Small Business Analysis
LDR 531 Organizational Leadership
Small Business Analysis
The Small Business Administration of the United States federal government defines as a small business “…as one that is independently owned and operated, is organized for profit, and is not dominant in its field (SBA, 2012).” In the area of “services”, although there is mostly no limit on how many employees form part of the business, annual receipts may not exceed $2.5 to $21.5 million depending on the type of services being rendered (SBA, 2012). In this small business analysis paper, the business profile of Shampoo, a local beauty salon and spa business will be analyzed and its organizational structures will be discussed in depth. Business Profile
Shampoo is a small business based on the SBA size standards table that limit the amount of annual receipts of beauty salon business to equal or less than $7 million. Shampoo was founded and owned by Frank Pagan and Linda Serrano, two local entrepreneurs with previous successful experiences working in the life and disability insurance field. The couple founded their beauty salon and spa business in Plaza Pradera near Rio Hondo, Bayamon in Puerto Rico in May 2006. They started their business with two administrative employees and with borrowed services from other technically trained personnel. The owners had a vision of providing innovative beauty salon and spa services, and created a company mission to ensure that all of the costumers feel like stars throughout their beauty salon and spa services experience. The employees that were part of the organization were all technically qualified in their respective field of work, and these employee’s values were completely in sync with the business vision and were all working together towards accomplishing the mission. In 2008, the owners sold their business to another entrepreneur and shifted their focus on founding a Christian non-denominational church in Levittown, PR. To this day this...
References: Headd, B., & Kirchhoff, B. (2009). The growth, decline and survival of small businesses: An exploratory study of life cycles. Journal Of Small Business Management, 47(4), 531-550. doi:10.1111/j.1540- 627X.2009.00282.x
Nickles, W. G., McHugh, J. M., & McHugh, S. M. (2010). Understanding business (9th ed.). Retrieved from The University of Phoenix eBook Collection database.
U.S. Small Business Administration. (2012). Small business certifications & audiences. Retrieved from http://www.sba.gov/category/navigation- structure/contracting/working-with-government/small-business- certifications-audiences
U.S. Small Business Administration. (2012). Table of small business size standards. Retrieved from http://www.sba.gov/sites/default/files/Size_Standards_Table.pdf
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