I began an exciting startup venture by creating an innovative IoT product to improve safety and comfort for seniors living alone.
Recognizing the potential of an aging global population, we saw a significant opportunity.
We see a huge market since the world has become an aging population world.
Our parents are getting older.
Most of them are living alone. But the idea is not to leave them alone.
The Sweat Building a Tech Product
We build a technology that can monitor them remotely.
It was an exciting day as we thought it could solve the peace of mind problem, leaving our elderly parents at home knowing their safety and health.
We spent more than two years building the product. We spent so much time and money.
We have the challenge of either focusing on building the hardware by ourselves, outsourcing, or just buying off the shelves.
After so much deliberation, we finally chose the fastest way by defining our specs and searching for a company that has the hardware but is willing to make some custom changes to the firmware that suit our needs.
It took us over six months to finally work with a manufacturer in China. But it’s not an easy relationship. We managed to secure it because we convinced them that the market would be very big.
Too Focused on Tech
Most of the team members are tech, and that’s where we put most of our efforts and money.
A big mistake that we realize later was we didn’t spend much time getting users feedback.
We didn’t reach out to as many potential customers.
We tried very little to get trial users in the early stage.
When we had small traction in the elderly market, we received another idea: why not expand to the Hajj pilgrimage market where people can get easily lost?
We re-justify our market segment by making our assumptions.
We have given trial users to use the new M2M sim card, which has the roaming capability to travel from home to overseas.
Finding the right telco and having the correct pricing is also a challenge.
Not all telcos in Saudi support the roaming sim card. But we also found out that the firmware of the smartwatch also needs to support the particular telcos.
Thus, making our product work in different situations was a challenge.
Burning Cash – The Survival Mode
Challenges in Securing Funding
As more than a year passed, we are burning cash. It has reached seven digits, and we have not seen a gold mine yet.
We have to find funding, and we need to draw investor interest fast.
Despite reaching out to over 70 venture capitalists through various means, finding willing investors proved daunting.
It was at the very early stage of the products when we pitched our product.
In fact, at that stage, it was only a Minimum Viable Product (MVP) and didn’t have enough market traction.
Our only compliments were that we had such a fantastic product.
But yet… no one was willing to invest.
Valuable Lessons from Investor Interactions
The feedback we received was enlightening. Investors were hesitant, citing our newness in the market and need for real customers.
Our pricing strategy and lack of a concrete business plan did not win them over, and we lacked health industry expertise, which was critical for our product’s success.
We should have brought in a health advisor or medical doctor in our team to advise whether our iot product suits the healthcare market or not…. But we didn’t.. And that is also our big mistake.
The Covid-19 Pandemic Killed Our Product
At one time, we were very excited when all the trials were done successfully in preparing for the Hajj.
However, we were hit with Covid-19, and mobility was restricted for two years, and there was no Hajj pilgrimage.
Our product hits a halt.
By the time the pandemic is over, the product will seem obsolete. People wanted a better wearable device.
However, our partner in China has become silent and no longer entertains our requests.
Finally, we decided to axe the product and focus on new ones.
But that will be another story.
Overcoming Rejection
The journey was not easy, especially dealing with the rejection and criticism from potential investors.
However, these challenges did not deter us.
Growth and Resilience
Our startup has survived beyond the critical six-year mark, learning from each obstacle and rejection.
We’ve honed in on our strengths and developed a robust business model attractive to investors, emphasizing the necessity of proving our product’s market fit.
Preparing to Re-engage
With newfound insights and a reinforced plan, we are poised to approach the funding arena again, equipped with a comprehensive understanding of our past lessons.
Lessons for Fellow Founders
For fellow entrepreneurs, every difficulty is an opportunity to learn and grow.
Here is a summary of the crucial lessons learned:
• Embrace the startup challenge with tenacity and the realization that significant market needs drive success.
• Understand the arduous nature of securing early-stage funding and the importance of a compelling business plan and sales strategy.
• Industry expertise is vital; lack thereof can harm your product’s relevance and appeal.
• Strive for product-market fit as a primary indicator of your product’s potential.
• Convert criticism into constructive feedback to fortify your business approach.
• Maintain persistence, as a startup’s survival often depends on overcoming early failures.
• Use experience to sharpen your startup’s focus and refine strategies for growth.
• Prepare thoroughly for funding pitches, leveraging past lessons to enhance your prospects.
• View setbacks as opportunities to build a stronger foundation for future endeavors.
• Cultivate adaptability and a willingness to learn from mistakes, which are essential for long-term success.
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- You can also follow my Medium Publications: Aspiring Writer’s Journey, Influencer’s Journey, Startup Survival Journey, IoT World .
- I have also published several eBooks, such as IoT Notes, IoT: Beginner’s Guide, Startup Survival, Mastering IoT with Favoriot, Your IoT Journey, IoT Infographics — Your IoT Journey Guide.
- Or, if you prefer, check my bookstore at Gumroad — https://mazlanabbas.gumroad.com.
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Dr. Mazlan Abbas 