# #063 - Your (hardware) product is not your product - think in terms of business models, with your host Balint Horvath, Switzerland

- Show: [The Hardware Entrepreneur](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur)
- Published: 2018-10-24
- Length: 18m
- Page: https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2018-10-24-063-your-hardware-product-is-not-your-product-think-in-terms-of-business-models
- Listen: https://traffic.libsyn.com/secure/thehardwareentrepreneur/063_-_Your_hardware_product_is_not_your_product_-_think_in_terms_of_business_models_with_your_host_Balint_Horvath_Switzerland.mp3

## Summary

Host Balint Horvath argues that hardware entrepreneurs must prioritize business models over product perfection, warning against the 'product trap' where founders fall in love with their solution before validating the problem. He illustrates this with Audi's Le Mans victory through efficiency constraints and Tesla's staged rollout to mitigate range anxiety risks. Horvath outlines key business models for hardware startups, including Hardware-as-a-Service, hardware-enabled services, and the consumables model, citing examples like Fitbit, Nespresso, and the failed startup Pebble.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2018-10-24-063-your-hardware-product-is-not-your-product-think-in-terms-of-business-models#t=0) Introduction: The Product Trap and Constraints

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)

## Most relevant to

early-stage companies

## Mentioned

- Audi (company)
- Tesla (company)
- 3M (company)
- Pebble (company)
- Fitbit (company)
- Nespresso (company)
- Gillette (company)
- Virgin Airlines (company)
- Sprout World (company)
- Lean Canvas (tool)

## Related episodes from other shows

- [Five Biggest Mistakes Hardware Startups Make with Customers with Dave Millman of BizDev Global](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2020-01-07-five-biggest-mistakes-hardware-startups-make-with-customers-with-dave-millman-of) (Predictable Designs Podcast)
- [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)
- [108: Hardware Design Tips from Apple & Intel Leader](https://hardwarepodcasts.com/podcast/product-startup/2022-01-05-108-hardware-design-tips-from-apple-intel-leader) (Product Startup)
- [13 Reasons Why New Hardware Products Fail](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2022-11-23-13-reasons-why-new-hardware-products-fail) (Predictable Designs Podcast)
- [All-in-One Hardware, Software, & Connectivity | Particle's Zach Supalla | Internet of Things Podcast](https://hardwarepodcasts.com/podcast/iot-for-all-podcast/2022-11-17-all-in-one-hardware-software-connectivity-particles-zach-supalla-internet-of-thi) (IoT For All Podcast)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/the-hardware-entrepreneur/2018-10-24-063-your-hardware-product-is-not-your-product-think-in-terms-of-business-models. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to The Hardware Entrepreneur.