Startups Cannot Live Without Outsourcing

By David Drake, founder of LDJ Capital: Outsourcing is a strategy that startups cannot live without. When you start as a one-man show and have to do all things by yourself, you find out soon enough that some things you cannot do as well as others.

Despite its known drawbacks, outsourcing is a smart strategy that an entrepreneur can use well beyond its benefits of keeping overhead costs and operational expenses to a minimum.

Here are some signposts to guide you to a better outsourcing experience:

1. Outsource work that is not your core competency, or main service offering for which you want to build your expertise. If you want to build yourself up as an innovative shoe designer, then do not outsource the designing task itself. However, you can collaborate with a production house to execute your designs for you.

2. Use experts or specialists to gain insight into new technology, a new field or a new industry. With the example of the shoe designer, you can partner with a team who can translates your designs into 3-D drawings for a more compelling product presentation. Learning the technology yourself takes a longer time and would require you to invest in expensive software that may not be what you will need in the end.

3. You can gain inspiration from new people and teams who can provide fresh perspective into a problem that your team has been mulling over. This can help you or your team get over a rut.

4. Outsource to expand market or supplier base. Partnering with other teams can link you to a new segment of the market or to a wider network of service providers. This can strengthen your service or product offering. You might also find exemplary talent that can join your core operation in the future.

5. When outsourcing, go in with the intent to decentralize operations and lower costs, but without hampering quality or productivity. This is tricky as any new team you partner with will have to go through a steep learning curve not only with your product specification or service requirements but also with communications and company culture.  Lessen the negative impact by simplifying processes and expectations.

In all of the above, balance, the right timing and intuitive pacing are key and essential to gaining the best from the experience.

Source:

http://blogs.wsj.com/accelerators/2013/12/20/david-drake-startups-cannot-live-without-outsourcing/

 

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

VentureBeat10 reasons the $1 million crowdfunding cap should be $20 millionVentureBeatIt's been18 months since the final rule of the JOBS Act went into effect, allowing equity crowdfunding. In those 18 months, everything proponents of the rule said would happen (and none of what [...]

The IndependentFrench Chateau bought by 10000 people through crowdfunding schemeThe IndependentIn countries where castles aren't snapped up by The National Trust and immediately furnished with a tearoom and gift shop, other ways must be found to preserve historical buildings. The [...]

Crowdfunding sites help Boulder County residents raise money to pay for treatmentsBoulder Daily CameraHer health insurance, once she reached the $2,000 deductible, covered most of the chemotherapy, but she has been receiving extra treatment at the Helios clinic in Boulder and is parti [...]

CurbedReal estate crowdfunding expands into more niche marketsCurbedTo those unfamiliar with real estate crowdfunding, the Fair-Haired Dumbbell development in Portland may be just the kind of wacky, esoteric project one envisions when imagining what happens when strangers pool funds o [...]

CGTN America (blog)Crowdfunding movement makes its way through MexicoCGTN America (blog)Crowdfunding movement makes its way through Mexico. Americas Now. Click to share on Facebook (Opens in new window) · Click to share on Twitter (Opens in new window) · Click to share on Google+ (Ope [...]

WKRN.comFranklin mother, son warn of crowdfunding dangers after scamWKRN.comFRANKLIN, Tenn. (WKRN) – Thousands of dollars raised through crowdfunding lost, as a family seeks possible legal action against one of their own. Now a Franklin mother warns others of the dangers of crowdfundi [...]

MashableLearn how to get your big idea off the ground with crowdfundingMashableJust to let you know, if you buy something featured here, Mashable might earn an affiliate commission. Instead of fielding requests from your friends to donate to their Kickstarter or Indiegogo campaigns, w [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |