Three Greatest Challenges Faced by Beginning Sole Traders

 

 

Owning your own business is a dream come true for most sole traders or 'soletrepeneurs'.

 

You’ve done all the research, you’ve opened your doors and business is starting to trickle in, but the road hasn’t been a smooth one.

 

Along with the satisfying feeling of living out your life-long dream come all the challenges of beginning your business as a sole trader. 

 

 

Cash Flow

 

Starting up a business by yourself is not a simple task. It’s not cheap either! Financial planning of any business should begin as soon as the idea for the business comes along. The initial start-up fees can quickly add up, on top of trying to pay yourself a salary. Whether you use personal savings or prefer to take out a small business loan, you assume all the risk of losing that start up money. It is important that a sole proprietor meets with a small business financial planner to accurately set their profit margins to ensure they’re able to provide themselves with a livable salary once business starts.

 

Trying to “do it all”

 

As a result of cash flow challenges, sole traders often try to run every aspect of their business by themselves to help lessen the load of paying employee salaries or sub-contractors fees. This makes sense in theory, however that’s not always the case. It’s rare for a business owner to be an expert in all aspects of the business. You can end up saving more money in the long run by outsourcing or hiring on help with things like social media management, book keeping, cleaning and sanitizing, packaging and shipping, etc. The old adage 'Spend more time working ON your business than IN your business' will bring more financial benefit sooner.

 

Staying Motivated and Positive

 

Furthermore, handling all the tasks on his/her own a sole proprietor can easily become overwhelmed which could lead to issues with motivation and positivity. Finding a mentor to help set realistically attainable goals can help avoid feelings of failure at the beginning. Setting daily and weekly schedules and sticking to them will benefit sole trader in sticking to daily and completely daily tasks. 

 

Working past these obstacles will set you well on your way in establishing yourself as a sole trader!  That’s not to say that these challenges (and new ones) will not continue to creep up as years go on, but you’ll be prepared to handle yourself in those most volatile and impactful first few years. 

 

 

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