What is Sole Proprietorship? Sole Proprietorship Examples

Today, when we hear about layoffs, every day, 48% of UK residents are looking forward to getting started from scratch; for this, they are looking for sole proprietorship as their foremost choice.

Puzzled What is that? Let me explain it to you.

A sole proprietorship is a business model where a single entity starts to offer its services in its nearby surroundings to a business. These services can be technical or non-technical.
They are the real owners of the businesses, they work individually without any human force. These are responsible for the entire profit and loss.

Sole proprietorships are not bound by legal rules and regulations, unlike corporations, and companies.

Do I need an investment to become a sole proprietorship? If yes, why?

As a sole proprietorship, you can start with a small amount of money. This money is required for:

Set up the infrastructure
Physical device management
Spending on gathering the requirements that are currently performing well in the market and often according to the users’ requirements.

Is It good to be a sole proprietorship?

Well, everything comes with its own green and red cards. The choice is purely yours, we are highlighting its advantages and drawbacks for your ease. Find it in the next section.

Advantages of sole proprietorship

Hassle-Free Tax Preparation
No obligations of government rules & regulations. You can proceed without the paperwork.
One-man army for almost all the projects
Can work without time boundations
Freedom to work with your own rules.
Easy collection of money
Expenses are easily manageable.

Limitation of being a sole proprietorship

Being a sole proprietorship, you are solely responsible for every loss or profit. Sometimes, you need to bear all the expenses and come under a financial crisis for the client’s requirements.

Additionally, managing the project as a single entity is not less of a huge headache.

So, these are the ups and downs of being a sole proprietorship. Let’s find out what you can do to become an individual player.

What are the available options I have to be a sole proprietorship?

It is important to decide on the type of business you want to start before you start your sole proprietorship. However, there are a few examples of profitable sole proprietorships that you can find below.

Service-Based Businesses

It is the sector where more than 68% of the people are directly or indirectly engaged. This is the sector where you can generate revenue in a short span of time. To be a sole proprietorship. You can start with the following professional activities.

1. Freelance Writers and Designers

As a freelance content writer, you can do a lot. You’ll see that none of the businesses exist without their website. You can participate in it and pursue a technical or non-technical writing career.
It is optional that you need a client for this, you can also start this field on your own by writing for your own website.
You simply need a domain and website to start as a freelance writer. You can choose a niche according to your own interests.

As your writing becomes familiar to the audience, you can go deeper into fields like SEO, PPC, and more.

The next field that you can explore as a sole proprietorship is design. You can become a graphic designer, 3D modeling artist, or web designer.

You only need to show your creativity, and you can create a blast in these fields.

As a designer or writer, you can start unleashing your creativity on social media platforms like Instagram, Facebook, LinkedIn, Reddit, and other popular channels.
But before you get your foot in the door, you must be familiar with different programming languages like HTML, CSS, Python, C, C#, Java, Java Script, and more.

Furthermore, to mark your presence in the market, you need to brush up on your programming language knowledge.

As a freelancer in content & design, you have low liability and the opportunity to work as per your schedule and flexibility.

2. Personal Fitness Trainers

This is another area where you can show off your skills and drum up some business for yourself.

The USA is currently #1 in the world for obesity. The UK is also following it. As an aware citizen, you are aware of their drawbacks.

You can start with personal fitness trainers to become a sole proprietorship.

With very little investment, you can earn more, and in many cases, you don’t even require investment. When it comes to enhancing your yoga practice, no equipment can match yoga’s benefits and outcomes; it yields unparalleled outcomes.

There is very little probability that your business will face any decline. Once your customers get benefits from your exercise, yoga, strategies, diet plan, etc., they will continue to work with you for a long time and work as an advertiser for your business.

As a sole proprietorship, you can offer fitness trainer services from home or clients’ homes. Additionally, this is an emerging industry with very little associated risk.

Additionally, operating as a sole proprietorship as a personal fitness trainer has additional advantages. A few of them are detailed below;

Get a chance to serve others: Helping people improve their health and fitness
Easygoing schedule: Personal trainers typically set their own working hours
Work location options: Many work locations, including outdoors
Self-employment: Ability to be self-employed
Excellent salary: Can earn an excellent salary

Retail and E-commerce

After being served sole proprietorship in the service-based sector, you can encrypt new words in the retail sector as well.

Today, it is difficult to find a single product that is not available in retail stores or on e-commerce websites.

These are the businesses, that offer you another opportunity to be a sole proprietorship. There are many examples, like Amazon, Flipkart, Myntra, etc.; they are not direct sellers; these e-commerce websites provide you with platforms to showcase your products.

1. Online Store Owners

It is one of the unbeatable options for a sole proprietorship. You don’t need to work under pressure. You are flexible with your time. The only thing on which you need to focus is looking for hospitality from your customers.

Once your customers are happy with your cheerful nature and fantastic services, they will love to visit your store again and again.

Additionally, to become a successful sole proprietorship, you need to decide the niche of your product and select your target audience. Next, you must possess technical expertise to run an online e-store. After that, choose a unique name for your brand and complete its online registration. One thing to keep in mind is that you should update your website frequently so that users do not feel any lag and can have a smooth experience of their online shopping.

However, being a sole proprietorship is always not a positive aspect of the business. Sometimes, you have fewer selling products, that are not sold, or some may have an expiry date approaching. Some may have a complaint related to the product and in the meantime, if the product prices increase, then you’ll need to offer the new product at the old prices only.

2. Artisan and Craft Sellers

Another field that offers you to become a successful sole proprietorship.
You do need not to do a lot of tasks, you can easily cover your journey as an artisan and craft seller if you have the next level of creativity and a bit of selling techniques.
Today, people want to decorate their surroundings but they don’t have enough time to do at their own level.

To approach new customers, you can use social media platforms like Instagram, Facebook, and others. Additionally, you can sell your products at your prices and conditions. The best part of becoming a sole proprietorship artisan is no third man involved as a middleman to whom you need not pay a part of the amount fees or any tax to register your crafts and all.

Professional Services

If you are a good listener and orator, then this is another field where you can scribble your story with success and create a new chapter.

The only thing that is required to serve your services as a sole proprietorship professional service is patience in listening to others and putting your thoughts in a friendly and understanding manner.

To proceed in this field, you have several options to start with. Below are a few options you can avail of

1. Consultants and Coaches

Today everyone is so busy with their daily life that they forget to nourish and pamper their self. Their workload is so overloaded that, they don’t have enough time to spend unforgettable moments with their families and friends.
Sometimes, the situation becomes so worsen that they forget to make adjustments in the real world.

Here, your role as a consultant or coach starts from here. You can start your services as a counselor, or influencer. Later, once you are well-versed in this field. You can proceed in the affiliate marketing world. Which is an emerging field and is expected to be $835 million by 2025.

You can offer your services in different niches like business, life coaching, and industries like legal, finance, and more. You can do personal branding for your new services. You are a brand ambassador for your new empire.

Many well-known entities have impressed everyone with their talent. Like John Mattone, Tony Robbins, Melinda F. Emerson, Matt Ward, Nick Loper, Karl Bryan, Saurabh Kaushik, and others.

2. Independent Contractors

Did you know that, according to the AFL-CIO, the majority of self-employed workers held positions in management (22%), law (19%), or the creative, design, entertainment, sports, or media sectors (31%)?

You can become a sole proprietor in the field of independent contractors and offer your services in different domains, like computer & IT, administration, accounting & finance, customer service, and others.

Today, as more businesses are rapidly growing, they need suggestions for their new construction. This is one of the best alternatives in terms of serving their services without spending a single penny. Yes, but if you seek that, your clients will do your advertisement on your behalf. Then you need to provide them with services at an extreme level, which would be qualitative and productive in terms of saving.

For this, you need to brush up your knowledge with avant-garde tools and technologies. Also, your suggestions should be in the favour of your client.
You can use this to negotiate contracts and cultivate enduring client relationships.

Briefly

A sole proprietorship is a simple business structure where one individual holds all responsibility and benefits. It’s perfect for those wanting full control over their business with minimal setup. Yet, the sole proprietor faces challenges, including limited resources and bearing all risks. This is where outsourcing becomes crucial.

By working with Invedus Outsourcing, sole proprietors can share the workload, allowing them to concentrate on their main business tasks while skilled professionals handle other important aspects.

Invedus Outsourcing offers access to a wide talent pool and reduces operational costs, making your business more efficient and competitive. Outsourcing can be the key to success for your sole proprietorship.

Reach out to us today!