So far it still remains the most common form of business in Nigeria it simply means a business organization that is run by one person at times a married couple. It is a ME, MYSELF and I model. It is the type of entity that is fully owned and managed by one natural person known as the sole proprietor.
Examples of sole propietorship.
Some examples of businesses that might be sole proprietorships include:
- Virtual assistants
- Home-based business owners
Essentially, any time you open a business without any business partners, you have a sole proprietorship. The business starts the moment you begin offering goods or services for sale.
Advantages of sole propietorship.
It is easy to setup.
As we’ve mentioned, it’s quick and easy to start a sole proprietorship as there’s no need to register or incorporate your business with the state. All you have to do is obtain business permits and licenses.
Less complicated management.
As a sole proprietor, you have complete control over business decisions and priorities. Conflicts among partners are one of the leading causes of business failure, but fortunately, sole proprietors don’t have to worry about this.
Burnout is more likely.
Sole proprietors wear many different hats when running a business. Of course, you can hire employees or independent contractors to help, but the reality is that many sole proprietorships don’t have extra hands to help out.
Sole proprietors have to take care of marketing, advertising, finances, strategy, and leadership—and everything else that comes with running a business. Doing too much on your own can lead to serious burnout and cause the business to fail.
Landing clients is harder.
As trivial as it may seem, customers and vendors may be more likely to take you seriously when you structure your business as a corporation or LLC. You might find the choice of business entity is important when trying to land a big client or buy raw materials from a major supplier.