Business Ideas Problems that could be face in sole proprietorship business

[Mastergp]

No matter the area of business we choose the is a problem that may result if care is not taken into consideration. A good entrepreneur is need in order for such business to move to a better state.

In sole proprietorship business they are problems that one do face and this problem if the are not taking into consideration or acted quickly on might cause a problem to our business as a good sole proprietor we should be prepared for it no matter it form used. Some of those problems include the following:

Problem of continuity:
In the event of the death of the owner, the business may also die with him,especially when there is no successor to take over from him.

Inadequate capital:
The sole proprietor is always faced with inadequate capital because of the small size of his business and his inability to source funds outside his business.

He bears all risk alone:
The risk required in operating the business in borne solely by the owner. If the business is successful, the rejoices but when it fails, he suffers it all done.

It is not a separate legal entity:
In law there is no difference between the owner of sole proprietorship and the business itself. The business cannot sue or be died in its own right.