[cwilbur]

Right, but stupid business types don't distinguish between "web startup" and "non-web startup." You might be able to make headway by talking about core competencies and business expertise.

Outsourcing programming tasks is a very reasonable thing to do when the core of your business is something else and the programming is just supporting that. If your business's core expertise and value proposition is that you have highly skilled plumbers on call 24/7, then insisting on developing the website and billing software in-house is a waste of effort. But when the core of your business is the software, outsourcing it is foolish. If your business's core expertise and value proposition is that you have a location and scheduling algorithm that will guarantee you get an affiliated plumber at your house within 30 minutes of your request, then the software to support that should be developed in-house.

This is something that good business guys will understand.