Thousands of people start their own businesses every year. Some people start businesses with their partners while others tend to start a business alone. When you start your business alone, you become a sole trader. A sole proprietor is the only owner of the business. There are many benefits of being a sole trader. You don’t have to worry about long legal regulations. There are only a few formalities to consider before starting the business. You have to register your business and its name with the Registrar of Business Names. You also have to send your annual accounts to the Government tax office, but these are just a few legal regulations compared to other organizations of business.
If you want to set up business as a sole trader, then here are the benefits of being a sole trader.
1) Not many legal regulations
There are very few regulations to worry about. As we mentioned earlier, there are not many legal regulations an individual has to worry about before starting their own business.
2) You lead the company
When you start your own business, you become a sole trader. You become your own boss and make all the decisions of your company. You have complete control over the business and there’s no need to consult anyone or ask others before making decisions. You don’t have to worry about meeting deadlines or taking orders from anyone. You have the freedom to choose your own holidays, hours of work and prices of services or products. You can decide who you want to employ and how much do you want to pay them.
3) You keep the profits
You’ll be having all the profit when you start your business as a sole trader. Being the sole owner, you keep all the profits. The turnover is all yours, you don’t have to share your profits with anyone because you keep all of them. And when you keep the profits, you have an incentive to work harder.
4) You have close contact with customers
You will have close contact with your customers. You will have the satisfaction of knowing your customers and their feedbacks about your business. You have the ability to interact with them and offer the best services. They can reach out to you anytime they want, which is beneficial for your business.