Business Models for Hardware Startups

In this video you’ll learn about the pros and cons of various business models for hardware startups. Deciding on the business model for your startup is one of the most important decisions you will make.

Published on October 14, 2020 by John Teel

The main focus of this video is to teach you about one-time revenue versus recurring revenue and why you need a recurring element to your model. We’ll also look at the various types of recurring revenue you can add to a hardware startup.

NOTE: This video is actually just a single lesson from a in-depth video training course titled “How to Build a Hardware Company, Not Just a Hardware Product“. This course is available exclusively to members of the Hardware Academy.

Finally, don't forget to download your free PDF: Ultimate Guide to Develop and Sell Your New Electronic Hardware Product. You will also receive my weekly newsletter where I share premium content not available on my blog.

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Hao

Hi John, it is quite obvious and now popular Hardware as a Service, but can you share what are success factors of a HaaS model for B2C product ? In other words, to apply for HaaS for a B2C product, what kind of the product are suitable ? I try to search from Google, but no systematically study of this. Try to search to know from real experience on Quora, not much there. I noticed that if an IoT connected with Cloud-based content via a mobile app, you require people pay from credit card subscription via mobile app, Apple and Google classify those are digital sale and they take 30% of your revenue – a big chuck of money.

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John Teel

Reply to Hao

Hi Hao,

Since you are a member of the Hardware Academy would you mind asking this question in Academy community and I’ll be happy to reply in detail.

Thanks,
John

Tom

I can’t see the video – is there meant to be a link or something somewhere?

Reply to Tom

Hi Tom,

Sorry about that and I must have broken the video embed code. I just fixed it so you should be able to see it now. Thanks for pointing this out to me!

Cheers,
John

santos

I finished course in electrical and electronic engineering, but I still lack some of the fundamentals of electronics. How do I design a product and build a prototype on a breadboard

Simone

Hi John, nice that you’re sharing this video! I recommend you to add some video’s and images to make it a bit more tangible 🙂

Reply to Simone

Thank you for the comment and feedback Simone, I always appreciate it!

Dmitry Snegiryov

John! Please release news mainly in text format. Audio and video are not easy to translate into native language for accurate understanding. Thank you.

Reply to Dmitry Snegiryov

Hi Dmitry,

Thanks for the comment! I completely understand and since I do have an international audience I do try to mostly provide text content. But I like to mix it up some with audio and video since obviously a lot of my readers are native English speakers.

Would a transcript help on these type of audio/video posts? I have provided them in the past but then I wasn’t sure how useful they were so I’ve gotten where I don’t provide them all of the time.

Thanks again for the feedback which I always appreciate getting.

Deniz Gezmis

Quite enjoyed it. Much appreciated all the effort in making the video. Just one thing though. I would have rephrased ‘Inkjet Printer Model’ rather than ‘Razor Blade Model’, just to be more recent. Nowadays, inkjets are cheap but manufacturers make all the money from expensive inks (very annoying and unfair). Thanks again.

Reply to Deniz Gezmis

Good point and my example probably should be modernized a bit:) Injet refills is a great, and expensive, example.