Question

re more firms started by individuals or founding teams? What are the advantages to founding a firm as a team rather than as an individual? (10 marks)

Answer 1

If you look at the success story of start-ups, there always have been teams- even if small teams of 3-4 people, but still teams. Apple, Microsoft etc., though have only couple of names recognized as founders, but they all were results of good team-work.

There can be several reasons why starting as a team has several advantages over starting as an individual-

1. During tought times, individuals may perish due to over stress of failures, but teams have larger chances of surviving

2. More team members, more are your chances to connect with other people who might help you take your start-up to higher levels

3. Multiple skill set availability- there is no single individual doing lots of work. It is a fact that you cannot be perfect in all the departments, you want people with several skill sets to help you in your fight

4. Extroverts usually like working in teams, as they want to express their ideas and let the discussions begin, if you work as an individual, there are high chances that some brilliant ideas may take a toss

5. Collective brainstorming sessions help in development of a proper system, there are high chances that as an individual, if you are looking closely into some thing, you may still miss some detail, which others help you in identifying

6. You are complimented for good work, which always helps boosting your confidence. If your good work is appreciated, you will always go for more

7. Sense of ownership is wide, you take care of responsibilities towards each other as well, its not just your company to start or shut, there are other souls working hard for it too.

8. Risk taking ability is increased, when you know you have others to back you up. No businesses have grown without involving a certain risk element, hence if your chances to take a calculated risk is going upwards, good for you.

9.Improvement in communication skills, these skills are very important if you want to run a successful business. Hence staying around people helps you improve them

10. You develop leaders, there are always leaders when you work in a team, and they thrive in these situations, and take themselves forward

If you read microsoft's first 11 employees including Bill Gates, you will see how teams work together build a greater thing

If you have any doubts regarding the answer, or want any elaboration on any point or answer, please post in the comments. Thank You