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Outsourcing,Partnersand
Suppliers
TheFounderIns8tute
[email protected]
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Abitofhistory…
• HowdidwestartEye-Fi?
– 4co-founders
– Allhaveatechnicalbackground,but2havetechnicalroles
and2havebizroles
– ThetechnicalfoundersareGods.Ararebreedthatmakes
orbreaksstart-ups.
– 4friends,fromchildhood,throughcollege,toindustry
– Viathiscombo,wewereabletobuildthebusinessfrom
day-90
– Incorporated/25/2005
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Year1…
• Neededcash,soweraised,everymonth,about$50K
-$100K,foratotalof$1MM.
• Whilebuildingthebusiness,weraised$,asneeded.
• Didn’thireanyone.Paidourselvesveryli]le.
• OutsourcedtheeasyEngineeringtaskstoRussia
• Outsourcedthecrea8vetaskstoIndia – Logo,$50,firstwebsite,$150
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Year2…
• Hiredourfirstnon-foundingserverarchitect
– Wasagoodfriendoftheteam
• Wewereveryfaironequity
• Next,hiredourCommunityManager
– Reallyimportantforaconsumertechcompany
• Next,hiredaMac/Windowsguru
• Aswegrewtheengineeringteamlocally,weletgo
oftheRussians
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Localtechvs.outsourced
• Youcan’tbeatlocallyhiredtalent!!!
– Butthey’rehardtofind,andevenhardertohire
• Ini8ally,startbyoutsourcing – Managethefirmonadailybasis
– Nego8ateprices,perengineer
– Nego8ateperproject
– Usewww.eLance.comorsimilartofindvendors• Sortby$$$earned
• Thensortbyqualityra8ng
• Endedupwithwww.HireRussians.comJ
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Managingvendors
• Useskype,email,GoogleDocs,sourcecontrol,&Wikis
tomanageexternalteams
• GoAgileandhavesupershortsprints.Iterateeveryfrequently.
• Nego8ate8melines,schedules,andgetitdownon
paper.Don’tskipthispart
• Ifyourboardallowsyou,payinsplitequity&$$$’s,to
savecosts.Youhaveequity,useit,toalimitedextent.
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Managingvendors(con’t)
• Whenprojectsarefinalized,letthevendorsgo.
• Vendors/consultantswillALWAYSwanttostayon.
That’stheirjob.
• Yourjobistousethem,asneeded,andasyougrow,
letthemgo
• Consultantswillonlygetyousofar.Therestisuptoyou.
• Usually,consultantsdon’texecute.They“architect”
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Vendorsthatyoushouldkeep
• PRfirmsshouldstaywithyou,forthelonghaul,as
longastheykeepdelivering.
• PRhasalonglearningcurve,sospendalotof8me
researching,andgengquotes
• PRhasthebestbangforthebuck,forconsumer
facingcompanies.• Socialmediaiscomplimentary,butnottheonly
source.
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Vendorsthatyoushouldkeep
• Benefits:
– Ini8ally,youwillhavehorribleratesandpoorbenefits.
– Youwillget“smallgroup”ratesthatareinthesky.
– Assoonasyoucan,moveovertoTrinetorsimilar.
• www.TriNet.com:
– Poolsthousandsofcompanies,toget“largegrouprate”
– Today,wehavebe]erbenefitsthanmostlargecompanies• Offerare8rementplanwhenyoubecomeprofitable
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Suppliers
• Spendthe8metogetafewquotes
• Scru8nizetheterms,tothefinestdetail
• Forexample,paymenttermsareextremely
importantandshouldalwaysbenego8ated.
– Eye-Fiexample:frompartstofinishedgoods,toretail
• Askforreferences
• Dobehindthescenebackgroundchecks.Don’tjust
usetheirreferences.
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Partners
• Addvaluetoyourbusiness
• Trytobuildanecosystem
• Willmakeitdifficultforyoutostayfocused.You’ll
getpulledinmanydirec8ons.STAYFOCUSED
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Creating an EcosystemLeaders in Photo Management, Sharing, Printing, Blogging and Social Media
1212
Share your photos on more than 25 online photo sharing, printing and
social networking sites
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Creating an Ecosystem Actively Partnering with Industry Leaders to Build the Category
13
Ø Camera Makers
Ø Wi-Fi Providers
Ø Hotspot access partnership and integration announcedwith DeviceScape & Wayport (recently acquired by AT&T)
Ø Other Services
Ø Geotagging service provided in cooperation withSkyhook Wireless
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Bookrecommenda8ons
• TheGoal:AProcessofOngoing
Improvement-EliyahuM.Goldra]
• h]p://amzn.to/cZpJhN
• It'sNotLuck-EliyahuM.Goldra]• h]p://amzn.to/bRhHFx