The Life of a Sole Trader

So having set up as a sole trader, you are ready to venture on an exciting journey of fast paced projects and flexibility around your work hours. It’s pretty common to have someone move from long term permanent employment into being a sole trader. A typical example would be a web designer who has been working for a web agency for a number of years. They find themselves working long hours, working out of normal working hours and sometimes of a weekend. They also find that they are in an autonomous role and pretty much self managed. There comes a point when you have to think, could I be doing this for myself instead of working for an employer?

It’s not an easy decision to make, to leave the safety net of a permanent position, but in today’s market what permanent position is a safe one anyhow? The immediate noticeable difference a sole trader will find is the flexibility around their own working hours. A set structure of hours is no longer there, that rigid routine has all of a sudden become flexible, but from the start you have to remain disciplined in your daily routine. It’s very easy for a new sole trader to become too flexible in their working routine! Making sure you have a private work space arranged before you start is key. Either in a small office space or a place at home that is separate from your living space. You can now choose an environment that will inspire your work, put you in the best frame of mind to produce your best work. You will now also have to be pitching around for new projects, this is something that you may have been involved with in a small way in your old permanent employment, but now it’s your responsibility to win new work.

Taking control of your cash flow and keeping on top of outstanding invoices is a big part of sailing your own ship, make it clear to any new clients that you need quick turnaround on invoices and agree payment terms that work for you. Don’t be afraid to turn work away, the biggest temptation is to take on board every new bit of work possible. Doing this you will soon find out there is only 24 hours in a day! and all of your projects will suffer. Think time management, think how a new project can fit in with your current workload. Is the new project long term? Will it bring in more work further down the line? Will this client pay on time?

The life of a sole trader isn’t an easy one, however the rewards are high and hard work brings job satisfaction and a better lifestyle.

The Accountancy Partnership

Sole Trader Accounting: http://www.theaccountancy.co.uk/who-we-help/sole-trader-accounting

We are a national firm of accountants that specialise in small and medium sized businesses. Contractor, sole trader and limited company accountancy services. We have been trading since 2006 and have more than 1,000 clients across many different industries and areas of the UK.

Our staff has a wealth of experience and qualifications from the major accountancy and tax associations such as ACCA, AAT, ICPA, IFA, and FTA.