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So you’ve done it, you launched your first hardware product. You probably think the hard part is over. Well, congratulations, but also… not so fast. The real work is just beginning. Now that your product is out in the wild, you need to figure out if it’s actually going to survive.
Are We Making Something People Actually Want?
This is the Y Combinator motto for a reason—because if the answer is "no," then nothing else matters. “No market need” is the #1 reason startups fail (cited in 42% of startup post-mortems). Your sales, marketing, supply chain, and hiring strategies won’t save you if your product isn’t solving a real problem for real people.
How to Find Out
- Feedback from ~30 target users: Even if it’s not at scale – can be “shockingly accurate” in predicting long-term adoption.
- Talk to your users—constantly: The best data you’ll get is from real customers using your hardware in real-world scenarios. What’s working? What’s breaking? What’s confusing them?
- Monitor usage and return rates: If people are buying but not using (or worse, returning), you’ve got a problem.
- Watch for organic referrals: If customers are recommending your product to others without being asked, you’re on the right track.
Benchmarks
- At least 30-40% of early users should say they’d be very disappointed if they couldn’t use your product anymore.
- Low return rates—under 5% is solid; over 10% means you have major issues to fix.
- A steady flow of inbound interest, or people finding you without heavy marketing efforts, suggests real demand.
- High compliance markets may need to rely on proxy metrics. Harvard Business School suggests paid pilot programs or letters of intent. Customers willing to pay for a pilot and jump through regulatory hoops are a strong sign you’re solving a real problem.
If you’re not hitting these numbers, it’s time to iterate. Fast. Fix what’s broken, refine your messaging, and make sure you’re solving a problem that actually matters.
Are Our Users Happy?
Happy users stick around. Unhappy users will torch you on social media, kill your growth, and make every sale harder. In hardware, where support issues are inevitable, your ability to respond quickly is as important as the product itself.
How to Find Out
- Track Net Promoter Score (NPS). Ask users, “On a scale of 0-10, how likely are you to recommend us?” Scores of 9-10 are promoters, 7-8 are neutral, 0-6 are detractors. You want more promoters than detractors.
- Monitor support interactions. Are people contacting you with the same issues repeatedly? If so, fix the root cause.
- Look at repeat purchases and word-of-mouth referrals. If no one is buying a second unit or convincing their friends to, that’s a red flag.
Benchmarks
- NPS of 50+ is excellent; below 30 means people aren’t thrilled.
- Customer support ticket close times under 24 hours for urgent issues.
- At least 20% of customers refer others organically.
If users aren’t happy, the fix is simple: talk to them and actually listen. Provide hands-on support, fix pain points quickly, and make the experience as smooth as possible.
Do We Have a Good Growth Rate?
Growth is your scoreboard. If you’re making something people want, and they’re happy with it, you should see a steady increase in users, sales, and revenue.
How to Measure
- Month-Over-Month (MoM) is the gold standard for startups.
- Pre-seed think 0-20% MoM, seed-stage could be 15-30% MoM, and for Series A target 25%+
- Customer acquisition cost (CAC) vs. lifetime value (LTV). If it costs more to acquire a customer than they’re worth, you’ve got a problem.
- Sales pipeline and conversion rates. Are you closing deals at a reasonable rate? Are leads increasing?
Benchmarks
- 20%+ month-over-month growth in revenue is strong.
- LTV should be at least 3x CAC. If you're spending $100 to acquire a customer, they need to bring in at least $300 over time.
- Conversion rates above 2-5% (depending on your sales model) suggest solid demand.
If growth is slow, revisit your messaging, pricing, or sales strategy. And check question #1 again—maybe you’re pushing a product people don’t actually want.
“There’s one thing investors look for that’s paramount to every other: traction. It’s next to impossible for investors to say ‘no’ when you show traction.”
- VC Firm Bolt
Have We Over Hired?
Hiring too soon is a classic early-stage mistake. 29% of startups fail because they run out of cash and 74% fail because they tried to scale too soon. The biggest spending? People.
How to Check
- Revenue per employee. If revenue isn’t scaling with headcount, you’ve got dead weight.
- Runway analysis. How long can you last with current expenses? If it’s under 12 months, you’re in the danger zone.
- Clear roles and productivity. If people don’t have clear responsibilities or are waiting for work to do, you probably hired too soon.
- Use consultants and fractional executives to access specialty skills and knowledge often required for hardware, especially in high compliance markets.
Benchmarks
- Each employee should contribute at least 2-5x their salary in revenue (depending on role).
- At least 12-18 months of runway without needing new funding.
- No "we'll figure out what they do later" hires. Every role should have a clear impact.
- 3–4 person teams can develop remarkably complex hardware (leveraging contractors or off-the-shelf tech smartly).
If you’ve over hired, be ruthless. Cut non-essential roles, focus on efficiency, and don’t hire unless absolutely necessary.
From Product Launch to Series A
If you focus on just these four questions after launch, you’ll be in a much better position than most startups.
- Are we making something people actually want? If not, pivot.
- Are our users happy? If not, fix their pain points.
- Do we have a good growth rate? If not, adjust sales, marketing, or product.
- Have we over hired? If yes, cut back before it’s too late.
Get these right, and you’ll build something that actually lasts. Get them wrong, and, well… good luck at your next job.