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Is it worthwhile running a business as a sole proprietor?

Is it worthwhile running a business as a sole proprietor or going in with a partner? Many people decide to start a venture all on their own as it is their baby, their dream and they would rather do it their way. But there are things to think about – both the positives and negatives. In this blog post, we will discuss both aspects. This applies to both an adventurous, young, inexperienced entrepreneur and a seasoned businessman. Do have a good read before you decide which path to take.

Advantages of being a sole business owner

  • Complete control of all aspects of the business venture
  • Sole decision making
  • Minimal bureaucracy
  • Simplified process
  • No need for partnership agreements and much such documentation
  • Invest yourself, profit yourself.
  • The full incentive to keep motivated.

Disadvantages of being a sole proprietor

  • You will need to invest all by yourself which may limit the amount of capital.
  • The risk will be entirely on yourself.
  • You may feel isolated.
  • You will be responsible 24-7
  • You may feel frustrated, especially during tough times.
  • There is no one else to take a second opinion from
  • You will have to figure out everything by yourself.

What it really means –

On one hand, you will have full flexibility, be your boss and take all the decisions by yourself as well as profit from the business for yourself. On the other hand, you shall be running a higher risk of feeling overworked, overwhelmed, and even frustrated, especially during tough times. You will not have anyone to give you a send opinion or check and balance your decisions. You may have a limit on the capital to be invested or on the running costs.

Therefore, it is important that you think about all the aspects before making the final decision. It is also pertinent to remember that it is easier to change a sole proprietorship into a partnership as you scale up but changing a partnership into a sole proprietorship may often leave bad blood.

Tips to increase your chances of success as a sole business owner.

How can you increase your odds of success doing it alone?

  1. Start with a pilot project with a smaller capital and then scale it up as it becomes successful.
  2. Does enough efficient market research keep in mind the area and the demography you will be catering to?
  3. Make use of technology to the fullest extent, whether it is in gathering market intelligence or in marketing your products and services.
  4. Build a strong network with people and other businesses. This will help in becoming one of the community and others can help support your business as you support theirs.
  5. Look for a Mentor who may or may not be from the same field.
  6. Learn to delegate.
  7. Don’t waste your time on things that are outside your area of expertise.
  8. Get professional help where needed.
  9. Create your vision and mission and based on that create your business plan. The plan should include your short-term and long-term costs and profit projections.
  10. Have contingency plans and funds. However unique your idea is, it may still take a while before your business breaks even or start making profits and you will need enough funds or other sources of income to sustain yourself.

Finally, don’t give up easily. Entrepreneurship is a roller coaster so it will be a joyride. There will be ups and downs but never a dull moment. The more resilient you are, the more chances are that you will be successful.

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