Samsung acquired SmartThings, an Internet of Things based company, for $200 million. Google acquired NEST Labs, also an Internet of things based company for $3.2 billion. So obviously there is something big on the horizon. But we also see a lot of IoT based companies being shut down e.g. Berg, a pioneer in design and user experience in IoT closed down recently but it got a lot of fame when it launched.
We often see IoT startups going at a peak in their valuations but after a few month of launch, they shut down. We will discuss a few entrepreneurial skills that should be kept in mind whenever you are going to start an IoT based startup, or even if you already have started it and are busy fulfilling orders, these points should be kept in mind by an entrepreneur.
The first thing any entrepreneur should know and think about is what’s really important to end users. There are thousands of new ideas related to IoT that really isn’t the need of the user. For example internet-connected tray in your fridge that can keep track of the eggs and notify you when there is only a few left. Fascinated, right? But do we really need that in our life? So in order to be successful, you should always think creatively and offer an IoT product that really adds value to end users.
The internet has always been about people, but now it is also becoming internet of things. It might be new concept for some and they might resist adapting to it. IoT products are sometimes very unique and new, people don’t adapt to them quickly. Most successful startups looked at negative comments as important learning points and maintained their optimism, but don’t forget to make calculated changes to your idea or product.
Many of the IoT startups bootstrap and make prototypes before getting to their big breaks and postpone the process of scalability until much later. Whenever you are developing your IoT product, remember to think about scalability from the start. What actually happens is that IoT products gets fame quickly and get many orders, but the company don’t actually know how to manufacture a big amount of their product on time and end up losing their customers. A good entrepreneur will always adapt to changes quickly and will always think about future perspectives from early stages of the startup.
IoT startups launches a new product and focus so much on it that they forget to focus on emerging realities. Sometimes the idea takes too much time for people to adapt that there are much better solutions to the same problem and founders are often surprised to hear about the latest developments that has happened in the field. Always keep an eye on what is happening in the field instead of just focusing on your product.
These are a few points that every IoT startup founder should always have in mind along with basic entrepreneurial skills.