Thankfully, the path between sole contractor and business owner is one that many have crossed before, so there are some tried-and-true guidelines that you can follow when making the switch. In this article, we’ll walk you through how you can make a smooth transition from being a sole contractor to being a business owner.
Insure Your Business
As your business grows, so do your risks. Unforeseen events like customer lawsuits, natural disasters and accidental workplace injuries to your employees can seriously hamper your finances, so it’s vital to secure a reliable business insurance plan.
A business insurance policy protects your business against certain risks. What these risks are depends on the exact coverage of your plan, so it’s important to read the details before purchasing an insurance policy. Some common mishaps covered by standard business insurance include employee theft, damage to your property due to floods or fires and goods lost in transit.
The switch from being a sole contractor to a business owner is an incredibly exciting time, so it’s hard to imagine anything going wrong. Unfortunately, mishaps do inevitably happen when running a business, so it’s vital to have the right sort of insurance to protect you financially.
Automate Processes
Growth is likely the main reason you’re making the transition from sole contractor to business owner. When your revenue grows to a certain point, the scale of your internal processes needs to evolve too. There’s more work to be done, so it’s important to find creative ways to handle your new workload without any drop in quality.
Luckily, living in 2025 means that there are countless ways for a growing business to leverage technology to speed up processes. Artificial intelligence is one way that this can be done. AI can perform tasks like outlining on-page content, creating high-quality images and pulling up certain types of data in a fraction of the time it would take a human to do these things. While AI still has its limitations, when used in tandem with human expertise, it can be a game-changer.
Besides AI, there are also plenty of more traditional tools that you can use to ease the load on you and your team. These include spreadsheets, digital communication platforms and user-friendly graphic design tools. Properly leveraging technology makes it easier to handle the increased workload that comes with the transition between sole contractor and business owner.
Maintain Existing Customer Relationships
Among the biggest advantages of being a sole contractor is that you get to form deeper relationships with each client or customer. As your business grows, it takes more effort to maintain the same level of personalisation. However, keeping the same type of relationship with the customers who’ve stayed with you through thick and thin is crucial to give your new business a good base from which to expand.
One way to keep existing customer relationships is simply to offer the same level of service as you did previously. Listen to their concerns and respond quickly. If necessary, don’t hesitate to go the extra mile to fulfil special requests. If you evolve to a point where you are no longer able to maintain the same level of contact with these customers, make sure you find other ways for them to feel attended to. That can be through hiring a personable account manager, calling them when you can to ask them for feedback on the service they’re receiving. That way, if anything feels off for them, you can nip it in the bud and maintain the client.
Another way to stay in touch with your customers is to build a social media presence and connect with them there. Social media is a fantastic way not just to advertise, but also to gather feedback from those who’ve already bought from you and communicate directly with your audience. Offering a level of personalisation that larger businesses simply can’t match is a great way to stand out from the crowd and build consumer loyalty.
Build a Team
If you’ve been a sole contractor for a long time, you’ve likely gotten used to working on your own. However, if you want to make a smooth transition to being a business owner, you will eventually need to build a team around you to fill skill gaps and get more work done as operations start to scale.
The internet offers many ways to hire talent. One is to use job boards like Indeed and Seek. Make sure that your listings are truthful and comprehensive to ensure that you receive relevant applications. Alternatively, you can also source talent by reaching out to your network on LinkedIn. It can be safer to hire based on recommendations by people you trust, especially when you’re just starting out.
Before signing on the dotted line, make sure to interview each candidate in depth to discover whether they possess the skills you need and whether or not they’re a good cultural fit. In the early stages, each hire can make or break your business, so make sure to do your due diligence before making hiring decisions.
Key Takeaways
Shepparton is a major hub of entrepreneurship, meaning there are few better places in the region to set up your own business. What’s more, the fact that you’ve been operating as a sole contractor for some time gives you some major advantages, such as an existing customer base and proven operational processes.
However, there are still some important considerations to ensure a successful transition from sole contractor to business owner. We’ve gone over some of these considerations in this piece. Use what you’ve learned today to set up your very own business and maximise its potential.
