Sole Trader

SOLE TRADER

Sole trader is a single person who owns a business and It is the easiest way to make business and cheapest as well.
As a Sole Trader you should employ people and you have all theresponsibilities and all the risk, but also you take all the profit.
Usually when you start to be a sole trader, the sole trades has no formal o legal processes to set up the business. Some examples ofsole trader are hairdresser, taxi drivers and owners of shops.
Typically a sole trader is a creative person, a positive person who used to think that nothing is impossible.

Advantages of beingsole trader first at all easy and cheap way to set up, you as sole trader you are the owner, you are the boss them you make your own decisions without the need to ask or to consult others, so the ownergets to keep all of the profits; they do not have to be shared with others. Sole traders are usually friendlier they offer a more personal service which is appealing to potential and future customersand they have more facilities to control the taxes and the wages.

About the disadvantages my point of view when you set up a new business it has too much risk to bankrupt because of you are not alimited company It is not very well knowledge and In the beginning, it may be difficult to find clients and generate regular income, Other disadvantage is unlimited liability means if your businessfails you have to sell off your own assets for example their car or house to pay off the debts of their business, As a sole trader, you are not entitled to paid holidays or wages for any time off. Nowork means no pay. You are the one making the money and you must decide when you can afford unpaid time off.
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Sole trader also has some external factors which affect to in this case a hairdresser.Competing business is an important external factor against it hairdressing salons must keep up with new fashions. To master a new style or look may require sending staff on training courses to learn...