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The Salon Business Miladys Standard Cosmetology Cosmetology:

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Presentation on theme: "The Salon Business Miladys Standard Cosmetology Cosmetology:"— Presentation transcript:

1 The Salon Business Miladys Standard Cosmetology Cosmetology:

2 MILADYS Standard Instructor Support Slides COSMETOLOGY You dont drown by falling in water; you only drown if you stay there Zig Ziglar

3 MILADYS Standard Instructor Support Slides COSMETOLOGY Objectives Describe the two ways in which you may go into business for yourself List the factors to consider when opening a salon Name and describe the types of ownership under which a salon may operate Explain the importance of keeping accurate business records

4 MILADYS Standard Instructor Support Slides COSMETOLOGY Discuss the importance of the reception area to a salons success Demonstrate good salon telephone techniques List the most effective forms of salon advertising Objectives

5 MILADYS Standard Instructor Support Slides COSMETOLOGY Going into Business- Booth Rental Responsible for –Own clientele –Supplies and inventory –Record keeping –Accounting –Tax liability –Malpractice insurance –Health insurance –Purchasing and budgeting –Advertising

6 MILADYS Standard Instructor Support Slides COSMETOLOGY Booth Rental Advantages –Small initial investment –Minimal expenses Disadvantages –No paid days off –No sick leave –No paid vacations

7 MILADYS Standard Instructor Support Slides COSMETOLOGY Opening Your Own Salon Location

8 MILADYS Standard Instructor Support Slides COSMETOLOGY Opening Your Own Salon Written agreements/business plan Business regulations and laws Insurance Salon operation Record-keeping Salon policies

9 MILADYS Standard Instructor Support Slides COSMETOLOGY Location, Location, Location

10 MILADYS Standard Instructor Support Slides COSMETOLOGY Types of Ownership Proprietorship Partnership Corporation

11 MILADYS Standard Instructor Support Slides COSMETOLOGY Purchasing Existing Salon Written purchase agreement Inventory statement Investigate default on payments Identify correct owner Use salon name and reputation (blue sky) Disclosure of clientele information Non-compete clause

12 MILADYS Standard Instructor Support Slides COSMETOLOGY Drawing Up a Lease List exempt equipment and fixtures that are separate from lease Agree on necessary renovations Clarify option to sub-lease

13 MILADYS Standard Instructor Support Slides COSMETOLOGY Protection Against Fire, Theft, Lawsuits Keep premises secure and locked Purchase insurance Know laws and sanitary codes Keep accurate records

14 MILADYS Standard Instructor Support Slides COSMETOLOGY Business Operation Sufficient investment capital Management efficiency Good business procedures Cooperation between management and employees Trained and experienced salon personnel Excellent customer service Service pricing

15 MILADYS Standard Instructor Support Slides COSMETOLOGY Allocation of Funds Average expenses Importance of record keeping

16 MILADYS Standard Instructor Support Slides COSMETOLOGY Purchase Records Maintain perpetual inventory Prevent overstock/shortages Monitor pilfering Establish net worth of business

17 MILADYS Standard Instructor Support Slides COSMETOLOGY Service Records Keep record of all treatments and retail

18 MILADYS Standard Instructor Support Slides COSMETOLOGY Planning Salon Layout Flow and volume of services Adequate space

19 MILADYS Standard Instructor Support Slides COSMETOLOGY Personnel-Hiring Considerations Skill level Personal grooming Image as it relates to the salon Overall attitude Attitude Communication skills

20 MILADYS Standard Instructor Support Slides COSMETOLOGY Payroll and Employee Benefits Meet payroll obligations Offer good benefits Provide employee evaluations Create and stay with tipping policy Put compensation plan in writing Create incentives Develop effective salon policies

21 MILADYS Standard Instructor Support Slides COSMETOLOGY Managing Personnel Be honest with employees Expect the best Be a mentor Share information Follow the rules Be reliable Teach them what you know

22 MILADYS Standard Instructor Support Slides COSMETOLOGY The Front Desk Reception area Receptionist (salon quarterback) Booking appointments Appointment book

23 MILADYS Standard Instructor Support Slides COSMETOLOGY Use of Telephone Make or change appointments Seek new business Determine why client was lost Remind clients of needed services Answer questions Handle complaints Receive messages Orders equipment and supplies

24 MILADYS Standard Instructor Support Slides COSMETOLOGY Good Telephone Usage Use pleasant telephone voice Show interest and concern Be polite, respectful, courteous Be tactful

25 MILADYS Standard Instructor Support Slides COSMETOLOGY Incoming Calls Give cheerful, clear greeting Answer promptly Provide requested information Do not carry on a side conversation while on the phone

26 MILADYS Standard Instructor Support Slides COSMETOLOGY Booking by Phone Know services, products, costs Know salon personnels skills Be fair when making assignments If requested styling is unavailable –Suggest another time –Suggest another stylist –Offer to call if there is a cancellation

27 MILADYS Standard Instructor Support Slides COSMETOLOGY Handling Complaints by Phone Maintain self-control Be tactful and courteous Employ active listening skills Maintain a sympathetic tone Dont interrupt Resolve quickly and effectively

28 MILADYS Standard Instructor Support Slides COSMETOLOGY Advertising Promote salon favorably Attract and hold attention Referrals are best form of advertising Develop ads (or outsource) Annual budget–3% of gross income Plan ahead for holidays

29 MILADYS Standard Instructor Support Slides COSMETOLOGY Methods of Advertising Newspapers Direct mail Classified/yellow pages Giveaway promotional items Window display Radio

30 MILADYS Standard Instructor Support Slides COSMETOLOGY Television Community outreach Client referrals Contacting former clients Telemarketing Videotaped promotions newsletters Methods of Advertising

31 MILADYS Standard Instructor Support Slides COSMETOLOGY Selling in the Salon Much of salons success revolves around the sale of additional salon services and retail products, which increase salons revenue

32 MILADYS Standard Instructor Support Slides COSMETOLOGY Summary and Review What are two ways in which you may go into business for yourself? List 5 factors to consider when opening a salon

33 MILADYS Standard Instructor Support Slides COSMETOLOGY Summary and Review Name 3 types of ownership under which a business may operate What purpose do accurate records serve?

34 MILADYS Standard Instructor Support Slides COSMETOLOGY What 2 types of supplies make up a beauty salons inventory? Why is the reception area of a salon important? Why is the receptionist called the salons quarterback? Explain the elements of good telephone technique Summary and Review

35 MILADYS Standard Instructor Support Slides COSMETOLOGY List six different kinds of advertising What is the best form of advertising and why? Summary and Review

36 MILADYS Standard Instructor Support Slides COSMETOLOGY Congratulations! Youve just completed one unit of study toward program completion!


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