[sdiy] Advice for a Startup

[Mike Bryant]

My first question would be "Why ?"

Our company deals with lots of startups each year, usually from university spinouts in various fields, and that's the first question we ask as if the company can't explain what it wants to do succinctly it has no hope.  Known as the Elevator Test.  Google it and write an elevator pitch - it's harder than you think.  Try it out on a friend.

Then watch programs like Dragon's Den in the UK, or similar programmes on worldwide channels and imagine yourself doing one of these.  Would they rip you apart ?  Or invest in you ?   Get as friend to act as a dragon even.   You may not need investment but if you would be ripped apart you probably won't succeed on your own in any case.

Most synth startups never even get going.  Do your research on Kickstarter, Indiegogo and Crowd Supply.  Were any of these that succeeded or failed to get funding similar to what you are offering ?  What level of support did they get ?  And if you are similar to the ones who succeeded in getting funding, do you have enough differentiator from them, or is that market niche now filled ?

Many synth companies have failed in the past year - Future Retro, WMD, Hexinverter and numerous others.  Many due to shortage of parts which although getting better is still bleak in many places.  Can you source all parts, which need to be paid for in advance of course ?  Can you afford the necessary levels of stock to avoid not being able to ship product due to one missing resistor ?

Others are failing simply because Behringer can do it cheaper.  No matter how much everybody knocks them, they still exist and people buy from them.  If they are in any way competing with you then you will lose.

What is your end goal ?  To get rich ?  If so, maybe find another industry.  Even Moog went bust several times.  The wider audio industry is similarly filled with famous failures - look at Rupert Neve's career.  He changed music but didn't change how brutal business can be.

Okay if you've got this far and are not totally disillusioned, you might have some hope.  Conversely if you think I'm talking out of my backside you are probably delusional.

Now the positives.  There are audio companies out there succeeding.  Quite a few are by people who I've worked with in the past, some I've even invested in.  They've found their niche and filled it superbly well.  I won't name them here but generally they've been high end products superbly engineered and offering great levels of support, which it sounds like you are aiming for.  But support costs so you have to price your product accordingly, which will limit your market in doing so.

Once you have a business plan feel free to email it to me privately and I'll happily give you my opinion.

Good luck

Mike








________________________________
From: Synth-diy <synth-diy-bounces at synth-diy.org> on behalf of Ashlyn Black <ashlyn at ashlynblack.com>
Sent: 21 February 2023 00:25
To: synth-diy at synth-diy.org <synth-diy at synth-diy.org>
Subject: [sdiy] Advice for a Startup

Hi friends,

I'm aiming to start my own business this year, doing standalone /
modular synth kits, plus associated gizmos like LCR testers, transistor
matchers, tuners and the like. I'll be placing a lot of focus on
documentation. I've noticed most kits merely provide assembly
instructions, however I also want to cover the underlying theory of
operation, mathematics, design process and such with most of the project
files (ie schematics, 3D models, source code if applicable) publicly
accessible.

What I really need help with though is advice on the commerce side of
the equation, as I am currently constructing my business plan. Topics
such as cost breakdowns, budgeting, who buys what and where they buy it
from etc. Essentially, information that someone currently or formerly
working in the industry would know from experience or at least be privy to.

General feedback on the state (rise? decline?) of synth/hobby
electronics is also very welcome and helpful. :)

Thanks,

Ashlyn

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