Apr 25 2008
Electronics As A Business
A small business in electronics, like any sort of business, requires a lot of different skills.
First you come up with an idea, which is pretty damn hard to begin with, as just about everything you think of has already been done by someone somewhere. But let’s say you want to try something out, and you start breadboarding. But not so fast, do you have the parts? If not, prepare to spend some serious time sourcing things.
And breadboarding a circuit is one part of a very complicated chain, if you intend to mass produce products. You need skills to design solid schematics. Then you need efficient parts lists. Then you need to source parts in quantity. Who offers the best prices? Has a wide selection? Forget most of the surplus places, unless they can supply in 1000 quantities. (I love the surplus places, but when I need 1000 CMOS chips, I go to Allied.)
Next you have to design a PCB. Just use the schematic, you say. Well, it’s not easy. You have to know PCB layouts. You need to know the sizes of parts. The lengths and spacing of leads. How easy is it going to be to assemble? Are traces too close? Is this easy for a beginner to understand? Where do you put the silkscreening?
Great, you have a board, but what do you put it into? You maybe didn’t take that into account. Now you have a cheap case, but the board won’t fit. So you redesign the board. Now the board fits, but you need a volume control and a power switch. Where do you put them? Do you drill holes? Are they PCB mounted? If so, you need to juggle your board again. And make it fit into a 2″ x 2″ space.
And what about power? 4 AA’s? 9V? Wall wart? Lots of decisions, and pros-and-cons. Do you have space in the case for the battery? If not, back to the drawing board.
And then you have the perfect PCB, so you have a couple of samples made, which takes time and a good chunk of money (buying 10 boards costs about the same as 50, and 100 boards is only about $50 difference from 50). You get the samples and find problems, so it’s back to the schematic, back to the PCB designer, re-fab (which takes another 14 days), and test again. Rinse and repeat.
Okay, now you have a PCB that actually works, now you need to order the 200 of this and 500 of that. Now you’re talking about spending $500 on freaking resistors! Those 50 cent audio amplifiers suddenly start looking expensive when you have to order 300 of them. Maybe we don’t actually need that third amp, and back to the breadboard you go.
But now you have ONE kit done, and that’s not enough. You need at least a handful, at different price points. And heck, you don’t want to keep buying different odd parts. You start standardizing. You make sure that everything runs on a 9V battery (or 4 AA’s, or whatever). Everything uses the same filter caps, the same LEDs, the same standoffs, and so on. Sure, you can one-off each kit, but then you lose the economy of scale, and have to maintain a wide inventory. A wide inventory for kits that might not even sell!
These are some of the things you need to keep in mind when developing any sort of product, and electronics kits in general. I’m sure there’s much more. There’s so much that I’m going to recommend to the Maker Faire people that they hold a workshop on “Starting An Electronics Business”. There is just so much to learn and manage that I think such a workshop would help a lot of people. Maybe it will be a little scary for people wanting to dip their toes, but at least they will have a good idea of what they are getting into.
And that leads me to a big reason why our company is called “Austin Kontore” and why I named it that. A kontore is an old German word used to describe a collection of business people, often in the same industry (ex. textiles), who banded together to share knowledge and resources. That’s a big part of what I want the company to be, not just a maker of kits, but a collection of like minded people banding togther to make a whole lot of different things, from kits to educational materials to art projects.
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