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3 Tips For Scaling A Hardware Company Successfully

Emmanuel Nnaemeka
  In the age where software startups and companies are taking over the place, most entrepreneurs focus on software services because of their easier entry, which often relies on good coding skills and other related skills. Setting up a software company isn’t as hard as setting up a hardware company. With a small team of skilled individuals, you can run effectively a software company.  
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On the other hand, developing a hardware company is much more intensive, requiring more time and effort in getting quality products to market. Hardware companies are capital intensive, harder and costlier to maintain. Despite the difficulty in building and growing a hardware company and the high entry barrier, it has its perks. For example, due to its high entry barrier, there is less market competition involved and entrepreneurs are likely to sustain a big market share for a longer period. Further, hardware companies are likely to retain loyal customers as long as they keep delivering quality goods.  Despite the potential hardware companies carry, there is little focus on this type of business, or rather there is so much emphasis on software companies. Examples of hardware companies include carpentry and furniture, gadgets, home appliances, clothing and accessories and much more.  In this article, I am going to discuss 3 ways hardware companies can upscale successfully. 
  1. Work With The Right Manufacturers.
As a hardware startup, working with the right manufacturers will save you cost while sustaining a quality product you can confidently present to the market. The choice of your manufacturer to work with can make or break a product, and thus make or break your startup. The most crucial factor in getting the right manufacturer is experience and track record. Knowing your manufacturer’s track record will enable you to either entrust him your designs to produce.  Furthermore, integrity is another vital issue, as outsourcing manufacturing will necessarily require the sharing of patents, designs, and other intellectual properties that are crucial to your company’s success. It’s important to investigate through a manufacturer’s record to be sure that they have a flawless track record in that respect. It’s also vital to make sure you have impervious legal agreements to protect your company. 
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  1. Build Your Community.
Studies have shown that hardware companies thrive when they build an anticipating community. For instance, Apple Inc. often hints its fanbase about their new version of laptops, iPhones, and other of their gadgets. The best to build a community is through crowdfunding platforms like Kickstarter and Indiegogo where startups have built a lot of publicity about their forthcoming products before it’s fully launched.  This guarantees the company that there is a ready market for its potential product, and also that its customer base would be willing to share their experiences, thus influencing more people to buy the product. On the other hand, if you’re not using a crowdfunding platform, it’s vital to invest the time and resources into building a community for your product by using a range of social media platforms. There are diverse ways to do this, but the ideal strategy would be to incorporate viral content marketing with influencer partnerships to ensure your product is getting seen by a large range of audiences who are already predisposed to becoming your customers. 
  1. Rigorous Quality Control.
Quality control is the backbone of hardware business operation because when your customers complain about the quality of your product, you’re likely to lose trust, loyalty and respect from customers who are impatient and can quickly switch to your competitors. A classical case of quality failure was that of the Samsung Galaxy Note 7 that busted into flames and cost several bodily harms to users. Most of its products were recalled back to their factories. This tragedy cost Samsung’s GDP to fall drastically. However, a tech giant like Samsung might survive, but a small hardware startup might lick its wounds for a long time to come. To ensure that quality control is rigid and rigorous, get In-house First Users and Quality Testers to critique the product before sending them to the market. These testers will include both tech experts, consumer behaviorslist, an average user and hardware designers who will tell if the product is good for market consumption. Featured image source: Techyv.com
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