Drop the harware business, and focus on getting the complete device management software solutions that companies can't live without. (from cloud backup to security enhanced android forks)
Try to be the leader in your district (post tracts, talk to people, geotargeted ads), then be the leader in the others nearest districts, then you city, then...
The Consumerization of IT brings many opportunities for startups that have to seduce the consumers in order to get access the businesses. It's "Saas 2.0".
Not sure if it's SaaS 2.0, or just the reality of what SaaS provides the worker/business owner. It's good for both the company and that startup selling to the company, but there is a lot of education needed.