A build vs. buy decision is always a hotly contested one amongst different stakeholders. More so, in early stage start-ups with comparatively lower product runway, uncertainty about delivery a compelling value proposition and challenges of distribution.

Having gone through these a couple of times and consulting a few other 0-1 startups on their technology + product, I would suggest looking at a Build vs. Buy decision from answering these 4 key questions:

  1. Is the missing feature/component of strategic value?
  • Is the missing capability a true differentiator, core to the main value proposition or company's product strategy?
  • Is the missing capability a minimum market requirement, something that is needed for the customer to consider your product in the category?

2. Do you have in-house technical expertise ?

  • Do you have existing in-house  technical expertise vs. needing to hire contractors/freelancers to get this done?
  • If you have existing in-house technical expertise, can this new capability be managed along with handling the existing backlog of priorities?
  • Does this new feature/capability need extensive maintenance and updates, beyond the initial development?

3. Is it cost-effective?

  • Have we factored in the maintenance and update costs for both the scenarios?
  • Are the capabilities complex? As in, is there any external impact such as heavy regulation, integration complexities or needs a high volume of data?

4. Is the vendor reliable?

  • If the vendor themselves are a startup, will they sustain / achieve PMF?
  • Will they be able to meed your "needs"?

This is assuming the founding team / founder responsible for the decision has differentiated the "needs" from a "nice-to-have"