Hardware entrepreneurship has started to spread to another important reason is that the author of the long tail theory, editor-in-chief of the "Connection" magazine (Wired) - Chris Anderson (Chris Anderson) so-called "smart phone war peace dividend":
"Smartphone all the components - sensors, GPS, camera, ARM core processor, wireless technology, memory and battery - now only a few dollars can be purchased. They are economies of scale as well as Apple and Google (microblogging ) such as product innovation machine. decade ago, they are a rarity. was cutting-edge technology used in the military industry; And now you can easily buy from the retailer RadioShack. "
In fact, now the world's most valuable company (Apple) and some of the most exciting start-up companies (such as Nest Jawbone, Leap Motion) is also producing hardware.
If you want to set up hardware companies, the following points you need to keep in mind:
(1) Production
From prototype to production to large-scale production process, many hardware companies suffered a defeat. To understand the production processes, entrepreneurs tend to live for several months or even several years. In contrast, hardware entrepreneurs often have more work experience than the software entrepreneur, because the production itself is a very complex process.
2 Defensive
Hardware companies typically have economies of scale, but hardware products but there is no network effect. This means that as long as you find a market, you will face competition from low-cost producers. The best start-up companies with the effect of network or platform software and services to make up for the lack of hardware. Entrepreneurial revenue hardware, software and services to create profits.
3 Plan.
Development - testing - repeating patterns in software companies are very popular, but it is not suitable for a hardware company. Rational planning is necessary because some errors can not be repaired. For example, your design may not meet environmental requirements, but you discovered the problem until a few years after the ready-to-market when.
4 B2C Competition B2B
Consumer hardware often receive more attention, the B2B hardware has many advantages. For the first time, you will have fewer competitors, because they have the hardware at the same time familiar with the commercial area of small entrepreneurs. Second, you will have less international competitors the B2B hardware is usually required with local sales and service team, which makes it difficult for foreign competitors to copy your pattern. Finally, the production processes at the local, because the higher price means you do not have to worry too much about labor costs.