KS4 / GCSE Business: What’s it like being a sole trader?

Three days, 80,000 people, 40 brilliant bands, the Reading Festival is where every aspiring rock star wants to play. But the music business is about more than just the glamour of a festival. One type of businessperson might ply their trade a world away from the noise and chaos of Reading but still play a really important role in the music industry.

This is Jake Travis and this is his record shop. Nine years ago Jake turned his ion for reggae into his job. He swapped the factory production line for the freedom of being his own boss and became a sole trader. Put simply, sole traders are the only owner of their business.

I'm not a great one for being told what to do and having to stick to a time schedule. You're your own boss, you're your own business. You come and go as you please and you answer only to yourself, so, you know, that is a major plus.

As a sole trader, what are you responsible for?

Bills, rent, rates. I have to buy stock, I have to buy bags. Everything that you see here is sort of stuff that I've bought and had to sort of literally price up and physically put in the racks. You're responsible for everything.

Even though they're their own boss, sole traders like Jake have a lot of responsibility on their shoulders. For starters, they decide what to sell. They source their stock and make sure they've got enough of it. They price and market their product, and to top it all off, they physically sell it too. And like every business, they need to make sure VAT, income tax, and National Insurance payments are in bang on time. That's a lot for one person to take on, but, believe it or not, the majority of businesses in this country are sole traders. And they're not all involved in selling products. Some provide a service, like plumbing or hairdressing - or music.

Genevieve Wilkins is a percussionist. She's played with huge stars including Lionel Richie and Akon and also performs in West End shows. But today is her lucky day because she's got the chance to teach me.

This is one of my favourite instruments around. It's called a cajon. And it's the Spanish word for box.

Because Genevieve is a sole trader, she's responsible for everything.

Cool. So what do I need, a flat hand?

From advertising her services to giving lessons.

And then you can start… that's it! I'll keep going like that and you can just add in things like that. That's it! Now we're rocking.

What are the advantages of being a sole trader?

I can have a variety of what I do for a living, so I can do pop gigs, I can do classical music gigs, I can do some teaching. And the nicest thing is that I can pick and choose to do the projects that I love. I'm never really doing any of them just for the money. You're your own boss. It's brilliant.

So how did you become a sole trader?

I was really lucky to get a part-time teaching job in a really good music school, and as I graduated university and I started performing as well, you have to be a sole trader. You've got so many incomes from so many different places.

Being your own boss sounds great, but there are financial and legal implications. Sole traders have what's called unlimited liability. This means they have a personal responsibility for everything to do with their business. If they go bust and owe money, they could have to sell everything they own to pay off their debts. In the worst case, that could include cherished possessions like their TV, car, or even house.

Jake is well aware of the pressures that come with being his own boss.

If people don't walk through the door, you don't earn money. And that comes with its pressures - your security is in the hands of the general public, as it were.

But the pros often outweigh the cons.

I'm the boss, I'm the performer, I'm the ant, I'm the manager. I have to find some gigs for my duo. You have to do sort of do absolutely everything, so the skills have been really good. I've learnt lots of different things I thought I'd never learn how to do.

It can be hard work and long hours, but for many, the dream of owning their own business makes it all worthwhile. Putting all the hard work to one side, there is one great advantage to being a sole trader. You alone are responsible for any money you make and it's yours to do what you want with. So, put the hours in, and that record shop or drum kit could be your port to a great profit!