π‘ What?
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π‘ How to make a decision if you should build something in-house or buy a service
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β Why?
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π‘ Nothing is worse than wasting time on something that you could easily buy.
You have to both consider what it will cost you to build AND the opportunity costs of not being able to work on anything else.
Most of the time buying is the right answer.
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πͺ How?
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β οΈ Building something is usually not the right answer unless what you build is part of your differentiation as the costs are too high.
If you want to understand better why, I recommend you run the process below to get an idea how much it actually costs to build something yourself.
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Filter
- [ ] Is this core to my business / helps me differentiate?
- [ ] Do I really need this or is it a nice to have?
- [ ] If you answered no to either of these, get a service for it or consider getting a VA to do it manually for you in the beginning
- [ ] If you answered yes to both, keep going π
Calculate the time to build
- [ ] Estimate how much time it takes to build
- [ ] Multiply the time estimate by 1.5-2 for buffer and delays while building
- [ ] If you work alone: Multiply with 2 to account for opportunity cost
Calculate your Salary
- [ ] Calculate your monthly βsalaryβ by multiplying your dollarized rate by 160
Calculate the cost of buying
- [ ] Write down the licensing costs of a service per month/year