In every company I’ve worked for, the “build, buy, or partner” dilemma is a recurring theme. Here’s the typical breakdown:
🔧 Build: “We’re the experts, so let’s develop this ourselves and keep all the revenue.”
💰 Buy: “We can acquire a company with the needed capabilities and speed up market entry.”
🤝 Partner: “We could collaborate with an expert, though we’d need to share the revenue and won’t own the IP.”
Here’s what often happens:
🔧 Build: Takes twice as long, costs double, and generates half the expected revenue.
💰 Buy: Overpay for new capabilities and still end up with only half of the projected revenue due to over-aggressive estimates.
🤝 Partner: Frequently overlooked because “we know more than they do.”
Why should you consider partnering?
- Focus on Strengths: Excel in what you do best and partner for the rest. Repeat that 3 times! 💡
- Efficient Investment: Building in-house depletes resources and diverts focus from core activities.
- Expertise with Lower Risk: Partnerships offer minimal cost and leverage external expertise.
- Future Acquisition Insight: Partnering lets you “test drive” a potential acquisition, reducing risk and providing clarity on what you’re buying.
Remember this piece of wisdom: Every company has a fixed budget (peanut butter) and endless opportunities (bread).
You can:
- Spread that peanut butter thinly over the entire loaf, ending up with mediocre sandwiches.
- Apply it strategically to a few select pieces of bread, resulting in fewer but amazing sandwiches.
Choose great sandwiches! 🥪✨
What’s your take on the build, buy, or partner strategy? Share your experiences and thoughts below!
