27th November, 2024
You’ve gone solo. Noice. You’re also probably well beyond the basics of, like, opening a bank account and getting paid.
So … what next? Glad you asked. We’ve gathered the best tips from other sole traders, so you can start following in their growth footsteps.
When it’s just you making the rules, it’s pretty easy to break them. Maybe you kickstart a project before getting the deposit or signed order form in or bust a gut to meet unrealistic timelines. That feels like you’re doing clients a favour, but it can actually come back to bite you. The client calls off the project even though you’ve already started, or starts expecting your bust-a-gut turnaround time as BAU.
It can also send the message that you don’t expect to be taken seriously. So, simple, really. If you want to see growth in your sole trader business, develop smart policies and then stick to them.
You’ve probably seen it on an inspiration poster somewhere — time is your most precious resource. So, how are you using it? Reconciling accounts, chasing late payments, or scanning receipts — they’re not grow-the-business activities. The less time you spend on those, the better. You’ll find shifting from spreadsheets to software will make the biggest difference.
For example, accounting software like Solo by MYOB can automate a bunch of your financial admin work. One click, and blam! Quotes become invoices. Chasing unpaid invoices? Forget it — the software does it for you. You can also snap ‘n track your receipts as you go and have ATO forms autofilled.
You could also:
Building customer loyalty isn’t about being the expert or offering the best products — you also need to make people feel special. Take a look at how and where you connect with potential and current customers. Those are your golden moments — your chance to deliver a customer experience so awesome, they’ll forget you even have competitors. Start by getting the basics right consistently:
Next, add moments of surprise and delight. That might be as simple as including a personal note with orders, offering helpful suggestions, or remembering birthdays.
Staying connected with industry contacts, suppliers, clients and peers can be massively important to your business growth. Scratch the surface and you‘ll find work, revenue, referrals and people you can partner up with.
The extra good news is that nurturing your network is kind of fun – catch up for coffee, eat cheese at networking events, and share memes on social platforms like LinkedIn.
If all things go to plan, business will be booming. Are you ready for that growth? Start reaching out to people who could partner with you on projects. Plan what work you’ll keep in-house and what you want to outsource. Think about things like your stock levels, warehousing and fulfilment processes. Will you need to upgrade any software or take on contractors?
Often, the riskiest time for businesses is when they’re growing. Bigger orders or contracts can often make it longer for you to get paid and see you covering higher upfront expenses. That means you’ll need to keep a closer eye on your cash. Invoice as soon as possible, ask for deposits, chase late payers, and smooth out chunky expenses with finance arrangements. It’s also a good idea to start building up a little nest egg.
The more people who know about you, the more opportunities you’ll get (and the more you can charge). For lots of soloists, promoting yourself doesn’t come all that easy, though. It can feel less cringe if you think of it as giving value rather than blowing your trumpet. For example, you could share useful tips or advice online and big-up clients, suppliers and partners when you talk about any wins. Could you put your hand up to share your expertise at conferences or send blogs out to industry publications?
We know, we know. You’re used to going it alone. But really, you don’t have to. Reach out to contacts to ask about upcoming projects, shoulder tap people for advice, and see if suppliers would do you a deal on pricing or payment terms. You should ask for help in your personal life, too — could your kids spend an afternoon at a friend’s house? Would your neighbours take your dog out on their morning walks?
Your sole trader business relies entirely on your efforts — you need to protect your motivation, inspiration and passion, so don’t be afraid to say ‘no.’ Grinding away on uninspiring projects or expanding into products you aren’t passionate about? You’ll be entering burnout country, which is bad for you and for business.
There’s nothing wrong with trusting your gut — that’s how you got this far. But as you grow, it’s a good idea to double-check with hard data. Good accounting software will let you find info on your most and least profitable products for clients, for example. You could also ask for customer feedback so you’re not guessing about process, product or service improvements.
As a sole trader, your most important business asset is you. It’s why successful sole traders know the value of keeping a steady business head and also taking care of themselves. That looks like choosing work that keeps you motivated, outsourcing or automating admin, asking for help when you need it, and staying connected to other professionals.
You’ll also need to get tough on policies, prioritise customer experience, and keep a close eye on your cashflow. Do all that while making the most of your personal brand and you’ll need to get ready for growth. Buckle up and enjoy the ride.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.