I Started a New Business. It Didn't Go Well...
Ali Abdaal・2 minutes read
A new brand called Light Mode launched a mechanical keyboard that received negative reviews, leading to financial losses of $40-50k out of $300k invested, highlighting the importance of clear communication and quality focus in business endeavors. The goal is to learn from mistakes, make adjustments, and prioritize product standards and team alignment for future success.
Insights
- The creation of the Light Mode mechanical keyboard stemmed from a personal interest in tech and a desire to establish a business independent of the creator's personal brand, focusing on providing a basic mechanical keyboard for first-time users rather than competing with specialized brands.
- Lessons learned from the negative reception of the product include the importance of quality over quantity in business endeavors, emphasizing the need for clear communication in marketing materials to convey authenticity effectively, and the shift towards a more deliberate and quality-focused strategy rather than rushing product development.
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Recent questions
What is the pricing of the Light Mode keyboard?
$149 with $15.90 shipping
What are the key features of the Light Mode keyboard?
Basic design, premium packaging, Gateron yellow switches
What are the challenges faced during the development of the Light Mode keyboard?
Communication issues, delays in production
What is the goal behind creating the Light Mode brand?
To build a business independent of personal brand
How does the Light Mode keyboard differentiate itself in the market?
Positioned as reasonably affordable, focus on aesthetics
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Summary
00:00
"Lessons from Light Mode Keyboard Launch"
- In November 2023, a new brand called Light Mode was launched, with the first product being a mechanical keyboard available at lightmode.com.
- The keyboard received negative reviews from a mechanical keyboard reviewer, causing financial losses as only $40-50k of the $300k invested has been recouped.
- The goal of the video is to share lessons learned from the negative reception of the product and discuss what went wrong and right.
- The decision to create the keyboard stemmed from a personal interest in tech and a desire to build a business not solely reliant on the creator's personal brand.
- The keyboard was designed to be a basic mechanical keyboard for first-time users, not to compete with specialized brands like Kyron or IQ Unix.
- The development process took either 12 or 18 months, depending on when counting began, with challenges in communication and clear messaging during filming.
- The pricing of the keyboard is around $150, positioned as a reasonably affordable mid-range option, but facing competition from budget offerings.
- Building the keyboard involved a complex process, not just rebranding an existing design, with delays due to small order quantities and factory priorities.
- The creator acknowledges the need for clearer communication in marketing materials to convey authenticity and meaning effectively.
- The intention behind the keyboard was to create a brand that could stand independently of the creator in the long term, aiming for a reputation akin to UGM monk or grovemade.
12:11
"Chinese New Year Delays Impact Budget Keyboard"
- Chinese New Year causes delays in production, affecting pricing and competition with budget keyboard brands due to economies of scale and volume discounts.
- The product is priced at $149 with an additional $15.90 for shipping, with detailed breakdowns of costs including product, freight, fulfillment, and payment processing.
- Operating costs make up about 40% of the product cost, with break-even at $120, emphasizing the need to make a profit for business sustainability and growth.
- The business reinvests profits into product development and expansion, aiming for long-term viability and success.
- The product is positioned as reasonably affordable, not necessarily better than competitors, but preferred for personal aesthetics and feel.
- The keyboard lacks enthusiast features but fulfills its basic function, aiming for a subjective sense of aesthetics and comfort.
- Packaging is highlighted as a positive aspect, with attention to detail in design and accessories like a braided cable and added weights for a premium feel.
- The decision to use top-of-the-range key caps and Gateron yellow switches is explained, along with the rationale behind the braided cable choice.
- Concerns are raised about the perception of the product being marketed to an audience unfamiliar with mechanical keyboards, potentially lacking in-depth research.
- Lessons learned include the importance of focus, with the keyboard project being a side hustle that lacked dedicated attention, emphasizing the need for quality over quantity in business endeavors.
24:23
"Marketing Message Adjustment: Learning from Discomfort"
- A team member, B, is leading a project due to concerns about the marketing message being too strong for a keyboard.
- The rush to complete marketing videos led to discomfort and a realization that the message needed adjustment.
- The project aims to serve as a learning experience rather than a profit-making venture.
- Future plans include reshooting videos and ads to avoid overselling the product.
- The importance of taking time and ensuring personal comfort with the brand message is highlighted.
- Suggestions for future projects include seeking feedback from mechanical keyboard reviewers and conducting user testing with normal people.
- The shift from a "move fast and break things" approach to a more deliberate and quality-focused strategy is emphasized.
- A lesson learned is to take seriously any negative feelings about a project before committing significant resources.
- The need to obsess over quality and ensure team alignment on product standards is recognized.
- Collaboration with experts and real users for feedback and testing is planned for future product iterations.
