Some Ideas of Making a Sole Proprietorship Better
When you earn income from selling a product or a service, you are a sole proprietor. There is nothing that you must do as a single business owner except report your income to the Internal Revenue Service on your personal tax return and possibly obtain a business license and liability insurance. To turn a sole proprietorship into a more profitable venture, look for new business strategies that increase your revenue.
If you are operating a sole proprietorship, you are the solitary owner, but you don't have to do all the work yourself; you can hire employees. Whether you are operating out of your home or from a business location, consider adding at least one part-time person to improve customer service. Your clients want to have personal interaction with you, and they may have questions about their service or bill. If you hire a virtual personal assistant, you can train him to give customer service like you would, freeing you to sell products or perform services for other clients.
Research your pricing strategy. Survey your customers or other small businesses to see what they are charging for the same service. If you find yourself in the bottom of the price range, decide if you want to raise your prices for all customers or just for new customers. For existing customers who balk at a price increase, consider keeping their price the same.
Thank your clients for their business. It's common for sole proprietors who work on commission, such as real estate agents, to give a gift to their clients when the sale is complete. If you choose to give a gift, you may be able to write it off as a business expense. Another option is to give a gift to each client once a year, such as at Christmas or on the client's birthday.
Expand your product or services to consumers outside your community. If you work from home or an external location and provide a service, such as consulting or freelance writing, you can help customers online. Compare the benefits of starting a website with the benefits of using social media network profiles to spread the word about your service. You are legally responsible for your website, and therefore you want to use online marketing strategies only if you have the time to monitor the website or social media accounts and respond to customers who contact you online.