Transcript Document
Chapter 32 The Salon Business
•
Being both a great artist and a successful business person= The greater you chances of success
•
Entire books have been written
•
Following information is a general overview Weymouth.ac.uk
•
Become your own boss: Owning your own salon
•
Booth rental-not legal in PA. See “Did you know?”
Beautyschoolsdirectory.com
Salonbootcamp.com
Discoveryspas.com
• •
Opening your Own Salon Huge undertaking *financially *physically *mentally Face challenges that are complex and unfamiliar
Kqtv.cityvoter.com
Thehairem.biz
• •
before opening your doors decide: *what products to carry *what types of marketing and promotions *best methods and philosophy for running the business *whom to hire Consider the following basic issues and perform basic tasks
Create a Vision and Mission Statement for the Business Goals Vision Statement: long-term picture of what the business is to become and what it will look like when it gets there Mission Statement: description of the key strategic influences of the business *market it will serve *services it will offer *quality of those services
•
Goals: set of benchmarks that help you to realize your mission and your vision Set short-term and long-term goals for the business
Create a Business Timeline Year One: *determine and complete all aspects of starting the business Years Two-Five: *tending to the business, its clientele, employees for growing and expanding
Years Five-Ten-if successfully achieved: *Add more locations * expand the scope of the business *construction of larger space Years Eleven to Twenty: *move from being a working cosmetologist into a full-time manager
Years Twenty Onward: *consider selling or *changing it in some way (junior partner)
Garysplacesalons.com
Kristirushing.com
Brightonlife.com
B2salon.com
•
Determining Business Feasibility Means addressing certain practical issues *do you have a special skill or talent?
(sets your salon apart) *does the town offer the type of clientele you want (products and services you want to offer)?
*how much money is needed to open?
*is funding available?
Choose a Business Name The name: *explains what it is *identify characteristics (sets apart) *influences how clients perceive the business *creates a picture in client’s mind
Colourtube.com
Behindthechair.com
• • • • •
Choose a Location Good visibility High traffic Easy access Sufficient parking Handicap access
Written Agreements
•
Many written agreements and documents needed *leases *vendor contracts *employee contracts *and more
•
For legal purposes *who does what *what is given in return
•
Must be able to read and understand them
Business Plan
•written description of your business
~today ~future
•
Agreement with yourself-not legally binding
•However, needed to obtain financing
Blogs.nailsmag.com
Look at printed business plan document from Epiphany Salon
Includes description: ~business ~services provided ~demographics Interstellar-solutions.co.uk
*race, age, income, educational attainment ~salaries and benefits ~pricing structure
•Expenses
~equipment ~ repairs ~taxes ~ supplies ~ advertising ~insurances ~projected income and overhead expenses
Business Regulations Laws comply with all local, state, and federal regulations and laws
•contact local authorities
~business licenses ~other regulations *zoning *business inspections
•
Comply with all federal Occupational Safety and Health Administration (OSHA)
•
Manufacturer’s Safety Data Sheets (MSDS)
Insurance
•must purchase insurance
~malpractice ~property liability ~ fire ~burglary ~ theft ~business interruption
•disabilities policy
Safety manual.com
Oemeyer.com
•
Salon Operation Running of the business
•
Record Keeping Maintain accurate and complete records of all financial activities
• •
Salon Policies Rules and regulations Everyone is treated fairly and consistently
Types of Salon Owners
Individual ownership:
•Make your own rules • •Meet all duties and obligations of
running a business Sole proprietor is the owner and manager
•determines policies •assumes expenses • receives profits/bears all losses
Blogs.nailsmag.com
Salonsachet.com
Socialmiami.com
•
Partnership more opportunity for increase investment ~growth
•can be magical or a disastrous
Ex. Urban Edge John Paul Mitchell Systems
Partnership:
•Two or more people (not always equal)
~more capital or money ~pool skills and talents ~share work ~responsibilities ~decision-making ~must assume one another’s liability or debts
John Paul DeJoria Paul Mitchell Paul mitchell.com
Urbanedge.boomtime.com
•
Corporation: ownership controlled by one or more stockholders Incorporating *protects your personal assets *saves money in taxes *greater business flexibility *makes raising capitol easier
• • •
Characteristics of corporations: Raise capitol by issuing stock certificates or shares Stockholders-has ownership interest Sole stockholder or many stockholders
• • • •
Meetings required to maintain corporate status Income tax is limited to the salary you draw-not the profits Costs more to set up *formation fees *filing fees *annual state fees Required to pay unemployment insurance taxes on salary (sole proprietor or partner do not)
Ex.
Great Clips Haircuttery
Strmsigns.com
Haircuttery.com
http://bethlehem.patch.com/listings/holiday-hair-7#photo 2225893
Franchise Ownership
•
Contractual relationship
•
Operating under the franchisor’s trade name in exchange for a fee
•
Under the franchisor’s guidance and stipulations
Advantages:
•
Known name and brand recognition
•
Franchisor does most of the marketing
•
Protected territories
Concerns:
•
Agreements in what you can and cannot do
•
Be sure to research
•
Have a attorney read the contract/explain
•
Must pay the fee (successful or not)
clickedbmx.com
thelifeofrylie.com
Business Plan
• • • • • • • •
Includes: Executive Summary Vision Statement Mission Statement Organizational Plan Marketing Plan Financial Documents Supporting Documents Salon Policies
Purchasing an Established Salon
•excellent opportunity/look at all
sides of the picture
•Seek professional assistance
from an accountant and a business lawyer
Agreement should include:
•
Financial audit *actual value of the business *may not retain all of the former owner’s clients without help from former owner
•
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
• • •
Use of name and reputation for a definite period of time Disclosure of all information ~clientele ~purchasing ~service habits Disclosure of conditions of the facility
•
Noncompete agreement- seller will not work in or establish a new salon within a specific distance
•
Employee agreement-will the employees stay with the business
Drawing up a Lease
•your own business
~not always the building
•Rent or 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 and repairs
•option to allow you to assign the lease to
another person
Protection Against Fire, Theft, and Lawsuits
•
Have adequate locks
•
Fire alarm system
•
Burglar alarm system
Purchase: ~liability ~ fire ~malpractice ~burglary insurance Professionalandliability.com
Saloninsurance.com
• •
all laws cosmetology ~safety and infection control codes/city/state keep accurate records of everything!!
•
Ignorance of the law is no excuse for violating it
Business Operation Need: ~excellent business sense ~ aptitude ~good judgment ~diplomacy
~sound business principles ~circle of contacts *local entrepreneur group *Chamber of Commerce
Quakertownalive.com
• • • • •
Smooth business management: Sufficient investment capital Efficiency of management Good business procedures Strong computer skills Cooperation between management and employees
• •
Trained and experienced personnel Pricing of services Review price list “starting at” Review expenses chart (next page)
Mojazzhair.com
Paulzoom.com
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 all income and expenses •retain check stubs, cancelled checks,
receipts, and invoices
Appliance-repair.org
Webdatamation.com
Scottstadel.com
Knowfree.net
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
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)
•retail area
~spacious ~ inviting ~well lit
•layout is crucial •advice of an architect •professional equipment and furniture
supplier are good resources
•
Create small salon or renovate existing space
•
Keep plumbing in same area
•
Electrical wiring up to code
•
Get everything in writing from contractors, design firms, manufacturers, and architects
• •
Get more than one quote It takes about 6 months for a new salon to operate at full capacity-have $$$
Personnel size of salon/size of staff large salons require “specialists” receptionists, hairstylists, nail technicians, shampoo persons, colorists, massage therapists, estheticians, hair removal 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 ~more complicated
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 other people •Learn what you can and cannot say when
hiring, managing or firing
• •
Be familiar with civil rights laws *Equal Employment Opportunity Commission (EEOC) *Americans with Disabilities Act (ADA) Have a written personnel policies and procedures manual
•
Every employee must read and sign it
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 ~receptionist ~retail merchandise ~ phone system ~business cards ~displayed price list
The Receptionist second in importance Well-trained first person the client sees ~pleasant ~ greet each client with a smile ~address each client by name
Tiffanyplacesalon.com
Efficient, friendly service fosters good will, confidence, and satisfaction duties include: ~role of greeter ~answering the phone ~booking appointments ~inform the stylist client has arrived
~preparing daily appointment information ~recommending additional 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
• •
appearance that conveys salon image 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
•computerized system •actual hardcopy
Smartsalonmanagement.com
Use of Telephone in the Salon
•good habits and techniques
increase business
•improve relationship with clients
and suppliers
Good Planning
•Business calls to clients and suppliers
~quieter time of day ~quieter area
•pleasant voice
•use correct grammar •speak clearly •“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
Building Your Business
•includes all activities that
promote the salon favorably
•attract and hold the attention •a satisfied client is the very best
form of advertising
•develop a referral program •hire a small local agency
•advertising budget should not exceed 3
percent of your gross income
•plan well in advance •know what you are paying for • •get everything in writing
know your clientele-which type of media they use
•
what kind of messages attract them
Newspapers *ads, coupons, coupon book Direct mail Classified advertising *yellow pages Yourhometownportal.com
e-mail newsletters/discount offers Web site offerings Giveaway promotional items *combs, emery boards
Window display *attracts attention Radio Television Allaboutjazz.com
Flikr.com
Springfieldnebraska.com
Acelham.co.uk
Maurohair.com
Community outreach * public appearances, women’s and men’s clubs, church functions, political gatherings, charitable affairs, bridal fairs, fashion shows, radio and TV talk shows
Sierramadrenews.net
Fccc.edu
Client referrals
•
In-salon videos
•
Follow up every visit to determine client’s satisfaction
•
Personally contact any client that has not been in the salon for more than eight weeks
• •
Selling in the Salon financial success revolves around ~sale of additional salon services ~take-home/maintenance products adding services or retail sales *means additional revenue
Smartfurniture.com
Merchantcircle.com
• • • •
Beauty professionals feel uncomfortable selling products and additional services Overcome this feeling Sales professionals make customer care their top priority Offer good advice
Etopa.com
Eqgroup.com
Seattlepi.nwsource.com
Amazon.com