Now that you have zeroed in on your product idea after proper research, evaluation, and validation, your next step should be to decide whether you want to have a shot at entrepreneurship alone or get yourself a co-founder(s). Business is just like life – it is good to have a companion by your side who understands you and shares your vision and passion. Going alone might mean a greater stake in the company and greater decision-making power but having a co-founder has its own advantages. After all, the founding team of a startup must have expertise in all the areas of a business and that is only truly possible with a team. Still not convinced? Let us persuade you some more.
Why do you need a Co-Founder for Your Startup?
Moral and Emotional Support
Starting a business is really hard. Running it is even harder and more stressful. Startups require far more time and effort than a 9-to-5 job. With so much money on the line and continuous threats from the competition and the risks involved, it is nice to have a partner in your journey who shares your vision and on whom you can lean on, especially in tougher times.
Support of Investors
Investors, generally, tend to support companies which are run by a team than those who run solo. They trust companies with multiple founders and are likely to fund them more easily. So it is best to get a co-founder or co-founders by your side if you want to make the funding process smoother.
You don’t want your company to run like a dictatorship, where every decision you take is the final call. Of course you would have advisors, but a co-founder is your partner. Not only would a co-founder act as a sounding board for all your thoughts, but also actively aid in making the final decisions. You will come up with more ideas through brainstorming and also will be better equipped to seal the loopholes in those ideas by questioning each others’ ideas. That’s how startups end up developing a solid backbone. At the end of the day, difference in opinion can be healthy and can help in seeing the larger picture if the end-goal in sight remains the same.
Division of Responsibility
There are just too many responsibilities in a startup. Running a company is not a cakewalk. There is too much running around to get even the smallest tasks done, especially when the company is in the initial phases and you have to double up as both manager and employee. A co-founder divides the stress and responsibility associated with running a startup. As a result, you end up having a better work-life balance.
Everyone comes from a particular background and thus it is impossible for someone to be good or great at everything. You might come from a Marketing background and thus be well-versed with the Marketing problems or concepts but you might have little or no idea about the other areas that make a startup like finance, tech, logistics etc. Having a co-founder team with complementary skill sets is a boon for a startup. Different backgrounds also translate to different viewpoints, leading to different ideas. The work also flows quicker and more smoothly as every co-founder will handle departments according to his skills.
With the huge risks involved, you would want someone to shoulder them with you. People forget that a co-founder does not share only the profits, but the losses too. The investors too would like to decrease their risks by funding a company with multiple founders. A founder is the heart of the company but what if he leaves? The startup might die with the exit of the founder. Having multiple founders means greater stability in the minds of the investors. A case in point would be the exit of Housing.com’s founder and CEO from the company.
Having a co-founder keeps you in good spirits and on your toes even on your bad days when you do not feel like going the extra mile or stepping out of your comfort zone. No matter how great a master of all trades you might think you are, chances are that the reality is you are just a jack of some trades and perhaps the master of none. This should never deter anyone from taking the entrepreneurial plunge. So get like-minded people as your partners who complement your skills and take your business to heights that would not have been possible with only you handling all the affairs of the company.
The Startup Process
We know how important your dream business is to you. Therefore, we’ve come up with an all in one guide: The Startup Process to help you turn your vision into reality.
Now that you have understood why you need a co-founder for your startup, it’s time to find a perfect one.