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All Articles Types of Startups

Types of Startups

Updated: May 28, 2024

A whiteboard filled with sticky notes and business strategy plans for different types of startups.

Not all startups follow the same structure or internal system. While there are a lot of success stories of startups with one founder, there is also some evidence to suggest that having more than one founder might be a better option for the startup. While there is no perfect number of founders to have, here are a couple of ways that startups differ based on their leadership.

One founder

We hear about single founder success stories and bootstrapping a lot because honestly, it is pretty impressive to take on a leadership role on your own and get the startup off the ground. Having one leader in the team makes the general hierarchy more obvious and delegation of power is rarely an issue. There is no need to compromise or do something that you don’t fully agree with since all the executive power is in your hand. As a single founder, you can have the final say on any issue connected to the startup.

But then again, doing it on your own means more responsibility on your shoulders. You will be busier and more stressed out. Depending on what you value the most or whether or not you have a partner, the additional responsibilities could be worth it.

Two Founders

One of the upsides of having two founders is that they can offer each other opposing views and come up with an even better solution through collaborative effort, It can be beneficial to have a different perspective on the product, especially at the beginning stages, before the launch.

Having a co-founder also means that you have to share certain powers with another founder and consider their point of view as well. You might have to compromise more and the leadership within the startup may sometimes be an issue.

The main difficulty here is that it is extremely rare to find a perfect co-founder with whom you can work in harmony even when the inevitable disagreements arise. Having a co-founder with whom you don’t really get along, could potentially ruin the whole project, so choosing to work as a duo is a decision that should never be taken lightly. Do you have some experience working with this person? Do you think that you two will be able to be civilized even when complications arise? Is the shared responsibility worth giving up full control over the startup? These are just a few questions you should ask yourself before you decide to build a startup with another person.