Sole Traders
A sole trader is a business that is owned by one person only. Some people call it being self-employed.
There are millions of sole traders in the UK, from chippys to joiners to plumbers to newsagents to hairdressers to....oh, I think you get the point!
There are millions of sole traders in the UK, from chippys to joiners to plumbers to newsagents to hairdressers to....oh, I think you get the point!
Setting up as a sole trader is an absolute doddle. You simply need a business idea and somewhere to start your business from. This could be a house, a car, an office or a shop. You can have as many people working for you as you want, but the important thing is that the business is only actually owned by one person.
Advantages of being a sole trader:
- you get to keep all of the profits
- you can choose your own working hours
- you get to make all of the decisions
- you get to do something that you probably enjoy.
- you can have people working for you, but you are always the boss!
Disadvantages of being a sole trader:
- Unlimited Liability - this means that you are responsible for all of the debts in the business. If you can't pay your bills, a court could make you sell all of your possessions, including your house, so that your bills get paid.
- you have nobody to share ideas with.
- you have nobody to run the business for you when you are off sick.
- you don't get paid when you go on holiday.
- you may have to work long hours, 7 days a week, to make your business work.
If you get lonely on your own, you could always set up a Partnership. Click here to find out more.