Outsourcing vs. DIY: Finding the Right Balance When Bootstrapping

Post author: Adam VanBuskirk
Adam VanBuskirk
12/7/24 in
Startups

When bootstrapping a startup, every decision about time, money, and resources feels critical. One of the biggest challenges is deciding what to tackle yourself and what to outsource. As a founder with limited resources, balancing DIY (do-it-yourself) efforts and outsourcing can determine the pace of your progress and the quality of your outcomes.

This article explores when to roll up your sleeves and when to delegate tasks, offering a framework and practical tips to help you strike the right balance.


The Bootstrapped Founder’s Dilemma

In a bootstrapped startup, you’re wearing many hats: marketer, developer, salesperson, and even accountant. While it’s tempting to do everything yourself to save money, the cost of your time and potential inefficiency may outweigh the savings.

On the other hand, outsourcing can be a great way to bring in expertise and save time, but it comes with risks such as quality control, budget overruns, and communication challenges.

The key is knowing when to DIY and when to outsource.


When to DIY: Capitalizing on Your Strengths

1. Tasks Core to Your Business

Anything critical to your company’s mission or competitive advantage should remain in-house. For example:

  • If you’re a SaaS founder: Focus on product development and customer engagement.
  • If you’re an e-commerce founder: Prioritize brand-building and product selection.

Why DIY?

  • No one knows your vision better than you.
  • Keeping control ensures alignment with your goals.
  • You can adapt quickly without relying on external parties.

Examples of DIY Tasks

  • Writing your initial value proposition.
  • Prototyping your core product.
  • Building early relationships with customers.

2. When Budgets Are Extremely Tight

For non-critical but necessary tasks, DIY may be unavoidable when cash flow is limited. For example:

  • Learning to create social media graphics using tools like Canva.
  • Setting up basic accounting software like QuickBooks or Wave.

Tips for Bootstrapped Founders

  • Leverage free or low-cost resources, such as tutorials and templates.
  • Use no-code tools like Webflow or Bubble for website development.
  • Automate repetitive tasks with tools like Zapier or IFTTT.

When to Outsource: Leveraging Expertise

1. Tasks That Require Specialized Knowledge

If a task demands expertise you don’t have, outsourcing is often more efficient and cost-effective.

Examples of Outsourcing Tasks

  • Legal and Compliance: Hiring a lawyer to draft contracts or handle trademarks.
  • Advanced Marketing: Running paid ad campaigns on Google or Facebook.
  • Accounting and Taxes: Engaging a CPA to ensure compliance and maximize savings.

Why Outsource?

  • Avoid costly mistakes from inexperience.
  • Save time that you can dedicate to core activities.
  • Tap into high-quality work from seasoned professionals.

2. Tasks That Are Time-Intensive but Low-Impact

Certain tasks may be necessary but don’t significantly impact your business strategy. Outsourcing these allows you to focus on higher-value activities.

Examples of Low-Impact Tasks to Outsource

  • Data entry and research.
  • Customer support during early-stage growth.
  • Scheduling social media posts using tools like Hootsuite or hiring a virtual assistant.

How to Strike the Right Balance

Step 1: Assess Your Skills and Resources

List your strengths, weaknesses, available time, and budget. Focus on what you’re best at and enjoy doing, then delegate the rest.

Example Framework:

TaskCritical?Expertise?DIY or Outsource?
Product DevelopmentYesYesDIY
Paid Ads ManagementNoNoOutsource
Social Media PostsNoYesDIY or Delegate

Step 2: Evaluate the Cost of Outsourcing vs. DIY

Think of your time as money. Calculate the value of your time and compare it to outsourcing costs.

Example Calculation:

  • If your time is worth $50/hour and a task takes 10 hours, it’s worth $500.
  • If outsourcing costs $300 and the output is better, outsourcing wins.

Step 3: Start Small with Outsourcing

Outsource one task or project at a time to minimize risk. Use platforms like Upwork, Fiverr, or Toptal to find skilled freelancers.

Best Practices:

  • Define the scope and deliverables clearly.
  • Set milestones and payment schedules.
  • Provide detailed feedback to ensure alignment.

Real-Life Example: Striking the Balance

Case Study: A Bootstrapped SaaS Startup

  • Founder Role: A developer building a project management tool.
  • DIY Focus: Coding the core application and interacting with early users.
  • Outsourced Tasks:
    • Website copywriting to a professional freelancer for $500.
    • Logo design via a contest on 99designs for $300.
    • Initial bookkeeping outsourced to a virtual accountant for $100/month.

Result: The founder saved dozens of hours while ensuring high-quality results in areas outside their expertise.


Common Mistakes to Avoid

  1. Trying to Do Everything Yourself: Leads to burnout and subpar results in areas where you lack expertise.
  2. Outsourcing Core Business Functions: Dilutes your vision and control.
  3. Undercommunicating with Freelancers: Results in misaligned expectations and wasted resources.

Conclusion

Balancing DIY and outsourcing is an art. As a bootstrapped founder, focus on tasks that directly impact your product and customers, while outsourcing repetitive or specialized work to save time and improve quality.

With careful planning and a willingness to delegate, you can achieve faster growth and a more sustainable business—without breaking the bank.