Chapter 32 The Salon Business. Weymouth.ac.uk Being both a great artist and a successful business...
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Transcript of Chapter 32 The Salon Business. Weymouth.ac.uk Being both a great artist and a successful business...
Weymouth.ac.uk
• Being both a great artist and a successful business person=
The greater you chances of success
• Entire books have been written
• Following information is a general overview
Opening your Own Salon
•Huge undertaking
*financially
*physically
*mentally
•Face challenges that are complex and unfamiliar
• before opening your doors decide:
*what products to carry
*what types of marketing and promotions
*best methods and philosophy for running the business
*whom to hire
• Consider the following basic issues and perform basic tasks
Create a Vision and Mission Statement for the Business Goals
Vision Statement: long-term picture of what the business is to become and what it will look like when it gets there
Mission Statement: description of the key strategic influences of the business
*market it will serve*services it will offer*quality of those services
Goals: set of benchmarks that help you to realize your mission and your vision
•Set short-term and long-term goals for the business
Create a Business Timeline
Year One:
*determine and complete all aspects of starting the business
Years Two-Five:
*tending to the business, its clientele, employees for growing and expanding
Years Five-Ten-if successfully achieved:
*Add more locations* expand the scope of the
business *construction of larger space
Years Eleven to Twenty:*move from being a working cosmetologist into a full-time
manager
Determining Business Feasibility
•Means addressing certain practical issues
*do you have a special skill or talent?
(sets your salon apart)
*does the town offer the type of clientele you want (products and services you want to offer)?
*how much money is needed to open?
*is funding available?
Choose a Business Name
The name:
*explains what it is
*identify characteristics (sets apart)
*influences how clients perceive the business
*creates a picture in client’s mind
Written Agreements
•Many written agreements and documents needed
*leases*vendor contracts*employee contracts*and more
• For legal purposes*who does what*what is given in return
•Must be able to read and understand them
Business Plan
•written description of your business
~today
~future
•Agreement with yourself-not legally binding
•However, needed to obtain financing
Includes description:
~business
~services provided
~demographics
*race, age, income, educational
attainment
~salaries and benefits
~pricing structure
Interstellar-solutions.co.uk
•Expenses
~equipment ~ supplies
~ repairs ~ advertising
~taxes ~insurances
~projected income and overhead expenses
Business Regulations Laws
comply with all local, state, and federal regulations and laws
•contact local authorities
~business licenses
~other regulations
*zoning
*business inspections
• Comply with all federal Occupational Safety and Health Administration (OSHA)
• Manufacturer’s Safety Data Sheets(MSDS)
Insurance
•must purchase insurance
~malpractice
~property liability
~ fire
~burglary
~ theft
~business interruption
Salon Operation•Running of the business
Record Keeping•Maintain accurate and complete records of all financial activities
Salon Policies•Rules and regulations•Everyone is treated fairly and consistently
Types of Salon Owners
Individual ownership:
•Make your own rules
•Meet all duties and obligations of running a business
•Sole proprietor is the owner and manager
•determines policies
•assumes expenses
• receives profits/bears all lossesBlogs.nailsmag.com
Partnership
•more opportunity for increase investment
~growth
•can be magical or a disastrous
Ex. Urban Edge
John Paul Mitchell Systems
Partnership:
•Two or more people (not always equal)
~more capital or money
~pool skills and talents
~share work
~responsibilities
~decision-making
~must assume one another’s liability or debts
Corporation: ownership controlled by one or more stockholders
•Incorporating
*protects your personal assets
*saves money in taxes
*greater business flexibility
*makes raising capitol easier
Characteristics of corporations:
•Raise capitol by issuing stock certificates or shares
•Stockholders-has ownership interest
•Sole stockholder or many stockholders
• Meetings required to maintain corporate status
• Income tax is limited to the salary you draw-not the profits
• Costs more to set up*formation fees*filing fees*annual state fees
• Required to pay unemployment insurance taxes on salary (sole proprietor or partner do not)
Franchise Ownership
•Contractual relationship
•Operating under the franchisor’s trade name in exchange for a fee
•Under the franchisor’s guidance and stipulations
Advantages:
•Known name and brand recognition
•Franchisor does most of the marketing
•Protected territories
Concerns:
•Agreements in what you can and cannot do
•Be sure to research
•Have a attorney read the contract/explain
•Must pay the fee (successful or not)
Business Plan
Includes:• Executive Summary•Vision Statement•Mission Statement•Organizational Plan•Marketing Plan•Financial Documents•Supporting Documents•Salon Policies
Purchasing an Established Salon
•excellent opportunity/look at all sides of the picture
•Seek professional assistance from an accountant and a business lawyer
Agreement should include:
•Financial audit*actual value of the business*may not retain all of the former owner’s clients without help from former owner
•written purchase
•sale agreement
• complete and signed statement of inventory
~value of each article
• initiate an investigation
~default in the payments of debt
• identity of owner
• Use of name and reputation for a definite period of time
• Disclosure of all information ~clientele
~purchasing
~service habits
• Disclosure of conditions of the facility
• Noncompete agreement- seller will not work in or establish a new salon within a specific distance
• Employee agreement-will the employees stay with the business
Drawing up a Lease
•your own business
~not always the building
•Rent or Lease-specify clearly
~who owns what
~who is responsible for repairs and expenses
Secure the following:
•exemption of fixtures or appliances
~can be removed without violating the lease
•agreement about necessary renovations and repairs
•option to allow you to assign the lease to another person
Protection Against Fire, Theft, and Lawsuits
•Have adequate locks
•Fire alarm system
•Burglar alarm system
Purchase:
~liability
~ fire
~malpractice
~burglary insurance
Professionalandliability.com
Saloninsurance.com
• all laws cosmetology
~safety and infection control codes/city/state
• keep accurate records of everything!!
• Ignorance of the law is no excuse for violating it
Smooth business management:
• Sufficient investment capital
• Efficiency of management
• Good business procedures
• Strong computer skills
• Cooperation between management and employees
• Trained and experienced personnel
• Pricing of services
Review price list “starting at”
Review expenses chart (next page)
Allocation of money
•know where your money is being spent
•accountant and accounting systems are indispensable
Business-services.upenn.edu
Tutorsonnet.com
The Importance of Record Keeping
•simple and efficient record system
•necessary regarding taxes and employees
•record all income and expenses
•retain check stubs, cancelled checks, receipts, and invoices
Purchase and Inventory Records
•help maintain inventory
~ preventing overstock
~shortage of supplies
•alerts you to theft
•shows net worth
•keep running inventory
~use and retail value
•used daily
~consumption supplies
•sold to clients
~retail supplies
Service Records
•keep client cards
~treatments given
~merchandise sold
Include:
name, address, date, fee charged, products used, results obtained, preferences and tastes
Operating a Successful Salon
take excellent care of your clients
physically attractive
well-organized
smoothly run
sparkling clean
•low-budget
~several stations
~small to medium sized reception area
~small retail area (clients may not have money to buy products)
•High-end salon or luxurious day spa
~ expect higher quality of the service
~matched by the environment
~more room in waiting areas
•coffee bars
•private areas for clients to conduct business (phone, laptop)
•retail area
~spacious
~ inviting
~well lit
•layout is crucial
•advice of an architect
•professional equipment and furniture supplier are good resources
• Create small salon or renovate existing space
• Keep plumbing in same area
• Electrical wiring up to code
• Get everything in writing from contractors, design firms, manufacturers, and architects
• Get more than one quote• It takes about 6 months for a new salon to
operate at full capacity-have $$$
Personnel
size of salon/size of staff
large salons require “specialists”
receptionists, hairstylists, nail technicians, shampoo persons, colorists, massage therapists, estheticians, hair removal specialists
smaller salons
~personnel perform more than one type of service
Interviewing potential employees:
level of skill
personal grooming
image as it relates to the salon
overall attitude
communication skills
Payroll and Employee Benefits
•successful business=everyone feels appreciated and happy
•share your success when financially feasible
meet your payroll obligations
offer benefits
schedule employee evaluations
create and stay with a tipping policy i.e. stylists tip assistants
put pay plan in writing
create incentives
~earn more money
~ prizes
~tickets
create salon policies and stick to them
Managing Personnel
•make a positive impact on lives and their ability to earn a living
•learn how to manage other people
•Learn what you can and cannot say when hiring, managing or firing
• Be familiar with civil rights laws*Equal Employment Opportunity
Commission (EEOC)*Americans with Disabilities Act (ADA)
• Have a written personnel policies and procedures manual
• Every employee must read and sign it
The Front Desk
• “operations center”
•employ professional receptionists ~handle the job of scheduling
appointments
~greeting clients
The Reception Area
•first impressions count
•attractive, appealing, and comfortable
~receptionist
~retail merchandise
~ phone system
~business cards
~displayed price list
The Receptionist
second in importance
Well-trained
first person the client sees
~pleasant
~ greet each client with a smile
~address each client by name
Efficient, friendly service fosters good will, confidence, and satisfaction
duties include:
~role of greeter
~answering the phone
~booking appointments
~inform the stylist client has arrived
~preparing daily appointment information
~recommending additional services
~through knowledge of retail products
~salesperson and information source for the clients
Booking Appointments
•most important
•make the most efficient use of everyone’s time
•client should not have to wait for a service
•stylist should not have to wait for the next client
•each person should know:*how to book appointment and how much time is
needed for each service
•pleasing voice and personality
• appearance that conveys salon image
•knowledge of various services
***all services, cost, and time they take
• unlimited patience with both clients and salon personnel
Appointment Book
• helps stylists arrange time to suit their clients’ needs
•computerized system
•actual hardcopy
Use of Telephone in the Salon
•good habits and techniques increase business
•improve relationship with clients and suppliers
Good Planning
•Business calls to clients and suppliers
~quieter time of day
~quieter area
•pleasant voice
•use correct grammar
•speak clearly
•“smile”
•show interest or concern
•be polite, respectful, courteous
•be tactful
Incoming Telephone Calls
•lifeline of salon
Clients:
~call ahead for appointment
~call to cancel
~reschedule appointment
*use good manners
•“Good morning”
•Salon name
•“May I help you?”
•“Thank you”
•Answer phone promptly
If you do not have information…
~put client on hold
~get information
~offer to call back with info
•Do not talk to client in room while speaking with someone on the phone
Booking Appointments by Phone
•record full name, phone number, service booked
•confirm appointment one-two days before
•Be familiar with:
~services
~products
~costs
~what stylists perform specific services-color
correction
• be fair
**exception-requests
When client requests an unavailable stylist:
1. Suggest other times
2. Suggest another stylist
3. Put on cancellation list
Handling Complaints by Phone
•difficult task
•respond with self-control, tact and courtesy
•tone of voice sympathetic and reassuring and concerned
•try to resolve quickly and effectively
Building Your Business
•includes all activities that promote the salon favorably
•attract and hold the attention
•a satisfied client is the very best form of advertising
•develop a referral program
•hire a small local agency
•advertising budget should not exceed 3 percent of your gross income
•plan well in advance
•know what you are paying for
•get everything in writing
•know your clientele-which type of media they use
•what kind of messages attract them
Newspapers
*ads, coupons, coupon book
Direct mail
Classified advertising
*yellow pages
Yourhometownportal.com
e-mail newsletters/discount offers
Web site offerings
Giveaway promotional items
*combs, emery boards
Community outreach
*public appearances, women’s and men’s clubs, church functions, political gatherings, charitable affairs, bridal fairs, fashion shows, radio and TV talk shows
Client referrals
• In-salon videos
•Follow up every visit to determine client’s satisfaction
•Personally contact any client that has not been in the salon for more than eight weeks
Selling in the Salon
• financial success revolves around
~sale of additional salon services
~take-home/maintenance products
• adding services or retail sales
*means additional revenue
• Beauty professionals feel uncomfortable selling products and additional services
• Overcome this feeling
• Sales professionals make customer care their top priority
• Offer good advice