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IEEE AICN National Workshop Nov. 4, 2000, Waltham, MA Selling Hardware, Not “Vaporware”

IEEE AICN National Workshop Nov. 4, 2000, Waltham, MA Selling Hardware, Not “Vaporware”. Or “How I got here from there” Tom Freehill www.ectmicro.com. Background. Back to school at 30 Navy Lab Original plan was 5 years and then off on my own. $3M hybrid lab all to myself made me forget

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IEEE AICN National Workshop Nov. 4, 2000, Waltham, MA Selling Hardware, Not “Vaporware”

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  1. IEEE AICN National WorkshopNov. 4, 2000, Waltham, MASelling Hardware, Not “Vaporware” Or “How I got here from there” Tom Freehill www.ectmicro.com

  2. Background • Back to school at 30 • Navy Lab • Original plan was 5 years and then off on my own. • $3M hybrid lab all to myself made me forget • Saw the writing on the wall in early ’90’s and started making plans. • 1997 lab closed

  3. First Year • 6 months severance pay • 3-4 months finishing up Navy projects (via a contractor). • Original plan – circuit design for hybrid and MCM technologies. • The reality factor – there was no market • Only work was for captive manufacturers.

  4. Re-inventing the Company • Background included a lot of novel packaging schemes needed to meet R&D project requirements, including “hands on”. • Concurrent engineering was a big “buzz” word. • ECM was to become a 1 man concurrent engineering company.

  5. Rationale • Biggest complaint heard was that consultants didn’t deliver hardware. • There are people out there with good ideas and $$, but they don’t have the expertise or manpower to develop them. • I didn’t want to go back to work for somebody else.

  6. Business Charter • Ideal client has an idea, but no expertise to implement it (or overloaded). • They don’t want paper, they want working hardware. • I do not market to government (kind of). • The work I do get, comes looking for me. • SBIR’s – too much paperwork. Partner with someone who has the “knack”

  7. Milestones • Joined CCN/ got listing in National Database (IEEE-USA). • Established ties with my board fab and assembly houses (valuable). • Built up credit history for company. • Discovered what marketing strategies don’t work. • Re-learned microcontroller programming.

  8. Marketing • Registration on various websites only thing that has worked. • Booths at trade shows, brochures, mailings, etc. – useless to date. • Government “marketing” – if I will be in the area, I send an email to a select group that I’m buying lunch. • Reminder that I’m alive and well

  9. Proposals • Short and Sweet. • Define the requirements in your words. • Make sure we’re all on the same page. • Brief description of proposed design. • Enough to convince them you know what you’re doing, not enough for them to go elsewhere. • Cost and schedule.

  10. Cost and Schedule • Prices are firm, fixed and non-negotiable. • If client knows what they want, you should know how much $$ to do work. • On firm/ fixed, the supplier is assuming all of the risk; only the supplier can determine what that risk is worth. • Schedules are firm/ fixed. • Everybody wants it yesterday, if you promise what you can’t deliver, you’re mud.

  11. Resources • First name basis with fab and assembly houses. • Has come in handy on more than 1 occasion. • Retired ET is my “VP Mechanical Eng.” • Minimal direction and the price is right • Outsource for other expertise as needed. • I work cheap ($100/wk – take home).

  12. Networks • Originally joined CCN hoping to get work. • Now, it is to decide who to farm work out to. • Nothing worse than having to turn down work, whether overloaded, or some portions are outside my expertise. • Have begun “partnering” with some members of CCN.

  13. Latest Scheme • Engineering enrollments are down and not likely to improve. • “Start-ups” are usually looking to put together a multi-disciplinary engineering department, but no one to fill it and big $$. • Enter the “Virtual Engineering Dept.” • You are “VP Engineering”

  14. Virtual VP • Charge an annual “retainer” to be on call. • First “x” # of hours are free for fire drills and proposals. • New projects are firm/fixed. • As VP, you “hire” and “fire” as needed. • Call on Network expertise, as needed. • 3-4 companies maximum.

  15. Revenues by “Deliverables”

  16. The Future • “Virtual Engineering Department” for 3 or 4 small start-ups. - will require partnering or out-sourcing. • Become a supplier of my hardware designs. • “recursive” income • Continue broadening areas of expertise or change direction of company.

  17. The Moral(s) • Think hardware • Ideas are nice, working hardware sells. • Think “Virtual Engineering Department”. • Network, partner, plan. • Think networking • Potential employees, employers, partners.

  18. Addenda • Pay your bills early • “on-time” isn’t good enough. • Your market is a moving target • Look where things are headed. • Don’t be shy about re-inventing the company. • Hire a competent accountant • Unless your expertise is accounting software development – forget it!

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