Is driving for Uber a small business? It can be. You might not have employees, but you still have overhead, clients and a service to sell – your driving. The vast majority of drivers will operate as a sole proprietorship, but there are a few rideshare drivers that will incorporate or form an LLC.
Even if you’re not one of those few drivers that choose to incorporate, you can still treat driving for Uber like a business.
These concepts can be used in many small businesses.
Run Your Operation Like a Business
A lot of one-person businesses operate as a sole proprietorship. But because they operate like a business, no one would ever know the difference. Ridesharing should be treated like a business if it’s a major source of income for you.
You can apply the same principals to your freelancing business if you have one.
- Log everything. Uber drivers should be logging their mileage. You can do this manually with a log written by hand, but there are also apps that can help: SherpaShare is one of many options available. Freelancers should be logging the amount of time they work to determine their true hourly pay and prices.
- Track expenses. Tax season hits everyone – even small business owners. Make sure that you track all of your expenses. QuickBooks offers a variety of solutions that can help you properly manage your expenses.
- Bank accounts. It’s never a bad idea to create a separate bank account for your Uber earnings. You can also create a separate credit card account or debit card that will be used for all of your expenses, such as gas or making repairs to your vehicle.
Small business owners often choose to be an owner because they want the freedom of making their own hours.
But this can also be a very bad thing.
Without a set schedule, you’ll find yourself sleeping in late, working less and not meeting your financial goals. It’s important to make a basic schedule, which can change weekly or be slightly altered, so that you can reach your business and financial goals.
Speaking of finances, a lot of rideshare companies offer a sign up bonus. Uber pays drivers for reaching certain milestones, such as $500 for giving 60 rides. Make sure that you know the potential bonuses you can receive when working for a rideshare company.
If you find yourself not making enough money in a market, do what any other business would do: research the competition.
This may mean driving for a competitor, or this can also mean researching other local markets. You might drive in a smaller city that you know, but if you’re willing to commute a little further, you’ll make a lot more money.
Follow the trends, too.
If a major concert is being held at a nearby stadium, the pay will be much higher. Follow major events in your area, and leverage these hectic times to pad your bottom line. This is the same as a freelance programmer that chooses to learn a new programming language to meet an in-demand market.