By Pete Cooper
CEO, Skillion
In the startup world, focus is everything. Especially when you’re a small team with limited resources and one big opportunity. But what happens when that focus slips? Let me share the story of MnoTech—a startup that risked it all by chasing growth over delivering value to its very first customer.
One Customer, One Mission — Or Not
In early 2021, MnoTech landed their first customer, ABCare, with a contract to install 425 TVBox devices—TV-connected video calling tools tailored for telehealth. The deal was valued at $32,000 per month for two years. By all accounts, they were off to a strong start. They had a working MVP, a patented product, capital raised, and a plan to scale. But somewhere along the way, they lost sight of the one thing that mattered most: making that customer successful.
When I joined MnoTech in early 2022, things weren’t looking good. Only 80 devices were active. Usage was low. Complaints about call failures and complex remotes were mounting. ABCare staff had little interest in using the product. And worst of all—MnoTech leadership wasn’t paying attention.
The Warning Signs
Instead of investing in customer success, MnoTech outsourced account management and turned their attention to raising more capital. Internally, they referred to ABCare as a stepping stone. One comment summed up the mindset: “Just keep them running until we land the next customer.”
Meanwhile, the product was riddled with bugs. Devices browned out during calls due to power issues. System-wide crashes took half the fleet offline. Remotes were clunky and broke easily. And instead of fixing these problems, leadership downplayed them. Even the word “unstable” was banned from internal discussions.
Scaling Broken Systems
Despite all this, MnoTech ordered 1,000 more units for a customer who hadn’t even signed. It was a classic case of trying to blitzscale a hardware product—ignoring field failures, skipping validation, and prioritizing image over impact.
As someone who’s worked in both software and hardware, I’ve seen this before. Software bugs can often be patched quickly. Hardware issues? They’re slow, expensive, and reputation-damaging. When your field failure rate is 50%, you don’t scale—you pause and fix it.
Four Lessons Every Startup Should Take to Heart
1. No Issue Is Too Small
If you’re small, every issue matters. Leadership must ensure processes exist to resolve problems quickly. In MnoTech’s case, even basic KPIs and internal accountability would have saved them a “wasted year.”
2. Focus on Market Fit, Not Hype
You can’t scale a product customers don’t value. Leaders must detach from ego and ask honest questions. What’s not working? What can we learn from competitors? Sometimes the better solution isn’t a box—it’s an app.
3. Obsess Over Your First Customer
Do things that don’t scale. Learn. Iterate. Listen. If you can’t make one customer happy, why would the next hundred be any different? Product stability and user experience should be non-negotiable.
4. Know What Kind of Company You Are
MnoTech acted like a SaaS company, but they were building hardware. That’s a different game. Stability, production quality, and field support matter far more. Elon Musk called Tesla’s early years “production hell.” MnoTech needed their own hands-on moment.
Final Thoughts
There’s no exact blueprint for startup success. But ignoring your first customer while chasing a billion-dollar dream is a sure way to miss both. Focus first. Scale second. Prove value before selling the vision.
— Pete Cooper
