Cheryl Ye Oh FI SG Fall2012
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Transcript of Cheryl Ye Oh FI SG Fall2012
8/3/2019 Cheryl Ye Oh FI SG Fall2012
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Outsourcing, Partners & Suppliers
by Cheryl Yeoh (@cherylyeoh),
Co-Founder & CEO, CityPockets Inc.
The Founder Institute
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Pros of Outsourcing
Talent for startups
± Hire jack of all trades (business) & specialists (tech)
± Do not hire operations people
± Hire interns or get a virtual assistant
Deferral
± Every hire can be disruptive
± Look at budget / employees how much can you afford?
± Read Netflix & Zappos culture book
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Pros of Outsourcing
Saves time & retain culture:
(i) specialized areas ± e.g. SEO,
PR, etc.)
(ii) Outsource boring & non-core stuff
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Pros of Outsourcing
More focus on core stuff:
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Pros of Outsourcing
Speed to Market
Built v1.0 of CityPockets
in 2 mths (part time)
$800: Designer from
Elance(Pakistan)
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Pros of Outsourcing
Speed to Market
Fake it until you make it
$0.10 per page
For data entry
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Cons of Outsourcing
Costs money (per hour)
± $5/hr still costs money
D
ifficulty & Time Consuming ± Easier for founder to do & management overhead
Where outsourcing fails
± Product, Core Design, Hiring, Marketing, Strategy
± Would use 99designs & elance for prototyping but not to
build a company
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Outsourcing Decision Matrix
One-Time Repeating
Core Self
(e.g. product, ux, hiring, etc)
Hire
(e.g. design, iphone
development, customer
service, etc)
Non-Core Consult
(e.g. scrum process, SEO,
logo, CTO, etc )
Outsource
(e.g. PR, HR & accounting,
customer service, data entry,
quality check, scrapping,
PSDtoHTML, content, etc)
Tasks you can outsource: Repeating, Verifiable, Well-defined, Non-core
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$800: Prototype
design from
Elance (Pakistan)
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$0: Design
services from
Viget Labs
(sponsored byincubator)
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$12,000: Hired
YCombinator
preferred designer
from Montreal + UXExpert Consultant
from NYC
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What to use
Solvate (high touch but expensive) - ex McKinseys who only
want to work for a few hours (ppt. decks)
Elance & Odesk (low touch but cheap) a lot of engineers
and designers but non successful. Good for data entry.
Tip: Trial first & be as anal as you want to
Usertesting.com for usability tests
Mechanical turk (amazon) basically an API where at the otherend is a person doing research (e.g. 4sq API - hired 10K ppl for 30 mins)
Crowdflower experts at mechanical turk; consultant for a lot of
companies
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Good place to start
Initial Design
Usability pay non-users $20 (low end testing) and get someone
who is a top 1K user to use your site (watch them) Feedback hire interns
Data entry / QA
Customer Service Phone surveying
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Lessons from Hiring Contractors
Dont hire friends & family!
Expect all outsourced development or design work to
be thrown away later iPhone & Android Development
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CityPockets iPhone v1.0
Vendor: Friend (Yoga App)
Time to Build: 8 weeks
Cost: $14,200 (Budget: $10,000)
Features:
Ability to retrieve vouchers stored on CityPockets
M
istakes: Lack of due diligence, detailed SOW, time-sensitive
milestones, break-up contracts, daily stand-ups
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CityPockets iPhone v2.0
Vendor: TwoToasters (GoTryItOn, GateGuru, BiteHunter, Yipit, etc)
Time to Build: 6 weeks / Cost: $27,450 (@ $150/hour)
Features: Added secondary marketplace (buy & sell)
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CityPockets iPhone v3.0
Internal Hire: $70K / year ($12K) + $3,680 for UI & UX
Time to Build: 8 weeks
Features: Added Instant Deals, Yelp Reviews, Add Accounts
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Books & Blogs
4-hour workweek (Tim Ferris is a maniac on
outsourcing)
The Goal
Netflix Book
Blog.crowdflower.com
Behind-the-enemy-lines.blogspot.com