When measured by employment, Australian businesses can be placed in one of five different categories. Non-employing (sole traders), micro, small, medium and large. It’s no wonder that sole traders make-up more than half (62.1%) of the study conducted by Australian Small Business and Family Enterprise Ombudsman. With various benefits, sole trading is thought to be one of the more enticing types of models for new business owners.
You’re set up and ready to go, so how do you plan on getting this business off the ground? Well, as a sole trader, you’ve already got heaps of advantages stacked up against your competitors.
You’re the boss
You work as often as you like. You’re in charge of the amount of work you do, the contracts you sign and the holidays you take. There’s no doubt this requires a highly determined and organised individual, but it is definitely worth it for the freedom. Make the most out of being your own boss by finding the perfect work-life balance. If you’re the type who likes to stay busy all the time, fill your calendar up with consistent jobs, earn as much money as possible and reap the benefits of being able to keep all the profits to yourself. If you’re the type of person who prefers to separate their time, having a distinct break between each working day. It is advised to plan in advance how much work you’re able to fit into the coming months. This will ensure your business is making a sufficient amount of money.
Financing your business
Financing is difficult, especially when you’re working with contractors who are oblivious to payment schedules! Late payments only have a domino effect on the chain of people and companies that need to be paid. There are solutions offered by lenders. Business loans are frequently used to tide over an establishment until its outstanding payments have been reimbursed. Make the most out of the finance that could be available to you, by talking to a Lumi team member on 1300 005 864.
Taxing – or is it?
If there’s one thing that brings everyone together, it’s people’s shared displeasure of having to pay taxes. One of the banes of existence. But as a sole trader, you’ve got an advantage over others. Make the most of the business expenses that can be claimed on your tax return. Here’s a list of some expenses that can be claimed through your tax rebate provided you’ve got the receipts to prove:
- Advertising
- Office-related items and equipment including; phones, internet, computers, maintenance and repairs
- Clothing and accessories used for work
- Travel and accommodation
On a side note, remember paying your taxes on time is an integral part of running a successful business. If you don’t work in partnership with the ATO, you could end up owing a substantial amount of money.
Company websites can be basic but work brilliantly
It’s simple. You need a plumber that operates in your area, quickly. What do you do first? Jump on Google and search.
You’ve seen a landscape gardening service advertised on the side of a van. You know their name but don’t know how to get hold of them. What do you do? Jump on Google and search.
If you don’t have a website that contains basic information about the service you provide, you’ll miss out on a great deal of business. Websites are cheap to create and will help maintain your relevance as a business.
Up the work-load
If your trade is doing well and you’re seeing a progressive increase in custom, despite what some may say, you are well within your rights to employ staff in order to assist you with an increase in workload. This way you can take on more jobs, earn more money and delegate all the irritating tasks to your co-worker!
In conclusion
With the heavy dominance of sole traders in the Australian business market, the competition between this large majority is fierce. Making the most of the benefits you’re able to receive as a sole trader is essential to enable your business to thrive, putting it at an advantage to the others in close proximity. Following the easy steps mentioned above will be sure to help you make the most out of your business as a sole trader.
