Being a sole trader can have many benefits, but what if you need to expand.
When you first begin your business as a sole trader as defined by www.gov.uk/set-up-sole-trader, it can be an invigorating time.
It’s not one without its challenges of course; you have no one to bounce ideas off, and you’re often taking all of the financial responsibilities onto yourself. However, it also means that you have control: you’re the boss and you make the decisions.
If you make it through the dicey first few years of running your business, then you should find yourself on a decent footing. It’s natural at this point to wonder how things are going to continue to progress for you – what comes next? Can you expand? Should you?
If you’re in the midst of struggling to answer this question, then there are a few telltale signs that you’re ready to expand. Given that it’s such a big leap to take, it makes sense that you worry and fret about it – but it might just be the best thing you ever did.
So, what are the signs that your time going it alone is numbered?
You Have More Work Than You Can Handle
It’s the very best of business problems: you’re popular! This is the kind of thing most people dream of before they begin their business ventures, of a success so huge that they are rushed off their feet.
When it actually happens to you, it’s still good, but it’s also incredibly stressful. As a sole trader, you take on all of the management yourself, which means you have no one to back you up or help you manage those who want to hire or buy from you. It’s at this point it can feel your business is going to consume you.
If you find yourself busy to the point of discomfort on a regular basis, then it might be time to start thinking bigger.
You’re Missing Opportunities
Have you ever been contacted by someone looking to hire you, but you haven’t had the necessary staff, time, or materials to fill their order?
It’s gut wrenching to have to turn down business. If it happens more than once, then it can become fatal – no one wants to get the reputation of being the person who can’t handle big orders.
If you’ve ever found yourself having to refuse work, then you might need to think of expansion. It could be bringing someone into your ownership structure or using the likes of www.yourcompanyformations.co.uk to evolve your business status to something beyond sole trading.
If you can see that these actions – bringing in a co-owner or hiring new staff – would allow you to complete more orders, then it’s a risk worth taking.
You Find Yourself Wishing You Had Someone To Talk To
If you constantly find yourself wishing you had backup for decisions you have made or just someone to discuss matters with, then it’s a sign you’re ready to share your business.
It might feel alien to let someone into the inner workings of your company, but it will begin to feel more comfortable. Who knows how far you could go?
