Ch 22 - The Skin Care Business Flashcards
When should you confirm that you are in compliance with all local, state, and federal regulations in order to avoid the risk of violations
Before opening your salon
Why should you contact local authorities after confirming your ability to own and operate a salon
To investigate necessary business licenses and regulations
Whose assistance should you seek out if you do not understand your obligations as a business owner
Attorney and accountant
What does OSHA oversee
Workplace safety
What is the purpose of a noncomplete clause within an agreement to buy an established salon
To ensure the seller does not go on to offer similar services to the same market
What procedures should be spelled out in a security checklist
Opening and closing procedure
What is a good approach for a business owner to have regarding lapses in insurance coverage
Coverage should never lapse
What key information is supplied by accurate daily reports
Gross income and cost of operations
When answering the phone, how can you clients know you are eager to serve them
By answering in a sincere, welcoming tone of voice
What should you REFRAIN from doing when using the phone
Chewing gum
What is the correct term for the money needed to invest in a business
Capital
What are consumption supplies
Supplies used to conduct daily business operation
What are retail supplies
Item available for sale to clients
What is NOT a characteristic of a corporation
Ownership limited to one individual
What is the term for the particular identifying characteristics of an area or population including age, sex, or ethnicity
Demographics
What is an employee manual
Handbook or guide containing data about salon operations
What is an example of a fixed cost
Rent
What BEST describes a partnership
Multiple people sharing ownership of a business
What term refer to employees that work for you
Personnel
What is the PRIMARY purpose if creating a procedural guide
Standardizing operations
What is profit
Money left after expenses are subtracted from revenues
What is the MAIN goal of public relations
Achieving a certain desired behavior
What is revenue
Income generated from selling products and services
Who generally pays for the utilities an esthetician uses in a booth rental arrangement
Esthetician
What is a business plan
Strategy for understanding key elements in developing business
What should you do 24 to 48 hours before an appointment with a client
Confirm the appointment with the client by phone
What should you do when leaving phone messages
Address the client by name
What is true of the front desk in a salon of spa
It is the center of business operation in the salon
What do you gain through education
Knowledge you need to operate a profitable business
When should you become familiar with the basic business principle of accounting
Before you open your business
What business type requires the proprietor to bear losses alone
Sole proprietorship
What sort of person might thrive by operating a sole proprietorship
Independent self motivated individual who likes to be in charge
What is a characteristic of someone who might thrive in a partnership
Enjoys the security of working with others
When should you learn as much as possible about a prospective partners ethics and philosophies
Before entering into any binding agreement
What is one of the effects of incorporating
Helps to protect personal assets
What does a corporation accomplish by issuing stock certificates or shares
Raising capital
What is a sole proprietorship
Business owned by one person
What is the term for business expenses that fluctuate
Variable costs
What is the right approach for conflicts involving employees
Responding quickly and diplomatically
What do employees typically regard as the leader of the team in the salon
Manager
What aspect of employee relations includes active listening
Positive communication
What is an employers TOP financial priority
Payroll
What costs should you cover for employees to the best of your financial ability
Benefits
What happens when stockholders buy additional shares of stock
They increase their ownership interest in the corporation
What type of business is managed by a board of directors
Corporation
Why should you require the services of a competent lawyer and tax accountant if you want to form a corporation
To ensure compliance with complex state rules and regulations
What is a benefit of renting a booth or space within an established salon
You gain experience by running a business on a small scale
What are two of the MOST important factors when choosing the location of your salon
Visibility and accessibility
What is the term for location a business close to other business that offer different products or services
One stop shopping
Why is parking a critical element in attracting business
Safety and convenience are important marketing features
What is a function of the federal agency called the Small Business Administration (SBA)
Helping small businesses succeed
What is true of financial management
It is the cornerstone of a successful business plan
What helps you to forecast (make predictions) about your business
Being familiar with specific costs related to running the business
What should your dispensary feature in addition to ease of mobility
Adequate storage space
What evokes a professional ambiance in the salon
Style of the salon
What do you communicate to your employees by setting clear goals and objectives and by acting consistently
That you are a person if your word
What is the term for items you might offer your employees such as tickets to educational conferences
Incentives
How quickly should you answer the phone in a professional setting
Within three rings
What should you do after asking a caller for permission to put the caller of hold
Allow enough time for a response
What is the protocol for missed calls in a professional setting
Check messages often and respond as quickly as possible
