question

To be successful in the beauty industry, you should be prepared to be two things:

answer

1. attract employees and clients to your business 2.Maintain their loyalty over long periods of time.

question

T or F. Most salon owners have worked as stylists.

answer

True

question

You have no future plans to own your own business. Why is it still important for you to understand the rules of business that affect salons?

answer

.Business knowledge will serve you well in managing your career and professional finances, as well as your business practices.

question

The 2 main options for being your own boss are:

answer

1. owning your own salon 2. renting a booth in an existing salon

question

T or F. Salon owners do not usually work on clients of their own.

answer

.False

question

Another term for booth rental is?

answer

.Chair rental

question

In a booth rental arrangement, a practitioner generally: (4)

answer

1. Rents a station or work space in a salon from the owner 2. Is solely responsible for their own clientele, supplies, record keeping and accounting 3. Pays the owner a weekly fee for use of the booth 4. Becomes their own boss for a very small amount of money.

question

Booth rental is a desirable siutation for ____?

answer

cosmetologists who have large, steady clinetele and who do not have to rely on the salon's general clientele to keep busy..

question

What are the obligations of renting a booth? (13)

answer

.1. keeping records 2. Paying all taxes 3. Carrying adequate malpractice insurance and health 4. complying with all IRS obligations 5. Using your own telephone and booking system 6. Collecting all fees 7. creating all professional materials 8. purchasing of all supplies 9. tracking and maintaining inventory 10. Managing the purchase of products and supplies 11. Budgeting for advertising or offering incentives 12. Paying for all continuing education 13. Working in an independent atmosphere 14. Adhering to state laws and regulations.

question

Which state does not currently allow booth rental?

answer

.Pennsylvania

question

As a booth renter, you will not enjoy the same benefits as an employee of a salon would, such as __________.

answer

Paid days off or vacation time..

question

What is a vision statement?

answer

is a long-term picture of what the business is to become and what it will look like when it gets there..

question

How is a mission statement different from a vision statement?

answer

A mission statement is a description of the key strategic influences of the business, such as the market it will serve, the kinds of services it will offer, and the quality of those services. Vision statement is a long-term picture of what thte business is to become and what it will look like when it gets there..

question

A set of benchmarks that help business owners achieve their mission and vision is called _________.

answer

.Goals

question

What portion of the business timeline is devoted to tending to business, its clientele, and its employees?

answer

Years 2 to 5.

question

Why is the name you choose for you salon important? (3)

answer

1.How clients and potentioal clients perceive the business 2. it explains what it is 3.also identify characteristics that set your business apart from competitors

question

List the basic factors to carefully consider when opening a salon. (11)

answer

1.creat a vision and mission statement for the business with Goals 2. Creat a Business timeline 3. Determine business feasibility 4. Choose a business name 5. Choose a location 6. Written agreements 7. Business regulations and laws 8. Insurance 9. Salon operation 10. Record Keeping 11. Salon Policies.

question

What are the elements of a good business location?

answer

.Good visibillity, high traffic, easy access, sufficient parking, and handicap access

question

A(n) ______ is a written description of your business as you see it today and as you foresee it in the next 5 years.

answer

Business plan.

question

T or F. A business plan is legally binding once you have signed it.

answer

False.

question

What should be included in your business plan? (6)

answer

1. General description of the business 2. The services that it will provide 3. area demographics 4. Expected salaries 5. cost of related benefits 6. An operations plan that includes pricing sturcture and expenses.

question

What is meant by area demographics?

answer

Information about a specific population, including data on race, age, income, and educational attainment.

question

You may call on the services of a(n)_______ to help you gather accurate financial infomration.

answer

Certified public accountant.

question

What kind of laws must be complied with when you open a salon?

answer

Business licenses, permits, zoning and business inspections. must comply with federal occupational safety and health administration guidelines. OSHA requirments, hiring and firing, payment of benefits, contributions to employee entitlements.

question

You must also comply with federal _______________ guidelines to ensure you are operating your salon in compliance with safety regulations.

answer

Occupational safety and health Administration..

question

What kinds of insurance must you purchase when you open your own business?

answer

that guarantees protection against financial loss from malpractice, property liability, fire, burglary and theft, and business interruption. You will need to have disability policies as well..

question

What are salon policies?

answer

.are the rules and regulations adopted by a salon to ensure that all clients and associates are being treated fairly and consistently.

question

What are 3 types of ownership?

answer

1.Individual Ownership / Partnership 2. Corporation 3.Franchise

question

Describe a business that is owned by a sole proprietor.

answer

Is the individual owner and most often the manager of the business who: 1. Determines policies and has the last say in decision making 2. Assumes expenses, receives profits, and hears all losses..

question

Describe a partnership.

answer

two or more people share ownership although not necessariily equally.

question

Describe a business owned by a corporation.

answer

is an ownership structure controlled by one or more stockholders. .

question

What is capital?

answer

.Money needed to invest in a business.

question

What is a franchise?

answer

is a form of business organization in which a firm that is already successful enters into a continuing contractual relationship with other businesses operating under the franchisor's trade name in exchange for a fee.

question

It is important that all franchise locations: a. are run the same way b. Carry different products c. look differently

answer

A. are run the same way.

question

T or F. Choosing to run a franchise will guarantee you are successful.

answer

False.

question

List the 8 parts of a business plan.

answer

1. Executive Summary 2. Vision Statement 3. Mission Statement 4. Organizational Plan 5. Marketing Plan 6. Financial Documents 7. Supporting Documents 8. Salon Policies

question

If you choose to purchase an existing salon, your agreement to purchase should include: (10)

answer

.1. A financial audit to determin the actual value of the business. 2. Written purchase and sale agreement 3. Complete and signed statement of inventory 4. an investigation to determine whether there are defaults in the payment of debts if renting, lease or taking over a note. 5. confirmed identity of owner. 6. Use of the salon's name and reputation for a defintie period of time. 7. Disclosure of any and all infomration regarding the salon's clientele and its purchasing and service habits. 8. Disclosure of the conditions of the facility 9. Noncompete agreement stating that the seller will not work in or establish a new salon within a specified distance from the present location. 10. An employee agreement.

question

A lease should specify the following? (3)

answer

.1. Exemption of fixtures or appliances that might be attached to the salon so that they can be removed without violation the lease. 2. Agreement about necessary renovations and repairs, such as painting, plumbing, fixtures, and electrical installation. 3. Option from the landlord that allows you to assign the lease to another person.

question

What can you do to protect your salon against fire, theft, and lawsuits?

answer

1. Ensure that the business has adequate locks, fire alarm system, and burglar alarm system. 2. Purchase liability, fire, malpractice, and burglary insurace 3. Become familiar with all laws governing cosmetology and with the safety and infection control codes of your city and state. 4. Keep accurate records of the number of employees, their salaries, lengths of employment, and Social Securtiy numbers as required. 5. Ignorance of the law is no excuse for violating it. Always check with your regulatory agency if you have any quesitons about a law or regulation

question

To run a people oriented business you need: (2)

answer

1. An excellent business sense, aptitude, good judgement and diplomacy 2. A knowledge of sound business principles.

question

Smooth business management depends on the following factors: (8)

answer

1. Sufficient investment capital 2. Efficiency of management 3. Good business procedures 4. Strong computer skills 5. Cooperation between management and employees 6. Trained and experienced salon personnel 7. Excellent customer service delivery 8. Proper pricing of services

question

As a business operator, you must always know where your rmoney ____________.

answer

is being spent..

question

Proper ______ are necessary to meet the needs of local, state, and federal laws regarding taxes and employees.

answer

Business records.

question

______ is classified as receipts from service and retail sales.

answer

Income.

question

________ include rent, utilities, insurance, salaries, advertising, equipment, and repairs.

answer

Expenses.

question

______ help establish the net worth of a business at the end of the year.

answer

Purchase records

question

Supplies that are used in the daily business operation are _______ and those to be sold to clients are __________.

answer

1. Consumption supplies 2. Retail supplies

question

A good way to keep track of service records or client cards is by using a(n) ______.

answer

salon-specific software program.

question

How can you ensure that you will stay in business and have a prosperous salon?

answer

is to take excellent care of your clients. .

question

When planning a salon's layout, maximum _______ should be the primary concern.

answer

Efficiency.

question

If you plan to include a spa as part of your business, the spa area should be ______ from the service area.

answer

seperate.

question

The retail area in an upscale salon should be spacious, ________, and well lit.

answer

inviting

question

Ideally, you should consult with a(n) ________ to help you plan the layout of your salon.

answer

.architect

question

About how long does it normally take a new salon to begin operating a full capacity?

answer

about 6 months.

question

The term personnel refers to a salon's _____ or _________.

answer

staff or employees.

question

What determines the number of salon employees?

answer

The size of your salon will determine the size of the employees.

question

When interviewing potential employees, consider the following? (5)

answer

1. Level of skill 2. Personal grooming 3. Image as it relates to the salon 4. overall attitude 5. communication skills.

question

What are some ways you can share your success with your staff? (7)

answer

1. Make it your top priortiy to meet your payroll obligations. 2. Whenever possible, offer hardworking and loyal employees as many benefits as possible. 3. Provide staff members with a schedule of employee evaluations. 4. Creat and stay with a tipping ploicy 5. Put your entire pay plan in writing 6. Create incentives 7. Creat salon ploicies and stick to them.

question

T or F. It is not possible to learn how to manage other people; this is a skill that must come naturally to a manager.

answer

False

question

Name 2 important civil rights laws all employers must be familiar with:

answer

1. Equal Employment Opportunity Commission regulations 2. The Americans with Disabilities Act .

question

The best salons employ professional ______ to handle the job of scheduling appointments and greeting clients.

answer

Receptionists.

question

The reception area should be ____________.

answer

needs to be attractive, appealing and comfortable

question

The receptionist should be ___________.

answer

pleasant, greet each client with a smile and address each client by name.

question

The receptionist handles important functions such as: (6)

answer

1. Greeter 2. answering the phone 3. Booking appointments 4. informing professional that a client has arrived 5. Preparing daily appointment information for the staff 6. recommending additional services to clients

question

What additional tasks will a receptionist perform in the salon during slow periods?

answer

.straightening up the reception area and maintaining inventory and daily reports. making any necessary personal calls or otherwise being away from the front desk.

question

Appointments must be scheduled to make the most efficient use of everyone's __________.

answer

time.

question

A receptionist must have the following qualities: (3)

answer

1. Appearance that conveys your salon's image 2. Knowledge of the various services offered 3. Unlimited patience with both clients and salon personnel.

question

The appointment book may be an actual book that sits atop the reception desk, or it may be a _________ appointment book.

answer

computerized.

question

A major part of the salon business is handled over the _________.

answer

Telephone.

question

When using the telephone you should: (4)

answer

1. Have a pleasand voice, speak clearly, and use correct grammar 2. Show interest and concern when talking with a client or a supplier 3. Be polite, respectful, and courteous to all, even though some people may test the limits of your patience. 4. Be tactful. Do not say anything to irritate the person on the other end..

question

Incoming phone calls are the ______ of the salon.

answer

lifeline.

question

It is important to answer the phone _____.

answer

by the second ring.

question

When booking appointments what information should you ask for?

answer

take down the client's first and last name, their phone number, and the service booked

question

A practitioner is not available at the time a client requests. How can you handle this situation? (3)

answer

.1. suggest other times that the professional is available 2. If the client cannot come in at any otf those times, suggest another professional 3. If the client is unwilling to try another professional, offer to call the client if there is a cancellation at the de3sired time..

question

when handling complaints over the phone, how should you respond?

answer

self-control, tact, and courtesy, no matter how trying the circumstances..

question

The tone of your voice must be ___ and ______.

answer

Sympathetic and reassuring.

question

What is advertising?

answer

includes all activities that promote the salon favorable, from newspaper ads to radio spots to charity events that the salon participates.

question

Advertising must ___________.

answer

.Advertising must attract and hold the attention of readers, listerners or viewers.

question

What kind of advertising venues are available to salons? (11)

answer

1. Direct mail to mailing lists 2. classified advertising 3. E-mail newsletters and discount offers 4. Web site offerings 5. Giveaway promotional items or retail packages 6. Window displays 7. Radio advertising 8. Television advertising 9. Community outreach by volunteering 10. Client referrals 11. In-salon videos

question

An important aspect of a salon's financial success revolves around the sale of ________.

answer

.additional salon services and take home or maintenance products.

Chapter 32 THE SALON BUSINESS – Flashcards

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