First Product Build: Hire a team or outsource?

𝗙𝗶𝗿𝘀𝘁 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗯𝘂𝗶𝗹𝗱: 𝗵𝗶𝗿𝗲 𝗮 𝘁𝗲𝗮𝗺 𝗼𝗿 𝗼𝘂𝘁𝘀𝗼𝘂𝗿𝗰𝗲?

If you're a non-technical founder, you're faced with a crucial decision: build an in-house team or outsource your first product. Both paths have their merits, but also hidden pitfalls. Let's break it down:

𝗢𝘂𝘁𝘀𝗼𝘂𝗿𝗰𝗶𝗻𝗴:
👍 Faster start
🚀 Access to varied expertise
💰 Potentially lower initial costs (even lower if offshoring)

🔍 Less control over process, quality and technical decisions
💸 Misaligned incentives (they might push for larger scope)
🧠 Limited knowledge transfer

𝗜𝗻-𝗵𝗼𝘂𝘀𝗲 𝘁𝗲𝗮𝗺:
🎯 Better alignment with your vision
📚 Knowledge stays within your company
🔑 More control over priorities and pivots

⏱️ Longer lead time as you need to hire
💵 Making a commitment to people before having certainty
💣 The implications of not hiring right could be disastrous

Here's the kicker: it's not always an either/or choice. Consider a hybrid approach:
1. Start with a lean MVP: Outsource a bare-bones version to validate core assumptions quickly.
2. Bring core competencies in-house: As you learn what's critical, start building your team around these areas.
3. Use outsourcing strategically: For specialised or non-core features, tap into external expertise as needed.

Your first build isn't about creating the perfect product. It's about learning and validating assumptions as efficiently as possible. Whether you outsource or build in-house, focus on creating an MVP first. Don't try to build everything at once. Validate, learn, iterate.

Originally published on LinkedIn