Solo vs Partner

If you want to reach financial independence, it will be more difficult to do it alone. It’s not that you are not capable or determined enough, but rather that you only have certain skills and strengths. You are a great technologist, but how are you with “sales funnel optimization”?

With that said, there is still a lot you can and should do alone, to get ready. That is what most of this site is about.

1. Start Using AI everywhere, with everything.
2. Build your Platform, or personal brand.
3. Create some Public Projects, maybe even an OSS + SaaS product, if you’re a software developer.

When to Work Alone

As mentioned above, it’s a full-time job to get prepared to build a business. You need to have your brand established, your AI skills honed, and your public projects ready to showcase your abilities.

At some point though you will likely be ready to take the leap to start a business. For example, that might be:

• Consulting: You have a strong personal brand and can attract clients on your own.
• Freelancing: You have a portfolio of public projects that demonstrate your skills and can find clients through platforms or your network.
• Product Development: You have a solid idea for a product and the technical skills to build it. Although, how will you market it?
• Content Creation: You have a unique perspective or expertise that you can monetize through blogs, videos, or courses.

There is quite a bit you can do alone, and you should do it. You may be able to build multiple streams of income from content creation, affiliate marketing, or even small products that don’t require a co-founder.

When to Search for a Co-Founder

If you want to reach financial independence, it will be more difficult to do it alone. You have certain skills and strengths, but you also have limitations and weaknesses. What’s really encouraging is that you can find a co-founder who complements your skills and addresses some of your weaknesses.

A co-founder can help you with:

• Sales and Marketing: If you’re not comfortable with sales or marketing, a co-founder with those skills can help you reach more customers.
• Business Strategy: A co-founder with a strong business background can help you with strategic planning, financial management, and scaling your business.
• Networking: A co-founder with a strong network can help you connect with potential customers, partners, and investors.
• Technical Skills: If you’re not a technical founder, a co-founder with strong technical skills can help you build and maintain your product.
• Complementary Skills: A co-founder with skills that complement yours can help you build a more well-rounded team.

So, when you’ve done all you can on your own, and if you have an business idea that requires more than just your skills, it’s time to start looking for a co-founder. This is a big step, and you should take your time to find the right person who shares your vision and values.

One of the most valuable things you can do is understand what your own strengths and weaknesses are. This self-awareness will help you identify the types of partners that can complement your skills and fill in the gaps where you may be lacking.

If you are an introvert who likes doing deep work, you probably need a partner who is an extrovert and enjoys networking. If you are a great developer but struggle with marketing, find someone who excels in that area. The key is to find partners who can bring different/opposite skills and perspectives to the table.

Finding the Right Partner

Launching a company with co-founders is as much about relationships and expectations as it is about ideas and execution. This guide dives deep into the questions, examples, and conversation prompts you need to surface hidden misalignments before they turn into deal‑breakers.

1. Self‑Awareness

1. Skills Inventory

   • List your top 3 technical or domain skills (e.g. full‑stack dev, marketing, sales).
   • List your top 3 gaps (e.g. fundraising, design, public speaking).
   • Example question: “If we need to write an investor deck, who leads and who supports?”

2. Work & Communication Style

   • How do you prefer to work (deep focus vs multitasking, scheduled vs ad hoc)?
   • What’s your typical response time on Slack/email?
   • Tip: Use a brief personality quiz (e.g. MBTI, DISC) and share results.

3. Values & Deal‑Breakers

   • Identify 3 non‑negotiable ethics (e.g. data privacy, open source licensing, social impact).
   • Agree on topics that would force a stop‑gap (e.g. working with certain industries, accepting specific revenue models).

2. Core Pillars of Alignment

Each pillar below includes discussion prompts, real‑world examples, and mini case studies to spark deeper dialogue.

A. Shared Vision & Mission

• Why we exist: Craft a one‑sentence mission statement and a one‑paragraph vision for Year 3.
• Target audience: Who are our first 100 users? What problems are we solving for them?
• Example misalignment: One founder sees a consumer app; another sees enterprise SaaS.

B. Roles, Responsibilities & Commitment

• RACI matrix: Define who’s Responsible, Accountable, Consulted, and Informed for key functions (Dev, Sales, Ops, Finance).
• Time buy‑in: Minimum weekly hours or deliverables (e.g. 20 hrs, 2 customer calls).
• Role evolution: How do we handle shifting responsibilities if someone’s interest or expertise changes?

C. Equity Split, Vesting & Contributions

• Initial split rationale: Based on idea, capital, expertise, and risk.
• Vesting schedule: Typical 4‑year vesting with a 1‑year cliff; consider a 6‑month interim checkpoint.
• Sweat vs cash: How do we value side projects, previous IP, or capital injections?
• Dynamic equity (Slicing Pie model): Consider real‑time adjustments as contributions change.

D. Intellectual Property & Legal Structure

• IP assignment: All founders must sign agreements assigning past and future IP to the company.
• Entity selection: Choose jurisdiction (e.g. Delaware C‑Corp, UK LLP) based on fundraising plans.
• NDA/non‑compete: Do we need mutual NDAs? Are non‑competes enforceable in our jurisdiction?

E. Governance, Decision‑Making & Voting

• Decision thresholds: Simple majority vs supermajority (e.g. 66% for pivots, 75% for dilution).
• Tie‑breakers: Rotate a “board chair” role or appoint an external advisor.
• Meeting cadence: Weekly sprint planning, monthly OKR reviews, quarterly strategy offsites.

F. Communication & Trust Building

• Core channels: Slack, email, Google Docs, project board - agree on use cases.
• Feedback norms: Practice radical candor; schedule monthly “health checks.”
• Escalation paths: Define how to surface urgent issues (e.g. “red flag” Slack channel).

G. Work Ethic, Accountability & Culture

• Availability norms: “Online availability” hours, off‑hours boundaries.
• Progress tracking: Shared dashboards for burn rate, feature progress, customer support tickets.
• Morale boosters: Quarterly team‑building, pair programming sessions, demo days.

3. Conflict Resolution & Exit Planning

3.1 Dispute Resolution

1. Informal first step: Direct conversation within 24 hrs of a conflict.
2. Mediation: Agree on an unbiased third party or attorney and budget for up to 2 mediations/year.
3. Final arbiter: Pre‑designate an external board member or advisor with casting vote.

3.2 Defining Success & Failure

• Success metrics: Revenue targets, user retention rates, engagement thresholds.
• Failure triggers: 6 months of <5% MoM growth, running out of runway, pivot period deadlines.
• Pivot vs shutdown: Pre‑set a budget and timeline for experiments before declaring failure.

3.3 Partner Exit & Buyout Terms

1. Notice period: Founder must give 30–90 days’ notice before exit.
2. Valuation method: 3× trailing ARR, DCF model, or independent fair‑market appraisal.
3. Payment terms: Lump sum vs instalments; secure with promissory note if needed.
4. Scope on exit: What IP, customer data, and ongoing support obligations remain?

3.4 Planning for Success & Scale

• Reinvestment policy: % of profits reserved for R&D, hiring, marketing.
• Scaling triggers: 10,000 users, $100k MRR, or reaching 80% server capacity.
• Exit strategies: Ideal acquirer profiles, IPO timeline, secondary markets for early liquidity.

4. Master Conversation Checklist

Before you move forward, use this checklist to ensure you’ve covered all critical topics. This will help you align expectations and build a strong foundation for your partnership.

Building a durable partnership starts with clarity, empathy, and an honest airing of expectations. Use this guide as your roadmap to avoid misalignment and strengthen trust - before it’s too late.