Affects Sole Partnership Has

For this discussion board post I interviewed, a longtime friend and Cosmetologist- Dana Long. We discussed the nature of her business according to the prompts from the text Fundamental Accounting Principles, (Wild, Shaw, & Chiappetta, 2013).

Dana is the owner of Hair Cuts LLC. Ms. Long operates her business as a sole proprietorship, Hair Cuts by Diane provides a variety of hair care services for profit such as client consultations to promote healthy hair, product recommendations for hair care, and other services. Dana also charges potential employees/hairstylists monthly rental fees to rent space at her place of business. The monthly fees she receives from employees along with the sales of services provided for hair care add to the revenue of her business. Ms. Long mentions another important aspect of operating this type of a business as a licensed provider; she must adhere to guidelines set by the Department of Professional Regulations (D.P.O.R), which sets mandates for products and services rendered (Department of Professional and Occupational Regulation, 2012).

Choosing this type of business was important to Diane because it allows her to set professional goals that she would not have been able to attain working for someone else. She states that owning her business as a sole proprietor allows her to make operational decisions according to her standards, which is to “build a solid customer base with long lasting relationships, and to establish a reputable business.” Dana shares both the advantages and disadvantages of operating this type of business. Some of the advantages she mentions are being able to control her own schedule, and making suggestions/decisions with her clients as opposed to being told how to working for other companies. The disadvantages she mentioned are the expense of having to provide for her own healthcare insurance, which is a huge expense according to Dana, also the contributions she has to make to her retirement fund account.