Open this photo in gallery:
While learning entrepreneurship quickly seems to be on the list for a fairly wide range of startup executives, the shortcut is to avoid tasks that require learning or that seem uninteresting. Getty Images
Rob Czernik is a contributing columnist for the Globe and Mail and a 2022 Michener Deacon Fellow.
If there were an ArriveCan guide for startups, one of the lessons would be: Faking it is success. Two of the three companies under scrutiny for their role in enabling overwhelming, over-budget habit and health information apps have realized new entrepreneurial dreams.
They used big ideas and salesmanship to win contracts. And since each had only two employees, he outsourced the heavy lifting. The results of the government's investigation are yet to be seen, but it's safe to call them a warning rather than an endorsement of this increasingly popular business strategy.
Still, a 2022 study by global technology services firm Commit suggests that 21% of U.S. startups outsource their software development, and that number will rise to 36% in 2023. Outsourcing is not just a problem, as the companies surveyed have already received seven-figure investments. It is one of the most resource-poor strategies.
While staying at a digital nomad hostel in Bali recently, I heard a similar approach being taken by independent shops in some cases, with less cash outflow. They outsource work to contractors in lower-cost jurisdictions or freelancer platforms like Fiverr and Upwork, where they complete functions critical to startups such as software development and user experience design. The quality of work can vary widely.
Nowadays, everyone seems to want to quickly learn a myriad of hobbies and skills, as seen in online ads promoting easy ways to play the guitar or piano. While learning entrepreneurship quickly seems to be on the list for a fairly wide range of startup executives, the shortcut is to avoid tasks that require learning or that seem uninteresting.
Considering that 55.3% of Canadian businesses have 1-4 employees, according to Statistics Canada, many startup founders may be considering outsourcing some of their operations. yeah. But that makes entrepreneurship an even riskier proposition, and misses out on the opportunity to unlock value through trial and error in the work founders are actively working on within their companies. This reminds me of the concept of “speedrunning” in video games, where players try to reach the end as quickly as possible. Entrepreneurship is not that easily hacked.
I can understand why entrepreneurs think they can get away with not working and just being an idea person, but I don't think that's true.
Yes, companies both large and small outsource certain functions. However, outsourcing tasks such as payroll or customer support is different from outsourcing core components of a product or service, which requires expertise from the founder. Additionally, a key consideration is always quality. When I talk to entrepreneurs I've met, they value low cost over high quality, but they often find themselves getting scammed by improperly vetted freelancers, or quality that costs extra to fix. I've heard horror stories about people receiving bad jobs. This can make working in-house more attractive, despite potentially spending more effort and money upfront.
Experimenting with building apps, learning coding and website design, and gaining other knowledge through study and first-hand experience can benefit young company owners and help them grow. It can give you direction. When basic tasks are outsourced, this education is lost, leaving one person's dreams lost in translation between management and a temporary contractor who simply takes another job.
Broken-to-riches stories of entrepreneurs often focus on the genius idea, but not on the work involved and the mundane but important challenges entrepreneurs face along the way. I haven't guessed. Getting their hands dirty helps founders understand which business ideas are worth pursuing and putting money into, but they may not realize it when they take their activities outside.
Entrepreneurs find new ways to discover problems, manage risk, and innovate their products while immersed in the grunt work required to build a company, whether technical or otherwise. Discover. That deep knowledge helps us make incisive recommendations to future customers, employees, and investors. This allows ideas to be critiqued and explored, which may not happen if the finished product is provided externally.
Think Elon Musk or Steve Jobs. Entrepreneurs who are widely considered to be the most successful in the world inspire a cult of personality and portray themselves as creators, destroyers, and visionaries, as if that were the most important role an entrepreneur plays. It is framed as. All of these terms focus on one aspect of an entrepreneur's work and ignore other activities of the entrepreneur.
I suspect that for many entrepreneurs today, there is a growing sense of urgency to dry out the attic. There are stories of low barriers to entry and great success among ordinary people, but there's also the fear of ending up in a job you hate or wanting to build greater financial security than your current career can provide. To secure this new life, entrepreneurs must execute more than just a vision. To maximize your potential, you must put in the effort to do it yourself.
