Marketing Strategy
Describes how you plan to tell the world about your product
Assets
Comprise all the property a person owns. Includes physical property, such as a house, car, antiques, jewelry, gold or silver, collections of valued goods, like stamps or coins,or any item with a cash value
Net Worth
Assets minus liabilities
Sole Proprietorship
A business owned and operated by one person
Partnership
A business owned by two or more persons. Partners share all costs of opening, operating and maintaining the business as agreed
Corporation
A legal entity. Owned by it's shareholders, or members that have funds invested in the company
Accountant
A financial advisor who can explain in greater depth the types of business ownership and their tax benefits and liabilities
Market Need
Determining how many other skin care centers and estheticians are in the area is the first step in gauging the market need
120 to 150 sq feet (11 to 14 sq meters)
The size of an efficient working space
Track Record
When you have a good relationship with your bank, and paid down your debt
Line of Credit
A reserve of cash that you can draw upon to meet operating expenses if you have a slow month or two
Fixed Rent
A set dollar amount paid each month to the lessor
Variable Rent
A set dollar amount paid per month plus a percentage of the total monthly income. Common in malls and large shopping centers
Malpractice
A policy that protects the skin care center owner from financial loss that can result from an employee's negligence while performing skin care services on clients
Property of Premise
A policy that covers the actual skin care center equipment and physical location in case of natural disasters, fire, theft or burglary, or accidents occurring at the business. Will pay a claim if someone is injured on the premises
Worker's Compensation
A state controlled insurance required by law
Income
All payments received from clients for services performed and home care products purchased.
Revenue
Also referred to as income
Operating Expenses
The costs incurred in the day-to-day running of the skin care center. Two types of operating expenses: fixed and variable
Fixed Expense
Costs that do not change from month to month for at least one year, and would include the rent or mortgage payment, salaries and insurance.
Variable Expense
Costs that can change on a monthly basis and would include utilities, supplies, cost of promotions, postage and taxes
Projection
An estimate of what you think you will earn in revenues, and what you think you will pay out in expenses
Social Security
Planned savings/retirement fund for every worker in the US.
State Sales Tax Permit
Skin care center owner applies for this before collecting tax on products or services sold
6 Months
How long to keep records of daily sales and services
Commission
Salary
Salary Plus Commission
3 ways an employee can be paid:
Commission
Pay structure that is based on a percentage of the dollar income the individual esthetician generates by serving clients
Salary
A compensation system that guarantees a set income on a weekly or monthly basis
Salary-plus-commission
Pay structure that guarantees an employee a certain amount of money on a regular basis and provides additional income when an esthetician meets predetermined benchmark goals
Inventory (Stock Quantity)
All products purchased by the skin care center owner for use during client services and for retailing
Inventory Control
Applies to procedures in the skin care center to ensure that products are accounted for from the time they are added to the inventory until they are sold or used
Liabilities
Money you owe
Direct Mail
The most selective and effective form of advertising for local businesses
Advertising
Incorporates all activities that attract attention to your skin care center and create a positive impression