How can a sole proprietor cope when cost of facilitating and running business activities increases.

[TOZZIBLINKZ]

We all are familiar on who is sole proprietor is , to be more explanation on who is sole proprietor is , I will personally consider him or her to be an individual that one's a particular business possibly of any kind all by himself and without the help of any other individual . It is important that we become aware that just as a sole proprietor and just the prophet in his or her business he or she also must bear the losses . One of the common challenges and obstruction faced by sole proprietors possibly in developing countries of west Africa is the increase in the cost of facilitating and running business activities . In a situation like this , what is best advised for a sole proprietor to do ? Well there are some certain measures and strategies that can cut down the risk and unbearable condition of high cost of facilitating and running business for a sole proprietor . The act of ploughing back profit is actually one of the oldest ways of handling increasing cost of facilitating and running business activities , but yet it could still be in use today as a way to still facilitate and run business activities .

Another thing a sole proprietor must endeavour to do in a condition when cost of facilitating and running business activities increases is to the business activity of warehousing . At least practicing warehousing will enable the business owner to buy goods and store them for future sales in this way he could save him or herself from buying the goods in costly prices .

 

[sincerem]

Before you decide going into sole proprietorship type of business, you've looked into reasons, and prospects of managing such kind of business. And also, you've learned the challenges that will come before it in the future, and finding ways or solution to stay afloat if such need be. As a sole owner of a business, you're already obliged to take the risk all alone, take profit all alone. In that case, if you plan tremendously, with diverse strategies, and being futuristic, innovative, you have higher chances of surviving the test of time. But an sole proprietor, who isn't creative, innovative, futuristic, with diverse business plans, can't make a wonderful and long business career. Because when tough challenges come, he or she wouldn't have that knowledge or fire power to control and manage the business past the trials. And again, he or she wouldn't know how to best competition from other vendors and stay atop them, sell faster due to the spirit of innovation.

 

[Ithedicious]

There is nothing to be done because most of this thing is Beyond a person's control because we are not controlling the economy.

I believe in such a situation you just have to try to establish what you can afford to do and you also have to analyse the business you are establishing if it is the type of business that can be done in parts. This will really help you to set up the most essential part of the business and grow it and as the business progresses you can choose to fix in other things that is necessary to make your business organisation a complete business .

It's not really easy , things are becoming unbearable and it's affecting so many people from starting a business most especially the type of business that need a full complete setup .

If a business require a full setup it may be quite difficult to start such a business because it will require a huge sum of money and in this case the best thing you have to do is just to look for a way to get the money to start up whatever you are interested. It's won't be easy .

 

[Augusta]

The thing is that right from time immemorial cost of running a business has always been increasing because when it comes to running a business nothing is static about it. They are always changes in different aspects of it. it is either the profit is high or the expenses has become too high so it is up to you as a proprietor to always try to cope with whatever comes with the business to still keep it afloat. A business man needs to know that the life of 5he business changes with time.. So to cope you should do the following

Look at the areas that the liabilities are much and try to prune that. You would need to study the situation to find out the real cause of such and work towards mending that.

You should also look at investing more into the business via the savings from the business, this is why it is very important to keep for the rainy days of the business so that you can reinvest In the business. So that at a time the business is going through a distress like this you would be able to savage it and keep moving with the business.

 

[Abigael]

Running a business as sould proprietor is really great. You are your own boss and you choose what is best to do. Moreover, you can make decisions much faster because you are not waiting for someone to approve it and you don't need to consult from a partner before making the decision.

However, everything with a positive has its own demerits. The main disadvantage of sole proprietorship is having to suffer losses alone. You won't share risks with anyone like in partnership. So during hard economic times, a sole proprietor goes through so much struggle to keep the business running well.

In such a case when facilitating a business has become so costly, here are some things a sole proprietor can try;

1. Taking a loan to make the business better - which is a good option because the business is already established. So a loan will be much easier to pay back. It gives you an increase in business money which makes you afford the expense and you can pay it back.
2. Ploughing back profits - a business will grow bigger and better if the owner does not focus on spending all the profits. The ploughed back profit will help the business a lot.
3. Cutting costs - when it gets expensive to run a business, a sole proprietor can just plan on which expenses to reduce.

 

[CALVINDOL]

To be sincere and honest being the only person to establish a business and also being the same person to manage and facilitate the same business is absolutely very stressful especially if the cost of production and the cost of goods and services sold by sole proprietors turns out to be very high in price and value . Majority of sole proprietors in order for them not to face stressful and less rewarding market negativity there t to shut down for the meantime and reopen their business when the cost of production have actually reduced in the local market . We are all familiar on who is so proprietor is but for more explanation he is someone that owns control and also facilitate a particular business all by him or herself without the help of another individual and just as he or she enjoys the profit from the business he or she also bears the losses .

It is advised for a sole proprietor to first of all improve the buying and selling of goods and services that customers and members of the public are more likely to buy and purchase in bulk so as to store as stock and inventory for the business he or she should neglect does inventory and stock that members of the public and not likely to purchase for the meantime but rather focus on the more important ones that they are most likely to purchase .

 

[Jasz]

The cost of doing business has increased in the last few years. This can be seen in the increase in the prices of goods and services. In order to cope with this, some sole proprietors are considering ways to cut down on costs. One way that they are doing this is by outsourcing their operations. In some cases, this may mean that you will need to find a suitable contractor who can do the work for you.

Finding a good contractor is not easy though. You need to find one who is reliable and one who has expertise in what they are going to do for you.
Finding a good contractor is not easy though. You need to find one who is reliable and one who has expertise in what they are going to do for you.
A sole proprietor can also cope with increasing costs of facilitating and running business activities by:

1. Increasing the profitability of their business.

2. Reducing their labour costs by hiring more workers or outsourcing some of their tasks to other employees.

3. Increasing their sales volume by offering a better product at a lower price point or by expanding their market base through new channels of distribution (e.g., e-commerce).

4. Dealing with higher taxes by using tax planning strategies, such as using tax havens, which are countries where there is no tax on profits generated abroad for local companies registered there; or by repatriating foreign profits earned in other countries back to your country of residence (since this will help improve your profitability).

 

[saoussen5765]

Most of employees nowadays wants to be far from risk even after working for years so rarely you find an experimented employee decide to be a sole proprietor and wants to get salary by end of month even being suggested such a work.

 

[Holicent]

Being a sole proprietor is stressful because you have to do everything yourself and there are no employees or anyone to cover for you. If you have employees, they can take your time, help clients, and give you pointers on how to improve your business.

A sole proprietor can't cope with an increase in the cost of facilitating and running business activities.

The main reason is that a sole proprietor doesn't have any employees, so he has no way to raise his prices. If the cost of running his business increases by 5%, he simply loses money.

So when the cost of running your business increases by 5%, you'll lose money and make less profit. That's why it's important to keep track of your expenses so you know how much money you're losing each month. If your expenses are too high (and you're not making enough profit), then you may need to cut back on some costs or find ways to make more money.