outsourcing: the mistake of a startup
TRANSCRIPT
Why startups fail?Top 3 Reasons
1. No Market Need
2. Not Enough Cash
3. Not the Right Team
How to avoid those problems?
No Market Need
Problem #1
Find the purpose of your product…
…Using The Lean Startup Approach
Source: The Lean Startup
Minimize thetotal time throughthe loop
Source: The Lean Startup
Goal
Why outsourcing is inadequate?• Communicating the initial design intent…• Sharing results from customers feedback…• Revising & approving design choices…• Writing and revising contracts...• Processing invoices and payments…• Evenings, weekends and holidays…• …
TAKES TIME
Outsourcing is time consuming
Do itin-house!
Not Enough Cash
Problem #2
Outsourcing is also money consuming
Our first approachat Nepsu
1- We have some money, let’s outsource our PCB design
1- We have some money, let’s outsource our PCB design2- We don’t have anymore money, but Kickstarter will solve everything
1- We have some money, let’s outsource our PCB design2- We don’t have anymore money, but Kickstarter will solve everything3- We have to cancel the Kickstarter campaign, so we’re screwed
But we survived and went for a second
approach
1- We keep our money and conceive the PCB in-house
1- We keep our money and conceive the PCB in-house2- PCB design completed. We order some prototypes
1- We keep our money and conceive the PCB in-house2- PCB design completed. We order some prototypes3- The first batch has bugs, but we know how to fix them
If we had to start again, we would assemble the whole PCB by
ourselves!
MONEY IS WHAT YOU NEED,
SAVE IT
TIME IS WHAT YOU HAVE,
SPEND IT (wisely)
Not the Right Team
Problem #3
Questions you shouldask yourself
What skills and tools are you missing?
How many iterations will you need before getting to market?
Is it worth the investment?
Entrepreneurship is not for everyone
Do you have what it takes?
Skills and tools
Network resources
Time to market
Predicted ROI
If you do, follow these 3 easy steps
For each workload you are about to outsource…
1- Stop
1- Stop
2- Sit down with your team
1- Stop
2- Sit down with your team
3- Think about a way to do it in-house
We hope it helps you.
See you on the field!
Thank you for reading!Want to learn more on startups?Come check our blog.
Read more
Ressources• CBInsights –
https://www.cbinsights.com/blog/startup-failure-reasons-top/• Lean startup - http://theleanstartup.com/principles• Full Blog Article - How to save your startup 50000$...