lean hardware startup | kickstarter | arduino | twelve dollars

Igor Ramos 12/04/2013

@RamosIgorS

LeanHardwareStartup.com

1: These slides have attached audio! Highly recommended

2: Video version available

For full experience:

http://bit.ly/mylean

Note

Ideas, anyone?

• Ever had an idea for a product?

• Write it down / memorize for later


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


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]


Minnesota Hybrid?


My START

• Remote starter � Range issue � CellStarter

• Bridge: remote starter & cell phone

• After few months. Final prototype:

Box Contents


New Product CYCLE

Idea

Make one

Make Many

Market

Hobby


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


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


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


Results

• 2/22/2013 made 3 boards: ____________$12

• 3/20/2013 sold 3:____________________$120

• Conclusion

– 1 year 4mo = $0

– 1month: $100.


Applying the Breakthrough Lesson


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


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?


Where do YOU stand?


Are you in Balance? Fix it!

You Your

project


This is where I stand

The “secret” formula


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”


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:


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


Rehashing the Big Lessaon Learned:

Big Idea vs Small Cycles

...

Typical advice Igor’s advice

STUCK! BREAKTHROUGH!


Plan

A big idea

could get

you there

Many smaller ones

also can!

‘Lean’ gives you

direction


Summary

• My backgound

• My story

– Fail

– Sucess

• My breaktrough moment, lesson learned

• Tools & concepts

• Now...


IT’S NOW YOUR

TURN TO STARTUP!

@RamosIgorS


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