“A study of 3,526 Companies shows 1 Decision Makes Start-ups More Successful. Most Founders Do the Opposite.”
If you ask entrepreneurs what is the nature of business? They would probably tell you that it is synonymous with risk. A good entrepreneur wants to know about their odds of success Before putting considerable resources in the market because nobody knows that their plan works out or not. Also, there are a lot of entrepreneurs who have a dream to run an organization like Amazon, Flipkart, and google.
to start like these companies, you need two and or more people to run a big business. However, there a lot of research shows that one founder can do better business than two or more. I got surprised when I saw research of NYU and Wharton School. Their research specifies that entrepreneurs who start a business by their self, they are likelier to successes than those who have started the business with a partner
But, aspiring founders have pretty much opposite opinions about that because they have said that no one can be good at everything. this is really true. you might be good at marketing expert but you don’t know about managing cash flow. You may have the ability to build a great product but not set a valuable price for your customers. So, if you are sticking up with someone who has strength in a specific area where you have not got there, it isn’t a bad idea.
What surveys say
If we see in a logical way, it has enough reason to believe in it. A common person – even experts also see in this way entrepreneurship. In fact, investors and VCs would like to fund those companies which have been running with the team rather than solo fonder. You can say it is kind of an ingrained belief. But if we see a survey, it is also dead wrong belief.
Two men Jason Greenberg from New Your University and Ethan Mollick from Wharton school, they sent surveys that around 65,000 businesses started on Kickstarter over a seven-year period. More than ten thousand finished the research, the researchers made less wind their focus to project looking a significant amount of funding, it could be utilized for starting a real business, also wound up with 3,526 businesses which started with a solo founder or with a partner.
Since investor goes with multiple fonder than solo one, A lot of entrepreneurs have started this tradition. They also got that multiple founders could make business more profitable than a single one. So, you might be thinking that it can give founding teams a benefit over solo entrepreneurs.
Here you have wrong thought. It has seen that starting companies with a small stake and single founder are more likely to still be in business than those who are running the business with partners. Although, two partners can indeed raise more money than solo business founders. However, you might be surprised by knowing some studies that a solo founder has higher revenue than those with two or more.
To know more about it, the researchers have expanded their scope and started seeking data from Crunchbase and they got to study from entrepreneurial their Dynamics from the university. Although all researches haven’t been completed yet. Pro, Greenberg mentioned that Street Journal that preliminary study: companies do well over time with single founder than multiple partners. Not only these studies but also there are tons of research shows that a single founder launched the product with a free mind and has got great success.
Why companies with single founders more likely to survive?
Multiple partner costs, more than companies with a single founder especially when founders are drawing salaries. In general, it cost so much like phone service, office space, traveling and so on. Of course, you cannot avoid anything at all. after all these costs are mandatory.
Reports have shown leadership dynamics. Starting a company with partners can take benefit in terms of wider expertise. However, a single business founder can hire others to provide expertise. On the other hand, it much easier to make a decision for one founder but two or more founders can take much time before launching service.
Now you have enough reason to start a business by yourself. if you are thinking to start a new business. I would say make a plan by yourself and launch in the market.