Starting a business can be a daunting task, and one of the biggest decisions an entrepreneur has to make is whether to go solo or bring on a partner. Both options have their own set of pros and cons, and the decision ultimately depends on the individual’s goals, resources, and preferences.
One of the main advantages of going solo is that the entrepreneur has complete control over the business. This means that they can make decisions quickly and efficiently, without having to consult or compromise with a partner. Additionally, solo entrepreneurs don’t have to share profits or equity with anyone else, and they have the freedom to run the business as they see fit.
On the other hand, a partner can bring a different set of skills and expertise to the table, and can help to fill in the gaps where the entrepreneur may be lacking. A partner can also provide emotional support and motivation, and can help to share the workload and responsibilities.
Another advantage of having a partner is that it can increase the chances of getting funding or investment. Investors often prefer to fund businesses that have multiple founders, as they believe that a team is more likely to be successful than a solo entrepreneur.
However, there are also drawbacks to having a partner. One of the biggest challenges is that it can be difficult to agree on important decisions, and disagreements can lead to tension and strain on the partnership. Additionally, it can be difficult to divide responsibilities and tasks, and one partner may feel that they are doing more work than the other.
When considering whether to go solo or bring on a partner, it’s important to weigh the pros and cons, and to carefully evaluate one’s own goals and resources. If an entrepreneur has the skills, resources, and motivation to go it alone, then going solo may be the best choice. However, if an entrepreneur lacks certain skills or resources, or if they feel that they would benefit from having a partner, then bringing on a partner may be the better option.
It’s also important to consider the type of business and industry that the entrepreneur is planning to start. In some industries, such as technology, it may be more beneficial to have a partner who can bring a different set of skills and expertise to the table. In other industries, such as consulting or solo-preneurship, it may be more beneficial to go solo.
Ultimately, whether to start a business solo or with a partner is a personal decision that depends on one’s individual goals, resources, and preferences. Both options have their own set of pros and cons, and the decision should be based on a careful evaluation of the individual’s circumstances.
What Research Says
According to new research from NYU and the Wharton School, entrepreneurs who start a business alone are more likely to succeed than those who do so with one or more partners. This may come as a surprise, as many aspiring entrepreneurs believe that having a partner will help to fill in the areas where they may lack expertise. However, the study conducted by Jason Greenberg of NYU and Ethan Mollick of the Wharton School, which surveyed over 65,000 businesses launched on Kickstarter over a seven-year period, found that companies with a single founder were more likely to still be in business and had higher revenue than those with two or more founders.
One reason for this may be that companies with multiple founders have lower revenue than those with a single founder, yet they also have higher costs due to the salaries and expenses of multiple people. Additionally, decision-making can be more difficult and time-consuming with multiple founders, and they may be less likely to take bold risks. These findings were also consistent in other data sources such as Crunchbase, the Panel Study of Entrepreneurial Dynamics from the University of Michigan, and a survey of Wharton graduates.
It’s important to note that this does not mean that partnerships cannot work, but it does suggest that solo founders may have a slight advantage. Ultimately, the success of a business depends on various factors and each entrepreneur should assess their own strengths and weaknesses before deciding to start a business alone or with a partner.