One of the simplest ways to make money is by running a small business enterprise. As a sole trader, the amount of money that you pay to the revenue authorities for registration is minimal and management of the accounts is easy, thanks to the many account management programs available over the Internet. However, you should be prepared to keep all the profits and absorb the losses. If you fail to pay any debts owed by your enterprise in time, you risk being sued for bankruptcy by your creditors.
Most of the businesses that run on a sole proprietorship trading structure are profitable, easily run and have little registration forms and books to worry about. You do not need a lot of time to prepare yourself and to set up big budgets like other structures need. The amount of money and the documentation that you need is also limited. It may also be good to note that as much as it is easy to form a sole proprietorship, it is also easy to wind it up if you desire to do so.
A sole proprietorship encourages the growth of self employment ventures for those who wish to start new businesses. Your friends and relatives will interact with you personally and they will appreciate the benefits that you are getting from your new enterprise, making them want to start like you did. As the owner of the small business venture, you are able to manage your employees since, you are the one in control of the daily activities on the important business decisions will always come from you.
The proprietor knows every one of his customers by name and location. He is thus able to develop a closely knit friendship with them. By the virtue of the fact that a small business enterprise is easy to form, run, control and maintain, the owner of the business feels encouraged to go on and explore new heights in business, the more he works and dedicates time and effort to the enterprise, the more money he makes. The sole proprietor will keep all the profits, less tax accrued to the business entity.