Running a Company Alone Before Hiring Staff: Advantages and Disadvantages

Starting and growing a company is a thrilling yet challenging journey. Many entrepreneurs, especially women founders, often run their businesses single-handedly before expanding and hiring staff. In fact, according to a Global Entrepreneurship Monitor (GEM) 2023 report, 41% of women entrepreneurs in Africa start their businesses alone before building a team.

While this can be a smart way to save costs and maintain control, it also comes with challenges. Here are the advantages and disadvantages of managing your business on your own before bringing staff on board.

Advantages

1. Full Control and Decision-Making Power

As a solo founder, you make all the decisions without delays. Research shows that startups with faster decision-making processes grow 30% faster than those slowed down by bureaucracy.

2. Cost Savings

Hiring staff can be expensive. For context:

Ghana: Entry-level staff earn between GHS 7,000 – 10,000 annually (≈ $500 – $715).
Nigeria: Salaries range from ₦100,000 to ₦150,000 monthly (≈ $65 – $100, or GHS 900 – 1,400).
Kenya: Entry-level salaries are about KES 30,000 – 60,000 monthly (≈ $230 – $460, or GHS 3,000 – 6,000).

Running your business alone lets you redirect these costs into marketing, technology, or product development.

3. Deep Understanding of Your Business

Handling all operations yourself sales, customer service, accounting gives you hands-on experience. A 2022 LinkedIn study found that entrepreneurs who understand at least three key areas of their business (finance, marketing, and operations) are 45% more likely to succeed once they scale.

4. Stronger Connection With Customers

When you interact directly with customers, you get honest feedback and build stronger relationships. According to HubSpot, 82% of customers are more likely to stay loyal to a brand that offers personalized communication something easier to achieve when you handle it yourself.

5. Flexibility and Speed

Running solo allows you to test and implement new ideas quickly. For instance, a new product idea can be launched within days, unlike larger teams where approvals might take weeks.

Disadvantages

1. Burnout and Overwhelm

A 2023 Small Business Trends report revealed that 62% of small business owners experience burnout, mainly because they try to do everything themselves. Lack of rest can reduce productivity by up to 68%.

2. Limited Growth

There’s only so much one person can handle. Businesses with teams of at least 3 to 5 employees grow 50% faster in their second year, according to GEM Africa. Staying solo too long can slow expansion.

3. Lack of Expertise

You may not be skilled in every area. For example, poorly managed social media marketing can cost you potential customers. Statistics show that poor marketing strategies account for 14% of startup failures worldwide.

4. Missed Opportunities

Because you’re stretched thin, you may miss partnerships, funding, or speaking opportunities. 70% of solo entrepreneurs admit to turning down opportunities because of time constraints (Shopify 2022 data).

5. Work-Life Imbalance

Solo entrepreneurs work an average of 50–60 hours per week, according to a QuickBooks survey. This can affect health, family, and personal relationships.

When Should You Hire Staff?

You should consider hiring when:

You’re turning down at least 20% of opportunities due to lack of time.
Your health is suffering, or you’re working more than 10–12 hours daily.
The cost of hiring is lower than the revenue you’re losing by staying solo.
You need specialized skills to scale—e.g., digital marketing, accounting, or tech.

Final Thoughts

Running a company alone teaches resilience, discipline, and gives you a solid foundation. But staying solo for too long can stall your growth. Start lean, learn everything you can, then invest in building a small, strategic team that can help you scale faster.

Remember, you don’t have to do it all forever—just long enough to build a strong foundation for success.