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Ask HN: Best way to start my first hardware startup?

5 points by testmasterflex ↗ HN
Hi,

I have a product idea, I believe in it 100% and I want to start producing it. I have made a prototype with a raspberry pi that works but I need to make a proper version of it.

I want to start a company with this product and I want to hire some people to develop it and add more features. I'm single and young, I can move anywhere and work remotely with my current job (another company I own) and I can spend around 75% of my time in this new startup.

I see myself as a business developer more than a programmer, my programming skills are low.

I have about 40k USD saved up + around 5k I can take from my salary each month.

1) My first issue is: I want to create a prototype, and I want to be able to start manufacturing it by the start of next year. Should I just go down to Shenzhen and find some manufacturer there and work with them until I get a proper version?

2) If so, is there a possibility that the product would be copied?

3) I have a requirement specification document done, and the prototype to show. Would I need something else when finding someone that can build this thing in China?

4) If I for example started this company in Macedonia, the average monthly salary for an engineer there is 1k USD. I could hire 5 people full time there with my monthly income, and spend the saved money on other expenses. Good idea? (I know I should probably start with 1 or 2 persons first and then add more to the team.)

Grateful for any help

10 comments

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Juliate
1) That depends highly on specifics to your product, but before having a proper version, do you have tried users? and tried customers on your very prototype?

Before going to Shenzhen, you might find around you (geographically is best, online is good) prototyping engineers or consultancies for research/low volumes that might help you answer your 3) more precisely.

2) Yes. Always, wherever you are. If you depend only on your idea not being copied, you're toast. What matters is knowing where you want to go with that idea, and how you walk there, in the long run (finding customers that pay, providing a product that works, building on that).

3) See 1)

4) Why Macedonia? Why 5 persons? or 1 or 2 person (I mean, what for specifically)? Your goal is not to burn your financial investment but to spend it where it matters.

testmasterflex
Thanks a lot for replying.

1) Yes I have tried users and even some people have paid me already to deliver the product when it's done.

4) Macedonia because labour is cheap and I have a friend there who can help me get started with paper works etc. 5 people was an example of what I would be able to spend with the income I have from the other company. I will need an electrical engineer and a web developer at first, two people. Is starting it there a bad idea?

dnh44
It's impossible to for me to say if it's bad idea or not. It could be either. I would consider the following points. But first I want to mentioned that the country just recently changed its name to North Macedonia.

Do you speak the language?

Can you easily get the correct visas to visit and work there?

Do you really want to depend on personal favours from a friend to handle the legal part of running a business? You should probably account for the cost of professional legal and accountancy advice for the long term.

North Macedonia is one of the best ranked countries (by the World Bank) for ease of doing business. https://en.wikipedia.org/wiki/Ease_of_doing_business_index

North Macedonia is not in the EU yet, so exporting or importing to/from the EU will not be totally frictionless.

What would you lose/gain if you just incorporate in your country of residence and hire contractors working remotely in North Macedonia.

If the venture is successful, you may well end up spending a large part of your life in North Macedonia. Does that appeal to you? For whatever it's worth I've met someone who lived there for 3 years due to work, and they loved it.

verdverm
Join YC Startup School (link at the bottom of every HN page)

They had a lecture the last time for hardware startups. There are several hw startups participating this year as well.

testmasterflex
Thanks, I've went through it some years ago, I will rewatch that lesson.
verdverm
Are you hoping to raise money eventually? In what market?
testmasterflex
No, I want to bootstrap this as the components are not expensive and with cheap labour I can run it for a few years without reaching break even.
tylergetsay
3d printers can get you pretty far if you want to try yourself.
ecesena
We launched SoloKeys less than 1y ago. For content, we make hardware & firmware ourselves, we did a first batch in China and now we're manufacturing in Italy.

1) speed it up. We went from idea to shipping in less than 4mo, and I highly encourage you to aim for a much shorter timeline. You'll be late anyway (we shipped the 2nd product with 3+ mo delay), but that's fine.

2) don't worry.

3) rpi is a computer, it's pretty different from hardware. Can you prototype in arduino, for example? Can you do the board yourself? Otherwise you need a hardware & firmware person.

4) To reply to Shenzhen as well, you need to go where you are comfortable and have connections. If you search for a cheap contractor in a country you don't know, your risk to get screwed up is high. You should find the equivalent of a cofounder that partners with you to create the product, and late to manufacture.

I'm happy to talk more if you'd like, feel free to reach out directly.