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

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

Technical.ly BaltimoreArbit took to crowdfunding to seek out investorsTechnical.ly BaltimoreThe Baltimore-based social polling company is seeking to raise a maximum of $425,000 through equity crowdfunding, a funding instrument that was first officially made available last year with re [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

WOMEN-FOCUSED CROWDFUNDING PLATFORM IN NEWARK IS ACCEPTING ITS FIRST COHORT OF ...Brick City LiveEntries will then be evaluated by a team at iFundWomen for a spot in the crowdfunding platform's first cohort in the Greater Newark area. Businesses that are accepted into the cohort [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

Food & WineBrewDog's Latest Crowdfunding Effort Falls ShortFood & WineCrowdfunding—or more accurately, selling shares in its business directly to investors via the Internet—has been a major part of Scottish brewer BrewDog's business plan. To date, the company has rai [...]

MetroDeadly Premonition maker SWERY crowdfunding for new game The ...MetroSWERY is back and he's making another ultra weird-sounding game – set in a small UK village where everyone keeps turning into cats.The Good Life is a newly announced RPG by the creator of Deadly Premonition [...]

AlgemeinerIsraeli Crowdfunding Campaign Raises 1 Million Shekels for Policewoman Paralyzed in Jerusalem Terror AttackAlgemeinerAn Israeli crowdfunding campaign on behalf of a policewoman who was paralyzed by a Palestinian terrorist in Jerusalem last year has reached its goal of gather [...]

Indiana pioneers crowdfunding community projectsWTHRA downtown Greensburg mural made possible by community donations, Patronicity.com, the Indiana Housing and Community Development Authority and other local organizations, as seen on Aug. 3, 2017. (Main Street Greensburg Photo via ... [...]

Crowdfunding Success of OYO Fitness's DoubleFlex Gym Spreads GloballyMarkets Insider16, 2017 /PRNewswire/ -- After becoming the second highest funded Kickstarter fitness product in history, Kansas City-based OYO Fitness has now launched their DoubleFlex Black Portable Gym on the [...]

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 |