You should follow your business plan or start planning again for expanding your business. According to the stage of your business and your financial statements you could find out what would be better for your business. It depends on the kind of business you are, as for some is better to invest on the company and grow both in infrastructure and professionals and for other kind of company is better to practically outsource everything and just manage the business.

It would depend on you core competency - if you have excellent skillset in marketing / project management and requirements gathering - working with a right outsourcing partner can help you accelerate your business - by providing :

• Faster development of new products/services
• Support for existing products

However, if your skillset is more on the technical side, then the right outsourcing partners would be folks with marketing and/or existing clients whom you are targeting. These folks would provide:

• Instant market access to the groups you are targeting
• A sales process that can immediately help you scale your business
• Integrate your products/services into their offering

For a small business - the main risk is always your time - as your resources are limited, so you would benefit greatly knowing specifically what your business does best and then find the right partners to fill in the gap.

It may take some trial and error in finding the right partners - but at least along the way you would be learning about an area that is new and unknown.

As I remarked in a comment to the question, there's no particular reason you can't do both. As the saying goes, I am not a lawyer, so the following should not be taken as accurate legal advice. If I were to choose one to do first, I would incorporate in order to gain the legal protection of personal assets that are provided. Part of my logic for this is that even if you outsource something, you could still be sued for something the outsourcing provider does.