As a founder, are you running a one-man business?

Here’s a reality check...if you're the sole shareholder, you own 100% of the company.

And while that might sound like total control, it's also total risk.

When things go wrong, no one can step in and help—you're on your own.

That essentially puts you in the same vulnerable position as someone running an enterprise.

Investors see that and hesitate.

Why?

Because they want to know there's a support system, accountability, and a broader decision-making structure.

for you as an investor...How can you tell if a business is a one-man pretending to be a company with multiple shareholders?

Simple—ask for the particulars of shareholders and directors.

It's one of the documents attached to the certificate of incorporation.

For a growing company or startup, you should also ask for the capitalization table (cap table).

This document shows all the equity ownership from inception to date.

It lists the names of all shareholders and the number of shares they hold.

If they can't produce a cap table or particulars of shareholders, just know you're looking at a "disguised one-man company".

for you as an investor...this should be a red flag.

For you as a founder...it should be a concern

Do you need help?

Reach reply to this email and we will be in touch to help!