Chapter 32 - The Salon Business

2 to 5 years

Period of your business timeline should you focus on tending to the business, its clientele, and its employees to grow and expand the business so that it is profitable

5 to 10 years

Period of your business timeline should you focus on adding more locations, expanding the scope of the business

11 to 20 years

Period of your business timeline might you move from being a working cosmetologist into a full-time manager, and planning for your eventual retirement

Primary Clientele

What the location of your business should reflect. The type of clients you wish to serve

OSHA

Federal agency requires that the ingredients of cosmetic chemicals and products be available to employees for safety

SDS (Safety
Data Sheet)

Where ingredient and chemical composition information is listed for safety purposes

Sole Proprietor

An individual who determines policies, decision making, and bears all losses

Individual Ownership

A salon or suite that is owned and operated by an individual

Capital for Investment

A major reason for entering into a partnership agreement; increases initial money available for business development

Incorporating

One of the best ways for a business owner to protect personal assets seperate from business assets. For example, should the business be sued, the owner's house would be safe from seizure.

Business Plan

A written plan that describes a business and foresees projections for the next five years

Salary

Compensation through which a stockholder of a corporation is required to pay unemployment taxes. A flat rate of pay without overtimes benefits

Vision Statement

Section of a business plan includes a long-term picture of what the business is to become. A mental picture and declaration of the future

Corporation

Business structure saves you money in taxes, provides greater business flexibility, and makes raising capital easier through stocks options and investment opportunities

Mission Statement

Section of the business plan provides a description of the key strategic influences of the business, such as the market it will serve, the services it will offer

Organizational Plan

Section of the business plan describes the administrative structure of the business

Lease

A written agreement that outlines the responsibilities for repairs and expenses between the building owner and the occupant

Record System

An organizational system for keeping track of all expenditures and profits. Should be simple and efficent, and easy to reference

Consumption Supplies

Supplies that are used and replaced in the daily business operation, such as gloves and neck strips.

Maximum Efficiency

Primary concern when planning and constructing the physical layout of a salon, beyond aesthetics

Payroll Obligation

A top priority in the allotment of funds. The employees must always receive their earned pay, even at the loss of the business

Receptionist

Point of contact and face for the salon, maintains the front desk area including booking appointments and greeting clients. The first and last point of contact for a client

Social Media

Internet-based promotional and communication tool, such as Instagram and Facebook.

Advertising

Newspaper or radio ads, social media, billboards, flyers and charitable events are all tools for this business promotion practice