Is it bad to start a business alone? Not necessarily – there are certain advantages that come with going into business alone. However, there are also challenges associated with starting and running a business independently. This article explores some key things to be aware of before starting a business by yourself.
Benifits of starting a business by yourself
Some of the key benefits associated with founding a company alone include:
- Great control: By founding a company alone you have much greater control over its operations. Instead of reading to run things past others for approval, you have the ability to make decisions independently.
- Reduced possibility of disagreements: A key source of disagreements in startups is that different founders have different perspectives over where the business should go. By starting the firm alone you avoid these disagreements – particularly important if the reason for starting the firm was to develop a lifestyle that you want.
- Lower profits needed: Another advantage of starting a business alone is that you need not split the profits among multiple people – thus requiring a much smaller firm to be a success. Particularly if the profit opportunity is small, then pursuing it alone may allow you to succeed where a larger company would not be able to generate sufficient returns.
Challenges of starting a business alone
While there are some benefits that come from starting a business alone, there are also challenges that attempting to launch a business by yourself can bring. Some of the disadvantages of launching a business alone include:
- No one to develop ideas with: You are now responsible for all of the decisions made by your firm, with no one to bounce ideas off.
- The need to become skilled across all parts of the business: Without others involved, you are in charge of all areas – and will likely need to become competent with all areas of the business.
- Time constraints: Time constant can be another issue for solo entrepreneurs – there never seems sufficient hours in the day to achieve all that you want to achieve.
- May not match all investor expectations: If you only have the admonition to remain small, as a one-person team, then this may limit the likelihood of outside investment. Of course, this may also be in line with your ambitions – not everyone wants the pressure of outside finance.
Do you plan on hiring employees?
Just because you initially decide to start the business alone does not mean you necessarily need to remain individual indefinitely. You may decide that you want to grow your firm by taking on employees, potentially part-time to fill specific roles.
Of course, taking on employees brings its own challenges, but this may be a compromise between allowing your firm to grow, without the pressure that may be brought with founding a company with others.
Final thoughts: Can you pull it off, and would you want to do it with others?
When considering if you want to start a business by yourself, it is important to reflect on whether you have the skills needed to go into business by yourself, and whether it is what you want to do. While lacking key skills need not necessarily prevent you from starting your business along – you may be able to hire employees with those skills, or potentially learn them yourself – it will certainly introduce challenges to launch your business.