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NO, YOU CAN’T JUST OUTSOURCE

If you’re starting a tech company, you need a technical co-founder.

Without one, you won’t be able to build your company. In addition, you won’t be able to raise money, because investors know how important it is to have a technical founder on the team.

There are a long list of reasons, but here I’ll make like an entrepreneur and show you the problem, then give you the solution.

Let me start by addressing the most common issues, usually preceded by:

“Sure I can start a tech company without a tech co-founder, I’ll outsource!”

PROBLEM: OUTSOURCING = MISALIGNED INCENTIVES

While outsourcing a website is possible, the incentives of whoever you’re sending work to is often the opposite of what you want.

Even for the most expensive contractors, their incentives are:

  • Do the least work possible while getting paid
  • Take longer than you want, if it means they can get paid more

Even a great provider has these incentives – they’ll just act on them differently. The best folks do work quickly to earn repeat business, and don’t charge for hours above their estimate. However, until you’ve had experience with someone, it’s hard to know how they’ll treat a job.

At Catapulter, while some of our contractors worked hard to earn repeat business, others did a quick, messy job and then demanded further hourly payments for edits. To be fair, that’s the lowest of the low, but it absolutely happens, particularly when you’re paying bottom of the barrel prices (common for early, low-cash startups).

(See my post on not getting screwed by outsourcing)

SOLUTION: TECHNICAL CO-FOUNDER

Above, I said that some of our contractors did a bad job. If we didn’t have technical co-founders, we wouldn’t even know it!

Fortunately for us, these were quick jobs, and we could afford to lose the $100 we paid. What if we had gone the outsourced route with a 3-month, several thousand dollar job, with no one to look over our contractors’ shoulders? It would have been a tough spot.

The reality is: you need a technical co-founder you trust. Someone who is not trying to make money from you, and wants your company to succeed.

Your Technical Co-Founder Will:

  • Screen and manage
  • Integrate
  • Do it the right way
  • …and, surprise – code!

Screen and Manage

If you’re non-technical, it’s very difficult to manage technical contractors because you don’t know what they’re doing, or how they need to interact with other contractors. Your technical co-founder will understand how the pieces fit together, and make sure that different components can actually integrate.

Also, you shouldn’t expect every contractor or even employee to be able to problem solve or think pro-actively. You’ll need to give guidance and feedback constantly, and if you’re not technical, you won’t be able to do this correctly by yourself.

Integrate

If you outsource components, they’ll have to be integrated. Integration takes an immense amount of time, and it’s not something that can be tacked-on to the end of a job. You’ll want someone internal to guide this process (if not do it completely), to make sure it’s done right.

Do It Right

As I mentioned earlier, a contractor is interested in completing the job, and maybe getting repeat business, not making your site as elegant and easy to maintain as possible. Your technical co-founder will want to drive this process, to make sure your site is being built in a scalable, updatable, low maintenance way.

Code!

Building a website is not easy. There are many moving parts, and there’s always something that needs to be fixed, changed or updated. You want someone on your team who you can count on for emergency fixes, to fill in the gaps between contractors, or add that one last little feature before the next release.

AND MOST IMPORTANTLY, THEY’LL STICK IT OUT WITH YOU

If you fully outsource your website, the folks building the website are doing it for a paycheck. If you stop paying the bills, they’ll stop building the site.

If you’re a new startup, you’re probably not loaded with cash. You want to find someone who’s going to stick it out with you when the going gets tough, and continue to move forward if you hit a rough patch.

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