FOUND. Chapter 10 Flashcards
A written description of your business as you see it today and as you foresee in the next five years:
Business plan
Research obtained regarding the clients your business will target in their needs and wants and habits:
Marketing plan
Is a sweeping picture of the long-term goals for the business what it is to become and what it will look like when it gets there
Vision statement
In this time. You may want to move from being a working professional into a full-time manager of the overall business and begin planning for your eventual retirement
Year 11 to 20 business timeline
What are some qualities a good location has:
Good visibility 
high traffic
easy access
sufficient parking
handicap access
 Govern the opening of the business including leases vendor contract employee contracts and more
Written agreement
Can be invaluable and helping you gather Accurate financial information
Certified public accountant CPA
Guarantees protection against financial loss from malpractice, property liability, fire ,burglary and theft and business interruption
Insurance
Is the individual owner and most often the manager of the business who determines policies and has the last say in decision making, as well as assumes expenses, receives profits, and bears all Iosses
Sole proprietor
Business structure two or more people share ownership
Partnership
Money to invest in a business another is to have help running your operation
Capital
Is an ownership structure controlled by one or more stockholders
Corporation
When purchasing an established business you should Include the following items:
-Financial audit
-written purchases
-complete and signed statements -confirmed identity of owner
-use of the business name and reputation
-disclosure of any and all information regarding the shops clientele
-disclosure of the conditions of the facility
-noncompete agreement stating that the seller will not work and or establish a new salon
-employee agreement
-A transfer of note,mortgage, lease or bill of sale
A way that you can reduce risk and ensure this protection against fire, theft, and lawsuits:
Keep accurate records of the number of employees
their salaries
length of employment
and Social Security numbers
has required by various states and federal laws that monitor the social welfare of workers
Smooth business management depends on the following factors Of operation:
Sufficient investment capital
efficient management
good business procedures
strong computer skills
corporation between management and employees
trained and experienced personnel excellent customer service
proper pricing and services
Income is usually classified as receipts from
Services and retail sales
expenses include:
Rent
utilities
insurance
salaries
advertising
equipment
repairs
What should all service records include?
Name address of the client
date of each purchase or service
amount charged
product used
results obtained
Clients preference noted
Currently booth rental is legal in every state except
Pennsylvania
Solely responsible for their own clientele supplies recordkeeping and accounting and have the ability to be their own boss with very little capital investment;
The owner
booth renters
This person handles the job of answering phones scheduling appointments greeting clients and attending to client needs
Receptionist
When booking an appointment if a client cannot come in at any of the times available you should suggest
Another professional
Ways to handle complaints over the phone
Respond with self control,tact and courtesy
The personal communication about a service or product between target clients and their friends relative and associates
Viral marketing A.k.a. word of mouth
Adding an additional service it’s called
Up selling
Encouraging a client who is booked for one service to add another
Cross promoting
As an aesthetician it is your job to encourage your clients
Invest in retail and services that will keep them coming back for more while helping to maintain the look you just gave them
Supplies sold to clients
Retail supplies
The rules and regulations adopted by a business to ensure that all clients and associates are being treated fairly and consistently
Business policies
Supplies used in the daily business operation
Consumption supplies
Any and all local state and federal regulations and laws that you must comply with when you decide to open your business or rent a booth
Business regulations and laws
Information about a specific population including data on race age income in educational attainment
Demographics
A set of bench markers that once achieved help you to realize your mission and your vision
Goals
Three occurring processes or activities involved in the running of a business for the purpose of producing income and value
Business operation
Helps you maintain a perpetual inventory which prevents overstocking or a storage of needed supplies, alerts you to any incidents of theft. helps establish the net worth of the business at the end of the year
Purchase records
