Want to Be a Sole Trader?

Sole traders are people who set up their own business. They come up with an idea, and start selling - it is not as easy as it seems though. Let's look at the pros and cons shall we? I'll start with the good points first, just to show you why you should be a sole trader, if you're planning on being one.

Easy to set up

You get an idea and you're in business. You don't need to have a fancy shop to start your business, all you need is the materials and you're in business. You can start producing your goods and start selling to your neighbors and friends from your very own home. If your business is something to do with service say like plumbing service, you just need to make people aware of the service you provide and how to contact you. For example, you can send out leaflets, posters or little cards to people's houses, your neighbors and friends and ask them to help promote you. This will help you in advertising and get more customers. Whatever you do, make sure you sell and mention your business.

You'll be your own boss

Now being your own boss surely would be a dream come true, I know it is for me. I've always wanted to be my own boss. In fact, I've already planned my future and I see myself being a businesswoman, setting up a bakery shop. Back to the point, when you decide to be a sole trader, you can be your own boss, and if you hire other people, you'll be their boss as well. There will be no one to tell you what to do and no one to tell you off, except you - that is, if you decide to tell yourself off.

All decisions are up to you

From the first moment you decide to be a sole trader and not working under someone else, you're letting yourself free of pressures and arguments. In your business, you decide what to do, you decide how to run your business and best of all, you decide what to do with the profit your business makes - whether you want to keep it all to yourself, invest more in your business or give your workers a bonus - it is all up to you.

Respect

For the risk you take and your business' success, people will show you respect. That's how it works, if you have your own business, people will often look up to you and will think you have a lot of money. Instead of being a nobody, you're proving that you are a somebody and am proud with what you do. You don't need a high IQ or good qualifications to start a business and get respect. All you need to succeed is hard work and motivation, and the belief that you will succeed.

Now, that is only four of the many reasons why you should set up your own business. Just to make this article short and simple, I'll move to the downside of being a sole trader;

Long working hours

To make the business work, you need to work long hours, you need to make sacrifices on holidays. I know what you think, if you can be your own boss, why can't you decide how long or short you want to work? It's simple, when you start your business, you have to work by yourself, and you need to make sure the business runs properly - you need to meet people and sell your products by yourself, at least until you can hire some other people and be comfortable with having someone else managing your business. Until then, you'll find your business as the only thing that matters and selling is a must.

Unlimited Liability

When you set up a business as a sole trader, you will have unlimited liability to cope with. If for example your business goes into £5 million in debt, you may have to sell everything you own just in order to cover those debts. In this case, try to keep your debt as low as possible.

Unincorporated businesses

Sole traders are unincorporated, meaning the business is not legally separate from the owner. For example, when a customer decides to sue the business, due to a problem he/she faced with the business, they are technically suing the owner personally. To avoid this kind of problem, I would suggest to try and provide the best service to customers and treat them as best as possible, at least to keep them calm, and think twice when they decide to sue the business.

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