Build the capability totally in-house yourself. You need to hire people, get facilities, set up new processes, etc. This path is about control. You can control the margins, you can control the systems and process (e.g. quality), etc.
2) Rent it
Contracting in the capacity of another firm for some or all of the product or services you are developing. The advantage is, of course, speed. However, you have to pay their margins, which means you might make a lower margin. That’s two spoons in the same bowl.
3) Buy it
Mergers and acquisitions This has the advantage of speed in that you have an established business with people, systems and customers. You also get to control the business and margins. The main issues are that it requires a fair bit of money and will take up a fair bit of management time.
If you keep the mantra of build it, rent it or buy it in mind, then you can get creative.
For example, startups may use marketing partners to do sales – for a commission of course. They are renting expertise and someone else’s customer base, at no money down.
Another example would be airlines code sharing. They are renting by selling tickets on another airline’s plane without the complexity of ownership, keeping costs down, and hence seat prices down for everyone.
Post by Eris O'Brien - Principal Trainer at BizDevEssentials and Managing Director at Lazuli Consulting