ENTR

How would you evaluate whether to build, buy, or partner for a new capability?

Model answer

Model answerThis decision comes down to three variables: strategic differentiation, time to market, and total cost of ownership. If the capability is core to our differentiation, we build — even if it's slower. If it's commodity infrastructure, we buy. If we need speed but the capability has strategic value, we partner with the option to acquire. The mistake most teams make is defaulting to build because it feels more controlled.

Framework · Build / Buy / Partner

  1. DDifferentiation test
    Is this capability core to why customers choose us? If yes, build
  2. TTime to market
    How urgent is this? Buying or partnering compresses timeline significantly
  3. CCost of ownership
    Build has hidden costs: maintenance, talent, technical debt — model honestly
  4. AAcquisition option
    Partner now, acquire later — if strategic, keep that door open

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