My name is Camryn Mackay and this is my 5th Six Weeks Project about Market Structures, Business Organizations, and Sole Proprietorship in Monopolistic Competition.
I've finally opened my very own Coffee Shop and I don't have a partner, I own it myself. A Sole Proprietorship is a business structure in which I am accepting to take full responsibility for anything that could happen to my business. I have the least protection because I have Personal Liability. There are more shops around here that I will have to compete with.
Cam's Coffee Cafe
Monopolistic Competition/Market Structures
Monopolistic Competition is only one of market structure, including perfect competition, monopoly, and oligopoly . Market Structures are the characteristics of a market and the factors that determine how buyers and sellers interact, how items are sold.
I have had this Coffee Shop for 20 years now. I can't believe this lady is going to open on my street and create more competition. We have a monopolistic competition in which we use marketing to sell more product because we all sell very similar items. Maybe I can advertise a discount, I have to keep my customers here!
Sole Proprietorship/ Business Organizations
Hello my name is Camryn and I'm pleased to meet you, I just opened up a few doors down. My business is self owned and is considered a sole proprietorship, there are other choices including partnership and corporations. Business Organizations provides goods and services to customers, meeting their needs in any way.
Hello Camryn, I'm Walter, while it is nice to meet you I am very unhappy about the new shop being so close to mine. I also have a self owned business and know the ins and outs of keeping a business running smoothly. I guess if you need my help let me know and I can help you succeed as well or we could even become partners later.
I will think about that offer,Thank you so much!
Why Sole Proprietorship is a better choice than a partnership
Being Walter's partner would have it positives and negatives instead of being the only owner. If I became a co-owner then I would have to share my earnings with him and we would essentially make less money then we do right now. I wouldn't be able to make my own rules and hours without consulting him first and coming to an agreement. These things I have now keep me wanting to continue being my own boss and not accepting his offer.
Being his partner would relieve so much stress and responsibility off my shoulders and I'm sure he would agree as well. We would not have to worry so much about something going wrong because we split everything in two.
Why Sole Proprietorship Works
Each Organization has it's own advantages and disadvantages. My decision to be the only owner instead of having a partner or being a corporation means I get to keep all the money made from the business. I don't have to worry about anybody else trying to run or change my business in anyway. It is also not a legal entity and is not taxable, I do not have to file separate taxes for my business. There is so much freedom in being the only owner.
While there are many positives, there are negatives to it. If anything was to happen to me then I would not have anybody to take over and run my business so all my hard work would go away. I am also completely liable for any business debt that could come about.
Cam's Coffee Cafe
Why Sole Proprietorship would work in a Monopolistic Competition
Hey Walter, I thought about your offer and decided I would rather stay solo because in a monopolistic competition industry we are all competing in selling almost identical products. This industry is characterized by buyers and sellers. If anything happened I would be able to change my product to attract customers to my business instead. I want the freedom and ability to make money and run it as I please. Thank you for your offer and i wish you the best.
Hello Camryn, I believe that decision will be the best for both of us because we are not big companies. We will succeed in this industry by giving the customers what they want through quality and price. Good Luck and welcome to the competition!