Title should include, "if you are going to seek funding". While I agree on outsourcing and consultants (even though I am one). Keeping your "tribal knowledge" in house is critical. I have worked with many distributed teams, and have come to believe that it can be just as efficient as in house so long as your team selection is skilled at working in a distributed fashion. There are a good deal of cost reductions in a properly distributed team that relies on communication mediums such as Skype, which can be a god send for those that are self funding their ventures. Not everyone is looking for venture funds and some of this advice is just plain bad and counter productive for those that are not.