Starting solo may well mean starting completely on your own, with no team at all in the very early days. Many entrepreneurs start that way briefly but it can be a hugely daunting prospect. There are many advantages of being part of a founding team, but making that decision has to be right for you. There is no one-size-fits-all answer.
Starting solo
Many entrepreneurs do start on their own. I started several businesses like this, and I got to know the problems that people who start in this way have to face. There is a real issue over wearing a multitude of hats when it comes to customers. You tend to be passionate about what you do; your customers’ happiness is of genuinely huge importance, and that combination can make it easy for you to sell authentically. However, it is a nightmare when you are debt collecting. There you are on the phone, building the relationship, joyfully making a further sale, further the supply, and then you have to switch to ultimatum mode, telling them if they don’t pay, they won’t get further supply. Alternatively, you go too soft on the credit control and end up not being paid.
One trick is to realise that you do not always have to reveal who you are—the boss—when you pick up the phone. Customers keep you chatting, and so do sales people. Till you have a team to protect you, one answer is to have an alter-ego, an invented side-kick who works for you. This is a ruse I used continually when debt collecting, and it made life a lot easier. Far from just pretending not to be you, this is about creating a whole new persona, with an email address, a style of writing, font and a personality you recognise. It really helps.
One massive plus if you start on your own is that you continue to own the whole business, but this fact won’t make the loneliness of being responsible for everything go away. And you may have to create an alter-ego to answer your phones or collect payments, or indeed for any job you need to distance yourself from.
Starting with co-founders – the downside
Starting with co-founders is becoming more and more popular, not least because investors often encourage it. One issue is that many partnerships are between husbands and wives. With a divorce rate of 40.91% in the UK and 44.62 % in the US, it is easy to see where that can create problems for businesses. I was jointly running a business when my ex and I parted early on. I will never forget our accountants assuring me that very few companies survive their co-owners divorcing, due to both costs involved, and split focus.
It is sadly true that co-founder disputes are one of the biggest reasons that start-ups fail. That statistic cannot be ignored. Also, like any close relationship, when it turns sour, it can turn vicious.
Mitigating the risk with co-founders
Like any relationship, when things are thriving, everything is wonderful. There is little time to dwell on irritations or even deep-seated disagreements. But when work levels go quieter, these all tend to surface. There can also be resentment if one of you is more passionate, harder working or more committed than the other.
A co-founders’ agreement, with clearly set out roles and responsibilities, will help mitigate the damage but not eradicate it completely. Even informally dividing up business responsibilities will help—especially if it plays to your individual strengths—as you can begin to focus on the outcomes that each person achieves.
As with any relationship, a successful partnership will depend on how adept you both are at handling conflict. Even good friends fall out in business because the parameters of business and friendship are very different. Buried disagreements are fatal, but then so are ongoing, day-in-day-out screaming rows.
A good start is to agree on no-go areas in heated discussions (name-calling, personal insults, throwing things). People who naturally run from conflict will have to do some work on themselves. You need to stay in the room and work out disagreements rather than take the fastest route out the door. Being a pushover isn’t healthy, but neither is being the local bulldozer.
- This is an excerpt from Jan Cavelle’s book ‘Start for Success’, which is available here.
- Jan is hosting a ‘Start for Success’ launch event on January 25. The day will include two virtual events, featuring 12 speakers from around the globe discussing everything from branding, investing and sustainability, to marketing & PR, values and angel investment, amongst others. Click here to book your free ticket.
- Listen to our podcast with Jan here.