ch 22 - vocabulary / terms Flashcards
booth rental
arrangement in which the esthetician is required to pay the owner a set rental fee, along with payment of utilities as agreed upon, to operate in a specific space within the owner’s establisment
business plan
- strategy for understanding key elements in developing business
- serves as a guide to making informed business decisions
- a written description of your business as you see it today, and as you foresee it in the next 5 years (detailed by year)
capital
money needed to invest in a business
consumption supplies
supplies used to conduct daily business operations
corporation
- form of business ownership whereby one or more stockholders share ownership
- considered an independent legal entity separate and distinct from its owners with its own rights, privileges, and liabilities
demographics
- the particular identifying characteristics of an area or population, such as a specific size, age, sex, or ethnicity of its residents; average income; educational attainment; and buying habits
employee manual
- handbook or guide for employees
- contains important general information about salon operations, such as the number of sick days or vacation time allowed, holiday closing, how to call in late or sick, and the appropriate dress code for estheticians
fixed costs
- operating costs that are constant
- ex. rent and loan payments
partnership
- form of business ownership in which tow or more people share ownership, although this does not necessarily mean na equal arrangement
- each partner assumes the other’s unlimited liability for debt
- profits are shared amount partners
personnel
- employees
- staff
procedural guide
- manual or set of instructions designed to standardize operations
- supplies specific protocols for conducting individual services, such as the expected method for performing a glycolic or microdermabrasion treatment
profit
amount of money available after all expenses are subtracted from all revenues
public relations
- aka. PR
- planning and developing of relationships to achieve a certain desired behavior
retail supplies
items available for sale to clients
revenue
income generated from selling services and products, or money taken in
sole proprietorship
form of business ownership in which an individual acts as sole owner and manager and is responsible for determining all policies and making all of the necessary decisions associated with running a business
variable costs
business expenses that fluctuate, such as utilities, supplies, and advertising
