Dear Wanda,

After reviewing your business, I have noticed that you are working for longer than recommended. Working for 15 hours a day for 7 days is very exhausting and can affect your health. You own the business meaning it is a sole proprietorship but considering the workload, I would advise you to bring in some people. You can do this by employing some people to handle certain aspects such as bookkeeping or bring in a partner. Bringing in a partner is the better option because paying people will reduce the profits but a partner will come in with more capital.

For now, the internal stakeholders in your business are your friends who help you regularly and your brother in law. I noticed you have not included the payments to your friends in the expenses. Though the payment is not in cash, it is still an expense because the dog treats have been baked with bought law materials. You should include the cost of the dog treats as a salary expense.  Your internal stakeholders are your customers and suppliers of law materials. However, if you decide to expand the business, you will have to obtain a business license and pay taxes making the government a stakeholder.

Now that the website is fully functional, you expect more customers.  You should consider taking a loan to expend your business or bring in a partner. You also need to employ someone to do the book keeping so that you can concentrate fully on the business expansion. However, you have to consider whether expansion is viable considering the demand. Expansion will require you to move to a bigger kitchen, acquire a business license, employ some people and acquire more capital. Below is a structural representation of your business.

Structural representation of Salty Pawz Business

Response to Rosalie Navarro

Great analysis Rosalie, salty Pawz is a sole proprietorship with Wanda as the owner. However, she has two friends and a brother in-law helping her due to a high workload. I think Wanda should consider employing people to help her fulltime or include some partners in her business. She is working 15 hours a day for 7 days and still has help from friends.

Wanda as the business owner is taking care of all business aspects and is prone to making mistakes. A good example is that she has not included the dog treats she pays her friends as an expense. That is an omission in bookkeeping. I feel that Wanda should employ someone to do book keeping while she manages other aspects such as baking. This will also help her work less. In addition, if she considers expanding her business, she will need to vacate to a bigger kitchen and employ other people to help her.

Response to Dana Jackson

Great view Jackson, I agree with you that Wanda is overextending herself. She is working for long hours for the whole of the week. She needs to evaluate her business and create time to relax. Overworking can make her inefficient and prone to mistakes. Her major external and internal stakeholders are her two friends, brother-in-law, customers, and the suppliers. Though the two friends who helps her on a part time basis are paid using dog treats, that is not included in her expenses. She should also consider paying her brother-in-law to motivate him. If she ever consider expanding her business, that would mean increased cost and capital. She will require a bigger kitchen, a business licence, and full time employees. She has to consider whether the cost of expansion will be covered by the demand.  I think she can also consider on counter sale instead of concentrating on shipment only.

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