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Top 10 challenges faced by sole traders – Page 10 of 10 – StartupSmart

10. Growing pains



Any smart solo operator will start their business as leanly as possible – keeping overheads low and extravagancies such as large office space and fancy equipment to a minimum.


However, as your business grows, you face a dilemma. Do you keep living off the smell of an oily rag in case everything implodes, such as Dorry Kordahi who remained in his backyard shed for two years even though his business was booming, or do you sensibly expand?


Knowing when to invest in your systems and infrastructure is an important hurdle for sole traders to overcome. There may come a time when you need to leave the home office and even take on staff.


The solution?


Tammy May, who started MyBudget from home, says: “My advice to start-up business owners would be to ensure you can financially afford the additional cost of commercial rent.”


“We had a budget per square metre for ourselves. Also, the size was based on how many offices or work stations we needed for our staff and predicted staff numbers.”


“If you expect further growth, look for a building that has additional space that you can lease in the future. At MyBudget, we took more space within 12 months of being at our first office.”


“When MyBudget made the step from home office to commercial office, we bought second-hand furniture, including our reception desk.”


“Things don’t have to be brand new to start with, especially when you are on a tight budget and every cent is going back into the business. This will help to keep your capital costs down.”

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