When we first started Nepsu, I did not know much about how to successfully run a startup. So let’s say we did some big mistakes at first (that you should avoid). But before starting, I would say this guide is not for you if you do not like to work hard and learn things on the road.

1. Outsourcing:
The Mistake of a Startup
Hugo Lauzon
Co-founder at

3. Why startups fail?
Top 3 Reasons
1. No Market Need
2. Not Enough Cash
3. Not the Right Team

4. How to avoid those problems?

6. No Market Need
Problem #1

7. Find the purpose of your
product…

8. …Using The Lean Startup Approach

9. Minimize the
total time through
the loop
Goal

10. Why outsourcing is inadequate?
• Communicating the initial design intent…
• Sharing results from customers feedback…
• Revising & approving design choices…
• Writing and revising contracts...
• Processing invoices and payments…
• Evenings, weekends and holidays…
• …

11. Outsourcing is
time consuming
Do it
in-house!

12. Not Enough Cash
Problem #2

13. Outsourcing
is also money consuming

14. Our first approach
at Nepsu

15. 1- We have some money,
let’s outsource our PCB
design

16. 1- We have some money,
let’s outsource our PCB
design
2- We don’t have
anymore money, but
Kickstarter will solve
everything

17. 1- We have some money,
let’s outsource our PCB
design
2- We don’t have
anymore money, but
Kickstarter will solve
everything
3- We have to cancel the
Kickstarter campaign, so
we’re screwed

18. But we survived and went for
a second approach

19. 1- We keep our money
and conceive the PCB
in-house

20. 1- We keep our money
and conceive the PCB
in-house
2- PCB design
completed. We order
some prototypes

21. 1- We keep our money
and conceive the PCB
in-house
2- PCB design
completed. We order
some prototypes
3- The first batch has
bugs, but we know how to
fix them

22. If we had to start again, we
would assemble the whole PCB
by ourselves!

23. MONEY IS WHAT YOU NEED,
SAVE IT
TIME IS WHAT YOU HAVE,
SPEND IT
(wisely)

25. Not the Right Team
Problem #3

26. Questions you should
ask yourself

27. What skills and tools are you
missing?

28. Do you have someone in your
network who can help you get
started?

29. How many iterations will you
need before getting to market?

30. Is it worth the investment?

31. Entrepreneurship
is not for everyone

32. Do you have what it takes?
Skills and
tools
Network
resources
Time to
market
Predicted
ROI

33. If you do,
follow these 3 easy steps

34. For each workload you are
about to outsource…

35. 1- Stop

36. 1- Stop
2- Sit down with your team

37. 1- Stop
2- Sit down with your team
3- Think about a way to do
it in-house

38. We hope it helps you.
See you on the field!

39. Thank you for
reading!
Want to learn more
on startups?
Come check our blog.

40. Ressources
• CBInsights – https://www.cbinsights.com/blog/startup-failure-
reasons-top/
• Lean startup - http://theleanstartup.com/principles
• Full Blog Article - How to save your startup 50000$...