Please enable JavaScript.
Coggle requires JavaScript to display documents.
Sole traders - Coggle Diagram
Sole traders
Disadvantages
business operations depends on the health
challenging to compete against stablished business
stress and ineffectiveness at the time of making the own decisions
lack of continuity
limited scope of expansion
limited capital
unlimited liability
Advantage
profit belongs to the sole trader
complete control of all the decisions
flexibility during
working hours
products and services
changes to operations
privacy: don´t divulge information
Minimal legal fromalites
Close relation with the customers --> competitive advantage
Main features
It owns and runs its own business
may employ other people
have the responsability of the business
No legal distinction
the sole trader is the business
have unlimited liability
Limited finance
personal savings
loan from family, friends or bank
Business is geographically close to the customer
sole trader is a small business
they interact with each customer
provide personalized services
Has privacy and limited accountability
do not declare their finance except tax authorities
high defree of privacy
Easy, cheap, quick registration
is simple to start and operate
less paperwork to fill out