A successful business takes the work and support of many people: advisers, customers, employees, board members, and more. But every successful company was once just a germ of an idea that originated with one or a few entrepreneurs.
Some businesses have a single founder, while others have two or more cofounders. The right choice for you depends on factors like your personality, skill set, and business needs. Here’s what differentiates a founder from a cofounder, with guidance on how to find cofounders for your business.
What is a founder?
A founder is a person who develops an idea and turns it into a workable business. Founders have wide-ranging responsibilities that include determining the products and services a company offers, building a business model, procuring resources, hiring team members, and more.
Examples of startup founders include Sara Blakely, who created the billion-dollar shapewear business Spanx; Chichi Eburu, founder of beauty brand Juvia’s Place; and Kyle LaFond, who founded the handcrafted personal care products company American Provenance.
What is a cofounder?
The term cofounder can refer to two groups of people involved in the early stages of a company.
The first group helped launch a company. Though the term founder often refers to a solo entrepreneur, if two or more people worked on the initial creation of the company together, they’re both the founder and cofounder.
In the second group, cofounders join after the founders develop the initial idea or begin creating the business. A founder may bring on cofounders to share the workload, have a partner in their quest, or add a needed skill set. These skills-based cofounders could include an engineer to build the product, a venture capitalist with money to get the business idea off the ground, or a marketing whiz with the ability to get you in front of the right customers.
Examples of companies with cofounders include the affordable natural skin care line Three Ships, hummus purveyor Little Sesame, and prebiotic soda brand Olipop.
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What to consider when bringing on a co-founder
- Personality and skill set
- Expectations for a cofounder
- Comfort with sharing workloads—and equity
- Permanence of the role
For some founders and businesses, bringing on a cofounder is a great choice, but it’s not a requirement for every company’s success. Successful startups can run with a single founder or multiple cofounders—and neither option guarantees success.
”People will cite various data points, but the fact is: Solo founders can have long-term success with billion-dollar exits, or they can fail miserably. And it’s the same for cofounders,” says Michael Duda, cofounder and managing partner of Bullish Inc., a venture capital firm that invested in companies like Warby Parker, Peloton, Harry’s, Bubble Beauty, and Primary Kids.
If you’re considering a cofounder, it’s crucial to determine your motivations. Here’s what to think about:
Personality and skill set
Think about what you bring to your business, and identify gaps that a cofounder might help fill. “Self-awareness is critical and extremely powerful,” Michael says. “It’s ’What talents do I have,’ but also, ’What am I great at and what am I terrible at? What things do I need for this to go well?’ It’s not the trophy of, ’We got the person from ABC big brand,’ but what your business actually needs for success.”
Gaps can include both personality traits and skill sets. Maybe you’re passionate but hotheaded when critiqued, which could lead to a blind spot when it comes to negative customer feedback. Perhaps you’re excellent at executing profitable ideas, but you could use a creative brain to consistently develop innovative solutions. Or maybe this is your first foray into business, and you’re seeking a seasoned entrepreneur who can help you sidestep pitfalls.
Expectations for a cofounder
What do you expect from potential cofounders? Cofounder agreements vary widely: Some cofounders are as deeply involved as the founder, while other cofounders are serial entrepreneurs who offer money and coaching to multiple businesses simultaneously as fractional cofounders. Some founders and cofounders make decisions together, while others split divisional responsibilities.
“Ambitions don’t have to be identical, but it’s crucial that everyone is clear on motivations and expectations,” Michael says. “If you’re expecting a cofounder to stick around for the lifespan of this business, it would be crushing if they left in a couple months.”
Comfort with sharing workloads—and equity
A cofounder can be a true business partner going through the same journey right by your side. Plenty of founders find great comfort in that equal credit partnership: someone with whom to share the workload, challenges, and wins. Other founders prefer to maintain sole control.
If you are interested in a cofounder, know that sharing the workload also means sharing ownership and profits: Cofounders typically receive more equity than other early employees.
Permanence of the role
Cofounder is a permanent title. Your head of growth might become chief marketing officer and then leave for another company, becoming a former employee. But a cofounder remains linked with your company in perpetuity.
Without a cofounder, you can still bring on essential team members with critical skills. For example, if you lack technical skills, you may need an engineer to build your product—but they could come on as chief technology officer or head of engineering. But keep in mind that without a cofounder title and accompanying equity, you can’t expect cofounder-level commitment.
How to find the right cofounders
If you’ve decided that a cofounder is the best choice for your company’s mission, these tips can help you find the right person:
Tap your networks
After aligning on your motivation for a cofounder, share your list of needs with friends and family to start, Michael says. They may suggest friends, colleagues, and acquaintances—which offers built-in vetting.
“The great thing about your closer network is they know you and will tell you the truth,” he says. “‘X does this, but I don’t think you’d want to go into business with him.’ Or, ‘My friend was talking about this line of work, and you’d get along great!’”
From there, tap former colleagues, business groups, and college alumni networks. “Affinity groups can be cheat codes to cut through clutter and help minimize the risk of failure,” he says. “The common experience tends to yield more honest assessments from the start.”
Seek alignment in values
You and your co-founder will be working very closely together. While you don’t have to be best friends, it helps immensely when you have similar values, Three Ships cofounders Connie Lo and Laura Burget say on an episode of the Shopify Masters podcast.
“We both are probably within the top three people in our networks in terms of the level of hard working and in terms of the level of hustle we’re willing to put in. But at the same time … we both value seeing our families [and] having time to work on our health,” Connie says. “[If it’s] uneven, where one person is go go go all the time, then you’ll get into conflict. We realized really early on [that] we had the exact same family values and vision for where we saw our lives heading.”
Alignment in personal values also shapes core business values. These, in turn, inform company culture as your business grows, which impacts how employees work together and with customers.
Look for complementary skills
While values alignment is important, key differences in both personality and experience can be beneficial. At Three Ships, for example, Laura has a technical background in chemical engineering, while Connie came from marketing and sales at Kimberly Clark.
Similarly, Olipop cofounders Ben Goodwin’s and David Lester’s different perspectives create a counterbalance: Ben is innovative and passionate, while David is a master of execution and clearheaded decision-making.
“If you don’t have a partner that can counterbalance you, then you have the task of playing both roles simultaneously,” Ben says on an episode of the Shopify Masters podcast. “If you can build your team to address natural spikes and skill sets, and achieve that balance, then everybody can coordinate well.”
Founder vs. cofounder FAQ
Is the founder the CEO?
A company’s founder is not necessarily the CEO. Every company has at least one original founder who created the business, but someone else may come in to be the CEO who runs day-to-day operations.
Is a founding member the same as a cofounder?
A cofounder plays a crucial role in business development and company decision-making. Founding team members often make notable contributions to a company in its early stages but don’t have the same leadership role or level of responsibility as a cofounder.
Should I call myself a founder or co-founder?
Founder often refers to a single person who developed a new business on their own. If you worked with other people on the original idea and company creation, you are each cofounders, but you might choose to refer to yourselves as “one of the founders of XYZ Company.”
Can you be a founder and co-founder?
Yes. If two or more of you were involved in the initial creation of the business, you are each founder and cofounder. Google’s founders, Sergey Brin and Larry Page, are an example of these equal partners.
