Operations strategy determines how you deliver your product: make vs buy, in-house vs outsource, lean vs robust. For hardware startups, the key decision is contract manufacturing vs in-house production. For software, it's build vs buy for infrastructure components.
Make vs Buy Decision Framework:
- MAKE when: core competency, IP protection critical, volume justifies investment, quality control essential
- BUY when: non-core activity, specialized expertise needed, lower volume, faster time-to-market
- HYBRID: design in-house, manufacture outsourced (most common for hardware startups)
Key Takeaways
- Make what's core to your competitive advantage.
- Buy/outsource everything else to focus resources.
- Hybrid (design in-house, manufacture out) is most common for hardware startups.
- Revisit as volumes grow — in-house becomes viable at scale.