Top

Why a co-founder is essential for a startup

Why a co-founder is essential for a startup

By Abeer Bape, Corporate Coordinator | January 15, 2019

The success stories of Jeff Bezos and David Karp is quite inspiring. It is a feat about how one man built a profitable venture all by himself. However, as inspiring as it is, it is also unique. Most successful startups usually have 2 or more founders.  Google, Microsoft, Souq.com, and Youtube, to name a few, all have developed into successful businesses due to a partnership. Although a partnership is not easy, it is a necessary relationship that startup founders can greatly benefit from. Studies show that ventures with two founders significantly increases the odds of success. With a co-founder, one is expected to raise 30% more investment and grow their customer base 3 times as fast.

Here are some other major reasons why a co-founder is essential for a startup:

  1. Enhanced Decision Making – Beginning your own venture can lead to various challenges. Therefore, working with a co-founder can help you with problem-solving and decision making. It is important to have another person’s perspective that understands the business; this difference of opinion is healthy as it helps in keeping a realistic view about the end-goal of your business.
  2. Financial Support – Starting a business is a costly affair. Studies show that the vast majority of US startup funds (82%) come from the entrepreneur themselves. However, self-funded businesses do not always make it, especially if one is looking for funds for growth and expansion. Therefore, working alongside a co-founder allows you to split the initial costs and raise funds for a much better valuation.
  3. Complementary Skills – In order to run a successful business, one would require deep knowledge in a variety of topics. Realistically, one person may not have all that knowledge and therefore a co-founder can compliment your skill set and divide the workload. Additionally, a co-founder can offer more resources to work with.
  4. Division of Responsibility – It is not easy to run a business. There are numerous tasks, important decisions to be made in the initial phase which will shape the future of the startup. Having a co-founder on board will help you manage the start-up more smoothly and efficiently as well as provide a better work-life balance.
  5. Risk Mitigation – There are huge risks involved with a start-up and having someone to shoulder the risks with you is a great support system. A co-founder not only shares the profits but bears the losses with you. And, a co-founder may bring more stability to the minds of investors because they are assured that their money is being utilized correctly.

The success of a startup doesn’t rely only on the idea; a major determinant is the execution. Having the right team is as crucial as the idea itself. Though it may be possible to be a successful single founder, entrepreneurs have a much better chance of success with at least one co-founder to help build the business. After all, two heads are better than one.

Abeer Bape

abeer@asa.vc

Ms. Bape is the Corporate Coordinator of ASA Ventures and is a vital member to the group's success. With her assertive attitude and perseverance, she has established herself in the business world. She is the crucial link between the C-Level executives as well as other divisions and departments. She has developed fruitful relationships within and outside ASA as well as executed team-driven process improvements to increase revenue growth, operational efficiency, and overall profitability. With her expertise in Finance, Accounts and Procurement as well as Business Analysis, her strong organizational techniques bring in excellent team management that ASA runs on. On top of attaining a Post Graduate Diploma in Business Administration specializing in Finance from Symbiosis International University, India, Ms. Bape is also proficient with various e-tools such as System Applications Products (SAP), Ariba, PeopleSoft, and Barclay's payments system.

No Comments

Post a Comment