Arguably nothing impacts a startup more than the decision to have a co-founder or going solo. There are pros and cons to both options but ultimately it is a decision you need to make on your own. Sometimes it’s an easy decision to go down the co-founder route if you came up with the startup idea as a collective, it makes sense to offer the collective the opportunity to build out the idea and be part of the journey but other than that example it really is a decision you need to do some homework on.
Don’t rush into the decision lightly, you need to understand the ramifications of taking on a co-founder or doing it solo because if your startup is a success it is a decision that will affect you for the rest of your life or at least the better part of a decade.
Starting a business is a daunting task, and many entrepreneurs believe that they need a co-founder to help them navigate the challenges of building a company. If you are scared to do it alone or have a massive knowledge gap I would recommend getting a co-founder every time. I’m not talking about a skills gap but a knowledge gap; you don’t need to know how to build & sell your product but you should at least have a good understanding of the industry and be able to articulate the business strategy and how you want things to be built.
The adage of the ideal team is made up of a “hipster, hacker and hustler” sometimes gets thrown around; meaning someone who can attract a following, someone who can build the tech & someone who can land the deals. To start a company you don’t need all 3 in your founding team, in fact, you don’t even need 2 so a solo founder able to round out about 1.5 of these roles can work well.
If you are planning to go solo, expect to always be learning, upskilling and you will need to be a jack of all trades. Unless you already have deep pockets you will need to get some money behind you to pay for good talent, this can be in form of equity or cash because it’s hard to get good talent to work for free.
One of the main reasons that entrepreneurs believe they need a co-founder is that they think it will be easier to raise money. However, this is not always the case. In fact, some investors invest in solo founders because they believe that the individual is more committed to the success of the company.
It’s not uncommon for investors to give you the feedback that they won’t invest in your startup because you don’t have a co-founder but I guarantee if you found a co-founder and went back the next day they still won’t be signing you a cheque. It is an easy excuse that they throw around that doesn't hurt anyone's feelings, the reality is you may not have enough progress on your project, haven’t lined up the right team, or are just too inexperienced.
Another reason entrepreneurs believe they need a co-founder is that they think it will be easier to split the workload. While it is true that having a co-founder can help divide the responsibilities of running a business, it is not essential. Many successful entrepreneurs have built their companies by themselves and have been able to handle the workload on their own.
Moreover, having a co-founder is not always a guarantee of success. Sometimes, personal or business differences can arise between co-founders and can lead to conflict and even the failure of the business. In fact, a large percentage of companies end up having to buy their co-founder out.
Fuel Ventures in London surveyed more than 3,000 founders & co-founders across the UK and “43% of company founders are forced to buy their co-founders out of their businesses due to rifts and power struggles” with 92% of them sighting “the split was catalyzed by a ‘single specific disagreement’”. The survey also asked founders whether they would consider co-founding again, with 73% stating they wouldn’t.
But it’s not all doom and gloom, of those questioned an even larger percentage of people said that they would have a co-founder again but with the caveat to “only do so with someone they knew well”. So it is extremely important that you pick the right co-founder and best to have known them for a long time.
In conclusion, while having a co-founder can be beneficial, it is not a requirement for starting a business. Many successful companies have been started by a single person, and entrepreneurs should not let the myth that every startup needs a co-founder to discourage them from pursuing their dreams.
