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Australia is home to more than 1.4 million sole traders, with more than 52% of small businesses operating as sole traders. Despite the vast number of Australian sole traders in operation, the fact remains that operating as a sole trader comes with its own unique set of challenges. This business structure means that you, and you alone are responsible for the success or failure of your business. You will enter business contracts personally, you will hire people directly and if your company faces legal action, you will have to deal with it directly.
A sole trader is the most straightforward of all of the business structures available in Australia and there is no cost associated with establishing yourself as a sole trader. While operating as a sole trader means taking on a huge amount of responsibility, in the modern age of digital, there are numerous tools and platforms you can utilise to ensure your business operates as efficiently as possible. Choosing the right tools and technologies can help your business to compete in the modern business landscape and continue to thrive going forward.
Continue reading to learn more about operating as a sole trader in the modern digital age.
Financial Management
As a sole trader, you need to keep track of your finances very carefully to ensure that you maintain meticulous financial records. Cloud-based accounting, payroll and invoicing tools can be very useful in keeping accurate records of both your incoming and outgoing cash flow. Out of all the sole trader money management tips you are likely to read online, the one that you need to pay particular attention to us digitising your financial processes. Automating your bookkeeping will allow you to stay in control of your business finances while having more time to focus on the other areas of your business.
Time Management
In the age of digital, we are all more connected than ever. For a sole trader, this can be a huge advantage as your customers, vendors and team members can get in touch with you at any time. On the other hand, this non-stop connectivity has even more pressure on sole traders to always be available which can have a detrimental effect on your physical and mental well-being. In the modern fast-paced business world, it’s important to manage your time as a sole trader so that you find the right work-life balance.
Use Automation Tools
Depending on what you are trying to achieve, there is a range of tools on the market to help the modern-day sole trader to run their business more efficiently. From social media marketing automation to automating your ordering processes and email marketing campaigns, there is a huge choice of business automation tools sole traders can use to improve their business processes. Take some time to consider the unique needs of your business when you are choosing which tools to use so that you find the best options to streamline your day-to-day business tasks and responsibilities.
Plan For The Future
As a sole trader, you survive by your own decision-making. Having all of the responsibilities fall on you can be stressful, especially if you are uncertain about the best way to move forward. In the modern digital age, however, sole traders have access to more accurate and relevant data than ever before. Using this data, you can plan for the future needs of your operation and prepare for the future with confidence. With the right information to hand, you will be able to make the right decisions for the future growth of your enterprise.
Working Smarter As A Sole Trader Moving Forward
Operating your business as a sole trader can be overwhelming at times as you have so many tasks to complete each day to keep your business afloat. In the modern digital age, however, there are a huge choice of business software, cloud-based applications and automation tools that can help reduce the stress of being a sole trader. Investing in the right tools and technology will allow you to work smarter, be more productive and enjoy more success in your role as a sole trader.
