Market Structures
Market Structure of a Cosmetologist
Nedra Dennis
ECO/365
Feb.11, 2013
Matthew J. Angner
Market Structure of a Cosmetologist
We will identify the market structure of a Cosmetologist also known as a hairdresser. Also how a Cosmetologist differentiates from other alternatives and the competitive strategies that might be used by the organization to maximize profits over the long run.
As a Cosmetologist which I am in, the market structure would be a sole proprietorship. As a sole proprietor you determine policies and also the decision making, assume expenses, receive profits, and bear all losses. You make my own rules and responsible to meet all duties and obligations of running the business. Sole proprietorship is the oldest and most common type of business firm in the United States. Most are small and account for only 7% of all business receipts. More common and known as sole proprietors are car repair shops, small grocery stores, barber shops and also some small farms. Also insurance is needed such as liability, malpractice, and burglary, do not let the policies lapse while you remain in the business. Become familiar with the codes of your city and state regarding the business that you are in.
There are advantages and disadvantages of being a sole proprietor. An advantage would be that it is easy to get start up if you have the right finances and enough to keep you in the red for the first few years due to not making a large enough profit for those years. Typically it takes almost five years to build up a good clientele to see that profit. Also another advantages of a sole proprietor would be that you are your own boss a you get to keep the profit if your business is a success which is rare of turning a small business into a successful business. You have the opportunity into hiring people who would come as individual contractor by booth renting, a salaried employee, or do a 50/50 split if they are trying to build up their clientele. Also a sole proprietor
Nedra Dennis
ECO/365
Feb.11, 2013
Matthew J. Angner
Market Structure of a Cosmetologist
We will identify the market structure of a Cosmetologist also known as a hairdresser. Also how a Cosmetologist differentiates from other alternatives and the competitive strategies that might be used by the organization to maximize profits over the long run.
As a Cosmetologist which I am in, the market structure would be a sole proprietorship. As a sole proprietor you determine policies and also the decision making, assume expenses, receive profits, and bear all losses. You make my own rules and responsible to meet all duties and obligations of running the business. Sole proprietorship is the oldest and most common type of business firm in the United States. Most are small and account for only 7% of all business receipts. More common and known as sole proprietors are car repair shops, small grocery stores, barber shops and also some small farms. Also insurance is needed such as liability, malpractice, and burglary, do not let the policies lapse while you remain in the business. Become familiar with the codes of your city and state regarding the business that you are in.
There are advantages and disadvantages of being a sole proprietor. An advantage would be that it is easy to get start up if you have the right finances and enough to keep you in the red for the first few years due to not making a large enough profit for those years. Typically it takes almost five years to build up a good clientele to see that profit. Also another advantages of a sole proprietor would be that you are your own boss a you get to keep the profit if your business is a success which is rare of turning a small business into a successful business. You have the opportunity into hiring people who would come as individual contractor by booth renting, a salaried employee, or do a 50/50 split if they are trying to build up their clientele. Also a sole proprietor
References: Demystifying Economics by Allen W. Smith, Ph.D.