Outsourcing:The Mistake of a

StartupHugo LauzonCo-founder at

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?

Do you have someone in your network who can help you get

started?

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$...