Unit 1.2: Introduction to IB Business Management

Characteristics of a sole trader

Lucy’s End-of-Year Diary Entry – December 31st

IB-Business-Management-Unit-1-2-Sole-Trader-Photographer-business-structure

What a year. Running my photography business here in Shanghai as a sole trader has been a rollercoaster—equal parts exhilarating and exhausting.

As a sole trader, I have complete control. I make every decision—what clients to take, how to price my packages, even how to brand my editing style. No partners, no shareholders, just me. I’ve had the freedom to explore creative projects, like shooting aerial rooftop portraits and offering bilingual photo sessions for Shanghai’s international community. It’s empowering. When people book Lucy Lens, they’re booking me. This autonomy is one of the biggest advantages of being a sole trader.

But it’s also one of the biggest challenges.

There’s no safety net. When my equipment was stolen at a night shoot in April, the cost came straight from my personal savings. As a sole trader, I face unlimited liability. There’s no legal distinction between my business and me. If I get into debt—or worse, get sued—it’s all on me. That thought never really leaves the back of my mind.

Financing is tough. Without a business track record or partners, banks view sole traders as high-risk. I’ve been denied a business loan twice this year. I had to turn to a crowdfunding campaign to finance a new lens. And growth? Limited. I can’t take on more work without sacrificing quality, but hiring staff feels too risky with my current revenue stream.

Still, I wouldn’t trade this for anything right now. Being a sole trader allows me to chase my vision without compromise. The business grows with me, and every success feels deeply personal. Yes, it’s slow. Yes, it’s stressful. But it’s also mine.

Here’s to surviving—and maybe thriving—as a sole trader in 2026.

QUESTIONS FROM THE CASE STUDY

  1. Outline the benefits and key characteristics of being a sole trader.
  2. Why might someone choose this form of business ownership, and what are the associated risks such as unlimited liability, limited access to finance, and growth constraints?