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


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


• 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


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


Booth Rental• Advantages

– Small initial investment– Minimal expenses

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


Opening Your Own Salon• Location


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


Location, Location, Location


Types of Ownership• Proprietorship• Partnership• Corporation


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


Drawing Up a Lease• List exempt equipment

and fixtures that are separate from lease

• Agree on necessary renovations

• Clarify option to sub-lease


Protection Against Fire, Theft, Lawsuits

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


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


Allocation of Funds• Average expenses• Importance of

record keeping


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


Service Records• Keep record of all treatments and retail


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


Personnel-Hiring Considerations

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


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


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


The Front Desk• Reception area• Receptionist

(salon quarterback)

• Booking appointments

• Appointment book


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


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


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

while on the phone


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


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


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


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

items• Window display• Radio


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

Methods of Advertising


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


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


Summary and Review• Name 3 types of ownership under

which a business may operate• What purpose do accurate records

serve?


• 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


• List six different kinds of advertising

• What is the best form of advertising and why?

Summary and Review


Congratulations!

You’ve just completedone unit of study toward

program completion!

the salon business miladys standard cosmetology cosmetology:

Documents

salon location slide

supplies slide

phone slide

clause slide

tactful slide

retail slide

accurate records slide

sublease slide