#AskPS
Freny Sachde .

Is your firm a partnership firm or are you a solo founder?

What according to you should be considered while selecting a cofounder?

Also in long term, what’s better in terms of growth, profitability etc?

Originally Posted Here
14 Comments

CA Gaurav Sukhija

Always a cofounder who has similar risk apetite and who completes your inabilities is best to have around

Freny Sachde

The person full-fills the later condition of your statement but not the former, They being a avid risk taker and I being a safe player, do you think it’s still a good deal to be in?

CA Gaurav Sukhija

See when the risk shared is similar but pockets are not same or the risk taking ability is not the same
You should not go ahead as this will be the first reason of conflict

As the idea is basically yours the risk should be assessed at your end
In case he is ready to take some additional risk
You can always ask him to take additional revenue from that tsk and can shield you with losses from that task as well for a period of time
But tht is complex to plan

Sagar Khubchandani

I have seen some solo founders making crores annually, and some solo founders completely burning out and on the verge of giving up.

Have also seen partnerships destroy the businesses, partnerships helping the business reach heights.

There is no universal rule for this. It completely depends on you, the people you want to work with, business model, intent, and sometimes even luck.

You can start first, try to push yourself, and if you still feel the need for co-founder, go for it.

Piyush Soni

CA Sagar KhubchandaniTrue!!!💯💯Once we start the journey ourselves, automatically we start finding people who trust on our vision. And this thing leads to formation of a team.
Likeminded people join themselves!!

Chirag M

My Experience:
-Select a co-founder who has traits(qualities) that you dont possess of but has thinking(mindset) same as yours.
-Do a courage check some how, i mean try some strategy to see if they are bold enough to stand their ground when adversity strikes( thats gonna matter a lot in a long term co-founder)
-Most important: Does he/she have a common goal as yours? Because if this varies then the plan/business fails before even starting
-How they handle money? Are they reckless or as smart as you. This will always help you keep the company finance intact and to be used for business purposes only
-Do they have any addiction? Yes this is very personal but again very very important. Because if they do have one, its a (-ve) and might be an issue in the long run.
-Their Circle & Network, this is a big plus. If you have a co-founder who is influential, its gonna be of a great help
-A co-founder with multiple years and fields of experience is always a big plus again

These are some points i always keep in mind. Personality check is more important than credential check i feel for long term.

Freny Sachde

Thank you so much, all the points are quite detailed. Just one query, in your experience any other aspects of personality you feel make a direct impact on partnerships?

Chirag M

Yes Loyalty, have they had a fall out previously with any other co-founder. What was the reason? Was it a mutual end of relationship or a problematic one. Choosing a business partner is like choosing a life partner, so keep all those personality & business aspects in mind which would prosper you or destroy you.

Madhuri Sen

Have 3 firms in partnership with different co-founders. Since my core competency is business, marketing and brand communications strategy and management - I look for co-founders with specific industry/domain expertise and networks who are also willingto take on the day to day running of the ops. But my primary ingredient beyond that is the level of trust existing between us, our working chemistry and ability to agree on the direction the enterprise needs to go. If I can't find co-founders with those qualities, I'd rather not have one. For each I've gone seeking one before even deciding if I'd want to go ahead with the plan at all.

Freny Sachde

that’s quite insightful, one quality that you always looked into before freezing on your partners?

Aayush Poddar

Co-founders are *almost always* better than solo founders.
1) If you are really looking to scale or not even, alone you are bound to get burned out. It's just a part of entrepreneurship.
2) You cannot do everything on your own. You can't hire people to head essential functions like Tech, Sales (If you can't do both).
3) Investors *hate* solo founders.
4) You get a better sense of the work with someone who is as invested in the business as you.

Now Co-founders only make sense if-
1) Skills are complementary. If not, its a waste of efficiency.
2) Both are equally or almost equally invested based on monetary investment.
3) Both are equally invested in terms of time. Entrepreneurship is very hard and it's very normal to see people back down after a few months or even years of hustling.
4) MOST IMPORTANT- you must have a co-founder agreement which should clearly state the roles & responsibilities of the co-founders and clearly spell out how the equity will be reconsidered based on various different possibilities like-
a) If a co-founder is not willing to work anymore after x time, y time etc. Has given up.
b) If a co-founder is not willing to make the monetary investment (You can give equity based on time instead of splitting on day 1 etc) c)Document each and every possible point that may impact the way equity is split.

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