the salon business miladys standard cosmetology cosmetology:
TRANSCRIPT
The Salon Business
Milady’s Standard Cosmetology
Cosmetology:
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
“You don’t drown by falling in water; you only drown if you stay
there”
Zig Ziglar
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Objectives• Describe the two ways in which you may go
into business for yourself• List the factors to consider when opening • a salon• Name and describe the types of ownership
under which a salon may operate• Explain the importance of keeping accurate
business records
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
• Discuss the importance of the reception area to a salon’s success
• Demonstrate good salon telephone techniques
• List the most effective forms of salon advertising
Objectives
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Going into Business-Booth Rental
• Responsible for– Own clientele– Supplies and
inventory– Record keeping– Accounting– Tax liability
– Malpractice insurance
– Health insurance– Purchasing and
budgeting– Advertising
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Booth Rental• Advantages
– Small initial investment– Minimal expenses
• Disadvantages– No paid days off– No sick leave– No paid vacations
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Opening Your Own Salon• Location
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Opening Your Own Salon• Written agreements/business plan• Business regulations and laws• Insurance• Salon operation• Record-keeping• Salon policies
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Location, Location, Location
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Types of Ownership• Proprietorship• Partnership• Corporation
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Purchasing Existing Salon• Written purchase agreement• Inventory statement• Investigate default on payments• Identify correct owner• Use salon name and reputation (blue sky)• Disclosure of clientele information• Non-compete clause
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Drawing Up a Lease• List exempt equipment
and fixtures that are separate from lease
• Agree on necessary renovations
• Clarify option to sub-lease
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Protection Against Fire, Theft, Lawsuits
• Keep premises secure and locked• Purchase insurance• Know laws and sanitary codes• Keep accurate records
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Business Operation• Sufficient investment capital• Management efficiency• Good business procedures• Cooperation between management and
employees• Trained and experienced salon personnel• Excellent customer service• Service pricing
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Allocation of Funds• Average expenses• Importance of
record keeping
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Purchase Records• Maintain perpetual inventory• Prevent overstock/shortages• Monitor pilfering• Establish net worth of business
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Service Records• Keep record of all treatments and retail
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Planning Salon Layout• Flow and volume of services• Adequate space
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Personnel-Hiring Considerations
• Skill level• Personal grooming• Image as it relates to the salon• Overall attitude• Attitude• Communication skills
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Payroll and Employee Benefits• Meet payroll obligations• Offer good benefits• Provide employee evaluations• Create and stay with tipping policy• Put compensation plan in writing• Create incentives• Develop effective salon policies
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Managing Personnel• Be honest with employees• Expect the best• Be a mentor• Share information• Follow the rules• Be reliable• Teach them what you know
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
The Front Desk• Reception area• Receptionist
(salon quarterback)
• Booking appointments
• Appointment book
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Use of Telephone• Make or change appointments• Seek new business• Determine why client was lost• Remind clients of needed services• Answer questions• Handle complaints• Receive messages• Orders equipment and supplies
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Good Telephone Usage• Use pleasant telephone voice• Show interest and concern• Be polite, respectful, courteous• Be tactful
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Incoming Calls• Give cheerful, clear greeting• Answer promptly• Provide requested information• Do not carry on a side conversation
while on the phone
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Booking by Phone• Know services, products, costs• Know salon personnel’s skills• Be fair when making assignments• If requested styling is unavailable
– Suggest another time– Suggest another stylist– Offer to call if there is a cancellation
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Handling Complaints by Phone• Maintain self-control• Be tactful and courteous• Employ active listening skills• Maintain a sympathetic tone• Don’t interrupt• Resolve quickly and effectively
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Advertising• Promote salon favorably• Attract and hold attention• Referrals are best form of advertising• Develop ads (or outsource)• Annual budget–3% of gross income• Plan ahead for holidays
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Methods of Advertising• Newspapers• Direct mail• Classified/yellow pages• Giveaway promotional
items• Window display• Radio
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
• Television• Community outreach• Client referrals• Contacting former clients• Telemarketing• Videotaped promotions• E-mail newsletters
Methods of Advertising
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Selling in the Salon Much of salon’s
success revolves around the sale of additional salon services and retail products, which increase salon’s revenue
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Summary and Review• What are two ways in which you may
go into business for yourself?• List 5 factors to consider when opening
a salon
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Summary and Review• Name 3 types of ownership under
which a business may operate• What purpose do accurate records
serve?
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
• What 2 types of supplies make up a beauty salon’s inventory?
• Why is the reception area of a salon important?
• Why is the receptionist called the salon’s “quarterback”?
• Explain the elements of good telephone technique
Summary and Review
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
• List six different kinds of advertising
• What is the best form of advertising and why?
Summary and Review
MILADY’SStandardInstructor Support SlidesCOSMETOLOGY
Congratulations!
You’ve just completedone unit of study toward
program completion!