the salon business miladys standard cosmetology cosmetology:

The Salon Business

Milady’s Standard Cosmetology

Cosmetology:

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

“You don’t drown by falling in water; you only drown if you stay

there”

Zig Ziglar

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

• Discuss the importance of the reception area to a salon’s success

• Demonstrate good salon telephone techniques

• List the most effective forms of salon advertising

Objectives

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Booth Rental• Advantages

– Small initial investment– Minimal expenses

• Disadvantages– No paid days off– No sick leave– No paid vacations

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Opening Your Own Salon• Location

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Opening Your Own Salon• Written agreements/business plan• Business regulations and laws• Insurance• Salon operation• Record-keeping• Salon policies

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Location, Location, Location

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Types of Ownership• Proprietorship• Partnership• Corporation

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Drawing Up a Lease• List exempt equipment

and fixtures that are separate from lease

• Agree on necessary renovations

• Clarify option to sub-lease

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Protection Against Fire, Theft, Lawsuits

• Keep premises secure and locked• Purchase insurance• Know laws and sanitary codes• Keep accurate records

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Allocation of Funds• Average expenses• Importance of

record keeping

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Purchase Records• Maintain perpetual inventory• Prevent overstock/shortages• Monitor pilfering• Establish net worth of business

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Service Records• Keep record of all treatments and retail

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Planning Salon Layout• Flow and volume of services• Adequate space

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Personnel-Hiring Considerations

• Skill level• Personal grooming• Image as it relates to the salon• Overall attitude• Attitude• Communication skills

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Managing Personnel• Be honest with employees• Expect the best• Be a mentor• Share information• Follow the rules• Be reliable• Teach them what you know

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

The Front Desk• Reception area• Receptionist

(salon quarterback)

• Booking appointments

• Appointment book

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Good Telephone Usage• Use pleasant telephone voice• Show interest and concern• Be polite, respectful, courteous• Be tactful

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Incoming Calls• Give cheerful, clear greeting• Answer promptly• Provide requested information• Do not carry on a side conversation

while on the phone

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Booking by Phone• Know services, products, costs• Know salon personnel’s 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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Handling Complaints by Phone• Maintain self-control• Be tactful and courteous• Employ active listening skills• Maintain a sympathetic tone• Don’t interrupt• Resolve quickly and effectively

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Methods of Advertising• Newspapers• Direct mail• Classified/yellow pages• Giveaway promotional

items• Window display• Radio

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

• Television• Community outreach• Client referrals• Contacting former clients• Telemarketing• Videotaped promotions• E-mail newsletters

Methods of Advertising

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Selling in the Salon Much of salon’s

success revolves around the sale of additional salon services and retail products, which increase salon’s revenue

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

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

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Summary and Review• Name 3 types of ownership under

which a business may operate• What purpose do accurate records

serve?

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

• What 2 types of supplies make up a beauty salon’s inventory?

• Why is the reception area of a salon important?

• Why is the receptionist called the salon’s “quarterback”?

• Explain the elements of good telephone technique

Summary and Review

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

• List six different kinds of advertising

• What is the best form of advertising and why?

Summary and Review

MILADY’SStandardInstructor Support SlidesCOSMETOLOGY

Congratulations!

You’ve just completedone unit of study toward

program completion!