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Outsourcing,Partnersand

Suppliers

TheFounderIns8tute

PreparedbyZivGillatzgillat@eye.fi

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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