Top 10 Prime Examples of Sole Proprietorship In 2023 – Sole Proprietorship is the New Income Stream

A sole proprietorship is a business structure where the owner is also the sole employee of the business. As opposed to operating under a company name, it gives owners complete control over the financials and everything related to the day-to-day operations of their business.

The main advantage of operating your business as a sole proprietorship is that there are no separate tax obligations for you or your business. In addition, an individual who operates his or her personal business as a sole proprietorship does not have to form a company or register it with regulatory authorities. For these reasons, many people are interested nowadays in various examples of sole proprietorship.

A sole proprietorship can be an ideal way for entrepreneurs who have little money and are looking for a low-cost and risk-free way to start their own business without having to pay anyone back if they fail. However, this type of business comes with its share of challenges too.

Read on to know more about great examples of sole proprietorship and how each looks like.

What is a Sole Proprietorship?

Sole Proprietorships are typically owned and operated by individuals. Unlike a corporation, there is no formal legal structure or entity involved in operating a sole proprietorship.

This means that you are individually liable for all the debts and financial obligations of your business without having the protection of a legal entity, a professional board of directors, or the security of a bank loan.

We explain various alternative options of financing in this article that may be useful in case you start a sole proprietorship.

A sole proprietorship is a business structure where the owner is also the sole employee of the business. As opposed to operating under a company name, it gives owners complete control over the financials and everything related to the day-to-day operations of their business.

The main advantage of operating your business as a sole proprietorship is that there are no separate tax obligations for you or your business. In addition, an individual who operates his or her personal business as a sole proprietorship does not have to form a company or register it with regulatory authorities.

Below, we will introduce the best examples of sole proprietorship that you can start and benefit from in 2023. Here we go:

1. Personal Trainer

One of the most well-known examples of sole proprietorship business in 2023 is this one. If a person is certified to teach yoga, fitness programs, or is a personal coach, they can start a sole proprietorship to help people achieve their health goals.

However, since their work will have an effect on their clients’ health, people need liability insurance. Make sure to research the laws in your state before starting your business, especially if you intend to work from home.

2. Financial Planner

You have been working as a financial planner for the past 10 years. You have built a sizeable clientele of rich and successful people. However, you want to grow your business to a much larger scale. You decide to start your own financial planning business.

Financial advisers who work on their own for both people and small businesses are known as another prime example of sole proprietors. Families receive assistance from them in a variety of areas, including investing, retirement planning, saving for children’s education, and stocks investment.

Financial advisors may be required by a firm to assist with the creation of its retirement plans and other perks.

3. House Cleaning Services

Finding homes to clean and building a steady clientele are necessary for starting a housekeeping service. Although doing this alone can be challenging, you probably won’t need to pay for assistance straight immediately.

The company is fairly simple to start, and since you operate in your clients’ homes, their homeowner’s insurance will probably cover any potential liabilities (though you should have your own insurance). It makes sense to start out as a sole proprietorship until you need to hire staff on a regular basis to handle a rise in business.

A sole proprietorship is likely to become inadequate for a housekeeping business if it starts to grow. You’ll probably want to register a limited liability whenever you start to recruit staff or generate a sizable quantity of revenue.

4. Bookkeeping Services

You have been working as a bookkeeper for the past several years. You have built a sizeable clientele over the years, but you are looking for a way to grow your business to a much larger scale. You decide to start your own bookkeeping business. This is one of the popular examples of sole proprietorship even in 2023.

The financial needs of other businesses are met by an accounting firm. A bookkeeper inputs revenue, expenses, and other financial data into an accounting information system. This gives entrepreneurs trustworthy financial information about their businesses.

Tax returns for businesses are calculated using the financial information kept by a bookkeeper.

5. Freelance IT Consultancy

Have you ever experienced IT issues? Numerous firms also do. You would supply other businesses with IT troubleshooting services as an independent IT consultant. Additionally, you’ll fix problems with the company’s hardware and software solutions. Be prepared to travel when operating this kind of sole proprietorship.

Another type of examples of sole proprietorship in this category are web developers. Web developers use web coding languages including HTML, CSS, JavaScript, PHP, and jQuery to create websites for clients. The construction of WordPress websites would be a simpler entrance point into this industry.

6. Daycare Ownership

Setting up an in-home daycare business can be a successful example of a sole proprietorship, but there are a number of state regulations that must be observed, such as the need for liability insurance and the maintenance of certain standards of cleanliness and safety in your home.

While setting up a sole proprietorship is a useful business structure, people should research the laws in their state before bringing children into their homes to avoid any potential legal issues in the future.

This is one of those sole proprietorship examples that will grow certainly in 2023.

7. Virtual Assistant

Virtual assistants assist business owners with administrative chores online. The tasks that virtual assistants perform are determined by the needs of the clients. An Online Assistant may be tasked with a variety of duties, such as maintaining email accounts, creating Excel spreadsheets, and writing documents.

Entrepreneurs are quite busy. Aside from the fact that the majority of activities can be completed online, they don’t want to pay an office assistant. the virtual helper comes in.

You would do duties for other business owners as a sole proprietor running a virtual assistant firm, such as database entry and bookkeeping.

8. Freelance Copy Editor

This is one of the most prime examples of sole proprietorship as it only grows in 2023 due to popularity of blogging and various writing niches. Independent copy editors check another person’s writing for effectiveness, clarity, and concision.

These editors check for flaws when editing someone else’s work. They also emphasize the harmony and flow of ideas.

You can either work as a copy editor for fiction or nonfiction. As an alternative, you may specialize in editing content for blogs and websites.

9. Franchise

People might be shocked to find that a franchisee can also run their business independently. The franchiser pays the franchisee money in return for the franchisee using the brand name.

An individual franchisee is recognized as an example of a sole proprietorship for the purposes of taxes and other financial obligations.

For a sole proprietor with little business expertise, this technique can be quite effective because the franchiser will provide the business model as well as support for administration and marketing.

You can read more about the franchise business model here. This model has low risks but relatively high capital investment.

10. Freelance Graphic Designer

Another industry that functions well as a sole proprietorship is graphic design. A graphic designer accepts photo or image work from a variety of clients and charges each one separately.

They normally work alone, but if they need help with something outside of their area of expertise, they can readily recruit independent freelancers. Another excellent career path for sole proprietorships because there is no real obligation attached to the work.

Conclusion: There are Many Examples of Sole Proprietorship!

Sole proprietorships are one of the best income streams for those with limited capital and risk tolerance. They are low-cost, require no significant investment, and offer complete control over the business operations.

They also allow for a flexible work schedule that is not tied to any particular time of day or day of the week. There are many examples of sole proprietorships that you can choose from and start your own sole proprietorship business.

With the right planning, business growth, and the right partners, you can achieve success in this income flow too.