Being a sole trader can be a time-consuming and tough endeavour. You are the business’s owner and manager, and you are legally liable for all elements of the company.
However, because you have complete control over your business decisions and assets, you also have a chance to thrive and develop quickly with this form of business structure. It’s perhaps for this reason that sole traders are the fastest-growing company category in Australia.
Without a company growth plan, growing your sole trader firm might be challenging. To assist you, we’ve collected a list of suggestions to consider when striving to turn your business into a more successful enterprise.
Hire a trainee or a junior employee.
This method isn’t suited for every industry, so you’ll have to decide if it’s right for you. Those that are eligible to hire an apprentice, on the other hand, may find it to be a rewarding and beneficial experience.
Apprenticeships are frequently more flexible than jobs because you can customise the location, schedule, and type of training to meet your specific business needs. They are also less expensive than employees, and the Australian government grants employers of apprentices incentive payments.
This technique will need you to devote time to training and mentoring your apprentice, but in the long run, with their assistance, you will be able to increase your productivity and gradually take on more work. This will boost your business’s growth and capacity to acquire more personnel.
Some firms might choose to hire someone rather than hire an apprentice. You can be a sole trader and have workers, and your tax duties to them are the same as they would be if you were a corporation.
Employing someone is a major step since you have to learn to trust them with your job. Having staff, on the other hand, allows you to increase production and concentrate on your business’s growth strategy.
If you do recruit extra personnel, you may be held accountable for their behaviours or any accidents they have in the course of performing their duties. Make sure you fully research your sole trader insurance options to cover you for all eventualities.
If you are still not ready to hire employees or manage all of the obligations that come with it, outsourcing can help you minimise your workload and increase your productivity. Allowing an accountant to file your tax obligations is a fantastic example of how outsourcing a section of your business can save you a lot of time and stress.
Even the smallest firms can now hire highly competent, reasonably priced freelancers and consultants to assist with extra work.
Keep track of your finances.
In addition to hiring an accountant to handle your tax returns, it’s critical that you stay on top of your money.
You will most likely underestimate your expenses if you do not know exactly how much money you are spending in relation to what you are generating. It’s simple to assess your company’s financial situation and build budgets accordingly when you use cash flow management software. You can also keep track of all of your invoices and generate all of the information your accountant requires throughout tax season. Keeping track of your finances might mean the difference between your company expanding and succeeding or running out of cash.
Accept Social Media as a Business Tool
Apart from word-of-mouth, having an active and engaging social media presence is the most effective free advertising you can get.
You’ll meet new people who will have access to information about your abilities as well as your contact information. Existing customers will be able to submit reviews, which will catch the eye of possible future consumers as an authentic and trustworthy endorsement of your company.
Reflect on your achievements… and opportunities
We understand that you are busy, and it might be tough to take time to reflect on how your company is doing. This is critical because you may discover that your firm is weak in an area where you intended to be strong or that you are headed in a way you had not anticipated. You should also consider what went wrong in the past and what you can do to prevent it from happening again in the future.
The correct record-keeping system is one of the greatest ways to maintain track of critical business data that you can leverage to gain insights into your business performance.