Questions and Answers
When gathering accurate financial information for purchasing an existing salon, it is often helpful to consult with a(n) ____________________.
Certified public accountant
Another name for an individual owner who determines policies & has the last say in decision making is a ______________________.
Sole proprietor
Supplies used in the daily business operation are considered _____________________.
Consumption supplies
Supplies purchased by a salon that are to be sold to clients are ______________________.
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When planning & constructing the best physical layout for a salon, the primary concern should be ____________________.
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It should always be your top priority to meet which of the following financial obligations?
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Which of these is considered the very best form of advertising for a salon?
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A(n) ___________________ is an essential set of benchmarks that, once achieved, helps you realize your mission & your vision.
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When choosing a location for your business, you should select one that _____________________.
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What is the minimum number of stockholders allowed for a corporation to exist?
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If you operate your salon in a building that you own, it is not necessary to purchase which of the following types of insurance?
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Which of these terms refers to your staff or employees?
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Human resources does not cover which of the following concerns?
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Booking appointments is primarily whose job?
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The first goal of every business should be to ____________________.
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Which part of a business plan outlines employees & management levels & describes how the business will be run administratively?
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Which part of a business plan summarizes your plan & states your objectives?
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Which part of a business plan includes projected financial statements, actual statements, & financial statement analyses?
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Which part of a business plan ensures that all clients & employees are treated fairly & consistently?
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Which part of a business plan is a long-term picture of what the business is to become & what it will look like when it gets there?
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Which part of a business plan outlines all of the research obtained regarding the clients your business will target & their needs, wants, & habits?
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Which part of a business plan includes the owner's resume, personal financial information, legal contracts & any other agreements?
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Which part of a business plan is a description of the key strategic influences of the business?
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An agreement to buy an established salon does not typically include which of the following?
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Costs to create even a small salon in an existing space can range from ____________________ per square foot.
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A form of business in which a firm that is already successful enters into a continuing contractual relationship with other businesses is _____________________.
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Smooth business management depends on sufficient investment capital as well as ____________________.
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Someone who is trained to do everything from recording sales & payroll to generating a profit-and-loss statement is _____________________.
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For a cosmetologist who has a large, steady clientele & who does not have to rely on the salon's general clientele to keep busy, ____________________ may be a desirable situation.
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With each call, a gracious, appropriate response will help build ____________________.
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Study Notes
Salon Business Essentials
- Consulting a certified public accountant is important for accurate financial information when purchasing an existing salon.
- A sole proprietor is an individual owner with the authority to make all policy decisions for the salon.
- Consumption supplies refer to items used in daily operations of the salon.
- Retail supplies are products bought by the salon for resale to clients.
Planning and Operations
- Focus on maximum efficiency when planning the physical layout of a salon to enhance workflow.
- Payroll should be a top priority in financial obligations for a salon.
- Satisfied clients serve as the best form of advertising for any salon.
Business Structure and Goals
- Establishing goals is vital as they set benchmarks to help realize the salon's mission and vision.
- Choose a location for the salon that offers easy access to attract more clients.
- A corporation can exist with a minimum of one stockholder.
Insurance and Personnel
- For salon owners operating in their own building, renter's insurance is unnecessary.
- The term personnel encompasses the salon's staff or employees.
Sales and Appointment Management
- Concerns about increasing sales do not fall under human resources.
- The primary responsibility for booking appointments lies with the receptionist.
Client Retention and Business Plans
- The first goal of every business should be to maintain current clients.
- An organizational plan outlines the management structure and administrative functionality of the salon.
- The executive summary provides a concise overview and states the objectives of the business plan.
- Financial documents include projections and analyses relevant to the salon's finances.
Policies and Vision
- Salon policies ensure fair treatment of all clients and employees.
- A vision statement articulates the long-term aspirations of the business.
- The marketing plan outlines research about the target clientele and their needs.
Supporting Information in Business Plans
- Supporting documents within the business plan consist of resumes, financial data, and legal agreements.
- The mission statement describes key strategic influences driving the business.
Additional Considerations
- An agreement to purchase an existing salon typically excludes an analysis of future maintenance.
- Costs to create a small salon can range from $75 to $125 per square foot.
- A franchise involves a successful firm forming a contractual relationship with other businesses.
- Smooth management relies on sufficient investment capital and excellent customer service delivery.
- A full-charge bookkeeper handles comprehensive financial tasks, from payroll to profit-and-loss statements.
- For cosmetologists with a steady clientele, booth rental can be an advantageous arrangement.
- A positive, gracious response during each client call can enhance the salon's energy level.
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Description
Test your knowledge on the key terms and concepts from Chapter 32 of the Milady Exam Review, focusing on the salon business. This quiz covers essential vocabulary including roles in salon ownership and financial considerations crucial for aspiring salon professionals.
