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14 Replies Last post: Nov 20, 2008 2:38 PM by 2Kimmi

Should a startup outsource at an early stage

Oct 7, 2008 5:59 AM

decibel 2 posts since
Oct 3, 2008

Me and my partner have started a new venture in the field of mobile communications. We are thinking to outsource but we are not able to decide. We need some opinions whether a startup should outsource at an early stage or not......

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LUCKIEST 7,938 posts since
Aug 6, 2007

1. Re: Should a startup outsource at an early stage Oct 7, 2008 6:39 AM

Should a startup outsource, Welcome

Who are you, Where are you?? Go to Members page and share some info with us.

As to your question about "outsourcing" you need to do a spread sheet or a
cash flow report to see what the numbers show.

Do you have an Accountant to help with the numbers.

Good luck, LUCKIEST

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NoBullFunding 278 posts since
Oct 6, 2008

2. Re: Should a startup outsource at an early stage Oct 7, 2008 7:05 AM

It depends on what you planning on outsourcing. Things like customer service and sales probably should not be outsourced, since people in those roles will be the face of your company, and its vitally important that your customers know you. That's always a real differentiator. On the other hand, its fine to outsource something like book keeping. Hope that helps!

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tech_startup 1 posts since
Oct 13, 2008

3. Re: Should a startup outsource at an early stage Oct 14, 2008 5:30 AM

We want to outsource part of our R&D. We are a two member founder team and both of us are techies. We want to expand the team to a 4-6 member R&D team, without having to invest in infrastructure and increased admin overheads (money and our time). I see this article on internet http://ezinearticles.com/?Ten-Reasons-Why-Start-ups-Should-Outsource-Early&id=1541622 and it does make a promising case for outsourcing early for start-up like ourselves. Wanted to get other people views before actively considering outsourcing options.

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Iwrite 1,101 posts since
Dec 29, 2007

4. Re: Should a startup outsource at an early stage Oct 14, 2008 10:09 AM

in response to: tech_startup

I think outsourcing is a great way to go as long as you have a clear contract and non-disclosure agreement to protect both parties. Advertising has been outsourcing for years even on new business pitches and it has worked well. The key is to make sure things are outlined, and you don't misrepresent the contract workers as ful time employees.

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startupadvice 2 posts since
Oct 16, 2008

5. Re: Should a startup outsource at an early stage Oct 16, 2008 8:43 AM

in response to: Iwrite

If you are a technology start-up not all outsourcing models may be appropriate for you. You should ensure that your outsourcing partner is willing to work on a build-operate-transfer (BOT) model so that if you scale in future and want to bring the R&D inhouse, you don't have to start from ground zero and start fresh hiring. The BOT model gives protection even on residual IPR (which is the know-how in employees learn as they work on your project). No other outsource model can give you such a high level of IPR protection.

startupadvice
www.samadhansys.com

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intechspecial 1,457 posts since
Jan 6, 2008

6. Re: Should a startup outsource at an early stage Oct 16, 2008 10:18 AM

I would have to say if you are to outsource in the early stages, make sure you have many trial runs before hand.

It could be complete disaster and set your company back weeks, months, years or permanently if it is not done correctly.

Be careful it can get ugly.

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startupadvice 2 posts since
Oct 16, 2008

7. Re: Should a startup outsource at an early stage Oct 17, 2008 1:19 AM

in response to: intechspecial

intechspecial,
I fully agree with you. If as a start-up you choose a wrong outsourcing partner or a model, it can make you step-back by couple of months easily and leave one with a big problem. The trick is not to engage with very large outsourcing companies who are looking for a huge team size engagement leading to multi-million $$$ of business. For a smaller requirement of a start-up (say 4-6 people), they would possibly assign people from bench. Find the right company who works exclusively with start-ups only. There are a few available out there.

startupadvice

www.samadhansys.com

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hsidesign 4 posts since
Nov 27, 2007

8. Re: Should a startup outsource at an early stage Oct 18, 2008 10:01 PM

in response to: startupadvice

I'm in full agreement with startupadvice and intechspecial!!

Make sure you really do your homework before you go that route.

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intechspecial 1,457 posts since
Jan 6, 2008

9. Re: Should a startup outsource at an early stage Oct 18, 2008 11:13 PM

in response to: startupadvice

Thanks for your reply startupadvice.

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intechspecial 1,457 posts since
Jan 6, 2008

10. Re: Should a startup outsource at an early stage Oct 18, 2008 11:14 PM

in response to: hsidesign

Kudos to you as well hsidesign!

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da1969 3 posts since
Nov 19, 2008

11. Re: Should a startup outsource at an early stage Nov 19, 2008 8:46 PM

We outsourced all of our back office function because we did not have the office space nor time to do it ourselves. We don't know where we would be without Achieve Virtual Assistant Services....www.achievevas.com

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decibel 2 posts since
Oct 3, 2008

12. Re: Should a startup outsource at an early stage Nov 20, 2008 1:17 AM

Thanks to all for your good piece of advice...... We have started working with a company which works exclusively with early stage start-ups and helps them to leverage from benefits of outsourcing to India under their unique business model, IncubationPlus. We were attracted with their unique business model. For everybody's reference www.samadhansys.com .

Thanks once again..........................!

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kevhan 29 posts since
Oct 22, 2008

13. Re: Should a startup outsource at an early stage Nov 20, 2008 11:00 AM

Its good to outsource where you can acquire the exact amount of services you need and pay for just that portion. It is expensive to hire employees when you start out so outsourcing works. Check out bookkeeperworld.com to outsource your bookkeeping and accounting needs. Don't sent your work overseas keep it here in America! We need the jobs.

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2Kimmi 1 posts since
Nov 20, 2008

14. Re: Should a startup outsource at an early stage Nov 20, 2008 2:38 PM

Outsourcing can be a useful tool, when it comes to managing time and money. It may be more cost effective to outsource some of your time consuming tasks.

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Should a startup outsource at an early stage

Oct 7, 2008 5:59 AM

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