Starting up as a sole trader can be the easiest, fastest, and most cost-effective way to start a business. This potential is perfect for those people who have an original product or a great idea where they can conceptualize their business. It’s also a big advantage if they have a fair idea about their customers and their market. But, are these ideas enough to go for a sole trader type of business? With an internet connection and a spare room, will your business idea lead to success? The answer is a big NO. That’s why we have gathered these eight ways to be a successful sole trader.
1. Pick a unique name.
Just like having a baby, your business will need a name too. But the only difference between these two is that you have to make sure that you are picking a unique name for your business. It would be best if you never chose a name that is already being used by another company operating under the same industry, or you will end up being sued because you are claiming their brand as yours. To avoid this complication, browsing the phone book and the web is a great way to start.
2. Create a business plan.
If you think a business plan is not necessary because you are working on your own, think again. A plan is essential for every business; it may be a sole trader or not. If you will reach out to other people for investment, support, or contribution, the first thing that they will ask from you is the business plan that will back up your idea. A business plan must explain everything about your business – what it will do, what its goals are, how you will achieve every goal, where you will get the funds, and when you can expect your business to become profitable. You must keep your business plan brief yet informative. A person who will read it must be able to understand your business in just a few minutes.
3. Don’t forget about insurance.
Every business carries some risks from the start of its operation. With this, you have to secure insurance for your business if you don’t want to end up losing everything that you have worked for a sole trader. It is also important that you understand the coverage of your insurance so that you will know what to expect from your provider if something goes wrong with your business. Don’t forget there are great services out there like Quotegrab which will let you compare the various insurance products out there you may need as a business
4. Learn various industry skills.
Now that you have gained some general business skills, it’s time to study skills that are related to the industry. For example, if you are planning to operate your HVAC business, you must learn some knowledge about the different services and the licenses you will need to conduct every service. It will be a huge help with simple problem-solving or issues with both your customers or another business owner.
5. Study the basics of accounting and finance.
Whether you are planning to outsource your business’ accounting tasks or not, you must study the basics of accounting and finance. Since you are operating your business alone, you will need to keep a record of your daily cash flow. This will be a big help for your accountant as he or she makes the heads and tails of your financial books. It’s important you do your research so even if you are looking for the best trading platforms to recommend to people you have done your home.
6. Research about the law.
To secure every operation of your business, you have to make sure that everything you do is according to the law of your state or area. You might find a lot of regulations for sole traders, but they are fairly manageable and simple than those required for the larger businesses. Give some of your valuable time to research and understand the law. It will save a significant amount of time, money, and worry as soon as you start running your business.
7. Create time management and stick to it.
There are many aspects of your business that you have to plan, and managing your time effectively is very critical for a successful sole trader. Prepare plans and set a specific time to complete it. Once you have done it, be strict to yourself and make sure that you achieve every goal that you have. You will be surprised by how much time left for you to do additional duties and responsibilities.
8. Establish a ‘real workday’ for yourself.
Our world is full of temptation, and if you are working remotely or at home, you will find difficulty in dealing with them. If you don’t establish a ‘real workday’ for yourself, you might end up achieving nothing and wasted a day of your life. As much as possible, establish a workday that is similar to an average worker. Determine a ‘clock in-clock out’ time, a lunch break, and other short breaks that your body and mind will need. Stick to your ‘real workday’ schedule and never practice the habit of procrastination.
As a sole trader, you will face many challenges, and most of them might require yourself to solve them. Being prepared will lead your business to success.