# 157: How Hardware Startups Compete with Big Business

- Show: [Product Startup](https://hardwarepodcasts.com/podcast/product-startup)
- Published: 2023-01-05
- Length: 31m
- Page: https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business
- Listen: https://productstartup.com/

## Summary

Mike Stemple, founder of Skinit and Original Wraps (sold to 3M), explains how hardware startups can compete with large corporations by leveraging speed, scarcity, and customer feedback. He argues that while big companies suffer from risk-averse bureaucracy and feature creep, startups can succeed by focusing on minimum viable products and short-run manufacturing. Stemple advises entrepreneurs to invest in intellectual property and use licensing or white-labeling partnerships with major brands to scale revenue and attract acquisition interest.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=0) Introduction: Mike Stemple and his journey from artist to serial entrepreneur
- [4:26](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=266) Corporate innovation failure vs. startup agility and the '3 Ts'
- [9:56](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=596) Recession as a catalyst: scarcity breeds creativity and talent availability
- [13:14](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=794) Scaling via licensing and white-labeling with major brands like HP and Disney
- [16:47](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=1007) The importance of short-run manufacturing and getting to market quickly
- [19:10](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=1150) Avoiding feature creep and building a relationship with the consumer
- [22:54](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=1374) Intellectual property as the primary investment strategy during downturns
- [27:53](https://hardwarepodcasts.com/podcast/product-startup/2023-01-05-157-how-hardware-startups-compete-with-big-business#t=1673) Conclusion: The future is entrepreneurial, not corporate

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Intellectual property](https://hardwarepodcasts.com/topic/intellectual-property)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)

## Most relevant to

early-stage companies, companies scaling up

## Mentioned

- Skinit (product)
- Original Wraps (product)
- 3M (company)
- Massaro (product)
- Innovating Innovation (other)
- Mako Design + Invent (company)
- HP (company)
- Dell (company)
- Disney (company)
- Marvel (company)
- Udemy (other)

## Related episodes from other shows

- [#010: From Pebble to Intel: can hardware startups beat the big players?](https://hardwarepodcasts.com/podcast/coredump-sessions/2025-06-11-010-from-pebble-to-intel-can-hardware-startups-beat-the-big-players) (Coredump Sessions)
- [Hardware Entrepreneurs: 3 Critical Mistakes You Must Avoid](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2022-06-21-hardware-entrepreneurs-3-critical-mistakes-you-must-avoid) (Predictable Designs Podcast)
- [76: Tom’s Future Corner](https://hardwarepodcasts.com/podcast/thoroughly-considered/2022-01-12-76-toms-future-corner) (Thoroughly Considered)
- [#066 - How to apply lean startup principles to hardware, with Ash Maurya of Leanstack, USA](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2019-01-16-066-how-to-apply-lean-startup-principles-to-hardware-with-ash-maurya-of-leanstac) (The Hardware Entrepreneur)
- [S2E37 Defied the odds:  A Physical Product Development Firm That Focuses on Startups & Small Businesses, Mako Design + Invent –Kevin Mako](https://hardwarepodcasts.com/podcast/being-an-engineer/2021-08-23-s2e37-defied-the-odds-a-physical-product-development-firm-that-focuses-on-startu) (Being an Engineer)

## Citing this page

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