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The Pros and Cons of a One-Person Start-Up

A core tenet of contemporary entrepreneurship teaching is that startups should be founded by teams with complementary skillsets. This is because the more diverse the founding team, the more likely a company will have the technical, design and business skills necessary to create and sustain a successful new venture. It is also important to have a balanced team to handle the cyclical nature of the startup journey and balance risk with reward. However, the reality is that many people launch start-ups as solo founders, either because they have a great idea and the drive to see it through or they had previously worked in a corporate and want to leverage their track record of success in starting their own venture.소자본창업

The most obvious benefit of a one-person start-up is that it gives you full control over the company. This is especially appealing to stubborn, decisive and introverted (think: INTJ) types. It also offers the opportunity to explore the limits of your own capacity. For these people, a one-person start-up provides a petri dish of “Ferrissian” experiments where they can try different productivity hacks and work out their own personal capacity for sustained output.

On the flip side, a one-person start-up can be lonely. This can be mitigated by delegating certain tasks to freelancers and SaaS tools. In the era of everything-as-a-service, this can be done without much additional capital expenditure and it can make the business more manageable for founders with limited bandwidth. The lack of differing opinion and pushback can also lead to the quixotic pursuit of some projects.

Another downside is that it can be more difficult to raise investment when you are a solo founder. Investors are looking for scalable businesses that have a high likelihood of yielding them a large return on their investment. They are not as interested in lifestyle and small business molds, which is the kind of business that a one-person start-up might be perceived to be.1인창업

Lastly, most investors, including angels and venture capitalists, require that you incorporate the company in order to open bank accounts, isolate investor funds and maintain financial statements. This is usually not an issue if you are self-funding your venture but it is important to be aware of before seeking funding.

If you are starting a one-person start-up, it is important to highlight your career track record in the business plan and presentation materials. This will show potential investors that you are not just pursuing a hobby or an opportunistic quarter-life crisis. Similarly, you should present your one-person start-up as a business that is the natural extension of your existing skillset.