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Business Ownership (starting up (anyone starting up a business needs to…

- - - - a sole trader is a form of business that is owned and managed by one person-
        
        setting up sole trader is easy-you do not need to register with the government or fill in lots of forms, just start trading
        
        sole traders are owned and managed by the same person, although they may employ other staff
      - advantages of being a sole trader
        
        quick and easy to set up
        
        you make all decisions yourself-don't need to consult lots of people making decision making faster and done the way you want
        
        keep all profits yourself
      - disadvantages of being a sole trader
        
        stressful making decisions yourself-amount of pressure
        
        need to deal with; finances, marketing and running the business itself- some people aren't all good at these things
        
        unlimited liability- you can lose everything you own
        
        a lot of work to do- if you are ill or take a holiday the business can come to a standstill
        
        if the sole trader dies the business ends
        
        have to rely on own finances
        
        the company is small and not have the power of a large business- this means higher costs and lower profits