Salon Business. Flashcards
List of all the money you owe:
Liabilities
Total assets - total liabilities =
Networth (financial status)
A business owned by one person:
Sole proprietorship
A business owned by two or more people:
Partnership
A business owned by its shareholders:
Corporation
A business that is an operating agreement where a fee is paid to a parent corporation in exchange for fixtures, promotion, advertising, education and management techniques:
Franchise
What is the most important factor in opening a salon?
LOCATION
A financial advisor, not a beauty expert:
Accountant
Someone who will provide advise on insurance needed to safely open and operate a business:
Insurance agent
An advisor on the legal obligations of business, ownership, borrowing money, signing rental agreements and assuming tax responsibilities:
Lawyer
Regular interviews that your employer discusses job performance with you:
Performance review
OR employee evaluation
A set dollar amount paid each month to the lessor:
Fixed rent
A set dollar amount paid per month plus a percentage of the total monthly income:
Variable rent
An insurance policy that protects the salon owner from financial loss that can result from employee negligence while performing hair, nail and skin care services on salon clients:
Malpractice
An insurance policy that covers the actual salon equipment and physical location in case of natural disasters, fire, theft or burglary, or accidents occurring at the business:
Property or premise insurance
Insurance that protects against financial loss arising because of injury or damage resulting from the use of a product:
Product liability insurance
Insurance required by federal law by all employers that offers compensation to laid off employees until they can get more work
Unemployment insurance
This insurance covers any expenses resulting from an injury to an employee:
Workers’ compensation
State-controlled insurance required by law
Who must apply for a state sales tax permit before collecting taxes on product or services sold?
Salon owner
What percentage of salon expenses represent compensation for yourself and employees?
50%
To creat an efficient working space a stylist needs how much square feet?
120-150 sq. ft.
Income - expenses =
Profit
An open-minded buyer that will take a chance on new products without hesitation:
Ready buyer
This buyer wants to know all the facts about a product, thinks carefully about buying without much regard for who else likes or uses the product:
Logical buyer
This buyer bases purchases more on personal reasons than facts:
Emotional buyer
This buyer wants to save money at all costs and is not interested in quality of product as price:
Bargain buyer
This buyer puts up a struggle and has a strong desire to debate with you:
Stubborn buyer
List of all the property you own:
Assets
