Sole Trader

Sole Trader

Advantages

  • Self-Employed
  • Freedom of Choice
  • A lot of profit
  • Keep all profit
  • Get more money
  • Power and control
  • Suitability
  • Relatively cheap to start up
  • Low capital required
  • Working hours to fit around you

Disadvantages

  • Only you in charge of the business - no one to rely on
  • High work load
  • Long hours
  • Work slower - struggle with high demand
  • lack of capital
  • Continuity - if the owner wants to sell the business someone must want to
  • Unlimited Liability - potential to lose personal possessions
  • Illness - could result in business closing for a period of time if there is no one to cover. Therefore, will not make sales resulting in a loss of profit.

Evaluation

Sole Trader - One person who owns the business. Although it is owned by one person, it will not stop them from employing other people with relevant skills to work in the business

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