Igor Ramos 12/04/2013
@RamosIgorS
LeanHardwareStartup.com
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2: Video version available
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Note
Ideas, anyone?
• Ever had an idea for a product?
• Write it down / memorize for later
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What is LEAN?
• Each & every effort shall add value
– Effort = your time/money
– Value = what the customer is willing to pay for
• Effort w/o value = waste
• Continuos improvement – Prioritize
– Start “ugly” / improve over time
– Focus on what adds value / remove waste
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Who’s Igor?
• ‘01: Brazil � US
• ‘03: BS Electrical Engineering
• ’05-present: Design big yellow machines
– MS Engr. Management, ASQ SSBB
• 2011: Minneapolis � cold � hobby
– Electronics � Startup � Share knowledge
Pronouciation: [ee gor]
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Minnesota Hybrid?
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My START
• Remote starter � Range issue � CellStarter
• Bridge: remote starter & cell phone
• After few months. Final prototype:
Box Contents
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New Product CYCLE
Idea
Make one
Make Many
Market
Hobby
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Time to: Make Many & Market
– Business
• Competitor: OnStar, Viper
• Install: professional
• Market? Hack, anti-tech
• Support
– Technical Design
• Operating temp: -40F
• Battery (vehicle vs own)
– Automotive issue: Liability
• Overwhelmed
• Frustrated
• Burnt out
• Insecure =
Stuck
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RESET: inventory management
• Remove ALL hurdles from CellStarter
• Now...
– Help businesses make $$$
– New technology, seamless, etc...
– ~$5000 + subscription fees
• After proto complete, stuck again:
– CANNOT do it alone & part-time
– Too big & expensive for 1 person
– Personality
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RESET again!
• Simple: something I already know
• Easy support
– tech saavy people
– Arduino: lots of users
• Low investment
– Don’t care if don’t sell any
• Assemble myself
– Charge enough to pay for my “trouble”
– Sell on eBay
DTMF Shield
for Arduino
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Results
• 2/22/2013 made 3 boards: ____________$12
• 3/20/2013 sold 3:____________________$120
• Conclusion
– 1 year 4mo = $0
– 1month: $100.
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Applying the Breakthrough Lesson
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My Startup Story
• 1 year 4mo = $0
• +1mo. = $100.
• +2 mo. = $1,000.
• +2 mo. = $10,000.
• Total YTD= $20,336
• Not about the money (yet):
– Clear path forward + Lessons Learned
LeanHardwareStartup.com
How do you pick a project?
You Idea
Big
Small
Do it!
Patent it
Wow!
Genius!
Seen that already
Dumb
Money looser
Trivial
External & internal
pressure
“rockstar”mentality
The product idea
you wrote down
big or small?
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Where do YOU stand?
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Are you in Balance? Fix it!
You Your
project
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This is where I stand
The “secret” formula
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The Big Lesson Learned
“Ideas are dime a dozen. The
money is in the implementation
... focus on going through cycles
so you’re ready for the big one”
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My Cycles
Hand
assembly
(=me)
PCBA: hand,
US (free!),
China!
First case
(3d print) New PCBA
Autopilot
DTMF MICO RECAP MICO
phase 2
Need gap
“low fruit”
Better
marketing
RECAP2
#1 #2 #3 #4 #5
12/20/13 On hold Out of Stock Now:
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My next Cycles
X
#n
Injection
molding
Z
#p
The BIG one!
Investor, Take
over...
Y
#m
Outsource:
marketing,
technology
...brains
... ...
3D printer $1000
US = $8k (1”x1”)
China= $2k - $4k Fiverr,
Freelancer
Research &
network. Local
meetup group LeanHardwareStartup.com
Example of a Progression Plan
Technology Mfr Enclosure Support Market
AC Supply Automated
only (BGA)
Injection
molded
Phone, in
person
Corporate
(ind/com)
Rechargeable
3d print
Batteries Pre-cut kit Email Consumer
External power
Off-the-shelf
No power
Hand made
OK (PTH)
Circuit board Forum Hobbyst
Harder
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Rehashing the Big Lessaon Learned:
Big Idea vs Small Cycles
...
Typical advice Igor’s advice
STUCK! BREAKTHROUGH!
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Plan
A big idea
could get
you there
Many smaller ones
also can!
‘Lean’ gives you
direction
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Summary
• My backgound
• My story
– Fail
– Sucess
• My breaktrough moment, lesson learned
• Tools & concepts
• Now...
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IT’S NOW YOUR
TURN TO STARTUP!
@RamosIgorS
LeanHardwareStartup.com
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