Before we get into the details of how we intend to pull this off, there are few clarifications we should make about the tagline on our blog, “Can 2 guys and $25k build a successful hardware company?”.
- The founders are not getting paid. We fully expect not to earn a single cent for at least the first year, likely the second, and probably even the third.
- The $25k does not include living expenses. We have roofs over our heads, and we’re not starving. We have savings and alternate sources of income to see us through (barely).
- This isn’t our first hardware startup. We both have experience working in the tech industry, and have already invested a couple years in a previous startup.
That being said, building a hardware company on a $25k budget still isn’t an easy feat. Apart from development and prototyping costs we’ll be looking at certifications (FCC, CE, IC, etc.), tooling (moulds, dies, jigs, etc.), legal, and logistics. In fact, we’re even going to try and include some of the inventory costs for the first 1000 units in that $25k.
In terms of a timeline, we expect to the have those first 1000 units shipping to customers well within the first year. The sooner we can get real hardware in the real world, the sooner we can start to determine what our actual product will end up as, and who our actual customers will end up being.
Of course, we do have a vision of what we expect our product and customers to be, but in reality we’re just guessing. You may think it’s impossible to pivot a hardware company with all the sunk costs associated with building a physical product, but it’s not. It just takes careful planning, and more importantly ensuring your core product (where 90% of the time goes) can be easily realigned to solve an entirely different problem for a few hundred (or sometimes a few thousand) dollars, and within a reasonable timeframe.
Don’t believe us? Follow our progress and prove us wrong. If anything we’ll be producing a wealth of free information that we hope might encourage other would be entrepreneurs to take the plunge