Four Reasons You Should Register a Business Name if You're a Sole Trader
Working as a sole trader can be a convenient and cost-effective business structure for trade professionals such as electricians, plumbers, and mechanics. Unlike other businesses, the start-up costs are low, and you get to keep 100% of the profits.
As a sole trader, you aren't required to register a business name. Instead, you can operate your business using your first and last name alone. With that said, should you?
There are several reasons to register a business name, even if you're a sole trader. This article will showcase four benefits of getting a business name that you may not have been aware of.
1. Brand Recognition
As a sole trader, you need to get your name out there. You're still a business, which means you rely on marketing to make sales. While you can market your services using just your name, people read thousands of names each day, and this can make it easy to miss.
A well-considered business name can tell potential clients about your services and help you stand out. A business name that includes information like where you operate from or what services you can perform will help people remember you better.
Imagine you're a client looking to hire a plumber and find two potential options. The first option is "Morgan Jones", who does plumbing. In comparison, the second option is a business called "Smithfield Plumbing Professionals". Most people would choose the second option because they seem more professional and well established.
Putting in the effort to acquire a business name demonstrates to people that you're a professional and know what you're doing.
3. Owning Your Business Name
While your first and last names are your own, it's also possible for someone else to have the same name as you. Especially if you have a widespread name such as "David Smith" or "Karen Brown", it's possible for there to be some complications.
If another person decided to become a sole trader or register a business name that was the same as yours, you'd have no legal repercussions. In comparison, by registering your business name, it becomes impossible for others to trade under that name without working for you.
4. Reducing Confusion With Employees
As a sole trader, you're still able to hire employees to work for you, just like with any other business. But, if your business is still operating using your name, this can become challenging to manage.
When a person hires from a trade business named "Peter Jones" and Andrew shows up, it can cause some confusion. Even if you don't currently don't hire any employees, taking steps to get a business name now can ensure you don't face any headaches down the line.
How do I Get a Business Name?
NameCorp specialises in helping you quickly and easily register your business name. We can support you throughout the process, including acquiring an ABN and checking if your ideal name is available. If you need any help, please don't be afraid to get in touch.
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