There are many business models in the business world
among which is the sole proprietorship.
Sole proprietorship is a business entity where a single
person is in charge of the day to day activities of his
business.
Then in secondary school, we usually call this business
model, “one-man business” because thats what it is… a business of a single man/woman There are other business models, partnership (where two or more people come together to be in the business together), limited liability (where the liability of the members is limited to the amount contributed as capital and unlimited liability company (where the liability of the members is not limited to the amount contributed to the business i.e. their liability could affect their other assets). There are few other business models (e.g. public limited liability and private limited liability) depending on where you are and the name they are given. In this tutorial, I will be sharing with you what single man business is, advantages and disadvantages. Lets get started!
One man business (sole proprietorship) is the simplest
form of business anyone can start.
This is because it can be started by a single individual
without any (or much) legal documents.
Many todays successful entrepreneurs started as a single man in their businesses, so if youre planning to start a
business single handedly, you are not doing anything
strange or odd.
Let`s check some of the:
Advantages of the sole proprietorship

1. Sole proprietor have 100% control
   No other business entity gives you all of the control like
   sole proprietorship.
   If youre in partnership your partner demands accountability. If you are in limited liability, board of directors gives you duty and expects you to do certain things, in some specified ways. As a single owner of your business, youre having 100%
   control.
   Nobody tells you when to work or how to work. Nobody
   tells you what to do and what not to do.
   If you`re someone who loves freedom, you may want to
   consider this business model.
2. Sole proprietor takes all the profit
   Since you`re the sole owner and no partner or board is
   involved in the business, you single handedly take all the
   profit.
   Sometimes when you get a bright business idea and invite
   others to partner with you, the business end up in mighty
   success. Since your coming together is with some legal
   agreement, you have to share your profit with other
   people (even when it may seem as if they are not the
   originator of the idea).
   As a sole proprietor, you enjoy your profit and success
   alone.
3. Sole proprietor takes quick decision
   Even if you`re the CEO of a public limited liability
   company, you may not wake up one morning and take a
   major decision, without consulting the board of directors
   or other persons in the organization.
   As a sole proprietor, you can wake up at 6am and make a
   decision about your business.
4. Sole proprietorship requires little legal document
   and registration
   In fact, in some countries, you may not have to pass
   through any legal registration before you start a business
   as sole proprietor.
   In cases where business registration is required, its usually very simple. For instance in Nigeria, you can start a business as a single individual without any serious registration. Some people simply join the trade association or something similar. However If you dont want to do this,
   all you need is a simple business registration with the
   Corporate Affairs Commission (CAC).
   CAC will register the name of your business with a token
   amount.
5. Sole proprietor has no need for financial statement
   Other business models demand high level of accountability
   because the other party is evolve. You may be required to
   give accurate financial statement of the day to day
   business activities, even if youre the CEO. As a sole proprietor, youre accountable to nobody.
   Yes, it`s very important to keep financial records, even as
   one-man business owner, but you see, some of us simply
   hate records.
   I try hard to keep financial and non-financial records for
   my business, but not always. I am not just meticulous
   enough to keep every detail.
   Soon, a partner will join me to take care of this my
   weakness.
   Ok. Now to the;
   Disadvantages of sole proprietorship
6. Limited expansion
   Anybody could know how start a business on his own, but
   to expand and grow, it becomes the work of a team.
   You rarely can become a successful entrepreneur as a
   single man in the business world. Business is a game of
   team. Just as I explain above, you may lack one major
   business skill (in my own case patience to keep records).
   This single skill may cost you some businesses and growth.
   Get me right, you can start business as a single person (in
   fact, that may be the best way to start) but as you`re
   growing, you will need the help of a partner or two, one
   employee or two and the more your business grow, the
   more people will be needed to keep you moving.
7. Sole proprietors carry the liability alone.
   Sometimes in the business world, we fall and fail. To
   stand up is easier if we are two or more.
   For instance, one of us could have a source of loan we can
   take advantage of. One of us could have some savings we
   can quickly use to recover. And even when nor of us have
   anything as such, we could both encourage each other and
   struggle to rise up together.
   I think Bible is right when it says, ‘Two are better than
   one”.
8. People respect corporation than individual
   Naturally, people tend to respect your business if it sounds
   like there is a team behind it.
   When you look around the internet for instance, you will
   see many blogs with individual names. When we wanted
   to start this website, I should have called it
   StephenAfolabi.com, but how will that sound? How many
   people will respect such name compare to the Africa
   Business Classroom?
   Since most one-man business adopt the owners name for the business, this stands as a disadvantage in the business world because people dont usually respect lone rangers.
9. Sole proprietorship business is not a separate entity
   from the owner
   In a normal business setting, the owners are different
   from the business.
   For instance, if you have any issue with Dangote Cement,
   you may sue Dangote Cement into the law court and not
   Aliko Dangote (the owner).
   Dangote and his companies are seen as separate entity in
   the eye of the law. This is not so in one-man business.
   You and your business are the same.
   The debt your business acquires is on your neck. The
   lawsuits against your business is yours and just any other
   thing that concerns your business concerns you.
10. What if you`re Sick?
    Since sole proprietors are single individuals, when they
    get sick their businesses also gets sick. This may not
    happen in the case of partnership or other forms of
    business.
    Conclusion.
    Sole proprietorship as a business entity is usually a
    perfect option for anyone just starting out in the business
    world.
    Yes, I listed some of its disadvantages but none of them is
    actually breath-taking as you can manage yourself through
    all of them till you have roots and become a successful
    business owner.
    I wish you best of luck!