Episode 549 | Hiring vs. Outsourcing, E-commerce SaaS, and More Listener Questions with Jordan Gal
May 11, 2021
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Jordan Gal, an expert in e-commerce SaaS and startup compliance, joins the discussion to shed light on navigating the complex landscape of starting an e-commerce platform. He addresses crucial regulatory requirements and how bootstrappers can manage enterprise perceptions of risk. The conversation dives into whether to hire full-time or outsource, revealing insights on effective growth strategies in competitive markets. With a focus on credibility and customer commitment, Gal offers practical tips for aspiring founders looking to thrive in the SaaS world.
Understanding compliance requirements when starting an e-commerce SaaS is crucial to navigating regulatory challenges and fostering innovation.
Bootstrap founders can overcome skepticism from enterprise clients by establishing credibility and leveraging early adopter relationships for validation.
Deep dives
E-commerce SaaS and Compliance
Starting an e-commerce software as a service (SaaS) can be challenging due to potential compliance issues. The discussion highlights the importance of understanding regulatory requirements when building such applications, particularly for processing payments. It's emphasized that utilizing modern payment processors like Stripe can alleviate many compliance burdens, as they often handle the requirements, allowing solo founders substantial flexibility to build and innovate. The focus should shift from perceived roadblocks to developing strategies and forming connections that can help navigate the necessary compliance landscape.
Managing Perceptions of Risk in Bootstrap Startups
Bootstrap founders often face skepticism from potential enterprise clients due to concerns about stability and risk. This conversation explores the strategies for overcoming these perceptions, particularly when dealing with larger customers. Emphasizing the need for establishing credibility, founders can utilize their relationships and demonstrate product viability through user feedback and engagement. It's also crucial for bootstrap founders to identify customers who are willing to be early adopters and who can find value in supporting emerging companies.
Navigating Market Penetration in Enterprise SaaS
Penetrating slow-moving enterprise markets, such as higher education, presents unique challenges for bootstrap companies. Despite facing competition from larger firms with extensive marketing budgets, it's vital to leverage existing satisfied customers and seek referrals in a strategic manner. Founders need to validate product-market fit through feedback and maintain confidence in their offering rather than fixating on competitors' resources. By focusing on the specific needs of their niche, bootstrap startups can carve out their space while navigating the complexities of market dynamics.
The Choice Between Full-Time Employees and Outsourcing
When faced with resource constraints, founders must weigh the benefits and drawbacks of hiring full-time employees versus outsourcing tasks to contractors or agencies. Each approach has its implications, such as commitment levels, control over outcomes, and financial flexibility. The discussion underscores the growing acceptance of remote work and the viability of hiring contractors for non-core tasks while retaining full-time staff for critical roles. This hybrid approach can help bootstrap startups maintain agility and adaptability as they grow.
In Episode 439, Rob Walling is joined by Jordan Gal to answer listener questions about starting an e-commerce SaaS and the laws and regulations, and compliance requirements required. They talk about managing enterprise perceptions of risk towards bootstrap startups. They also answer questions about bootstrapping and enterprise SaaS as well as hiring a growth role and whether you should hire full-time or outsource to a contractor or an agency.
The topics we cover
[01:11] Regulatory requirements for starting an e-commerce platform (Solman Ahmed)
[06:18] Managing enterprise perception of risk when selling as a bootstrapper (Noah Stall)
[16:26] Are some markets not feasible with a bootstrapped approach? (Declan Sweeney)
[22:42] Finding someone who is experienced growing SaaS companies (Russ)
[30:10] Hiring full-time versus outsourcing (Filip Kis)
If you have questions about starting or scaling a software business that you’d like for us to cover, please submit your question for an upcoming episode. We’d love to hear from you!