If you’re about to start working as a sole trader, there are some things that you really need to know and understand.

If you’ve never done anything like this before, there’s a lot to take on board but it’s worth expanding your understanding now rather than later because if you leave it too long, you’ll have problems further down the line. Here are 5 of the things that you really should know about being a sole trader if you don’t already.

1. There’s Risk Involved

When you go it alone in your career and start your own small enterprise by yourself, there’s going to be a certain amount of risk involved. That’s something that you simply can’t get away from or ignore.

If you do care about doing well as a sole trader, you need to accept that you’re going to be taking risks at every turn and do your best to mitigate them.

2. It’s More Common Than You Think

There are more people working as sole traders than you realise. Roughly 75% of businesses are people working for themselves, so you’ll certainly not be alone if you decide to take this route in your career.

It could turn out to be one of the best things you ever do, and the fact that so many people manage it successfully should give you the confidence to do the same.

3. Insurance is a Must

It’s very easy to be blown off course, even by relatively small seeming matters when you’re a sole trader. That’s why you need to make sure you take care of things like insurance properly. You don’t want to put your enterprise at risk by not having the right cover.

Insurance companies like One Sure Insurance can help you get this right if you don’t know where to start.

4. You Have to Get Good at Everything

You should definitely consider the fact that there is going to be a lot to learn. When you areworking for yourself, you have to handle everything, which means you need to become proficient in a wide range of skills. This includes managing your accounts, taking care of administrative tasks, and marketing your business.

It can be a steep learning curve in many respects. You will also need to keep track of every detail, use various software, and stay updated with recommendations from resources similar to the Daily Risk Appetite Gauge recommendations. This gauge can help you monitor the market sentiment and make informed and smart decisions regarding your trading strategies. Balancing all these responsibilities can be challenging, but it’s crucial for your success as an independent trader or business owner.

5. You Can Still Grow and Employ People Later

Just because you're working as a sole trader, that doesn’t mean you can’t grow and eventually employ other people at some stage. That should always be the aim for anyone working as a sole trader.

You don’t have to stay at the same level forever because having room to grow is important for any business, no matter the size.

Sole traders don’t have it easy, but you might have more opportunities and space to grow doing this kind of work than you would if you were employed by a larger company. It’s in your interests to ensure you understand what you’re getting into, but if you do, you should just go for it.