The sole trader is the most common form of business ownership and is found in a wide range of activities (e.g. window cleaning, plumbing, electrical work, busking). In the UK about 20 percent of sole traders operate in the construction industry, a further 20 percent in retailing, and about 10 percent in finance, and 10 percent in catering.
No complicated paperwork is required to set up a sole trader business. Decisions can be made quickly and close contact can be kept with customers and employees. All profits go to the sole trader, who also has the satisfaction of building up his or her own business.
But there are disadvantages. As a sole trader you have to make all the decisions yourself, and you may have to work long hours (what do you do if you are ill or want a holiday?) You do not have limited liability, and you have to provide all the finance yourself. As a sole trader you need to be a jack-of-all-trades, and just because you are a good hairdresser does not necessarily mean you have a head for business strategy.
No comments:
Post a Comment