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Hardware startups have many risk factors that often make things harder for them than others startups. One of the biggest obstacles hardware startups face is dependence on overseas factories for their production. This can then result in loss of business if those suppliers receive fewer orders due to a natural disaster, factory closure, or even just off-season manufacturing. 3D printer startup Carbon has created an automated factory that states it can print in a single day, in equal amounts, as many products as a traditional factory. With this machine, you could essentially manufacture in house and never worry about overseas production.
Another major risk for hardware startups is investing in a product with a low chance of success. One of the main reasons this happens is they have a limited understanding of what customers want. You can avoid this risk with the help of 3D printing technology by quickly flipping through design programs for options and making changes on the fly. Alternatively, you can print a prototype to get a sense of how a product could be received by your target audience.
Startups are infamous for running out of money and people before the company starts to see success. To mitigate this, 3D printing can drastically decrease the number of wasted materials and the time necessary for equipment set-up. A study from the US Department of Commerce found that 60% of startups that failed in 3 years had spent at least 75% of their funding on capital expenses. 3D printing can use a lower percentage of capital expenditure and be more versatile with less waste.
One of the biggest concerns for hardware startups is competitor’s cost. With 3D printing, you can sell your product as cheaply or expensive as you want which will give you the option to stay competitive. This allows hardware startups to price their products in line with what they want to receive for the investment or experiment with a higher price point that could lead to more profit.
3D printing can lower risks for hardware startups in many ways. One big way is the increase ability to manufacture in house. With 3D printing, you can increase customer satisfaction with the ability to change design on the fly and the ability to prototype designs to see how they'll be received. You'll also have increased ability to create the design of your choice with lower startup cost and less waste.
Not too long ago, there was the popularity and potential for reducing risks for hardware startups. In an interview with Forbes, Jeremy Boyce, founder and CEO of Carbon, says that he employs over 70 people working for his company. He made a statement that they have raised over $50 million in funding from investors. One of the biggest risks for hardware startups is investing in a product with a low chance of success. One of the main reasons this happens is they have a limited understanding of what customers want. With 3D printing technology, you can quickly flip through design options and make changes on the fly. Alternatively, you can print a prototype to get a sense of how a product could be received by your target audience. One of the biggest concerns for hardware startups is competitor's cost. With 3D printing, you can sell your product as cheaply or expensive as you want which will give you the opportunity to stay competitive.