Module 32 '08- the Salon Business

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Module 32 '08- the Salon Business Powered By Docstoc
					   Chapter 32
The Salon Business
Work for someone else first
   ~hone your
         artistic
   ~ technical
   ~ managerial
         skills
      Weymouth.ac.uk
Starting a business:
•enormous responsibility
•not taken lightly
•serious planning
Needed:
   ~knowledge of business
         principles
   ~ bookkeeping
   ~ business law
   ~insurance salesmanship
   ~psychology
Beautyschoolsdirectory.com
Salonbootcamp.com
Discoveryspas.com
      * chapter is an overview

  •more information
        ~better prepared
        ~greater chance of success

***cross out Booth Rental (not legal in Pennsylvania)
    Opening your Own Salon
•read and research business idea
    extensively
•Consider:
~location     ~ written agreements
~business regulations     ~laws
~insurances       ~salon operation
~record-keeping       ~salon policies
Kqtv.cityvoter.com
Thehairem.biz
           Location
•Good location
   ~visibility
   ~accessibility
   ~volume of customers
~located near active businesses
       (one stop shopping)
•difficult in a low-traffic area
•location
    ~reflect your target market
    ~high-income clients
    ~high-income areas
•High-volume
    ~high-traffic area
    ~public transportation
***Young adult clientele/mall
***Avant-garde salon not placed
    in a small community
READ; page 10 in Salonorations
        Study the Area
Demographics:
 size
 average income
 buying habits of population
 talk to other business owners
   near the site
Garysplacesalons.com
             Be Visible
•clearly visible
•eye-catching
•signs easy to read
•salon’s name on billboard (strip
     mall)
•not difficult to pronounce or spell
Kristirushing.com
Brightonlife.com
B2salon.com
        Parking Facilities
•ample and convenient
•well lit
            ~safety for you/clients
          Competition
•positive and motivating
•new businesses
    ~direct competition raises
        the stakes
•Better: only salon of its type
Colourtube.com
Behindthechair.com
Example:
   ~up-scale salon near a budget
      salon
•visit salons in the neighborhood
              Business Plan
•written description of your business
        ~today
        ~future
•blue print
    ~pointing you in the right
        direction
•needed to obtain financing
                     Look at printed
                     business plan
                     document from
                     Epiphany Salon




Blogs.nailsmag.com
Includes description:
    ~business
    ~services provided
    ~number of personnel     Interstellar-
                             solutions.co.uk



    ~salaries and benefits
    ~operations plan
    ~price structure
•Expenses
~equipment        ~ supplies
~ repairs         ~ advertising
~taxes            ~insurances
~financial plan
~profit and loss statement
Business plan
         ~committing to success
•books
•computer software
•consult an accountant
•small business consultant
•crucial: ask for enough working
              capital
•not all clients make the transition
•allow time to rebuild clientele
•have a cushion of funds
    ~unplanned business expenses
  Regulations, Business Law, and
            Insurance
•comply with local, state, and
    federal regulations and laws
•contact local authorities
    ~business licenses
         ~other regulations
•Contact local
    ~building renovations
    ~business codes

•State law
    ~sales tax
    ~licenses
    ~employee compensation
Federal law
    ~Social Security
    ~unemployment compensation
        or insurance
•must purchase insurance
    ~malpractice
    ~premises liability
    ~ fire
    ~burglary
    ~ theft
    ~business interruption
  •disabilities policy
  •know and comply with all
      OSHA guidelines
  •MSDS displayed for
                    clients


Safety manual.com
Oemeyer.com
      Types of Salon Owners

Individual ownership:
•proprietor is the owner and
    manager
•determines policies
•assumes expenses
• receives profits
•bears all losses        Blogs.nailsmag.com
•make your own rules
•meet all the duties
•obligations of running a business
•may be for you




                       Salonsachet.com
                       Socialmiami.com
Partnership:
•Two or more people
    ~allows for more capital
    ~pool skills and talents
    ~share work
    ~responsibilities
    ~decision-making
    ~assumes unlimited liability
        for debt
    ~more opportunity for
       increase investment
    ~growth
•can be magical or a disastrous
Ex. Urban Edge
    John Paul Mitchell Systems
John Paul DeJoria
Paul Mitchell
Paul mitchell.com
Urbanedge.boomtime.com
Corporation:
•three or more people called
    stockholders
•charter
    ~names each individual
•taxation and regulation by the
    state
•management
    ~board of directors
•division of profit
•cannot lose more than original
    investment
•employs large number
•benefits and opportunities
Ex.
      Great Clips
      Super cuts
      Haircuttery
Strmsigns.com
Ardsshoppingcentre.com
Haircuttery.com
Purchasing an Established Salon
•excellent opportunity/look at all
    sides of the picture
Possible drawbacks:
    ~lose some customers
    ~used fixtures
    ~cannot be completely sure
        of what you are buying
•seek professional assistance
    ~accountant
    ~lawyer
Any agreement should include:
   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
name and reputation for a
  definite period of time
Disclosure of all information
   ~clientele
   ~purchasing
   ~service habits
Statement: seller will not compete
   with the new owner within a
   specific distance
        Drawing up a Lease
•your own business
    ~not always the building
•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
•option to allow you to assign the
    lease to another person
Protection Against Fire, Theft,
        and Lawsuits
premises locked
Purchase:
   ~liability
  ~ fire
  ~malpractice
  ~burglary insurance     Professionalandliability.com
                          Saloninsurance.com
medical practice laws
  ~refer client to a physician
all laws cosmetology
  ~sanitary codes/city/state
keep accurate records of
   everything!!
        Business Operation
Need:
   ~excellent business sense
   ~ sound business principles
   ~ability
   ~good judgment
~diplomacy
~circle of contacts
  *local entrepreneur group
  *chamber of commerce
Quakertownalive.com
Smooth business management:
Sufficient investment capital
  ~how much money (capital) to
    run for two years
Efficiency of management
  ~make informed business
   decisions
Good business procedures
Include:
    ~complying with all laws to
        manage cash flow
    ~buying inventory responsibly
    ~quality control
           *services to be performed
           * high standards every time
Cooperation between
   management and employees
   ~work together harmoniously
   ~address problems
      *resolve quickly
      * thoroughly
      *diplomatically
Trained and experienced personnel
    ~all employees trained high
         level
    ~you be the example
Pricing of services
    ~of the salon
    ~type of clientele
Mojazzhair.com
Paulzoom.com
    ~pricing strategy quality of
        service provided
    ~what is your competition
       charging


•Review price list    “starting at”
•Review expenses chart
      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 income and expenses
•retain check stubs, cancelled
     checks, receipts, and invoices
Appliance-repair.org
Webdatamation.com
Scottstadel.com
Knowfree.net
Record all business transactions to:
    ~determine profit or loss
    ~assess the value of the salon
    ~arrange a bank loan or
        financing
    ~provide data/ required for
        IRS and on some leases
Weekly and Monthly Records
~make comparisons
~detect changes in services
~use of materials
~control expenses and waste
           Daily Records
•how well the business is
    functioning
•expense items
    ~affect total gross income
Keep:
~ daily slips ~appointment book
    ~petty cash book
for reference/income tax reports


•seven years
•service and inventory records
 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
•which sells quickly/which does
    not
•have “just enough” supplies
•plan major purchases with special
    prices/incentives
    (Schoeneman’s Mania Days)
           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
    Planning a Salon’s Layout
•best physical layout
    ~salon you envision
•maximum efficiency
•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)
•private treatment rooms
•comfortable changing areas
•retail area
    ~spacious
    ~ inviting
    ~well lit
•layout is crucial
•advice of an architect
•professional equipment and
    furniture supplier are good
    resources
***Not in (2008) book   FYI
Keep in mind when planning a
   layout:
 flow and volume to and from
    reception area
 adequate isle space
 adequate space for equipment
furniture, fixtures, and equipment
  ~cost, durability, utility, and
      appearance
color scheme
  ~purpose of the salon you
     envision
adequate and appropriate lighting
a dispensary
storage space
restroom
good plumbing and lighting
good ventilation
  ~air conditioning-heating
adequate closets/changing area
  for clients
            Personnel
size of salon/size of staff
large salons require “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
good hiring decisions is
  crucial
bad hiring decisions
  ~ painful to all involved
  ~more complicated than
    you think
  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
Effective manager: not in 2008
book FYI
Always be honest with employees
    ~whether positive or negative
Expect the best
    ~give benefit of the doubt
    ~expect the best from them
    ~recognize efforts and thank
            them
Be a mentor
   ~help, guide, and mentor
   ~increases harmony and
       loyalty
   ~professional colleagues
Share information
   ~regarding salon decisions
   ~share only appropriate
       information
   *too much= concern and worry
Follow the rules
    ~you must follow the rules
    ~provide a good example
Be reliable
    ~never make a promise you
       cannot deliver
Teach them what you know
   ~management decisions
   ~explain your thinking
   ~include your employees in the
       decision-making process
       when appropriate
          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
Houses: ~Receptionist
         ~retail merchandise
         ~ dressing room
         ~ phone system
•salon’s nerve center
    ~business cards
    ~displayed price list
         The Receptionist
second in importance
quarterback of the salon
first person the client sees
  ~pleasant
  ~ greet each client with a smile
  ~addressing him or her by name
Tiffanyplacesalon.com
fosters good will, confidence,
   and satisfaction
duties include:
   ~greeting clients
   ~answering the phone
   ~booking appointments
   ~inform the stylist
~preparing daily appointment
    information
~recommending other services
~through knowledge of retail
    products
~salesperson and information
        source for the clients
~straightens up the area
~maintains inventory
~daily reports
     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
•an attractive appearance
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
•actual hardcopy
•computerized system
Smartsalonmanagement.com
 Use of Telephone in the Salon
•good habits and techniques
    increase business
•improve relationship with
    clients and suppliers
          Good Planning
•telephone on receptionist desk
•calls to clients and suppliers
    ~quieter time of day
    ~quieter area
•pleasant voice
•speak clearly
•use correct grammar
•“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
          Advertising
•includes all activities that
     promote the salon
     favorably
•attract and hold the attention
•a satisfied client is the very
     best form of advertising
•hire a small local agency
•advertising budget should
    not exceed 3 percent of
    your gross income
•plan well in advance
Newspapers
  *ads, coupons, coupon book
Direct mail
Classified advertising
  *yellow pages


                   Yourhometownportal.com
e-mail newsletters/discount offers
Giveaway promotional items
  *combs, emery boards
Window display
  *attracts attention


Radio


                        Allaboutjazz.com



Television
Flikr.com
Springfieldnebraska.com
Acelham.co.uk
Maurohair.com
Community outreach
  *public appearances, women’s and men’s
       clubs, political gatherings,
       bridal fairs, fashion shows
Sierramadrenews.net
Fccc.edu
 Client referrals
• Contacting clients
    *call a client that has not been in
    *seasonal greeting cards, calendars,
    etc.
 Telemarketing
       *should be used wisely, if at all
 Videos
       *to promote salon and its goods


Add:    Internet
       *web page, advertisements
      Selling in the Salon
financial success revolves around
  ~sale of additional salon
      services
  ~take-home products
adding services or retail sales
  *means additional revenue
Smartfurniture.com
Merchantcircle.com
sales professionals make customer
   care their top priority
Offer good advice
Etopa.com
Eqgroup.com
Seattlepi.nwsource.com
Amazon.com

				
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