Advantages of Running A Sole Trader Business
Posted by maryspark on August 23rd, 2019
One of the most popular ways of starting up a successful small business is set up as a sole trader. This type of business incorporation is especially common among those people who are entering the business for the first time. Commencing business as a sole trader comes with a lot of advantages.
There are a lot of sole traders in Beckenham currently offering different types of services and products. If you or someone you know has plans to set up their business as a sole trader, here’s what you might want to bear in mind regarding the sole proprietorship business model.
It Gives You Control
Being a sole trader gives you full control of your business. You become ‘your own boss’ in the ultimate sense. There is no longer a need for you to consult other directors or take opinions from the shareholders. As a sole runner, you are allowed to practice your own vision as you’d like. This is one of the most important and attractive advantages of a sole trader business model.
Flexibility in Operations
Are you are supposed to make the decision alone, bringing about changes could be quicker and simpler. So, if you need to decide about removing or adding new products or changing the price or structure of the business, you can do so comfortably without having to worry about something else. This ability could offer you critical help in a competitive and rapidly changing market.
Closeness with Customers
Since you are a sole trader who makes a decision on his own, you will generally be closer to your customers. This means that you will be more sensitive to your clients’ needs that will make them dependent and reliant on your services.
Some customers who need personal services are repulsed by the idea of a limited company even if the company has effective customer service. To those customers, working with a sole trader is always a soothing and comfortable plan.
Simple to Incorporate
Despite the ease and quickness in forming a limited company, establishing your business as a sole trader remains to be the fast and simplest way of getting your business running. The sole trader business model liberates you of the need to register a company with companies’ house. Therefore, there will be no ‘companies’ house’ forms to fill in. all it takes is a letter informing the concerned authorities that you are self-employed.
Simple Accounting and Bookkeeping
Whether it is landlord property tax Beckenham or the maintenance of books of accounts, the sole trader is the simplest form of getting things done. The accounting system for a self-employed sole trader business is simpler and doesn’t require the appointment of a dedicated accountant. As per the law, the sole trader will only submit a personal self-assessment tax return that is inclusive of all the profits earned.
In view of these benefits and advantages, you are encouraged to transform your dream into reality. If you have a desire to own your own business and manage it professionally, the sole trader is the thing!
Turn Your Hobby Into A Business
Whether you want a full time income, or are just trying to supplement your income with a side hustle, now is your chance to turn your hobby into a business!