The sole proprietor is often seen as a lonely figure battling against the elements, doing it all on their own.
But what might surprise you is that many sole proprietors – and small business owners with less than four employees – prefer it that way because of a combination of factors such as control, expense and seeking value for dollar.
"I have seen many friends and associates having spent thousands and being left high and dry without the outcomes the service provider promised," Helen D'Silva, a private practising psychologist says.
"They are struggling to pay for their own mortgage, rent, food and bills are constantly behind and not paid. For me, that stress is not worth it and it inspires me to find better ways.
"I am also mindful of how my money is spent and feel it's important to be able to have educated conversations with service providers when the time comes to be able to start paying people to do work for me."
D'Silva has been in private practice since 2012 when she quit her job due to burnout.
"Working independently has its pluses and minuses," she says. "I am and feel in control."
Soaring number of sole traders
D'Silva is far from on her own when it comes to being a sole proprietor.
According to the Australian Bureau of Statistics, between June 2015 and June 2016 the highest number of business entry rates was for sole proprietors – at 18.6 per cent.
As of June 2016, 60.7 per cent of actively trading businesses in Australia had no employees, while 27.6 per cent had one to four employees, which comprises 88.3 per cent of the employment market.
"Time management is difficult," D'Silva says. "I get distracted easily. I get caught in the love of learning about marketing and digital marketing specifically. I co-work which makes me accountable to turn up and be there to do work. Being an extrovert, I go crazy if I'm not around people for a long time."
D'Silva is confident her business will grow substantially in future years despite a slow start.
At the beginning I didn't outsource anything because of lack of funds but now I don't want to let go.
Lucy Good
"Sadly my income is under $100,000 but I have committed that this is the last year I will ever earn under that amount."
Not letting go
Lucy Good started Beanstalk 18 months ago when the philosophy of helping single mothers through online courses offering targeted information and support. She started the business while working two jobs and caring for her daughters and now has 25,000 single mothers accessing her platforms.
"At the beginning I didn't outsource anything because of lack of funds but now I don't want to let go," Good says. "I feel that all marketing needs my personal touch in a business like Beanstalk. Plus, I have the skills, so see no point in farming the work out ... yet."
Good says the key to managing her time is to allocate time for each task and even though she is earning less than six figures, she believes she is making progress.
"I am great believer in compartmentalising," she says. "I focus on each task individually and get it done properly. If you multi-task you get nothing done well. I also plan each day so I know exactly what needs to be done, and just stay up until I complete my list. I am highly organised, and believe that organisation is the key to most things.
"My particular business has lots of emphasis on me. It is my conversation and my name. If other people become involved they will need to imitate me. I would feel uneasy with this because it seems disloyal to my followers, but also as they may portray something that is not in line with my values and opinions."
No guarantee of future business
It is essential for sole proprietors and small business owners to work diligently, as future business is not guaranteed and the drop-off rate is quite high. ABS figures reveal that between June 2015 and June 2016 15.1 per cent of businesses with no employees ceased to exist, however, in the same time period business entry rates were highest for businesses with annual turnover of between $50,000 and less than $200,000 (20.2 per cent).
But whatever the statistics reveal it won't stop determined Australians from starting their own business.
"The business has not taken off as quickly as I would have hoped but I'm confident that in time it will," Judith Treanor, founder of Temples and Markets, says.
"The good part is that any successes are my successes and the failures are mine too. I have learnt several new skills and taught myself various software programs and apps."
Treanor created the business more than two years ago, which in essence showcases home decor, fashion accessories and jewellery. She admits that because her income is below $100,000 per annum, she undertakes all the business activities herself.
"It is just a question of money and not being able to afford to outsource anything to anybody," Treanor says. "It is not easy managing your time effectively but I have learnt to be kind to myself and not try to do everything at once. I have to prioritise and set sensible goals and deadlines. I also have to juggle the business around family."
Time management, efficient use of funds, persistence and self-belief are the key survival traits for any sole proprietor or small business owner. You can undertake all business activities yourself but there will always be a cost. You just need to weigh up what that cost is to you.
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