By James Johnson on Small Business – Advice and Ideas for UK Small Businesses and SMEs
Starting a new business is understandably an exciting and apprehensive time. First you have the business idea, perhaps carried out a little research on the demand for your product or service; one of the first decisions to make is what type of business structure to adopt. Setting up as a sole trader is a preferred option for many starting out.
The basic three options are sole trader, partnership or a limited company.
The most common form of business structure for start-ups in the UK is a sole trader, where you trade under your own or a business name. As a sole trader, the risks and rewards rest entirely with you.
>See also: Should I go sole trader, partnership or limited company?
Setting up as a sole trader
There are many ways for a sole trader to set up and start in business, from starting a trade, buying a franchise, taking a hobby to the next level, or inventing a new product or service. Successful businesses do, however, share common traits – a unique product or service or selling strategy.
Any new business owner will naturally be focused on establishing a customer