Transcript of the recording:
Would you prefer to stay a solo founder of a business or find co-founders?
I stayed solo for years with the exception of one business I co-founded with 2 other people. But made our exit during COVID, which increased the valuation by 4x by the time.
Looking back, I still prefer to stay solo because most of my business and activities are pretty micro and I am not looking to build a unicorn or 100M dollar business anymore.
But, if you’re asking yourself this question then consider the following:
- What are my skills?
- What am I missing?
- Can it be outsourced or does it require a more stable partner alongside me?
- Am I okay to give up some equity?
Actually the list can go on, and you probably find more reasons why finding a co-founder is more beneficial.
Solo has its benefits. I know. I was always on the fence about teaming up with others, but it’s not in my nature and I like not being tied to someone else.
But for many people solo can be a huge burden. Not only financially, but mentally, and especially hen you’re still trying to escape your day job the time you have is limited.
For example, I am not a developer, but I can easily hire someone to write the code for me with a clear scope and not depend on a co-founder.
But things get more iffy when you lack experience in marketing, sales, management or don’t have business acumen.
Here Is my advice:
If it’s your first business, don’t team up. Stay solo. Or at least as long as possible. You still need to discover yourself and push limits before making a decision. You need someone else on your side.
Most founders I coach are solo entrepreneurs and struggle with the mental game and adjustment periods of scaling or growing their business.
You want to be in a strong position before hunting for a possible team member or co-founder.
Else you’re reaching out from a position of weakness and not from a position of strength.
The more experienced you are, the easier it gets and you probably have improved your current skills or learned new ones.
It’s a more complex topic now that I am recording this, and I probably should expand this in a blog post. Which I will.
All in all, staying solo is not bad. I know tons of single founders making a lot more bank than startups that raised 1 million dollars in a pre-seed round and are happy where they are.
Final Note
The one thing you always need to consider when staying alone is the risk of ruin and you tend to be a single point of failure.
And that’s where many fail. No contingencies, no outside help to keep things afloat in case you’re unavailable, sick or got hit by a bus.
It always boils down to making trade-offs, at the right time. Stay solo for as long as possible until you can negotiate from a position of strength.
But I will expand this topic into a blog post soon.