Today on The Startup Chat, Steli and Hiten talk about how to hire service providers for your startup.
Choosing the right service provider to work with for your startup can be quite challenging, especially if you haven’t worked with one in the past. You may be lucky and get it right the first time, but it’s highly likely that you’ll go through a couple before finding the perfect match.
In today’s episode of the show, what it’s like working with service providers, tips to help you choose the right service provider, why you should do background checks when choosing a service provider and much more.
Time Stamped Show Notes:
00:00 About today’s topic
00:38 Why this topic was chosen.
03:30 Steli previous experience with working with service providers.
05:12 How you never know what you’re going to get with a service provider.
07:08 Why a service provider should always know more about their specialty than you do.
07:35 Tips to help you choose the right service provider.
08:02 A case when hiring a service provider went bad.
08:26 How you can negotiate your bill with a service provider.
09:38 Why you should do background checks when choosing a service provider.
3 Key Points:
Most firms will do the minimum required work for your startup.You never know what you’re going to get with a service provider.A service provider should always know more about their specialty than you do.
Steli Efti: Hello everybody, this is Steli Efti.
Hiten Shah: And this is Hiten Shah.
Steli Efti: And today on the Startup Chat we're going to talk about hiring service providers for startups. And when Hiten Shah proposed this as a subject to me, Steli Efti, I was like, get out of my way, Hiten, I need to introduce this topic.
Hiten Shah: That's right.
Steli Efti: Right. Because it's not often that I actually get angry or pissed at things, but this is one of those topics. I think just a couple of days ago we had. I was on a sailing boat with a bunch of entrepreneurs through the beautiful Spanish Mediterranean Sea, and this topic came up.
Hiten Shah: Wow.
Steli Efti: The topic of the value of a great lawyer, accountant, bookkeeper, to you, as an entrepreneur. And it was a big disparity between kind of super early founders, that are doing their first thing ever and started a year ago, and founders that sold their, I don't know, sixth company and have been doing this for 20 years. There was a big kind of range of experience on the sailing trip. And so, it was so fun to see kind of the differences in responses. When you first start out, I don't know if it was different for you, Hiten, because you're way, way ahead of your time, in terms of wisdom and good looks. But for me, when I started my first business, and when I think about the kind of my friends that were starting their businesses, I always thought, oh, I'm going to be a business owner, and then, I'm going to go and find a lawyer. And if the lawyer works in a large law firm, reputable, I'm going to pay that person a lot of money, and then that person's going to be kind of my genius side kick ninja of the law, and be constantly supplying me with tips and tricks and hacks and the best way to optimize the law to put myself and my business in the best position possible. And if I go to an accountant or bookkeeper, that person is going to give me all these pieces of advice on how to manage my cashflow and money and how to create expenses or add expenses and how to optimize to pay the least amount of taxes legally required for my business, to use that money in ways that fuel growth, rather. I thought that these people would be incredibly smart, incredibly experienced, but on top of all of that, really working hard, constantly creatively thinking of solutions and opport...