The Ultimate Guide: Company of One
Getting started; What Does It Mean to Be a Company of One?
Welcome to the first article in our Ultimate Guide for New Entrepreneurs, an eight-part series designed to educate and inspire business owners. We are proud to be entrepreneurially mindful and passionate about working with likeminded individuals.
This guide explores the “Company of One” business model that centres on simplicity and value driven work over relentless scaling. Let’s go through the journey breaking down what this means, the benefits, the challenges and answer why staying small can still lead to big profits.
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What is a Company of One?
The ‘Company of One’ is a business model focused on sustainability, efficiency and personal satisfaction. Unlike traditional businesses that aim to grow via hiring and expansion, a company of one is all about maximising output with minimising resources.
Characteristics of a Company of One:
1. Minimal overheads: lean operations (no large office spaces and expensive staff).
2. Autonomy: control over decision from strategy to execution.
3. Focus: prioritising quality, client relationships and personal satisfaction.
Not to be confused with a lack of ambition, the structure reshapes the goals to emphasize independence and efficiency.
Did you know?
In the UK, 56% of legally registered businesses are sole proprietorships. The rise of side hustles and passive income streams is a testament to the growing popularity of this model. Paul Jarvis, author of Company of One, highlights how this approach can lead to sustainable, fulfilling success without the stress of scaling.
Benefits of Running a Lean Business
Operating a lean business aligns with the Company of One philosophy, offering numerous advantages:
1. Agility: small businesses can adapt quickly to market changes without any of those bureaucratic delays!
2. Lower Financial Risk: avoiding high costs such as expensive office rental leases and staff salaries reduces financial exposure.
3. Enhanced Quality: energy can be dedicated to delivering excellent customer experiences.
4. Work-Life Balance: as said in every boardroom meeting by that one person, “you have got to just find that balance”. However, with reducing organisational demands, solo entrepreneurs can enjoy control over their time.
Challenges Solo Business Owners Face
Whilst rewards, this path is not without challenges. Running any business has problems to overcome.
1. Time Management
Solo entrepreneurs wear many hats: marketing, sales, operations and many more. These can lead to burnout and overworking. All of a sudden, the 40 hour week you were trying to avoid has become 80 hours.
A good solution is to eliminate the ‘time wasters’ and utilise automation. #notanad but, we use software with many of our clients such as Xero, Hubdoc and Dext to streamline strenuous bookkeeping and document processing tasks. Which not only saves time but saves money.
2. Overload
Very much inline with the previous challenge, managing everything alone can quickly pile up and grind the hours up. Managing deadlines, client satisfaction and personal life very quickly can become a complex juggling act. Highlighted in Tim Ferriss’ The 4-Hour Workweek batching similar tasks (e.g. emails, meetings) and tackling them in blocks will assist.
Leverage your skills and time to maximise the effectiveness of your hours worked. There is no point in boasting about working 65 hours per week when you could have accomplished the same in 40 hours.
3. The SOLO part
Without a team, manager, boss or assistant to rely on, all accountability and decision making rests entirely on the entrepreneur.
Attending networking events to learn about similar businesses in your industry and how they managed to overcome issues that you encounter is invaluable.
Having the ability to say “no” is powerful, guard your time by avoiding unnecessary meetings or obligations that do not add value.
Why Staying Small Can Still Mean Big Profits
Staying small doesn’t mean sacrificing success. In fact, smaller businesses often enjoy higher profit margins due to lower overheads and focused strategies.
Blue Ocean Strategy:
By carving a unique niche, companies of one can avoid competing in over saturated market hence enabling higher pricing. Instead of fighting for a share in an existing, crowded market, a business innovates to offer something unique that opens a new demand.
The Long Tail:
Serving a specific market can target customers that need specific tailored solutions which the large corporations cannot offer. This strategy allows companies to make a profit by selling low volumes of ‘hard to find’ products / solutions to many customers.
Afterword: A Mindset Shift
Company of One is not just a business model, it’s a shift in mindset. It redefines success, not by the size of the organisation but by the value you deliver and the life you create. The benefits of autonomy, flexibility and profitability make it a compelling choice for modern entrepreneurs.
Recommended Reads
Company of One: Why Staying Small is the Next Big Thing for Business by Paul Jarvis
The 4-Hour Work Week: Escape the 9-5, Live Anywhere, and Join the New Rich by Tim Ferriss
The Lean Startup: How Constant Innovation Creates Radically Successful Businesses by Eric Ries
Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek
Never Split the Difference: Negotiating as if Your Life Depended on It by Chris Voss