PowerPoint - A Business Plan for Salon...

A Business Plan for Salon Ownership

Cosmetology II

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The Salon Business

3 Copyright © Texas Education Agency, 2015. All rights reserved.

Rent or Manage


Booth/Chair Rental


Renting a booth - Advantages

A cosmetologist:

• Becomes his or her own boss

• Is responsible for his or her own• Accounting

• Clientele

• Record keeping

• Supplies

• Pays a weekly fee to salon owner

• Rents a work station in a salon from a salon owner


Renting a Booth - Facts

A cosmetologist must:

• Budget for advertising

• Carry adequate insurance • Health

• Malpractice

• Collect all service fees

• Comply with all IRS obligations for independent contractors

• Create professional materials• Business cards

• Service menu

• Keep records for tax purposes

• Pay for continuing education courses

• Pay taxes, including Social Security

• Purchase all supplies

• Track and maintain inventory

• Use personal phone for bookings


Managing a Salon

Management opportunities:

• Assistant manager

• Department head

• Educator

• General manager

• Inventory manager

• Special events manager


Business Skills Needed

• Accounting•Math

•Profit and loss statements

• Marketing•Advertising•Promotions •Public relations


Factors to Consider


Decisions

• Business Name

• Location•Easy access•Good visibility•Handicap access•High traffic•Sufficient parking

• Timeline

• Written agreements•Employee and vendor contracts• Lease


Types of Ownership


Salon Ownerships

1. Individual• Sole proprietor

2. Partnership

3. Corporation

4. Franchise


Owning a Salon

• Brand identity

• Lease or rental agreement

• Insurance• Fire

• Lawsuits•Theft

• Operations


Business Records


Business Plan

Include:

1. Executive summary

2. Vision statement

3. Mission statement

4. Organizational plan

5. Marketing plan

6. Financial documents

7. Supporting documents

8. Salon policies


Record Keeping

• Bookkeeping • Income and expenses

• Business taxes1. Local2. State 3. Federal

• Inventory

• Service


1. Why study the business of salon ownership?

2. What are the advantages and disadvantages of a booth rental?

3. Does a management position interest you?

4. Why are business skills needed to operate a salon?

5. Name three decisions to consider before opening a salon.

6. Which type of salon ownership is the best one?

7. What other factors do you need to consider before you open a salon?

8. Is a business plan necessary?


References and ResourcesImages:

• Shutterstock™ images. Photos obtained with subscription. (Slides 1, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21)

Textbook(s):

• Frangie, C. M. (2012). Milady standard cosmetology. Clifton Park, NY: Cengage Learning.

• Backe, J. (2016). Milady standard cosmetology. Clifton Park, NY: Cengage Learning.

Websites:

• Texas Department of Licensing and RegulationsThe leader in public service, customer satisfaction, and innovationhttp://www.tdlr.texas.gov/index.htm

YouTube™:• How to Write a Business Plan

Interested in starting a business plan? Developing and maintaining your business plan is like your roadmap to entrepreneurial success.https://youtu.be/SMr_uLZV-eM


http://www.tdlr.texas.gov/index.htm

https://youtu.be/SMr_uLZV-eM

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