Am I a Micro Business Owner?
Running A Micro Business
A micro business is a business that has between zero and five employees. So, when you earn an income in the gig economy, using your skills, time, and other resources to make a profit, you are technically running a micro business.
Especially when you are just starting out, you probably don’t have any employees. Self-employed and operating as a sole trader, you have officially become your own boss, even if you are still working at another job part-time or as your primary source of income until you build up your micro business income.
You’ll file taxes for your business income as a self-employed sole trader and will be able to take advantage of certain benefits like tax deductions for personal super contributions and self-employed business expenses.
For example, if you regularly do freelance work as a graphic designer in the evenings but also work as an employee during the day for a software company, you are a micro business owner. You just happen to have another paying job as well.
What about if you aren’t really making any money yet? If you are in the gig economy with the intent to earn money from your work, you have a business. If you are just doing what you love, maybe making enough to cover the costs of materials and tools to keep doing what you love, then, according to the ATO, you have a hobby. In this case, you don’t need to worry about registering your business or filing taxes.
5 Tools Every Micro Business Owner Should Know About
Micro business owners have an advantage today over the entrepreneurs and freelancers of the past – rapidly evolving technology. Today there are dozens of tools you can use to work more efficiently. For streamlined workflow and cost-effective micro business operations, every sole trader should know about these tools:
- Evernote is a fluid app for storing your ideas and notes, making it easier to stay organised.
- Trello is a great app for creating to-do lists, managing your work calendar, and managing projects if you are working with a team.
- MailChimp is a marketing automation platform that can make email campaigns and nurturing your leads a lot easier and more effective, and it’s free for up to 2,000 contacts.
- Toggl is a time tracking tool that you can use to manage your time efficiently.
- Canva is an easy-to-use design app you can use to create infographics, images for your website, business card designs, social media graphics and more.
When you are self-employed, you will learn a lot about running a business. You’ll improve your expertise in your niche as you gain experience working for your clients or selling to your customers. And, you’ll learn a lot about yourself as you challenge yourself to be creative, passionate, and resilient as you carve out a place in your market.
Running a micro business is, among many things, a huge growing experience. You want to grow your business in terms of numbers, but you also want to grow the depth and value of what your business offers by becoming a better business owner. Then, you’ll gain more than the flexibility and freedom of working in the gig economy. You’ll also gain the fulfilment.