Every entrepreneur that starts a business has visions on making it big, achieving success, and making profits. However, so few actually attain success that a recent study conducted by Ron Conway’s firm, SV Angel, attempted to predict entrepreneurial success.
Mr. Conway’s firm which invests relatively small amounts in early stage companies, gathered responses from 300 founders to try to discover which start up businesses will make it. It’s not an exact science, but it seems young co-founders doing their second startup tend to produce better results than older, sole founders starting their first company.
The research showed three interesting points:
1. Repeat founders tend to achieve greater success the second time doing a startup. This makes sense, because we often learn from our mistakes (or at least we should).
2. Younger entrepreneurs (under 30) tend to have greater success than older ones. This would support the idea that risk taking is required to be a successful entrepreneur and younger business owners have a greater tolerance for risk (or have less to lose and tend to be more aggressive).
3. Co-founders have greater success than sole founders. This is probably the most significant piece of information. The results are astounding. Co-founders tend to have a success rate that is over ten times that of sole founders. This would strongly support the importance that two heads are better than one.
The last point is something I strongly believe that no one has all the talents and skills to be successful alone. We all need help and someone to compliment our weaknesses (blind spots). When we submit to another and partner with them on something as significant as a new business start up, we gain from:
- Collaboration – We have someone to share the workload and enhance the speed of getting things done.
- Accountability - We have someone that will make sure that do what we say we will do.
- Motivation – We have someone in the foxhole with us to encourage us when times get tough.
- New Ideas - We have someone that will challenge our ideas and provide a different perspective.
What new project are you trying to do alone and is now the time to partner with another person?