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5 reasons why sole traders are starting up more than ever before during this pandemic
01 Dec

There is no ideal time to start a sole trader business but the current pandemic, like crisis before, gives us new problems to solve and entrepreneurial opportunities. Working from home and less travel means that we are now seeking services in our local areas. Additionally, there are more products and services that will thrive in our new normal. 

Uber, Slack, Square, WhatsApp, and Instagram are all examples of companies that demonstrate solving problems during a crisis will result in stronger and faster growth.  And, it seems lots of entrepreneurs are taking advantage of the current times. The number of new businesses registered Jul-Sept this year is the largest third quarter increase on record. Here’s some of the reasons why more sole traders, than ever before, are registering now. 

 

1. Re-evaluating priorities

The pandemic has us re-evaluating our lives, prioritising our health and working out what’s now most important. This all creates new exciting opportunities for sole trader businesses. Working for yourself doesn’t necessarily mean working more hours either. It’s definitely quality over quantity, but  if you are going to work hard anyway you might as well work for yourself! Additionally, when you’re working on something you love it doesn’t really feel like work in the same way.  We are realising that life is short, security a myth and working for someone else for 30 years can be a waste of the most valuable asset we have....time.

 

2. Necessity

It doesn’t take a genius to work out why so many sole trader companies are started in a recession. They are started by people who lose their jobs! For many, losing their paid employment was one of the best things that ever happened to them.

Highlighted more now than in recent times, nothing in employment is guaranteed anyway and not looking at alternative options, a side line for example, sounds riskier than starting a sole trader business. 

With less social activities and commutes to the office, combined with the threat of losing our existing employment that seed of an idea you’ve had for a sole trader company now has the vital ingredients it needs to grow..time and necessity. 

 

3. Funding

Funding is typically the number 1 reason preventing sole trader startups however the  current low interest rates are attractive for start ups and investors for start ups alike.

Crowd funding platforms give opportunities to raise money through pre-sales of the product or even source investors. There is also peer lending through businesses like Funding Circle.

Finding a business angel can secure funding as well as an experienced mentor. 

There is a government Start-Up Loan scheme, which has loans of £500 to £25,000 with 6% interest. The enterprise allowance offers up to £1,274 for those on universal credit.

There are many excellent cloud based services and tools that have free startup/entry level options such as Shopify, Hootsuite, Wordpress, Thinkific & Mailchimp. Starting up as a sole trader has never been more accessible.  

 

4. Talent

The pandemic has shown even multi billion pound companies the advantages of home working. It’s now easier to work with people from all over the world, rather than a small pool of potential employees that can travel to your office. You can invest in the talents of disabled people who find working outside of their homes too challenging. And you encourage a greater diversity of people and pool of ideas. 

The growing numbers of unemployed means there are rich pickings and lots of competition for sole trader business seeking others to work with.

 

5. Networks

Being better connected to other entrepreneurs is a vital ingredient for success. The more you learn from other sole traders the lower your risk factor. There are ever increasing networks found on all social media platforms as well as lots of networking groups making it easier than ever to find the right mentors. 

 

Assume you are going to work for the next 40 years, therefore your goal is to spend this time doing something you love. We believe in the freedom of doing this for yourself and that’s why it’s our business to help you get started with everything you need as a sole trader.

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