📈Product Market Fit for Physical Products

I asked an 🍎 Apple Vision Pro designer turned solopreneur how he sells HW.

Hey Friends🖐️,

I recently caught up with a friend whose hardware startup had just generated meaningful sales.

This also coincided with requests from our reader survey in which more of you want to bring on hardware professionals to learn from their journey. There were also requests to discuss product market fit (PMF) in the physical devices space. Hence, this month I’m going to kill two birds with one stone and experiment with a new format.

Today we’ll be diving into an interview with Farhan Hossain about PMF. Farhan is an ex-Apple product design engineer who is now involved with various hardware startups.

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What is PMF (Product Market Fit)

Before we dive into the interview, let’s get a quick refresher on PMF. PMF is generally when demand has been validated for a product. Achieving PMF varies with some companies taking a few months, while for others it could take years. It’s also fluid given that it can be strong during some periods and weaker in others. While it isn’t easy to quantify, there are some directional indicators that your product solves a genuine need.

• Positive feedback

  • Customers are delighted, issue pre-orders, and use your product even if it’s not fully polished.

• Organic growth

  • Users automatically tell friends and family about your product, exponentially increasing sales.

• Retention

  • Customers keep returning and are engaging in high usage patterns.

• Low adoption of alternatives

  • Users are loyal to your brand, signaling that it may have a unique value proposition and competitors aren’t addressing needs effectively.

A lot can be said on this topic but I’ll leave that to experts. Check out some fantastic guides below for further reading.

1. How to know if you’ve got PMF (Lenny)

2. PMF Experience and Data (Asmartbear)

3. Playbook for achieving PMF (Leanstartup)

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PMF for Physical Products

As we’ve discussed earlier, HW product development poses unique challenges. The guides above are great for software however, there are some barriers that digital products just don’t come across like:

• User Education

  • For HW, landing pages and images are not enough. Users need to see, feel, and interact with your product. This friction makes us more likely to lose users.

• Delayed User Feedback

  • We can’t just press a button for A/B testing results. We need to fabricate physical samples, ship them, and wait for real-world impressions.

• Timelines

  • Everything takes longer - prototyping, detailed design, and validation.

• Lower Margins

  • Think of BOMs (material cost), assembly head count, tariffs, shipping, & tooling.

• Manufacturing & Supply Chain

  • Sourcing components, developing partnerships with vendors, and scaling unit volumes is incredibly complex.

Check out our previous post on hardware vs software product development for more info.

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Interview with Farhan on PMF for Physical Products

As mentioned above, Farhan’s worked on a variety of HW products. He started his career in Apple’s technology development group and then transitioned to the startup realm as the head of hardware (ME/EE) for a computer vision sports coaching machine (Hoopfit).

However, his recent endeavor Side Note is why I wanted him on the newsletter. It’s because it’s a relatively simple yet effective product that many of us can take lessons from. Side Note is a MagSafe pocket notebook that Farhan conceptualized, designed, and then sold thousands of units in a year as a solo-preneur.

I usually share case studies in this newsletter on corporate product successes, but I think it’s also important to spend some time on more tangible examples that are accessible to those of us who don’t have millions of dollars in company budgets.

Most of us have physical product ideas that we want to see to fruition. Maybe we want to switch from our 9-to-5s to entrepreneurship. But there are many questions around validating user demand, what the journey is like, associated costs, and ultimately how to achieve PMF.

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Intro

1. Can you talk to us about your background?

FH: "I've spent my career as a product design engineer, more so in mechanical engineering and hardware development. I've had the chance to work on some really exciting projects. Everything from helping develop the Vision Pro at Apple, to creating AI sports coaching HW tech with Hoopfit, to building productivity tools like Side Note. Along the way I've picked up over 50 patents and built several startups from the ground up.”

2. What was your favorite experience?

FH: "Each of these projects was really different and taught me a ton. At Apple, working on Vision Pro was honestly incredible. I got to work with some of the best engineers out there on cutting-edge spatial computing stuff. Then with Hoopfit, that was actually super fulfilling because we got to blend AI and computer vision with sports coaching, helping athletes get better. But Side Note was probably the most rewarding for me personally. I actually built that one from the ground up - figured out if people wanted it, designed it, manufactured it, and we ended up selling over 1000 units in just a year.”

3. So you’ve worked on some very sophisticated HW at Apple and Hoopfit. Why did you pursue a simpler product idea with Side Note?

FH "I chose Side Note because I realized something important. And that is that execution matters way more than complexity. Simple products are easier to explain and sell. And they can usually have great margins with much lower risk. My advice would be to keep things simple, especially at first. Those complex products might seem more impressive, but they need huge funding and can take years to get right. Start simpler, learn the ropes, and then you can tackle the bigger challenges.

I also wanted to create something that solved a problem for me, which happened to be the need for a simple pocket notebook. I am often in situations where my phone notes dont work, for instance on factory floors I need to leave my phone with security. Sometimes I am in medical facilities or very dirty environments like machine shops where I rather use a pen and paper.

⁠Finally I didnt want to build another gadget or gizmo to just sell because it was cool. I wanted to make something meaningful, and long lasting. If I worked on some tech (especially as a boot strapped company), it could be obsolete soon. I wanted to focus on that timelessness of the product, and far reaching use."

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User Demand & Feedback

4. How did you know the problem you were solving with Side Note was significant enough to pursue?

FH: “I tried to find out if other people also had this problem. I mean literally typing things into Google, asking questions in forums, talking about it in communities. If they're doing that, there's something there. With Side Note, I kept seeing this frustration with regular notebooks. People loved taking notes but hated the friction involved of carrying either bulky or flimsy notebooks. Our design basically removed all those barriers to just getting your thoughts down instantly."

5. How did you validate user demand for Side Note?

FH: "I've learned you really need to try a few different approaches. What I've found works really well is to start with a simple landing page and run some ads. This gives you a quick way to see if people are interested enough to pre-order. Kickstarter can be pretty useful too for early validation, but I'll be honest you've got to be really careful about managing the fulfillment side of things.

What's actually worked best for me is building up word of mouth and getting the community involved. When people are excited about your product and telling their friends, that's when you know you're onto something real. And if you're selling to businesses, I've found that running pilot programs with a few companies early on can tell you pretty quickly if there's real demand there.

Like with Side Note, we used a mix of everything. We got some pre-orders going, watched the organic interest grow, and paid close attention to what people were saying on social media. That really helped us feel confident before we went all-in on production.”

6. Many HW companies face the challenge of user education. People need to interact with the product before they can trust you. How’d you overcome that?

FH "Selling hardware online when people can't touch it is tough, but we found some tactics that worked. Video demos and GIFs were huge. Showing the product in action answers alot of questions.

Influencer marketing was also super effective for us. When someone trusted shows your product working, people believe in it. We also had a solid trial and return policy to reduce hesitation. And eventually, we got into some retail partnerships so people could actually see and feel the product before buying.”

7. How can hardware startups test MVPs early in the dev process? You can’t just run A/B tests like an app

FH: “Hardware is pretty different from software. Like you said you can't just push updates whenever you want. You've got to deal with actual physical stuff like cost, picking the right materials, and figuring out what you can actually manufacture. But there are some really good ways to test things out before going all in. What I actually like to do is start with what we call 'Wizard of Oz' prototyping - basically, you build something that looks like the real thing but maybe you're doing some of the features manually behind the scenes.

Then what I've found works is getting your prototype in front of a small group of early adopters. These are the people who are excited about what you're building and will give you honest feedback. You just learn so much by watching real people interact with your prototype."

8. How did you get prototypes in users’ hands?

"What we actually did was start with just a handful of really solid prototypes. Then we just started passing them around to different people. I'd send one to a reviewer, get their thoughts, then pass it to a friend, and then to someone who might actually buy it. Instead of making a bunch of units right away, we just kept cycling these few prototypes around and collecting all this feedback. It was pretty eye opening to be honest. Seeing how real people used it and what they struggled with really shaped our final design. I remember making tweaks after almost every person who tested it. For example, we improved the ergonomics after seeing how people held it. We had to adapt the magnet strength, and noticed people needed some slight guidance on how to take the pen out of the booklet since it was such a new experience”

9. What did you learn about your users that you didn’t know before?

FH: "Before we started selling Side Note, I was totally convinced people would just use it for productivity. But a ton of people were actually buying it as a gift - they loved how premium it looked and felt. Then we started hearing about all these uses I never even thought of. People were using it for daily affirmations, journaling, and creative writing. There was also an instance of a truck driver talking about how it helped him with his delivery routine, which was neat. Another demand that I didn't expect was that people kept asking if we could make it refillable. So we ended up creating that as a new version.”

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Product Development

10. What was your product development process?

FH: "Our process was pretty straightforward. We started with concept sketches, then moved to 3D modeling and making physical prototypes. Like I said earlier, early testing was crucial. We got insights that completely changed our direction. After those iterations, our design was locked and we prepped for manufacturing. Next we got our tooling sorted, did a small batch production to work out any kinks, and then finally launched and started scaling. The key was being methodical but not getting stuck at any one stage."

11. Can you share some lessons on finding a manufacturing partner?

FH: "What worked for me was visiting factories whenever I could. If you can't visit in person, you have to do your homework. Start with small batches before you go all in . This will save you from alot of headaches. Also get everything in writing with clear quality standards.

Don't just go with the cheapest option. I tried that and the quality was terrible. Really check out your manufacturers because some will promise you the moon but can't deliver. And always have a backup supplier. Things go wrong.”

12. What are the typical costs for a HW startup?

FH "It really varies on your product but here's what I've typically seen: For prototyping, you're looking at $500 to $5000, depending on complexity. Tooling is where it gets serious. Anywhere from $10,000 to $100,000 or more if it's really complex. Small manufacturing runs usually start around $20,000 minimum. Marketing can range from $5,000 to $50,000 to get the word out. It adds up fast, which is why you need to be really confident before you go all in.

But if you keep things simple and focus on prototypes for testing, filming and first-adopters, you can focus your budget on marketing, which is more important. I would split it like: (1) $100-200 for simple renders and mockups, 3D printed visual prototypes for market validation (2) $200-500 for early marketing and market validation (3) $2,000-5000 for all prototypes plus shipping (for a Side Note type of product, can be much more expensive if its a complex product) (4) $10,000-20,000 for pre-sale marketing (crowdfunding or your own), try to pre-sell at least 100 to really get a sense of the buyer, the persona, etc and (5) $X- manufacturing first batch - depends on quantity."

13. What are some tips for our readers who are overthinkers and delay execution?

FH: "Its different for everyone but I've found setting a hard deadline is crucial otherwise you'll tinker forever. You've got to be ruthless about limiting feature creep too. Ask yourself: 'Is this really essential?' Like I said earlier, the biggest thing is getting it in front of actual users as quickly as possible. Their feedback is worth ten times what you'll figure out on your own. And whenever you can, use off-the-shelf parts. No need to reinvent the wheel for everything. You just have to start.”

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Selling

14. How did Side Note sell 1000 units so quickly?

FH: "I think a few things really helped us get there. First off, we solved a real problem. People were frustrated with how they took notes. They needed something faster, something that just worked.

What really made a difference was how we positioned it. We didn't just make another notebook. We really thought about the design, made it premium, and made it something people would actually want to use every day. For marketing, we kept it pretty straightforward. Got it out on social media, connected with some influencers who actually loved using it, and built up this community around the product.”

15. What was your most successful customer acquisition method?

FH: "We tried to focus on organic as much as possible. Happy customers sharing on social media. That stuff is gold because people trust other people way more than they trust ads.

We also did these strategic partnerships that worked well. We got featured in these niche newsletters, specialized blogs, and curated gift guides. And when we did run ads, we were super targeted. Instead of just blasting them everywhere, we zeroed in on exactly who would love this product.”

16. What was your revenue model?

FH: "IMO with hardware, subscriptions rarely make sense. We went with a straightforward upfront purchase model. But we created opportunities for repeat business through refills and accessories. That was actually pretty key.

We kept a close eye on how engaged people were by tracking reviews, talking directly with customers, and monitoring how often they came back to buy more stuff. This gave us a pretty good idea of how sticky the product was."

17. What’s your take on fundraising vs bootstrapping?

FH: "Hardware is expensive, no question, but bootstrapping has some real advantages. You maintain control and ownership. You're forced to spend money wisely. And you build for profitability from day one.

That said, if you need to scale quickly, VC money might make sense. What actually worked well for us was this hybrid approach - using pre-orders, applying for grants, and exploring crowdfunding. It gave us capital without giving up too much control. VCs tend to want to see enormous growth, like a 10-100x multiplier on their investment. Depending on your goals and vision, you will need to convince yourself and the VC that this could happen in the next 5-10 years.”

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Thanks for Reading

This was the first time we’ve tried an interview format, so let us know how it was. If there are other examples of HW products or topics you want a deep dive on, feel free to suggest them.

As we’ve seen from Farhan’s experience, achieving PMF in HW requires getting units in users’ hands early, often, and then iterating on feedback. It also teaches us to have bias for action and that moving forward with something is more important than a grand, sophisticated idea. Even simple products can achieve success through a bit of planning and relentless execution.

Connect with Farhan through his LinkedIn here.

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Make sure you check out some other articles:

• Hardware Product Development Process ⚙️

• Designing for Delight vs Pain 🔥

• Hardware Product Management 🚀

• Teardown of how iPhones work 📱

• 5 Books on HW Product Development 📚

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