Company founding: alone or in partnership

Better to get started alone – or together?

The decision for a founder to set up a company alone or in partnership is primarily determined by the founding concept and business idea. So what are the advantages and drawbacks of each option?

  • Advantages

    • No internal compromises
    • Not dependent on partners
    • Greater individual responsibility
    • No internal discussions or conflicts
    • Founder has full control
    • Possible to work from home

    Drawbacks

    • Solitude
    • Founder must possess numerous skills
    • More own capital required
    • Creative process of discussion eliminated
    • Risk and responsibility weigh on the shoulders of one person

  • Advantages

    • Specialization and division of labour increase efficiency and generate synergies
    • Each individual requires less capital
    • Risk and responsibility shared
    • Sparring partners for discussions and joint decisions

    Drawbacks

    • Increased risk of interpersonal conflicts
    • Different ideas and goals of partners must be reconciled
    • A partner opting out can threaten the existence of the business
    • A partner running into financial difficulty can threaten the business

More information

More information on the topic of setting up a company is available from IFJ Startup Support.

This might interest you too

Legal forms for new companies
Setting up social and personal insurance