As a sole trader, you will be the primary representative of your business. This is exciting. No matter what trade you ply, be that a contracting service, a consultancy, or even a simple business selling crafts on stores like Etsy, it all counts, and earning a living should come with a sense of pride.
That being said, while sole trading is accessible in that you don’t have a large team to manage and huge accounts to keep up with, it’s also important to commit to good practice from day one and provide yourself with the flexibility to work to your most optimal schedule.
On top of that, because most sole traders work using their family home as a base, it’s wise to put in some measures to keep you and your loved ones safe and secure. In this post, we’ll discuss some practical steps you can take to make sure those priorities are achieved.
Without further ado, please consider:
Protect your address online
Sure, you might need to list your business address on various platforms. But using your home address can be risky. It’s smart to look into virtual address services or P.O. boxes instead, as these give you a professional-looking address without exposing your personal information where your children sleep.
Some services can even handle mail forwarding, which is handy if you’re always on the move or go on several business trips a year. If someone can find your full info by simply searching your name, that might impact others in your family and it’s worth keeping that in mind.
Use professional bookkeeping services
Keeping track of your finances is obviously essential, but it can be a headache after everything else you’re doing, and as many sole traders try to handle everything themselves, it’s easy to make mistakes Consider using chartered accountants to help you. They’re not as expensive as you might think given all the money they can save you, and they also protect you from a lot of stress in the long run.
These services can also help you stay on top of invoices, expenses, and tax payments so you never get audited or fined. Anything that resolves your stress a business owner is generally something to appreciate.
Contain liabilities
As a sole trader, you’re personally responsible for your business debts. You don’t have the limited protections of a company. That’s a bit scary, for some to consider, but to protect yourself, you can still think about ways to contain your liabilities. One option is to look into business insurance – it might seem like an extra expense, but it could save you a lot if things go wrong or if you accidentally cause damage to someone else’s property during your work. Also, consider the structure of your business.
While being a sole trader is simple, there might come a time when becoming a limited company makes more sense, especially if you take on more valuable clients or need to hire someone to help. It’s worth talking to a business advisor about your options.
With this advice, you’ll be sure to protect your family as a sole trader, with a few helpful adjustments and preparations made in advance.
Top photo by Microsoft 365 on Unsplash
