Milady Chapter 32 The Salon Business

Brand Identity

• Brand identity expresses uniqueness and aesthetic; encompasses what the business sells and how it differentiates itself.

Vision Statement

• A long-term projection of future business success, illustrating how the business will appear when fully realized.

Mission Statement

• Serves as an operational guide defining core values, overall goals, and direction for decision-making within the company.

Goals

• Benchmarks established to measure progress toward fulfilling the mission and vision.

Business Timelines

• 1 Year Timeline: Complete all setup aspects of starting the business.
• 2-5 Year Timeline: Focus on client growth, employee relations, and profitability.
• 5-10 Year Timeline: Explore expansion opportunities such as new locations or enhanced facilities.
• 11-20 Year Timeline: Shift from hands-on cosmetologist to managerial role while planning for retirement.
• 20+ Year Timeline: Options include business sale or mentorship for successor to manage operations.

Business Feasibility

• Evaluates practical concerns to determine if the envisioned business can attract the necessary clientele.

Business Name

• Should convey the nature of the business and highlight distinguishing characteristics, affecting client perceptions.

Location Selection

• Key factors include high visibility, accessibility, sufficient parking, and compliance with handicap requirements.

Written Agreements

• Legal documents such as leases and contracts that articulate roles and responsibilities among involved parties.

Business Plan

• A comprehensive plan detailing current and five-year future business operations, inclusive of services, demographic targeting, and financial projections.

Demographics

• Data concerning population characteristics such as race, age, income, and educational levels important for market analysis.

Regulations and Laws

• Compliance with local, state, and federal regulations is essential when opening a salon or renting a booth.

Insurance

• Protects against potential financial losses due to malpractice, liability, burglary, and other risks.

Salon Operations

• Consists of routine processes necessary for maintaining income generation and business value.

Record Keeping

• Essential for maintaining accurate financial records to ensure compliance and inform business decisions.

Salon Policies

• Established rules to ensure fair treatment of clients and employees, promoting consistency.

Types of Salon Ownership

• Varieties include sole proprietorship, partnerships, and corporations/franchises.

Sole Proprietor

• Individual responsible for all business decisions, profits, expenses, and losses.

Partnership

• Business structure where ownership is shared by two or more individuals.

Capital

• Financial resources required to invest in starting and running the business.

Corporation

• Ownership model protecting personal assets, optimizing tax efficiency, and reducing financial liability.

Franchises

• Allows operation under an established brand in exchange for fees and adherence to franchise operating guidelines.

Executive Summary

• A succinct overview of the business plan outlining goals and objectives.

Organizational Plan

• Details management structure, employee roles, and administrative operations.

Leasing

• Contracts that define ownership, responsibilities for repairs, and operational expenses.

Business Characteristics

• Required traits include business acumen, good judgment, and a strong understanding of sound principles.

Full-Charge Bookkeeper

• A skilled individual responsible for comprehensive financial management, including sales and payroll records.

Consumption Supplies

• Daily operational supplies necessary for business functionality.

Retail Supplies

• Products available for purchase by clients as part of the salon’s offerings.

Booth Rental

• Renting a space in a salon, requiring a minimum booking of 70% for financial viability.

Salon Layout Planning

• A primary focus is on maximizing efficiency and ensuring sufficient space for operations.

Personnel Management

• Considered one of the most complex aspects of running a salon.

Receptionist Role

• Vital position responsible for creating first and last impressions and managing appointment scheduling.

Social Media

• Used as a tool for engagement and communication with both clients and potential customers online.

Advertising

• All promotional activities aimed at enhancing salon visibility and reputation, with satisfied clients serving as the best form of advertisement.

Explore key concepts from Milady Chapter 32 focused on the salon business. Understand how to create a brand identity, develop vision and mission statements, and set your business apart in the beauty industry. This quiz will help reinforce your learning and prepare you for practical applications.