Short answer
The bus factor is the number of key people who would have to suddenly leave before a project stalls because no one else has the knowledge to carry on. It measures how much a team depends on a few people, and writing down processes and cross-training teammates raise it.
Why founders should care
In a small company the founder is often the bus factor of one. If you were offline for a month, who knows how your top customer was won, what the discount limit is and why a decision was made? The term covers any sudden departure, not only the grim example it is named after.
How to raise it
Write down processes and keep the records current, so knowledge is not locked in one head. Cross-train teammates so more than one person can handle each critical task.
A first step
List the ten questions only you can answer today. Write each answer once, with an owner and a date. That list is the start of a higher bus factor.
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Common questions
It is a risk, because the work stalls if that person is gone. Early teams often have one, which is why writing things down and sharing knowledge early matters.
Ask for each critical task how many people could do it today without you. The smallest number across your critical tasks is a rough measure.