Running a solo business is full of challenges, and though sole traders and freelancers are uniquely adaptable and resilient, they frequently encounter the same common gripes and bugbears that come with sole trader life. According to recent data from platform Sole, cash flow, taxes, and admin caused the biggest headache for Australia’s 800,000+ sole traders in 2025.
Sole founder and CEO Johann Oberholzer says, “With more Aussies becoming their own boss in 2025, we are seeing an increase in people encountering the same problems time and time again. Some of these are easily solvable, but some require further training and support to make life easier for this significant portion of the small business sector.”
Data shows that income varies by industry but can range from an average of $25-48 per hour. According to Sole’s own figures, the average total of invoices sent per business is $14,845.82.
Johann says, “Sole traders work incredibly hard, yet many struggle to find the right balance between competitive pricing and sustainable earnings. While the hourly rate and invoice values depend on industry, not understanding industry benchmarks and optimising pricing strategies can leave sole traders with an income that falls short of expectations.”
Sole traders are quoting an average of $4,396.50 per quote but may forget to include their business details, an itemised breakdown, and the customer’s details, and so on. This could lead to them not being paid in a timely manner or cause confusion for customers if they don’t differentiate a quote from an estimate, which could be subject to change.
Handling too many clients can be another hidden trap for sole traders who find that they receive diminishing returns for the time spent servicing a larger number of customers. The secret to sole trader peace of mind it seems is retaining a core group of clients that make up the majority of the business’ income. Sole data indicates the average client count per business is 3.5.
Managing expenses is unsurprisingly another headache for solo traders. While the average expense total per business is $1926.70, sole traders are struggling to keep expenses down while retaining money in the business.
On this front, tax is a huge issue for freelancers and sole traders particularly in the face of increased scrutiny from the ATO. Common tax pitfalls for sole traders include not managing their BAS correctly and forgetting to hold onto a portion of income for tax. The average tax per business in the first year may only be $1,547.70, but fines for non compliance and unpaid debts can go into the thousands.
Finally, as much as 64% of sole traders were found to be using excel spreadsheets before switching to the Sole app. Johann says, “Many sole traders are wasting hours of their limited time on outdated tools to manage their businesses. Come tax time, this can blow out to another huge time trap as sole traders attempt to disentangle expenses and income that they haphazardly recorded in a spreadsheet. Making the switch to a streamlined platform will save them the headache of working out their financials and there’s the added benefit of being able to view their business performance at any given moment, which is essential for sole traders who need to keep an eye on cash flow.”
He concludes, “With a 205% increase in Sole app sign ups between 2023/24, more people are choosing to take control of their careers and enjoy the flexibility and freedom of self-employment. The surge in the number of Aussies choosing to try their hand at sole trading in 2025 is exciting, but it also comes with challenges as sole traders quickly realise that managing finances, pricing their services correctly, and handling their tax obligations can be overwhelming. This is why we are seeing more sole traders turn to platforms like Sole for the support they need to navigate these common issues and build a business that is sustainable and satisfying.”