The term ‘sole proprietorship’ is one which confuses a lot of entrepreneurs, because it’s a fancy phrase for a simple thing. Technically, any individual who sells any kind of product of service is a sole proprietor. So, for example, this is the right term to use whether you work as a freelance writer, with no formal business assets, or you’ve got a registered company.
You just have to be alone in the endeavour and pay the state for any taxable profits. This is all you need to become a sole proprietorship. It is one of the most basic corporate structures, but it still has the potential to generate a lot of sales if managed correctly. Australia has long been a nation of small businesses, and they continue to drive and inspire the economy.
Keep reading for some advice on the best ways to develop your sole proprietorship and create a strong, memorable brand.
Get Yourself a Workspace
The first step is to decide where you are going to operate. Many sole proprietors choose shared offices for entrepreneurs and small businesses. This is because they have low rates and allow individual traders, with tight budgets, the chance to access premium addresses.
This perk should not be underestimated, as appearance is very important in the business world. You can, effectively, shortcut your way to a shining reputation by just being in the right place. Investors love it when promising enterprises look the part and have great offices.
Source Local Talent
The big Australian cities are filled with talented people. Just because you want to be the only business owner, it doesn’t mean you have to isolate yourself. Even small scale proprietorship can have dedicated teams. You’ll definitely need help if you want the business to grow.
Coworking spaces and virtual offices are a great place to source local talent because they bring together people with diverse skills. From copywriters to graphic designers, web developers, app creators, marketers, and event planners, you’ll find everything you need here.
Study Your Pricing Structures
Pricing is a very important for all businesses, but it can be particularly tricky in the early days. The issue is complicated by questions about how fast you want to grow and how long you plan to remain as a non-incorporated company.
You need to find the right balance between sustainable growth and customer satisfaction. One idea is to scrutinise the pricing structures used by your competitors. This will tell you whether it is ‘safe’ to blanket raise your own or whether it’s best to restrict price hikes to new customers.
Show Your Appreciation
This is such a small detail, but it can make a huge difference to your chances of success. When you’re out there in the big, bad business world, doing things on your own, the support of reliable vendors, suppliers, and distributors is essential.
When you do find them, make them feel appreciated. If a supplier or other partner takes the time to tailor their services to your budget and capabilities, reward them when you get stronger by taking business opportunities right to their door. This is how you build up a strong network.
The Strength of Small for Australian Businesses
As mentioned, Australia is a nation of small businesses. Many of its major cities have become hubs of creative enterprise, with start-ups, incubators, and other flexible models increasing in popularity every year. So, it’s a great destination if you’re an ambitious entrepreneur and you want a fertile, nurturing environment to test out big ideas.
Sole proprietorships are one of the safest ways to launch a business because the financial risks are relatively small if you fail. Plus, it’s the only way to launch with no charge for registering. Just keep in mind the fact that, in order to develop into a national or global brand, you will eventually need to upgrade to an incorporated status.