Running A Business As A Sole Trader
Running a business as a sole trader can be flexible, cost effective and administratively less burdensome than other business forms. However there are some factors you need to consider day to day when running a small business as a sole trader, and in particular whether some other business form would be more appropriate in your particular circumstances.
Doing business as a sole trader inevitably carries connotations of a lack of professionalism and credibility, born from the impression that many such businesses are run from the ‘back bedroom’, and are consequently incapable of providing quality goods and services.
Convincing large companies to deal with a sole trader is much more difficult than it might be with other business structures, and while that prejudice may not be merited, it is nevertheless persistent.
A good way around this is to use a trading name for your business to give the impression of a more professional organisation, or to brand in your own name as if you were branding a business. Both of these techniques can divert much of the ill-feeling and distrust associated with sole traders as opposed to other business structures. More.
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