Hmm …. And, in my town, there are a lot of businesses that look like they are sole proprietorships, 100% owned by solo founders, no co-founders, no BoD. Maybe they are a Subchapter S, maybe an LLC, but definitely not a Delaware C-corporation. Sure, maybe these are not big businesses. Still my guess from what I’ve seen is that just the more successful such businesses are the source of funds for most of the families that pay full room, board, and tuition for their children at Ivy League universities. Why? Darned few employees make that much money. The number of co-founders of Delaware C-corporations is too small in comparison with the more successful 100% owner, solo founders.

Lesson: For the struggles with co-founders, BoD members, presto, bingo, a 100% owner solves those problems.

So, yes, a problem for a solo founder, 100% owner can be finding the needed capital and/or labor to start the business, thus, go for co-founders, outside equity investors, and a BoD and Delaware C-corporation.

So, how to solve this problem? Sure, do a startup where the solo founder, 100% owner has all the capital needed and can do all the labor needed to get to at least a nice lifestyle business and, in case the business can grow quickly, with enough free cash for rapid organic growth.

Example? Okay: Now with Moore’s law and the Internet, can have a computer from parts for less than $1500 and use that as the server for a Web site. For system and infrastructure software, a lot of that, likely all that is needed, is inexpensive or free. From ad networks, run ads on the site. Then from some standard data about ad rates, e.g., as in the good annual reports from Mary Meeker at the venture firm KPCB, if can get enough users of the Web site to keep the server, say, on average half busy 24 x 7, then can get monthly revenue of $100,000 to $300,000. So, presto, bingo, the founder has a lifestyle business, money enough to pay full cost of room, board, and tuition at an Ivy League college, and enough free cash for rapid organic growth. And the business took less capital to start than a pizza shop, Chinese carryout, red sauce family Italian restaurant, white tablecloth French bistro restaurant, auto repair shop, auto body shop, dentists office, veterinarian’s office, etc. For the labor, sure, have to have a good idea for a Web site and learn how to write the software, write it, get it running, and make it look good to users.

With some irony, at

http://a16z.com/2014/07/30/the-happy-demise-of-the-10x-engineer/

is an article about a single engineer starting a business worth $1 B.

http://themusingsofthebigredcar.com/flying-solo-ceos-ceo-shoptalk/

BRC
http://www.themusingsofthebigredcar.com

#flyingsolo #ceo #startup #founder #entrepreneur