Hi, I'm Emily Nava and I'm going to be talking about Market Structures and Business Organizations. I run a Sole Proprietorship, meaning I own this place all by myself! Market structure greatly effects my business. This is a quite competitive market. I run in a monopolistic competition meaning other sellers offer similar products. I have to fight to get the most business since there are other hair salons.
This sole proprietorship I run gets quite competitive. There is a few other salons around here, and they try and get people to go to THEIR business. I try to advertise and get customers drawn to business. My products are all cruelty free so I have a differentiation from my products!
My friend offered to run this business with me and be a Partnership, but I chose to run this by myself.
If we would have chose to work together we would have had to make compromises, and make decisions together. We also would have to make compromises and split the cost, etc.
Instead, I make all the decisions myself and I am completely liable for everything that goes on in this salon.
Running solely on my own has many advantages. I have flexibility of being taxed, and my own choices. Yet, there are some disadvantages to being alone. I cannot have other opinions, and I cannot pay myself for other wages.
Thank you for listening to me talk about my Sole Proprietorship Hair Salon. Make sure you fully understand market structure and business organizations before starting or becoming a part of a company!