The risk you cannot see on a Gantt chart
Your factory does not pause for Lunar New Year and resume where it left off. A meaningful share of the
The default that ships defects
You can pass every functional test at the factory and still ship a product that falls apart in a week.
G08 $0.40 part, $200,000 problem (Yield)
The most dangerous line in hardware is "yield should be fine." Three words. Six figures in dead inventory.
G07 This is not a part. It is a lock-in (Tooling)
Most founders treat tooling as a procurement task. It is actually a strategic lock-in. The day you pay for that
Two meetings a day
The founder who lost their best supplier pricing did everything right on the factory floor. Then they rushed through lunch.
You paid for it. They sold it again.
That compliance package you funded? Your factory is now bundling the same approvals with units they ship to future customers.
G06 Production-ready? Prove it (EVT/DVT/PVT)
"We are almost production-ready" is how hardware founders lose credibility with experienced investors. Burned investors ask one question:
G05 One line in your BOM is sabotaging you (Lead Time)
Your product is not late because of the factory. It is late because you ordered components like you were buying
Loyalty is not a sourcing strategy
The supplier who saved your product launch three years ago might sink your next one. Loyalty feels good. Ignoring the
Break your product before your customers do (HALT/HASS)
Factories love gentle testing. It keeps yields high, paperwork clean, and hides design flaws until your customers find them for