What distinguishes the lucky shots from a proven success formula? I believe it is a repeated success. So when it comes to building a successful business – look for the right answers to successful serial entrepreneurs and experienced investors. The answer that echoes through many of those conversations is the importance of the cofounding team.
Multiple studies have confirmed that partnerships have a higher chance to create sustainable companies than solo founders. To create faster growing companies. To be more innovative. To be more creative. To be more stable and resourceful.
What are the 3 main reasons why cofounding team might be a better option than flying solo?
#1: Synergies – one plus one is more than two
Done right, there are powerful synergies to be created in a team. Building a successful business requires a combination of skills and resources that are very seldom found under one hat. Being on your own also means that you are always the smartest person in the room and there is no one to check or question your decisions. From creativity to innovation, teams produce consistently better results most of the time. Another very practical consideration is workload and capacity. With joining forces, not only is there a pool of different skills, expertise and strengths, but also a very practical amount of hands who can do stuff. For the ones that get it right, the 1+1 can equal much more than 2.
#2: Shared risks and responsibilities
Emotionally, functioning partnerships provide an additional level of comfort to know that the risks are shared too. And not only that, from motivation to perseverance the chances are that functioning team is stronger than any single individual. Anyone who has been through the journey of building a business knows how demanding it is. An entrepreneurs’ journey is a journey full of uncertainties, high pressure and limited resources. Depending on what it is that you are trying to achieve, it can also be full of people telling you that it is not possible. To keep consistently motivated, strong and performing for a single individual is a very demanding task. The benefit of the team is that, combined, chances are there will be always someone in the team who will be able to keep the motivation as the going gets tough. Combined perseverance is the key! Entrepreneurship is really a hard choice. And there are no success stories without going through some tough times. And, strong teams can handle these typically much better than strong individuals alone.
#3: Investors preference
From a potential investor’s perspective, team versus solo founder is a very important aspect they look at. If all their investment is hanging on a solo founder it is by definition much higher risk than if the venture is backed by a strong team.
To be continued…
In the meantime, you can join the LikeMinded event and connect with industry experts, tech-people, and business cracks and possibly find your future cofounder.
If you want to know more: Get Cofounding the Right Way.