3 Things You Need to Become a Sole Trader
Mar 09, 2021 10:06 AM EST
For most passionate entrepreneurs, the easiest path into running your own business will be becoming a sole trader. This essentially means that you're the one-man-band behind your business. You handle things like sales, marketing, and order fulfilment on your own, which means that you spend less cash on hiring other team members, and more time building your company.
Becoming a sole trader is much easier in the digital age, because the internet makes it easy for anyone to start a company of their own. You can easily start a company on a marketplace like Etsy, sell your services through freelancer forums, and build retail companies with drop shipping providers. However, before you jump head-first into this new career, there are a few things you'll need to ensure you have.
Every business starts with a good idea. Before you can begin building your venture, you need to know what you're going to offer. The best companies come when people look for solutions to common problems. For instance, if you notice that people are always looking for help with SEO online, then you might decide to become a search engine optimization consultant. Pick an idea that has an obvious audience and market value, but don't underestimate the importance of enjoying what you do. If you're not passionate about what you're doing, you'll find that your job becomes much harder.
The Right Savings
Thanks to the online world, you don't need a huge amount of initial capital to start your own company these days. You can even run a company with a dropshipping manufacturer who fulfils and ships orders on your behalf. However, that doesn't mean that you don't need any cash to get started. To figure out how much money you're going to need, ask yourself what kind of initial assets you'll need to invest in.
You might need to buy a new computer and some office equipment or pay for someone to build you a website and help with marketing. Try looking for ways to find extra cash in your budget. You can refinance your existing student loan debts into smaller monthly repayments and take control of your education debt while putting the money you save towards your new business.
Finally, becoming a sole trader is hard work. You need to be willing to wear numerous hats in your business, and you might find that you stumble upon times when it's difficult to make a consistent income. Having the right attitude is essential here. If you know that you can stay motivated when times get tough, and you're not expecting to become a millionaire overnight, you're on the right track.
If you think that you might struggle to stay on course when things get difficult, think about how you can put systems in place to keep you moving forward. For instance, it might help to have a team of supportive friends and loved ones around you to remind you how proud they are of you. You'll also need to work on building your patience, it may take a while for your business to really hit its stride.