Hardware companies face a unique challenge: scaling too fast means you cannot deploy a vastly superior V2 because you are busy supporting V1. Seneca plans to limit initial deployments to gather crucial feedback without getting locked into manufacturing and supporting an obsolete product platform.
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Numi's first crowdfunded product didn't have the technical sweat-proof fabric they later developed. By the time they shipped, they knew it wasn't the best possible version. However, launching it allowed them to enter the market, gather feedback, and generate revenue to fund the next iteration.
Unlike traditional software development, AI-native founders avoid long-term, deterministic roadmaps. They recognize that AI capabilities change so rapidly that the most effective strategy is to maximize what's possible *now* with fast iteration cycles, rather than planning for a speculative future.
For physical products, changes between versions are costly and slow. Solgaard launches on Kickstarter to get early adopter feedback on features before the first mass production run. This allows them to effectively release a more refined "version two" as their initial market product.
Unconventional AI operates as a "practical research lab" by explicitly deferring manufacturing constraints during initial innovation. The focus is purely on establishing "existence proofs" for new ideas, preventing premature optimization from killing potentially transformative but difficult-to-build concepts.
To avoid the operational chaos of viral success, Shelter Skin deliberately caps production to match what they can manufacture and ship themselves. This prevents them from overselling and allows for sustainable, bootstrapped growth, even if it means frustrating some customers with temporary stockouts.
Business growth isn't linear. Scaling up introduces novel challenges in complexity, cost, and logistics that were non-existent at a smaller size. For example, doubling manufacturing capacity creates new shipping and specialized hiring problems that leadership must anticipate and solve.
Despite high demand, LEGO's CEO views ~15% annual growth as the sustainable maximum. Because LEGO manufactures its own products, faster growth would strain its ability to build new factories and distribution centers, introducing unacceptable complexity and delivery risks into the operating model.
Releasing a minimum viable product isn't about cutting corners; it's a strategic choice. It validates the core idea, generates immediate revenue, and captures invaluable customer feedback, which is crucial for building a better second version.
