“Send Me a Proposal”: The Costly B2B Sales Mistake I Made as a Startup Founder

When a Proposal Felt Like a Breakthrough

In the early days of my startup, hearing a company say, “Send me a proposal,” felt like recognition. Someone had noticed our work and thought we might be able to help. I was happy to spend time on it because I could imagine the proposal becoming our first project with that customer. If it went well, perhaps a small project would grow into a long relationship.

A request worth millions of ringgit was even harder to resist. Before anything had been agreed, I found myself thinking about hiring, growth and what similar projects might mean for the next three to five years. For a founder building a company from the ground up, those possibilities feel real. They give you energy when the business needs it most.

The Work Begins Before the Deal Exists

My team and I would prepare the architecture, estimate the costs and ask partners for their prices. We wanted to give the customer our best answer. Yet sometimes we did not know enough about the site, devices, data, responsibilities or expected outcome to design a sound solution. When we asked, the reply was often, “Just give us your best proposal,” or “You suggest.”

That left us making assumptions about the scale of the work. We spent days debating options with partners and trying to price a project whose boundaries nobody had defined. The proposal might look complete when we submitted it, but much of it rested on guesses. Even a carefully written price could be wrong if the actual requirements later changed.

Then came the silence. Some customers never replied. Others said they would keep the proposal and budget for reference. Often, we never learned whether the project went to someone else, lacked funding, had no internal owner or was never ready to enter procurement. The hours we had spent preparing it were gone.

What Those Proposals Taught Me

That experience was frustrating because I had mistaken interest for commitment. A request for a proposal can be a serious step toward a project, but the words alone tell me very little. The lessons cost my small team time and money:

  1. Find the problem owner. I need to know who will use the proposed solution, who is responsible for the outcome and who can approve the next step.
  2. Ask what is known about the budget and timing. A customer may not have a final figure, but they should be able to explain whether funding exists and when a decision could be made.
  3. Understand the buying process. A direct award, competitive tender and early market study call for different amounts of work.
  4. Record what remains unknown. If key requirements are missing, I should not present assumptions as firm scope or a final price.
  5. Protect the team’s time. Preparing a detailed design has value. Giving it away repeatedly leaves fewer resources for customers who are ready to act.

These are practical business lessons I did not learn at university. I learned them while trying to keep a startup moving with limited people and cash.

A Different Answer Today

When someone now asks for a large proposal without a clear scope, I first ask about the problem, budget, timeframe, project owner and procurement route. If they need us to investigate requirements, work through the architecture and develop a costed plan, I propose a paid consultation. It gives the customer something more useful than a proposal built on guesses, while allowing us to put proper care into the work.

I still welcome a genuine opportunity. I also understand that a proposal request may be the start of a conversation, rather than a sign that a project is ready. It took me longer than I wish to learn that distinction. The cost was real, but so was the lesson: a founder must believe in what the company can build and know when to ask whether the customer is ready to build it with them.

From Teaching IoT to Solving Real Problems: Lessons I Learned the Hard Way

Looking back at my years of building IoT solutions, I can see how much the conversation around IoT has changed. In the beginning, our challenge was convincing people that IoT mattered. Later, people wanted to learn how to build it themselves. Today, building an IoT prototype has become much easier, especially with generative AI helping people write code and solve technical problems. Yet one uncomfortable reality remains: the IoT market has not grown as quickly as many of us expected.

That experience has forced me to rethink what customers actually need from IoT. After years of developing FAVORIOT, conducting training, working on projects and watching pilots succeed technically but struggle commercially, I have learned that the biggest challenge is rarely the technology itself. The harder question is whether we are solving an operational problem that matters enough for someone to take ownership, allocate a budget and keep the solution running.

The Early Days Were About Explaining IoT

In the early days, many of our conversations started with a basic question: “What is IoT?” People had heard the term, but few understood how sensors, connectivity, cloud platforms and applications could work together. We spent considerable time educating customers, students and organisations about what IoT could do and why connecting physical assets could change the way operations were monitored.

At that time, simply demonstrating the technology could create excitement. When someone saw a sensor transmitting data to a cloud platform and displaying the information on a dashboard, it felt like something new. We could demonstrate remote monitoring, automatic alerts and real-time data collection, and people immediately became curious about the possibilities. We believed that once awareness increased, adoption would naturally follow.

Then People Wanted to Build IoT Themselves

As awareness grew, the questions changed from “What is IoT?” to “How can I build an IoT solution?” This created another chapter for FAVORIOT, where training became an important part of what we did. We conducted many IoT programmes involving sensors, Arduino, ESP32, Raspberry Pi, MQTT, cloud platforms, dashboards and application development.

The appetite for learning was strong because people wanted practical experience. Students wanted to build projects, lecturers wanted to introduce IoT into teaching and research, while engineers and professionals wanted to understand how connected systems could be applied in their organisations. IoT was gradually moving from something people heard about at conferences into something they could actually build with their own hands.

Then generative AI arrived, and we noticed another shift. Demand for traditional IoT training appeared to decline. One possible reason is that people can now ask an AI assistant how to connect an ESP32, generate MQTT code, troubleshoot an error or explain how a sensor works. Knowledge that once required attending a two-day workshop can now be accessed within minutes.

If IoT Is Easier to Build, Why Is the Market Still Slow?

This became an uncomfortable question for many IoT solution providers, including us. Sensors became cheaper, connectivity improved, platforms matured and technical knowledge became easier to obtain. Generative AI lowered the technical barrier even further, yet the commercial market for IoT still seemed to move much more slowly than the technology.

For a long time, we believed demonstrating stronger technology would help overcome this problem. We showed customers devices, dashboards, alerts, analytics and different ways of connecting physical assets. A good demonstration could attract attention, lead to discussions and sometimes result in a pilot project. Technically, many of these pilots worked exactly as expected.

The problem came afterward. Some pilots simply stopped. The sensors were working, data was flowing and dashboards were displaying information, yet the project never expanded. We slowly realised that proving technology could work was very different from proving that an organisation needed it badly enough to continue investing in it.

A Successful Pilot Can Still Become a Failed Project

That experience taught us to ask a different question: who owns the project after the pilot? Someone might approve an experiment, another department might provide the equipment and an IT team might help with connectivity, but nobody may actually be responsible for turning the pilot into part of daily operations.

Without operational ownership, a pilot can easily become a technology showcase rather than a working system. If nobody is accountable for the problem being addressed, nobody feels enough urgency to expand the solution. There may also be no operational budget, measurable outcome or internal champion willing to push the project beyond its experimental stage.

This changed the questions I now believe we should ask at the beginning of an IoT project. What operational problem is the customer experiencing? Who suffers when that problem occurs? What does the organisation lose when the problem remains invisible? Who receives the information generated by the system, and what action will that person take? Most importantly, who owns the outcome after the pilot finishes?

Customers Rarely Wake Up Wanting IoT

A maintenance manager probably does not arrive at work thinking about buying an IoT platform. He may simply want to know whether a remote pump has stopped running before someone complains. A facilities manager may want to understand why electricity consumption suddenly increased, while an environmental officer may need an early warning when water quality begins moving outside acceptable limits.

The same applies to energy systems, buildings, factories and remote assets. Customers are usually concerned about downtime, wasted energy, unnecessary site visits, equipment failures, delayed responses and things happening in their operations that they cannot see quickly enough. IoT becomes valuable when it helps expose those problems early enough for someone to act.

This has changed the way I think about FAVORIOT as well. Connecting devices remains necessary, but connection alone is not the outcome. Data must help someone see something they could not previously see, understand what is happening and decide what to do next. That is why Connect → See → Act represents something much deeper to me today than simply describing how an IoT platform works.

Lessons I Learned the Hard Way

After years of explaining IoT, teaching people how to build it, developing our own platform and watching projects move through different stages, several lessons have become difficult to ignore.

  1. Awareness does not automatically create demand. Someone can understand IoT very well without having a strong enough operational reason to buy a solution.
  2. Technical success is different from commercial success. Getting a sensor to transmit data and displaying it beautifully proves that the technology works. It does not prove that the organisation will continue paying for it.
  3. Every pilot needs an operational owner. Someone inside the customer’s organisation must care about the outcome, be responsible for the problem and have enough influence to move the project forward.
  4. Start with the pain, not the platform. Conversations about downtime, energy losses, unnecessary site visits, equipment failures and delayed responses are usually more meaningful than conversations about protocols, dashboards and technical specifications.
  5. IoT creates value when visibility leads to action. Collecting more data is not enough. The real value comes when information helps someone recognise a problem earlier and respond before the consequences become more expensive.

Perhaps this has been one of the hardest lessons from building IoT solutions over the years. We spent the early years proving that IoT technology worked. We then spent years teaching people how to build it. Today, I believe the conversation has to move beyond both.

The future of IoT will not be decided by how many sensors we can connect or how impressive our dashboards look. It will be decided by whether we can help organisations see operational problems they could not see before and give the right people enough information to act.

That lesson took years of projects, pilots, training programmes, successes and disappointments for me to fully appreciate. Stop trying to sell customers IoT. Find the operational problem they desperately need to see, and make that problem visible.

Favoriot Sembang Santai (Episodes 1 – 58) Hosted by Mazlan Abbas and Zura Huzali

This is the part of the list compilation of Favoriot Sembang Santai Podcasts. They are available in YouTube, Spotify and Amazon.

Favoriot Sembang Santai — Mazlan Abbas & Zura Huzali
FAVORIOT PODCAST DIRECTORY

Favoriot
Sembang Santai

Episodes featuring Zura Huzali with Dr. Mazlan Abbas. Browse the series in episode sequence and jump to YouTube.

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EPISODE 29

IoT Platforms: The Heart of Every Smart Solution

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Source note: This page contains episode titles that could be independently verified from indexed Favoriot Sembang Santai podcast pages and YouTube results. Where an exact YouTube video URL was not exposed by search indexing, the button opens a targeted YouTube search for that exact episode instead of guessing a video ID. Episodes not yet independently verified are intentionally omitted.
Favoriot Sembang Santai • Hosted by Zura Huzali with Dr. Mazlan Abbas • Directory prepared 17 September 2026

Are Your Potential Customers Ghosting You? 8 Warning Signs Every Business Owner Should Know

It usually begins with excitement.

The first meeting goes extremely well. Everyone has ideas. The customer talks about a pilot project, future deployment, possible collaboration and even a long-term partnership. People use words such as “promising,” “interesting,” and “we should definitely explore this further.”

You leave the meeting thinking, “This one looks serious.”

Then you send the proposal.

Silence.

You follow up a week later.

Still silence.

At some point, even the crickets give up.

Welcome to one of the most frustrating experiences in business: being ghosted by a potential customer or partner.

8 Signs Your Business Opportunity May Be Fading Away

1. Their Replies Become Shorter and Slower

At the beginning, their messages were detailed and enthusiastic. They asked questions, suggested ideas and wanted more information. Replies arrived quickly because there was genuine momentum.

Then something changes.

Long messages become “Noted,” “Will check,” “Let me discuss internally,” or the legendary phrase:

“We will get back to you.”

The problem is not the phrase itself. The problem begins when nobody knows when “get back to you” is supposed to happen.

2. “Next Week” Never Arrives

“We should be able to confirm next week.”

You wait.

One week becomes two. Two weeks become a month. Three months later, you begin wondering whether their calendar operates in a different time zone from the rest of humanity.

In business, dates matter because dates indicate commitment. If every next step has no specific date attached to it, the opportunity may already be sliding down their priority list.

3. You Are the Only Person Following Up

There is a simple way to test the health of an opportunity.

Stop messaging for a while.

If the entire conversation immediately goes into hibernation, you may already have your answer.

A genuine business opportunity normally has movement from both sides. You provide information, they respond. They ask questions, you answer. You submit something, they review it. Someone proposes the next meeting.

If you are constantly the person restarting the conversation, you may not be managing an opportunity anymore. You may be performing CPR on one.

4. Meetings Keep Getting Postponed

One postponement is normal. People are busy and unexpected things happen.

The warning sign appears when meetings are repeatedly postponed without a replacement date.

Then comes another famous phrase:

“Let’s reschedule soon.”

Of course.

“Soon” must be one of the most popular dates in business. It sounds positive while committing to absolutely nothing.

5. They Love the Idea Until the Quotation Arrives

This is where excitement meets reality.

During the presentation, everyone loves the technology. During the demonstration, people are impressed. When discussing possibilities, the future sounds wonderful.

Then you send the quotation.

Suddenly, their Wi-Fi appears to stop working.

This is when we learn an important distinction: interest is not buying intent.

Someone can genuinely like your idea without having the budget, authority, urgency or internal support required to purchase it.

6. They Keep Asking for Documents, but Never Make a Decision

Proposal? Sent.

Quotation? Sent.

Presentation? Sent.

Technical architecture? Sent.

Company profile? Sent.

Revised quotation version two, three and four? Also sent.

The decision?

Apparently still travelling somewhere between departments.

One lesson I have learned is that more document requests do not necessarily mean you are getting closer to winning the project. Sometimes they simply mean you are doing more unpaid work.

7. Nobody Else Joins the Conversation

This is one signal I pay much more attention to today.

When an opportunity becomes serious, the circle usually expands. The technical team wants to understand the solution. Management starts asking business questions. Procurement appears. Finance discusses budget. Legal may eventually review the agreement.

These are signs that the opportunity is moving through the organisation.

But if months have passed and you are still speaking to one very friendly contact who keeps discussing how wonderful the partnership could become, be careful.

You may not have a business opportunity yet.

You may simply have a very friendly person who likes your idea.

8. They Are Active Everywhere Except in Your Inbox

This one can be both funny and painful.

They have time to post on LinkedIn.

They upload photos from events.

They congratulate someone on a promotion. They comment on AI. They like conference announcements.

Meanwhile, your message remains peacefully unread or unanswered, apparently enjoying a long meditation retreat.

At some point, the message itself becomes the message.

Silence Does Not Always Mean Rejection

We should not assume too quickly that someone is deliberately ignoring us. Business situations can change unexpectedly.

Budgets get frozen. Management changes. A project loses its internal sponsor. Procurement gets delayed. Another project becomes more urgent. Sometimes the person we are dealing with genuinely does not have an answer yet.

That is why I do not believe in immediately becoming angry or burning the relationship.

At the same time, we must respect our own time and resources.

If an opportunity has no next step, no date, no owner and no action, we need to consider the possibility that it is simply no longer a priority.

Give Them One Final Opportunity to Be Clear

Instead of sending endless messages asking, “Any update?”, I prefer a final message that makes the choices clear:

“We had a good discussion about this opportunity, but I understand that priorities may have changed. Would you prefer to proceed, pause the discussion until a specific date, or close it for now? A direct answer is perfectly fine as it helps us plan our resources.”

This gives the other party three simple choices:

  1. Proceed because there is still genuine interest.
  2. Pause until a specific and realistic date.
  3. Close the opportunity and revisit it someday if circumstances change.

A “no” may hurt for a few minutes. Months of uncertainty can waste far more time.

If They Still Do Not Reply, Move On

There comes a point when another follow-up will not change anything.

Move the opportunity out of your active pipeline. Stop spending emotional energy on it. Keep the relationship professional and leave the door open, but focus your attention on customers and partners who are willing to move.

Do not keep watering a plastic plant.

One of the harder lessons in business is learning that enthusiasm during a meeting is not the same as commitment after the meeting.

People can smile, praise your presentation, talk about huge possibilities and sound genuinely excited. None of those things require much commitment.

What happens after the meeting tells you far more.

Do they introduce you to the decision-maker? Do they arrange the next meeting? Do they discuss the budget? Do they involve procurement? Do they agree on a pilot date? Do they actually do what they said they would do?

That is where genuine interest becomes visible.

People can be incredibly excited during a meeting. Real interest shows after the meeting, when they are willing to take the next step.

In business, learn to appreciate enthusiasm.

But learn to recognise commitment.

Six Stories from Founder’s August 2026

The August Field Notes
Field notes · Issue No. 08

Six stories from a founder’s August.

A month’s worth of writing from Dr. Mazlan Abbas — on pitches that failed, pilots that stalled, and the uncomfortable questions a founder keeps circling back to. Grouped by what they’re really about, not just when they were posted.

6 articles August 2026 mazlanabbas.com
01

Startup Journey & Lessons

The unglamorous middle of building FAVORIOT — the pitch that didn’t land, the partnership that stalled after the photo op, the pilot that worked and still went nowhere.

02

Leadership & Reflection

Slower, more personal essays — the kind written after hours, when the day’s meetings are over and the bigger questions surface.

03

National Tech Vision

Written for Merdeka week — a wider lens on Malaysia’s technology industry and where confidence in it still runs short.

Compiled from mazlanabbas.com — the personal writing of Dr. Mazlan Abbas, co-founder & CEO of FAVORIOT.

For the more technical, IoT-industry take on these ideas: iotworld.co

August 2026 – Mazlan Abbas Monthly Compilation – Ideas and Lessons

August 2026 Collection | Dr. Mazlan Abbas
Dr. Mazlan Abbas · Monthly Reading Collection

AUGUST Ideas, lessons and hard-earned realities from 2026

Six essays from August 2026, curated into one reading collection spanning operational visibility, startup commercialisation, partnerships, personal reflection and confidence in Malaysian technology.

6 Articles5 ThemesAugust 2026
The August Edition

What experience teaches after the presentation ends

August’s writing repeatedly returns to one idea: appearances can mislead. A dashboard may look impressive without helping people act. A pilot may work without becoming a business. An MoU may generate photographs without generating results. An admired idea may still lack market evidence. The collection brings those lessons together with reflections on experience, judgement and Malaysia’s confidence in its own technology.

06original essays, arranged by the question each one helps the reader answer.
01 · Operational Visibility

Beyond the dashboard

Why connected devices and attractive charts still leave organisations struggling to understand what needs attention and what action should follow.

7 August 2026

The Moment I Realised Our Dashboard Was Not the Answer

For years, better dashboards seemed like the natural destination of IoT. Real deployments told a different story. Operators still made site visits, problems were still discovered through calls and WhatsApp, and colourful screens did not always create trusted operational awareness. This article explains the shift from collecting and displaying data toward solving Operational Blindness, and why the real objective is helping people know what is happening early enough to act.

Read the full article →
01
02 · Startup & Commercialisation

Proof is not the same as a business

Two founder stories examine what happens when technical success, a compelling pitch and genuine social value meet the harder test of commercial reality.

15 August 2026

I Thought a Successful Pilot Would Naturally Become a Real Project. I Was Wrong

A pilot can prove that technology works while proving very little about budgets, buying commitment, timing or the durability of the market. Drawing from real projects, this essay explores why founders and technology teams must qualify the commercial path before treating a successful pilot as the beginning of scale.

Read the full article →
02
24 August 2026

I Pitched My Elderly Monitoring Startup to Nearly 100 Investors. Here’s Why They All Said No

Favorwatch had a meaningful purpose and a convincing story, yet almost 100 investor approaches ended without funding. The retrospective is less about rejection and more about the missing evidence behind the pitch: paying customers, repeatable demand and traction. It is a useful read for founders tempted to mistake interest in an idea for proof of a market.

Read the full article →
03
03 · Partnerships

The photograph is not the partnership

A practical founder’s view of why formal collaboration matters far less than ownership, a first project, resources and people who keep the relationship moving.

22 August 2026

The MoU Photograph Is the Easy Part. The Real Work Begins After Everyone Goes Home

MoU ceremonies create recognition, publicity and the feeling that a partnership has begun. Yet signatures cannot appoint a champion, fund an activity or create a customer project. This essay looks behind the ceremonial photograph and identifies the practical conditions that turn good intentions into actual work, including named owners, a first activity, resources, timelines and measurable outcomes.

Read the full article →
04
04 · Leadership & Reflection

Would the younger self listen?

A short reflection on the strange relationship between experience and risk, and whether wisdom can exist without the mistakes that produced it.

14 August 2026

Would We Listen to Advice from Our Future Selves?

If an older and wiser version of a person could send one message backwards in time, would the younger version even accept it? This brief piece asks whether courage, curiosity, wrong turns and risks are simply problems to avoid, or whether they are part of the process that eventually creates judgement and perspective.

Read the full article →
05
05 · Malaysia & Technology

Merdeka of the technology mindset

A Merdeka reflection on what it means for a country to aspire to create technology while its own buyers may still instinctively place greater trust in foreign brands.

31 August 2026

Malaysia Is Independent. Our Technology Mindset Should Be Too.

Malaysia has spent decades building engineers, universities, industries and local technology companies, yet technological self-confidence cannot be created by policy or certification alone. Using Favoriot’s experience as a Malaysian-built platform, this Merdeka essay asks buyers to judge local technology by capability, support and results rather than by the country printed on the brand.

Read the full article →
06

August 2026 was less about technology itself and more about learning to distinguish what looks like progress from what actually creates progress.

Curated from the August 2026 articles of Dr. Mazlan Abbas

All article titles and outbound links lead to the original posts on mazlanabbas.com. Abstracts on this collection page are editorial summaries written for discovery and do not replace the original articles.

I Pitched My Elderly Monitoring Startup to Nearly 100 Investors. Here’s Why They All Said No

Before FAVORIOT became known for its IoT platform and Operational Visibility Platform, our first product was something very different. It was called Favorwatch, an elderly-monitoring solution that we began developing in 2017.

Favorwatch used a smartwatch to monitor the health, safety and location of elderly people living independently. Its geofencing feature could alert family members or caregivers when the wearer moved beyond a designated area. We summarised its purpose with a simple promise: “Live alone, but never be left alone.”

The product addressed a genuine social concern. Families were becoming more geographically dispersed, ageing populations were growing and wearable technologies were becoming more capable. We believed Favorwatch could help elderly people preserve their independence while giving their families greater peace of mind.

It was a meaningful idea. But a meaningful idea does not automatically become a sustainable business.

I Was Pitching the Future, Not the Evidence

During the early stages, I presented Favorwatch at accelerator demo days and pitched it directly to investors whenever opportunities appeared. I spoke about ageing populations, remote healthcare, wearable devices and the need to protect elderly people living alone.

The story was convincing, but the business was still immature. Our presentation described what Favorwatch could become, while investors wanted evidence of what it had already achieved.

I sent the pitch deck to nearly 100 venture capital firms, investors and related companies. Most never responded. A small number replied, but every response ended in rejection.

At first, I wondered whether investors simply did not understand the opportunity. We were early, the concept was uncommon and the market appeared likely to grow. With time, I realised that the problem was not necessarily their understanding of the idea.

They could see the potential. They could not see enough proof that customers were willing to pay.

Everyone Liked It Until We Discussed Payment

One of the most confusing experiences for a founder is receiving positive feedback without generating sales. Many people told us that Favorwatch was useful, meaningful and promising. They understood why families would want to protect elderly relatives through wearable monitoring.

The enthusiasm weakened when the conversation moved from appreciation to payment.

That exposed the difference between supporting an idea and buying a product. Families cared about elderly safety, but many were comfortable relying on telephone calls, relatives or existing caregiving arrangements. Healthcare organisations could recognise the value but might not have a budget, procurement route or person responsible for purchasing the solution.

People saying, “This is a good product,” sounded encouraging. It was not the same as saying, “Where do I sign, and how much should I pay?”

The Questions We Had Not Answered

Looking back, our challenge was not caused by a single mistake. Several business questions remained unresolved:

  1. Who was the actual customer? The elderly person used the product, but an adult child might pay for it. A care centre might manage it, while a healthcare provider could benefit from the data.
  2. Was the problem urgent enough? Elderly safety mattered, but concern did not always lead to immediate purchasing decisions.
  3. Was the business model workable? Device costs, connectivity, subscriptions, support and customer service affected both the selling price and profitability.
  4. Was the product ready for continuous use? A successful demonstration did not prove reliability, battery performance, network coverage or user acceptance over many months.
  5. Could we demonstrate repeatable demand? We did not have enough paying customers or dependable sales channels to show that the business could grow.

These gaps made the investment risk too high. Investors were not rejecting the social purpose of Favorwatch. They were rejecting the absence of market traction.

From Favorwatch to Raqib

Favorwatch later evolved into Raqib, a monitoring solution for Hajj and Umrah pilgrims. The target market changed, but the core purpose remained: using wearable technology, location tracking and geofencing to keep people safe and connected.

The pilgrimage market offered a more specific use case. Pilgrims could become separated from their groups, experience health problems or struggle to communicate their location in crowded environments. We tested Raqib locally and with early users, and I personally tested it during Umrah.

The pivot gave us greater market clarity, but it did not remove every commercial risk. Even a focused product requires committed buyers, suitable pricing, trusted partners and good timing.

What I Would Tell My Earlier Self

If I could advise the founder who sent those 100 pitch decks, I would not tell him to stop. I would tell him to spend more time proving customer demand before seeking investment.

I would ask:

  • Who owns the problem and controls the budget?
  • What happens if the customer takes no action?
  • Will the customer pay for a pilot?
  • Can we measure the financial or operational value?
  • Can we win five similar customers without rebuilding the product?
  • Will the revenue cover delivery, support and future development?

Those investor rejections were painful, but they exposed weaknesses that compliments had concealed. They taught me that praise is not market validation, interest is not traction and a successful pitch is not a substitute for a paying customer.

A founder needs conviction to keep building through uncertainty. Yet conviction must eventually be supported by evidence. The market validates a product when customers commit their money, time and reputation to using it.

That was the lesson Favorwatch gave me long before FAVORIOT became the company it is today.

The MoU Photograph Is the Easy Part. The Real Work Begins After Everyone Goes Home

There was a time when I would look at photographs of companies signing Memorandums of Understanding and feel a little envious. The photographs always seemed to suggest that something significant was about to happen. Two senior executives would sit at a beautifully arranged table, exchange documents, shake hands and smile for the cameras, while company logos filled the backdrop behind them. Soon afterward, the photographs would appear on LinkedIn, Facebook, corporate websites and sometimes in newspapers or on television. From the outside, it looked like the beginning of a major partnership, and I naturally assumed that a large project, investment or business opportunity would soon follow.

For a startup founder, these images can be particularly powerful because recognition from a large and established organisation feels like validation. When you have spent years trying to convince customers, partners and investors that your small company deserves to be taken seriously, seeing another startup signing an MoU with a major corporation, university, government agency or multinational company can make you wonder when your turn will come. I felt that too. I wanted Favoriot to be recognised in the same way, to stand alongside respected organisations and demonstrate that our small Malaysian company had earned a place within their ecosystem.

So, naturally, I pursued MoUs too.

And when those opportunities eventually came, I discovered that the experience really did provide some of the things I had imagined. There was recognition, publicity and a temporary spotlight on the company. People congratulated us, staff felt proud and our association with a recognised organisation helped strengthen our credibility. Yet over time, I began to understand something that I had completely underestimated when I was admiring those photographs from a distance.

The MoU signing is often the easiest part of the partnership. The difficult part begins after everyone goes home.

When an MoU Feels Like You Have Finally Arrived

For a startup, being invited to sign an MoU with a much larger organisation can feel like an important milestone. Startups spend an enormous amount of time knocking on doors, sending proposals, making presentations, demonstrating products and trying to persuade organisations to give them a chance. Many conversations lead nowhere, some proposals disappear into silence and others remain under evaluation for months, so when a respected organisation finally says that it wants to formalise a relationship with you, it is understandable to feel proud.

The signing ceremony reinforces that feeling because everything surrounding it signals importance. Senior executives attend, photographers appear, corporate communications teams prepare announcements and social media posts begin receiving congratulations. Friends and colleagues may tell you that something big is happening, and for a brief period the company enjoys attention that would normally be difficult for a small startup to obtain.

There is nothing wrong with appreciating that moment because recognition matters, particularly when you are building credibility in a market where people often judge smaller companies by the organisations willing to associate with them. What I eventually learned, though, was that public visibility should never be confused with actual progress. A photograph can show that two organisations intend to work together, but it cannot tell us whether they actually will.

The Photograph Is Not the Partnership

One of the strange things I noticed over the years was how much effort could go into preparing an MoU compared with the effort that sometimes followed after it was signed. Before the ceremony, everyone seemed extremely busy. There were discussions about clauses, legal reviews, amendments, logos, signatories, witnesses, dates, venues, speeches and schedules. Documents could travel between legal departments for weeks or even months while both organisations tried to agree on the exact wording.

Then finally the day arrived. Everyone gathered, documents were signed, hands were shaken, photographs were taken and the announcement was published. Afterward, everyone returned to their normal responsibilities, and sometimes something rather unexpected followed.

Very little happened.

The irony was difficult to ignore. We could spend months getting permission to say that we intended to work together, yet spend far less time deciding exactly what we were going to work on.

That experience gradually changed the way I viewed MoUs because I realised that the ceremony represented only an intention. The partnership itself did not exist in the signatures or the photographs. It existed in the meetings, projects, customer engagements, research activities, training programmes and deployments that were supposed to follow.

Different MoUs, Similar Challenges

Of course, not every MoU has the same purpose. Our collaborations with universities, for example, usually have very different objectives from our collaborations with industry partners. University MoUs may focus on teaching and learning, research, student projects, training, internships, grants, technology adoption or joint academic activities. Industry MoUs are more likely to explore market opportunities, customer engagements, technology partnerships, solution development, joint proposals or new business opportunities.

On paper, these agreements can sound extremely promising because they often contain phrases such as “jointly explore opportunities”, “promote collaboration”, “share expertise” and “develop mutually beneficial activities”. There is nothing wrong with such language, but I have learned that broad statements of intention can easily create the illusion that many things are happening when nothing specific has actually started.

The words explore, promote and collaborate sound positive, but somebody still has to turn those words into a project, programme or commercial opportunity. Without that next step, even the most impressive MoU can remain nothing more than a nicely formatted document stored somewhere in a shared folder.

The CEO Signed It, But Does the Organisation Know About It?

One of the biggest problems I have observed is that an MoU can exist at the senior management level without becoming part of the organisation below it. The CEO may know about it, the Vice Chancellor may know about it, the Dean or Managing Director may have attended the ceremony, and the corporate communications team may have published the photographs, but the people who are actually expected to carry out the work may know very little about what was agreed.

This becomes particularly difficult in large organisations because senior executives are rarely the people who will organise technical workshops, prepare customer proposals, supervise students, integrate systems, coordinate research activities or conduct regular follow ups. Those responsibilities eventually have to move down to managers, engineers, lecturers, researchers, business development teams and project staff.

If those people were never involved in the original discussion, never properly briefed and never given clear responsibility, the MoU effectively becomes an agreement between two senior executives rather than a working relationship between two organisations. The signatures may be there, but the machinery required to turn those signatures into action has never been switched on.

The Missing Champion

If there is one recurring problem that I now look for immediately, it is the absence of a champion. Every partnership needs someone on both sides who feels personally responsible for making something happen. Without those individuals, everybody may support the collaboration in principle while nobody feels accountable for moving it forward.

This is where things can become almost comical. Senior management assumes business development will handle it, business development assumes the technical team will propose something, the technical team waits for management to provide direction, and everyone quietly expects the partner organisation to initiate the first activity. Unfortunately, the partner may be going through exactly the same internal confusion.

Months can disappear surprisingly quickly this way. Eventually someone notices that an MoU signed for three years has only six months remaining and suddenly an email appears asking whether both organisations should organise an activity before it expires. By that stage, the focus has shifted from building the partnership to proving that the partnership existed at all.

Why So Many MoUs Slowly Lose Momentum

Looking back at the MoUs and partnerships I have observed, several patterns repeatedly explain why good intentions fail to become tangible outcomes.

1. There Is No Named Owner

A partnership cannot survive on goodwill alone. Someone from each organisation must be clearly responsible for coordinating activities, arranging follow ups and keeping the relationship moving. If responsibility is distributed vaguely across several departments, everyone can reasonably assume that someone else is taking care of it.

2. There Is No First Project

One of the biggest mistakes is signing a broad agreement without identifying what both organisations will actually do first. Rather than beginning with a long list of possible collaborations, I now believe it is much better to identify one achievable activity such as a workshop, customer presentation, pilot deployment, research proposal, student programme, training session or joint solution. A small activity that actually happens is far more valuable than ten impressive possibilities that never leave the document.

3. There Is No Budget or Resource Commitment

Collaboration sounds easy until somebody has to pay for equipment, allocate engineers, provide facilities, fund travel or dedicate staff time. If these questions are not discussed early, both organisations may enthusiastically support an activity while quietly expecting the other party to provide the resources. Eventually the idea stalls because nobody has budgeted for it.

4. The People Doing the Work Were Not Involved

An agreement made entirely at senior management level can face resistance or indifference when it eventually reaches operational teams. Those teams already have targets, deadlines and responsibilities of their own, so asking them to support an activity they never planned for can make the collaboration feel like additional work rather than a shared opportunity.

5. Organisational Priorities Change

Three years can be a very long time inside an organisation. CEOs change, managers move, budgets disappear, departments are reorganised and strategic priorities shift. If an MoU depends heavily on one senior sponsor and has not developed working relationships between the teams below, the collaboration can quickly lose momentum when that person moves elsewhere.

6. The Agreement Tries to Cover Too Much

Some MoUs contain almost every possible form of collaboration imaginable, from research and training to commercialisation, technology development, student activities and international market opportunities. While this looks impressive on paper, it can make execution harder because nobody knows where to begin. Two clearly defined objectives with responsible owners and timelines can produce far more than fifteen broad areas of collaboration.

7. There Is No Timeline

Saying that two organisations will work together “in the future” is almost an invitation for delay. Unless activities have dates, milestones and review points, tomorrow becomes next month and next month quietly becomes next year. By the time everyone notices, much of the MoU period may already have passed.

8. Nobody Defines Success

Perhaps the simplest question is also one of the most frequently overlooked: what should exist at the end of the MoU that does not exist today? It might be trained students, research outputs, commercial deployments, joint customer proposals, new products or revenue. Without some measurable definition of success, an MoU can remain officially active for years while producing very little.

When the Expiry Date Suddenly Gets Everyone’s Attention

There is another situation that I have encountered often enough to find slightly amusing. An MoU remains quiet for most of its duration, then suddenly becomes important when someone notices that it is about to expire. Emails start circulating, meetings are proposed and eventually someone asks whether we should renew the agreement for another three years.

These days, my first question would be very simple: What did we accomplish during the current MoU?

I think that question should come before any discussion about renewal because extending an inactive agreement does not suddenly make the relationship productive. It merely gives inactivity a new expiry date. If both organisations have produced meaningful results, renewal makes perfect sense. If almost nothing happened, perhaps the better conversation is not about signing another document but understanding why the first one failed to move.

What I Would Do Differently Today

After going through these experiences, I have become much more careful about entering into another MoU simply because the opportunity sounds impressive or because the organisation involved carries a well known name. These days, I try to look beyond the signing ceremony and ask what will actually happen after everyone leaves the room. An MoU should create a clear path towards something meaningful, whether that means a commercial project, research collaboration, training programme, technology deployment or another measurable outcome. If we cannot explain what we intend to accomplish together, then perhaps we are not ready to sign anything yet.

Before agreeing to another MoU, I would want clear answers to these questions:

  1. Why are we signing this MoU? There should be a clear business, educational, research or operational purpose behind the relationship rather than simply gaining publicity, taking photographs or being associated with a recognised organisation.
  2. What will we actually do together? Before signing, I would prefer to identify at least one concrete activity that can begin soon afterward, such as a joint customer engagement, pilot project, research proposal, training programme, technology deployment or student initiative.
  3. Who owns the relationship? Both organisations should appoint specific people who are responsible for moving the collaboration forward. Senior executives may open the door and provide support, but someone must be responsible for the follow ups, meetings, activities and results.
  4. What happens in the first 30, 60 and 90 days? I would rather see a simple action plan for the first three months than an impressive list of possible collaborations covering the next three years. Early activities create momentum and quickly reveal whether both parties are genuinely committed.
  5. Who provides the resources? Every activity requires something, whether it is people, technology, facilities, equipment, funding or simply staff time. These responsibilities should be discussed openly before both sides discover later that everyone expected the other party to provide them.
  6. How will we measure progress? The MoU should have a few simple outcomes that tell us whether the relationship is actually producing something. This could include the number of projects started, students trained, proposals submitted, customers approached, research activities completed or revenue generated.
  7. How often will we review the partnership? I would prefer a simple quarterly review where both sides ask what has been completed, what is delayed and what should happen next. That is far better than suddenly remembering the MoU three weeks before it expires and scrambling to organise an activity simply to show that something happened.
  8. What commercial outcome are we seeking? For industry collaborations, we should not be uncomfortable discussing business. If the intention is to create market opportunities, develop solutions, reach customers or generate revenue, then both parties should understand how that is expected to happen and what role each organisation will play.
  9. Are the operational teams involved? The people who will eventually carry out the work should understand the collaboration before the photographers arrive. If the agreement exists only between senior management while the technical, business development, research or operational teams know nothing about it, the chances of meaningful progress become much smaller.
  10. Do we even need an MoU? This has become one of the most important questions for me. Sometimes a project agreement, purchase order, research contract, reseller arrangement, pilot agreement or even a small joint activity can move the relationship forward much faster. If two organisations genuinely want to work together, perhaps the best first step is simply to start doing something together.

That final question has become increasingly important to me because I have learned that formalising a relationship and building a relationship are two very different things. An MoU may provide structure and demonstrate commitment, but the document itself cannot create commitment. That comes from people who are willing to spend their time, resources and energy turning promises into actual work.

Not every relationship needs a ceremony, and not every collaboration needs to begin with two executives holding documents in front of a camera. Sometimes the strongest partnerships begin much more quietly, with two teams solving a small problem together, delivering something useful and discovering along the way that they actually work well together.

I Now Prefer Work First, MoU Later

My thinking today is almost the reverse of what it used to be. Previously, I saw the MoU as the beginning of collaboration, followed by activities that would eventually lead to projects and results. Now I increasingly prefer to begin with the relationship itself by identifying a problem, trying a small activity, proving that both teams can work together and then expanding from there.

If both organisations want to organise a workshop, let us organise it. If there is a customer opportunity, let us meet the customer. If we want to test whether two technologies can work together, let the engineers connect them. If a university wants students to learn using Favoriot, let us start with a class, a project or a training session. If there is a research opportunity, let us prepare the proposal. Once real activities are taking place and both organisations can see the value of continuing the relationship, formalising it through an MoU may make much more sense.

There is also a practical consideration for startups. Getting an MoU approved can itself take months because documents have to move through management, legal departments and several rounds of amendments before a signing date can even be arranged. I have reached the point where I sometimes wonder whether we could have completed a small project during the time spent negotiating the document that says we intend to work together.

For a startup, time is one resource we cannot casually waste. We need customers, deployments, partners who are willing to act and activities that produce results. Public recognition is useful, but it cannot replace commercial progress.

The Photograph I Would Rather See

I still appreciate the purpose of an MoU and I am not against signing one when there is a genuine reason to formalise a relationship. It can signal commitment, provide structure, strengthen trust between organisations and help communicate the partnership internally and externally. For a small startup working with a respected organisation, the recognition can also strengthen credibility, which should not be dismissed.

What has changed is what I consider worthy of celebration.

The photograph taken during the signing ceremony is nice, but I would now be much happier to see another photograph taken twelve months later showing students building real projects, engineers deploying a system at a customer site, researchers completing useful work, partners winning a joint project or a customer benefiting from something that both organisations created together. That second photograph may never appear in a newspaper and perhaps it will receive fewer likes on social media, but it tells a much more meaningful story.

The first photograph says, “We intend to work together.”

The second photograph says, “We actually did.”

After years of watching, pursuing and participating in MoUs, that difference has become very clear to me. The signing ceremony can create attention and the photograph can create a sense of progress, but neither guarantees that anything meaningful will happen afterward. The real test begins when the stage has been dismantled, the backdrop has been removed, the executives have returned to their offices and the social media post has disappeared down everyone’s feed.

That is when somebody needs to pick up the phone, schedule the first working meeting and ask the question that perhaps should have been answered before the signing ceremony:

“What are we actually going to do together now?”

That question may not produce a beautiful photograph, but answering it is where a real partnership begins.

I would love to hear how others have experienced this. Have you been involved in an MoU that eventually produced a successful project, research programme, commercial opportunity or long term partnership? Or have you seen one quietly reach its expiry date without producing anything meaningful? Please share your experience in the comments. I suspect there are many lessons hidden behind those smiling MoU photographs.

I Thought a Successful Pilot Would Naturally Become a Real Project. I Was Wrong

For a long time, I had a simple belief about pilot projects. If we could demonstrate that the technology worked, solve the technical problems encountered during testing, and show the customer that the solution could operate successfully in a real environment, then moving into a commercial deployment seemed like the natural next step. It made perfect sense from an engineering perspective. Why would an organisation spend months testing something, prove that it works, and then decide not to continue?

Over the years, I discovered that the real world does not always follow engineering logic. A successful pilot proves that something can work, but it does not automatically prove that a customer will buy it, that a budget exists, that management will continue supporting it, or even that the market will still exist when the pilot ends. Two projects in particular taught me this lesson. Both were government funded pilots, both involved technologies that we successfully tested, and both gave us reasons to believe there was a future beyond the pilot. Yet neither became the commercial project we had hoped for.

What makes these two experiences interesting is that they ended for completely different reasons. The first was affected by an extraordinary event that nobody could control. The second exposed weaknesses in the way we had qualified the customer and the commercial opportunity. Together, they changed the way I think about pilots and taught me that technical success is only one small part of building a sustainable technology business.

Raqib: When We Found a Market and Then the Market Disappeared

The first project was Raqib, a product we developed around 2018 and 2019. Raqib originally began as a smart elderly care solution, using connected devices to help families and caregivers monitor the location and wellbeing of elderly people. As we developed and tested the concept, we began to see another possible application that shared many of the same challenges: monitoring pilgrims performing Hajj and Umrah.

The problem made sense to us. Pilgrims often travel in large groups and move through unfamiliar places, sometimes in extremely crowded environments. Many are elderly, and there is always a possibility that someone becomes separated from the group or needs assistance. We believed that connected devices could provide tour operators and family members with better visibility of where pilgrims were and help them respond more quickly when something went wrong.

We decided to reposition Raqib towards this market and began testing the concept more seriously. We conducted local trials and asked several early users to carry the devices during their pilgrimage. I even tested Raqib personally during my own Umrah trip because I wanted to experience the product under the same conditions as our users. That field experience was far more valuable than testing the system from the comfort of our office because it exposed issues involving connectivity, battery life, device handling and actual user behaviour.

There were challenges, of course, but that did not discourage us. In fact, that was exactly what we expected a pilot to reveal. We identified the problems, worked on them and improved the system. By the end of those trials, we had become increasingly confident that the technology could work. We had moved beyond PowerPoint slides and laboratory demonstrations. Real users had carried the product into the actual environment for which it was designed.

From where I stood at the time, the next stage seemed obvious. We had tested the product, learned from the problems and improved it. Now we needed to build the market.

Then 2020 arrived, and everything changed.

COVID-19 Changed the Question Overnight

When COVID-19 spread across the world, international travel came almost to a standstill. Borders closed, flights were cancelled, Umrah travel was suspended for long periods, and Hajj participation was severely restricted. For Raqib, this was not merely an operational inconvenience. The very activity around which we had positioned the product suddenly became inaccessible to most international pilgrims.

There was nothing our engineering team could fix because there was nothing technically wrong with the product that could solve the situation. We could improve the software, extend battery life, redesign the interface or improve the platform, but none of those things could reopen international borders or bring pilgrims back to Makkah.

Initially, like many businesses, we did not know how long the disruption would last. Perhaps travel would resume after a few months. Perhaps the following pilgrimage season would return to normal. But uncertainty continued, and for a small company, waiting indefinitely carries a very real cost.

A product continues consuming resources even when customers disappear. Servers must be maintained, software requires updates, devices need support, engineers have to spend time fixing problems, and management must continue thinking about the product. More importantly, every hour and every ringgit spent keeping one product alive is a resource that cannot be spent somewhere else.

Eventually, we had to make a difficult decision. We could continue supporting Raqib while waiting for the pilgrimage market to return, without knowing when that would happen, or we could accept that circumstances had changed and redirect our limited resources elsewhere. We chose to shut down the service and move on.

It was painful because Raqib had not failed in the traditional sense. The technology had been tested. We had real users. We had solved many of the problems discovered during field trials. Yet the commercial opportunity disappeared because of something nobody on our team could have predicted or controlled.

That experience taught me my first major lesson about pilots: even when you do many things correctly, timing and external events can still determine the fate of a product.

The Second Pilot Taught Me a More Uncomfortable Lesson

Our second experience was very different because this time there was no pandemic, no global shutdown and no disappearing market. The project involved the Favoriot IoT platform and a local council that wanted to test the platform’s functionality, standards interoperability and ability to work with several of its existing smart city solutions.

From a technical perspective, this was exactly the type of challenge that interested us. Smart cities rarely operate with one system from one vendor. A council may already have different systems for parking, CCTV, environmental monitoring, flood monitoring, street lighting and other municipal services. These systems may have been purchased at different times from different suppliers, which often means they use different architectures, protocols and applications.

One of the values of an IoT platform is its ability to connect these different environments and make information available across systems. During the pilot, Favoriot successfully demonstrated that capability. We tested the platform’s interoperability and showed that it could work with several of the council’s existing smart city solutions.

Technically, the pilot achieved what it was supposed to achieve. Naturally, we were pleased with the outcome, and once again I believed that we had crossed the most difficult hurdle. If the platform had demonstrated its capabilities in the customer’s environment and met the pilot objectives, surely the next logical step would be a commercial deployment.

It never happened.

The local council eventually decided not to proceed with Favoriot as its platform. They had different ideas about how they wanted to move forward, and the commercial project that we had imagined never materialised.

This time, I could not blame COVID-19, market conditions or an unexpected global event. The technology worked, the market still existed, and the organisation continued pursuing its smart city ambitions. Yet our successful pilot did not become a commercial project.

That forced me to examine something much closer to home: perhaps we had been too focused on proving our technology and not focused enough on proving that there was a committed customer waiting at the other end.

A Pilot Participant Is Not Necessarily a Customer

This distinction seems obvious to me today, but when you are inside a pilot project it can be surprisingly difficult to recognise. A participating organisation can behave very much like a customer. People attend meetings, technical officers provide requirements, sites are made available, integration discussions take place, demonstrations are conducted and progress reports are written. Everyone appears engaged, so it is natural for the technology provider to interpret that activity as evidence of future commercial commitment.

But participation and purchasing intent are two very different things.

An organisation may participate in a government funded pilot because it wants to learn about a new technology, compare different approaches or satisfy the objectives of a particular programme. The technical team may genuinely like the product and the operational department may find the solution useful, yet none of these conditions necessarily means that someone has approved a budget to purchase it after the pilot.

Looking back, this was one of our biggest mistakes. We spent considerable effort answering the question, “Can Favoriot successfully do what the customer needs?” We did not spend enough time answering the equally important question, “If Favoriot proves that it can do this, is the organisation genuinely prepared to buy and operate it?”

Those are two completely different validations.

Government Funding Can Sometimes Hide the Real Market Signal

I remain supportive of government funded technology programmes because they can be extremely helpful for startups and local technology companies. They allow companies to test products in real environments, provide access to organisations that might otherwise be difficult to reach, and reduce some of the financial risks involved in experimentation. Without such programmes, many technologies might never get the opportunity to move from laboratory prototypes into actual field environments.

At the same time, founders need to recognise a weakness in this model. When someone else pays for the pilot, the participating organisation does not have to make the same financial decision it would face during commercial deployment. Trying a technology using grant funding is very different from allocating your own operational budget, going through procurement and signing a purchase order.

This can create a false sense of market demand. Everyone may be enthusiastic while the pilot is funded, but once the external funding ends, the organisation suddenly has to justify the expense internally. Management priorities are reconsidered, budgets must be found, procurement procedures begin, other projects compete for the same money, and the technology that looked important during the pilot may suddenly become optional.

If I were evaluating such an opportunity today, I would ask a much harder question before committing significant resources:

If the government funding disappeared tomorrow, would this organisation still be willing to pay for the solution?

The answer tells us far more about the commercial opportunity than enthusiasm during a demonstration.

Technical Validation Is Only One Part of a Successful Pilot

My engineering background naturally influenced the way I viewed pilots. We tend to focus on measurable technical questions. Does the device communicate reliably? Can the platform handle the required data? Does the API connect properly? Can different systems exchange information? Do alerts work? Is the dashboard displaying the correct information?

These questions matter, but they represent only technical validation. A commercially meaningful pilot must test several other assumptions at the same time.

First, we need to establish whether the technology genuinely solves the operational problem. Second, we need to understand whether the problem is painful enough for the organisation to spend money solving it. Third, we need evidence that the value created by the solution can justify its cost. Fourth, there must be people inside the organisation who are committed to moving forward. Finally, there must be a realistic procurement and budget pathway after the pilot.

A pilot can pass every technical test while failing all the commercial ones.

That was perhaps the biggest change in my thinking. I stopped seeing a pilot as merely a technical experiment and started seeing it as a test of the entire commercial hypothesis.

Lesson One: Find the Buyer, Not Just the Pilot Site

Today, one of the first things I would want to understand is who will actually buy the solution if the pilot succeeds. This can be complicated in government organisations and large enterprises because the person experiencing the problem, the person evaluating the technology and the person controlling the budget may all be different people.

The operational team may desperately want the solution. The IT department may approve the technology. Engineers may love the architecture. Yet if senior management has different priorities or there is no budget allocated, none of that enthusiasm guarantees a project.

Before committing significant resources to a pilot, I would want to understand who owns the problem, who owns the budget, who makes the final decision and how procurement will happen. I would also want to know whether those people are aware of the pilot and whether they have expressed any intention to proceed if it succeeds.

The question I should have asked more often years ago was remarkably simple: Who signs the purchase order when this pilot succeeds?

If nobody can answer that question, we should recognise the risk before we begin.

Lesson Two: Define What Happens After the Pilot Before It Starts

Another lesson is that success criteria should not stop at technical measurements. We may define that a platform must connect a certain number of devices, integrate several systems, achieve a particular uptime or demonstrate certain operational functions. Those are useful measures, but they do not tell us what happens when every technical box has been ticked.

Before starting a pilot, I would now want a discussion about the commercial next step. If the agreed objectives are achieved, does the solution move into production? Will deployment expand to more locations? Will the organisation request budget? Will a commercial tender be issued? When is the decision expected to happen?

Government procurement cannot always be guaranteed in advance, and I would never expect a pilot agreement to bypass proper procurement procedures. But there should at least be a credible pathway from technical success to commercial consideration.

Without that pathway, we may spend months building a bridge without checking whether there is a road on the other side.

Lesson Three: Look for Real Commitment

I have also become more cautious about completely free pilots. Free pilots can generate interest because they reduce the customer’s risk, but that same advantage makes it difficult to measure genuine commitment. When there is little cost to participate, organisations can experiment without having to make difficult internal decisions.

The customer does not necessarily need to pay the full commercial price during a pilot. Commitment can take many forms, including staff resources, infrastructure, integration support, access to operational data, management involvement or a smaller financial contribution. What matters is that the customer also has something invested in the outcome.

When both parties have something at stake, behaviour changes. Meetings become more serious, deadlines receive more attention and internal stakeholders are more likely to remain involved.

If the technology vendor is the only party carrying significant risk, the pilot can easily become an interesting experiment rather than the beginning of a commercial relationship.

Lesson Four: Ask What Could Stop the Project Even If We Succeed

This is perhaps one of the questions founders do not ask often enough. We spend so much time thinking about how to make a pilot successful that we forget to ask what could still kill the project afterward.

There may already be another preferred platform. A larger procurement exercise may be planned. Management priorities may change. The organisation may not have budget. The project may depend heavily on one internal champion who could be transferred to another department. Existing contracts may restrict what can be purchased. A new policy could change the direction entirely.

Understanding these risks before starting does not mean being negative. It simply means understanding the environment in which the technology will eventually have to survive.

A technically successful pilot does not remove organisational, political, financial or procurement barriers. Those barriers need to be identified and managed separately.

Lesson Five: Separate Bad Luck From Bad Decisions

Perhaps the most personal lesson from these two experiences was learning to distinguish between circumstances we could not control and mistakes we could have avoided.

COVID-19 was outside our control. We could not reopen borders, restart international pilgrimage or predict exactly when travel would return. The lesson from Raqib was therefore not that we should have somehow predicted a global pandemic. The lesson was that small companies need to manage exposure to external shocks, avoid becoming overly dependent on a single market condition, and be willing to stop investing when the economics no longer make sense.

The smart city pilot was different. We had greater control over how we qualified the opportunity. We could have asked harder questions about customer commitment, budget ownership, management support and the procurement pathway before investing significant time and resources.

This distinction matters because founders should neither blame themselves for everything nor blame circumstances for everything. When something does not work, I now try to ask whether the cause was within our control. If it was, the lesson should become part of our process. If it was not, the lesson should strengthen the way we prepare for uncertainty.

Lesson Six: Design the Pilot Backwards From Commercial Deployment

If I were designing these pilots today, I would begin from the end rather than the beginning. Instead of asking, “What technology should we demonstrate?” I would first ask, “What needs to be proven for this customer to confidently move into an operational deployment?”

That small change in perspective produces a very different pilot.

If management needs evidence of cost savings, the pilot should measure those savings. If cybersecurity approval is required, security requirements should be tested during the pilot rather than discussed afterward. If interoperability is the main concern, the pilot should prove interoperability with the systems that matter. If procurement requires a business case, the pilot should collect the operational and financial evidence needed to build that case.

Every activity in the pilot should reduce one of the uncertainties preventing the customer from moving forward.

When viewed this way, a pilot is no longer just proof that the technology works. It becomes a structured process for removing the reasons a customer might hesitate to deploy it.

The Dangerous Comfort of Being Busy With Pilots

There is another uncomfortable lesson that took me longer to appreciate. Technology companies can become very busy doing pilots without actually building a sustainable business.

Pilots create activity. There are meetings, presentations, site visits, demonstrations, progress reports, launch ceremonies and photographs. Engineers are busy solving interesting problems, customers are talking about the technology, and management feels that the company is making progress. Sometimes the pilot even receives publicity, which makes everything look even more promising from the outside.

Then the pilot ends. The final report is submitted, everyone shakes hands, photographs are taken, and a few months later the system is no longer operating.

A startup cannot survive indefinitely on demonstrations, no matter how successful those demonstrations appear. At some point, somebody must value the solution enough to pay for it, operate it and continue using it.

That is why I no longer measure the success of a pilot only by whether we achieved the technical objectives. I also ask whether the pilot moved us closer to an operational deployment and a paying customer.

The Questions I Would Ask Before Accepting Another Pilot

If another organisation approaches Favoriot today and says, “Let us run a pilot,” I will still be interested. Real world testing remains extremely useful, particularly in IoT where laboratory conditions rarely represent what actually happens at a customer site. But my enthusiasm is now accompanied by many more questions.

Before committing significant resources, I would want to understand the operational problem, its seriousness, who owns it, who will use the solution, who controls the budget and who has authority to approve deployment. I would ask what success looks like, what business outcome is being measured, whether there is a budget after the pilot, how procurement could happen and what circumstances might still prevent the organisation from proceeding.

I would not expect perfect answers. Large organisations are complicated, and government projects often involve long budget and procurement cycles. What matters is whether there is a believable commercial path beyond the experiment.

The answers help me distinguish between two opportunities that can look almost identical at the beginning: a pilot designed to explore technology and a pilot designed to become an operational project.

Both have value, but they should not be confused.

Perhaps the Real Pilot Is the Business Model

Looking back at Raqib and the Favoriot smart city project, I realise that we were testing much more than technology. Without fully recognising it at the time, we were testing timing, market readiness, customer commitment, organisational priorities, procurement realities and our own assumptions about how technology moves from experimentation into daily operations.

Raqib taught me that sometimes you can build something useful and still arrive at exactly the wrong moment. The smart city pilot taught me something more uncomfortable: proving that your technology works does not prove that a commercial customer exists.

Those lessons have stayed with me.

Today, when someone suggests another pilot, the engineer inside me still becomes curious. I immediately start thinking about devices, APIs, connectivity, architecture, interoperability and what we could demonstrate. But experience has taught me to ask another question before becoming too enthusiastic:

If we succeed, what happens the morning after the pilot ends?

Will the equipment remain installed? Will the platform continue running? Will the solution become part of the organisation’s daily operations? Will somebody allocate a budget and issue a purchase order, or will everyone shake hands, take a photograph and move on to the next experiment?

After experiencing both outcomes, I no longer believe that the purpose of a pilot is simply to prove that technology works.

A good pilot proves the technology. A better pilot proves that the technology creates measurable value. The best pilot proves that a real customer is willing to keep using and paying for it after the experiment is over.

That is the difference between demonstrating technology and building a sustainable business. It took me two very different pilots to understand that difference, but it is a lesson I now carry into every new opportunity.

Have you ever completed a pilot that everyone considered successful, only to discover that the commercial project never came? What stopped it, and what would you do differently today? I would be very interested to hear your experience in the comments.

Would we listen to advice from our future selves?

If you had a time machine and could send just one message to your past self, what would it say?

An interesting question: Would we listen to advice from our future selves?

Our priorities and perspectives change as we move through different stages of life. When we are older and wiser, we may believe we have valuable lessons to offer our younger selves. Yet our younger selves, driven by courage, curiosity, and a greater appetite for risk, might not be ready to listen.

Perhaps the risks we once took and the mistakes we made were exactly what shaped the wisdom we carry today.