As the owner of a Sole Trader business, you are the owner and manager of the business, and are legally responsible for every aspect of it, too. It can be a challenging and time intensive experience.
You also, however, have the ability and opportunity to rapidly grow and thrive within this particular business structure as the sole manager over the entire set of business decisions of your company. In Australia, sole traders are the fastest growing business structured company category, with 1.2 million sole trader businesses as of June 2016.
Without a growth business plan, it can be difficult to grow your business. Here are some ideas to consider in order to develop your business into a more profitable and successful company.
Offer an Apprenticeship
If appropriate to your industry and company needs, consider hiring an apprentice. This can not only be a rewarding experience but can also be beneficial to your company.
With an apprenticeship, you can negotiate the timing, location, and nature of the training in a way that makes sense for your business needs. An apprentice is also less expensive than hiring an employee, and the Australian government also offers incentive payments to employees who taken on apprentices.
This will require that you take the time and effort to mentor the apprentice, but it will also allow you to boost your productivity and reduce your workload. It also allows you the time to work on additional growth strategies, as you have someone to handle other duties that would otherwise take up your time.
As your growth increases, you will have the ability to hire employees. Employing someone can work better for some companies. Having employees frees up some of the responsibilities and time from the owner and, with the right people in place, can help increase the growth of the company.
Outsourcing
Outsourcing needed talent, if you’re not ready to hire employees, is a smart way to help you get essential functions done even if you’re not in a position yet to bring on a staff. For example, using an outside accountant to submit your tax obligations allows you to save both time and stress. Utilizing skilled consultants and freelancers can help you save a lot of time, and get the help you need to have critical work done.
Financial Management
It’s critical to stay on top of your finances and cash flow management. Hiring an outside accountant is very helpful, but as the owner, it’s crucial that you are keenly aware of the status of your finances.
If you are not clear on your incoming revenue and outgoing expenses, consider using a cash flow management software. This type of software can make it very easy to understand the status of your finances and help you set budgets accordingly. In addition, the program helps manage your invoices, reports, and profit & loss statements and can help you provide any documentation that your accountant will need come tax time.
Accurately knowing the status of your business’ finances, and monitoring them closely, can make the difference between your company being successful or your company running out of money.
Social Media Presence
Utilizing and maintaining an active and engaging social media presence is the best form of free marketing and advertising you can use. It allows you to market your business, connect with new customers, and get your message out to a large amount of people in an easy format.
Customers can also have access to your contact information and details about your product or service, too. Existing customers will also have the ability to leave positive reviews which serves as an authentic and trustworthy recommendation of your company.
Reflection
Owning a business can keep you busy all of the time. It is, however, important to step back and take the time to reflect on your business and determine if it’s going in the intended direction. Are you meeting your goals or maybe falling a bit short? Take the time to reflect on what is working and what isn’t working in your business so that you can change course, if needed, and achieve your goals.
While it’s important to review growth strategies for your business, it’s also critical to identify and maintain suitable business insurance for your sole trader business too. You can contact the insurance companies directly, or you can visit a business insurance comparison website as well.
