate the goal itself from time to time and be flexible: over time, the market situation and the market itself may change and you will have new entrances that will need to be adjusted.
It is important to take into account various factors: the possibility of obtaining a visa or citizenship, the legal complexity of registering a company, the availability of tax reliefs for startups, positions in various business rankings. The most successful countries in launching startups are the US, Canada, UK, Germany, Denmark, Finland and Estonia.
But there is one more country we would like to highlight. This year, the United Arab Emirates has become one of the best places in the world to start a business. There are over 10,000 small and medium enterprises in the country; in addition, by 2031, the UAE plans to breed at least 20 unicorns worth more than a billion dollars. Over the past decade, the United Arab Emirates has become a real attraction for many businessmen, vacationers and professionals from around the world. They come there to relax, start a business, buy or rent real estate, or rent luxury cars. The latter, by the way, is common, as the car rental service there is incredibly affordable. Specialists of such car rental companies will help you quickly arrange everything for any rental period. Even the richest people prefer not to buy expensive cars, but rent electric cars in Dubai, drive for a day or a month, and then run around Dubai’s famous tracks renting another luxury car. Judging by such a lifestyle, we are once again convinced that the most comfortable conditions for business development have been created in the United Arab Emirates.
It is important to determine what pain and for which segment of the target group the product solves. Iron start-ups cannot thrive without being attached to the pain they solve. Therefore, before launching sales, it is necessary to analyze market problems and identify target audiences. The cost of acquiring new users and your profit directly depends on the results of the analysis. It is dangerous to rely only on your own thoughts here – it is important to conduct Customer Development and talk to recipients.
It’s better to start by optimizing the main feature and then focus on user feedback. The simpler the product, the less time and resources you’ll need to release the first version. The main problem that device inventors often face is the desire to immediately create a product with a full range of functions. At the initial stage, focus on solving the main problem identified during Customer Development. In the next steps, feedback from users will serve as a guide and will help to identify points that need improvement.
If you are developing the product yourself, try to attract people with other skills as soon as possible. The developer will need a partner who thinks about the business component and vice versa. Please note that software development is an ongoing process that does not end with release. The first version will contain bugs, the code will need to be updated, and you will refine the functionality. If you are looking for an external developer, he should have enough motivation to devote his attention to the product for a long time. However, changing the developer during this period will significantly slow down this process.