Sole Trader Advantages and Disadvantages

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Sole Trader Advantages and Disadvantages

Advantages

  • You can choose your own working hours.
  • You get to decide how the business functions.
  • You can keep all of the profit.
  • You get to sell what you like.
  • It could be cheap to own.
  • Do not have to pay employees if working alone.

Disadvantages

  • No one to share the work load with.
  • You are left with all of the worries of running a business.
  • If you are ill and take time off, you will not make any profit.
  • There could be a lack of investment as only one person is investing capital into the business.
  • You are responsible for all the finances of the business.
  • You could lose money if you take time off.

Evaluation

In my opinion, I think that there are more disadvantages to working as a sole trader than advantages. I think that it would be very risky running a business as a sole trader as you will not be able to take time off without loosing money, whether you are ill or it is just for leisure. If the business falls into financial difficulty, you will have to pay the debts all off of your own back; maybe having to sell personal belongings to make up for the cost.

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