Start An Io T Startup - Business Ideas
Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
An IoT startup focuses on devices connected to the internet that can be accessed remotely through the internet or a connected application.
Research what is essential to the end users to start and build a successful IoT. Leverage what is available to make the application easy to use. Then, create working prototypes, test, and build the application around the clear essential purpose.
Starting an IoT startup requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell iot service, or selling iot service online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start an IoT startup ➜
Key Stats
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
|
Office Space Expenses |
$0 |
$7,000 |
|
App Creation Costs |
$1,099 |
$20,099 |
|
Software Expenses |
$162 |
$2,894 |
|
Advertising & Marketing Costs |
$0 |
$2,500 |
|
Website Costs |
$13 |
$215 |
|
Training & Education Expenses |
$0 |
$850 |
|
Total Startup Costs |
$1,274 |
$33,558 |
Case Studies
•
$8K/mo
•
$2.3M/mo
•
$400K/mo
•
$500/mo
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
|
Internet of Things (IoT) Summit at RWW2020 |
rww2020.iot.ieee.org |
1,213 |
|
|
JDN : E-business, FinTech, Big Data & IoT |
journaldunet.com |
9,373 |
|
|
Tracxn |
tracxn.com |
10,181 |
|
|
Splunk |
splunk.com |
10,787 |
|
|
NXP Semiconductors |
nxp.com |
22,804 |
|
|
Sched |
sched.com |
27,093 |
|
|
Techstars |
techstars.com |
31,064 |
|
|
Built In LA |
builtinla.com |
32,491 |
|
|
Samsara |
samsara.com |
33,108 |
|
|
IoT For All |
iotforall.com |
56,375 |
|
|
CIOReviewIndia |
cioreviewindia.com |
60,765 |
Pros & Cons
| Pros | Description |
|---|---|
|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
|
Ability to start your business from home |
It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning! |
|
Rewarding work |
Starting a IoT startup can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about. |
|
Scalable |
With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
|
Traffic to your website |
A IoT startup gives people a reason to visit your website and to keep coming back to you! |
|
No overhead costs |
To get your IoT startup started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money! |
| Cons | Description |
|---|---|
|
Crowded Space |
Competition is high when it comes to your IoT startup, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies. |
|
Motivation of employees |
If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees. |
|
Longer Sales Process |
A IoT startup can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers. |
|
Security Issues |
With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road. |
|
Isolation |
Often times, as a IoT startup, you typically work alone and do not have much face-to-face interaction with other team members. |
|
Taxes |
As a IoT startup, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
Marketing Ideas
-
1
Affiliate Program
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
-
2
Direct Sales
Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.
-
3
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
