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Ben Einstein Follow

Product designer and lover of hardware. Founder + partner at @BoltVC

Oct 20, 2015 7 min read

This is Part 1 of a 4 part series on the hardware product development process.

Head over to Part 2 (Design), Part 3 (Engineering) and Part 4 (Validation) if
thats more relevant for you.

Building a product that customers love is often the dierence between a $1B
company and bankruptcy. But with the cost and time requirements of the
hardware world, startups really only get one chance to ship a product. Failure
and iteration isnt an option like it is for software startups.

If building a great product is so important, why do most hardware startups we

talk to reject any sort of process for product development?

This series of posts is designed to shed light on what a good hardware startup
development process looks like.

Yes, You Have aProcess

Startups seem to have an allergic reaction to anything that imposes order. Yet,
most software startups have vocally supported adopting the Lean Startup
process popularized by Eric Ries:
The build-measure-learn loop has become engrained in the software startup
culture but is incomplete for hardware startups. Most hardware startups
embrace a product development process that looks something like this:

Most startups think the hair-on-re methodology is faster because its less
overhead but in the long run this couldnt be further from the truth.
Hardware product development requires more planning than software
development. This is driven by the sheer number of things that must be done
right before shipping a connected hardware product. Many of these things
have long lead times and high costs if done improperly. A tiny mistake in
design or a poorly QCd part can bankrupt you.

The Process

The process we use at Bolt is a hybridization of heavy-handed processes

prescribed by the manufacturing/quality community and lightweight
processes used by many design professionals. It is divided into four general
phases: ideation, design, engineering, and validation.

To better illustrate this, well follow a specic product that was designed using
this methodology: DipJar (one of Bolts portfolio companies).
DipJar is a young startup building
a simple product used to accept
tips and donations from credit
cards (rather than cash). DipJar
doesnt sell their product
outright: each customer pays a
xed monthly fee per jar in
addition to a small percentage of
each transaction.

The company was founded by

Ryder Kessler and Jordan Bar Am
in New York City and has raised a
relatively small amount of capital.
Yet, theyve successfully shipped
many units to customers and
demonstrated product/market t.
Much of this early success is
directly related to the companys
focus on customer-centric
development and iteration.

The rst production version ofDipJar



Ideation starts with clearly dening the scope of the problem and ends with a
proof-of-concept prototype. Spending more time here will ensure founders lay
a strong foundation for the rest of product development.

Problem Research
Problem Research

Each image from in this series will always depict where we are in the product development process (top left) and the

approximate amount of time elapsed (topright)

Too often engineering founders jump into building product without stepping
back to concretely dene the problem theyre working on. Understand your
problem space rst with customer development interviews.

When interviewing potential customers:

Have uid, unscripted conversations and be open-minded about where

the conversation may lead you

Dont talk about your product or solution

Take detailed notes or recordings to build a database

Work towards building 3+ customer personas

Dont only focus on what people say, also pay attention to how they say it.
Nearly every company starts with an ah ha moment an anecdote
connecting the founders experience to the problem theyre solving. For
DipJar, that moment was in a coee shop. While a student, Ryder would
frequent the local Starbucks a few times a day and became friendly with the
barista sta. One afternoon it was exceptionally busy and the sta looked
miserable. At least youre collecting a lot of tips, Ryder remarked. Actually,
no one tips anymore due to credit cards. Wed rather the store be empty.

As Ryder talked to more people, he realized it wasnt just baristas that were
aected by the decrease in cash transactions. Ryder also talked to musicians
(especially those performing on the street), service providers (like barbers),
and charities (including Salvation Army and The Childrens Miracle Network,
both early customers of DipJar).
Conversations like these are the basis for building customer personas, which
are ctional, generalized proles of your ideal users. Having lots of these
conversations will also equip you with a database of anecdotes to pull from to
inform the rest of the product development process.

We love talking to companies that have built personas like those on the right.
It shows depth of knowledge in a problem space.

Good problem research usually follows this checklist:

If its a B2B customer: you know which stakeholder at the company
makes the decision, how they purchase products like yours, and why this
is a top 3 problem for them

If its a consumer customer: you know what brands they identify with,
which designated marketing areas they live in, and their purchasing

You have research to support how much they would pay for your product

You have a beachhead customer base dened and a total customer base

If you plan on raising venture capital, you can demonstrate how these
numbers equate to $100M of revenue within 5 years

If you can check o each of these items, youre ready to begin to think about
how to solve this problem.

Proof-of-Concept Prototype

Proof-of-concept (often abbreviated POC) prototypes are all about

validating the major assumptions your problem research uncovered. In
DipJars case, the team had some major questions to answer:

Can people gure out how to use a DipJar within 5 seconds at a counter
during a transaction?
Was collecting cash along with credit cards important?

Are shop owners/employees supportive of having a DipJar on their


These are fundamental questions to DipJars viability as a business. They

quickly built prototypes to test these assumptions. The three prototypes above
were built in a few days using o-the-shelf parts (an Arduino, a simple
infrared detector/emitter pair, some aluminum tube, and a bit of spray
painted plastic).

Even though DipJars primary purpose is to charge credit cards, they didnt
have time to implement that (nor was it critical for testing these assumptions).
So these proof-of-concept prototypes dont even have a card reader, just a way
to detect and count how many times a credit card was inserted.
The team took jars to various target customers and left them there for a day.
When the POC jars were collected, the team could tell which jars were more

As it turned out:

People easily gured out what a DipJar was and how to use it within 5
seconds of seeing one for the rst time

Most places preferred to collect cash in their own jars (and thus the cash
basket in the DipJar never made it beyond this prototype)

Owners and employees were okay with giving up a bit of counter space in
exchange for more tips

Like any prototyping process, building a POC prototype is iterative. Some tips
for this process:

Come up with lots of ideas before building anything and evaluate the
best one(s) to prototype. Some founders like using formal tools (mind
mapping, superstorming, group ideation, brainstorming, etc). Ive found
that these techniques tend to be less eective than informal tools
(conversations, mockups, and prior art searches).

Focus on testing assumptions

Prioritize speed over quality (this is very hard for engineers to do, but
critical in this step)
Use o-the-shelf parts vs building parts from scratch

Now that we have a good understanding of the problem and how were going
to solve it, its time to optimize the solution so customers can use it. On to Part
2: Design.