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Chapter 22

Terms in this set (60)

When should you confirm that you are in compliance with all local, state, and federal regulations, in order to avoid the risk of violations?
before opening your salon
Why should you contact local authorities after confirming your ability to own and operate a salon?
to investigate necessary business licenses and regulations
Whose assistance should you seek out if you do not understand your obligations as a business owner?
attorney and accountant
What does OSHA oversee?
workplace safety
What is the purpose of a noncompete clause within an agreement to buy an established salon?
to ensure the seller does not go on to offer similar services to the same marker
What procedures should be spelled out in a security checklist?
opening and closing procedures
What is a good approach for a business owner to have regarding lapses in insurance coverage?
coverage should never lapse
What key information is supplied by accurate daily reports?
gross income and cost of operations
When answering the phones, how can you let clients know you are eager to serve them?
by answering in a sincere, welcoming tone of voice
What should you refrain from doing when using the phone?
chewing gum
What is the correct term for the money needed to invest in a business?
capital
What are consumption supplies?
supplies used to conduct business operations on a daily basis
What are retail supplies?
Items available for sale to clients.
What is NOT a characteristic of a corporation?
Ownership limited to one individual
What is the term for the particular identifying characteristics of an area or population, such as the specific size, age, sec, or ethnicity of its residents
demographics
What is an employee manual?
Handbook or guide containing data about salon operations
What is an example of a fixed cost?
rent
What BEST describes a partnership?
Multiple people sharing ownership of a business
What term refers to the employees that work for you?
personnel
What is the PRIMARY purpose of creating a procedural guide?
standardizing operations
What is profit?
Money left after expenses are subtracted from revenues
What is the MAIN goal of public relations?
Achieving a certain desired behavior
What is revenue?
Income generated from selling products and services
Who generally pays for the utilities an esthetician uses in a booth-rental arrangement?
esthetician
What is a business plan
strategy for understanding key elements in developing business
What should you do 24 to 48 hours before an appointment with a client?
confirm the appointment with the client by phone
What should you do when leaving phone messages?
address the client by name
What is true of the front desk in a salon or spa
it is the center of business operations in the salon
What do you gain through education?
Knowledge you need to operate a profitable business
When should you become familiar with the basic business principle of accounting?
before you open your business
What business type requires the proprietor to bear losses alone?
sole proprietorship
What sort of person might thrive by operating a sole proprietorship?
independent, self-motivated individual who likes to be in charge
What is a characteristic of someone who might thrive in a partnership?
enjoys the security of working with others
When should you learn as much as possible about a prospective partner's ethics and philosophies?
before entering into any binding agreement
What is one of the effect of incorporating?
helps to protect personal assets
What does a corporation accomplish by issuing stock certificates or shares?
raising capital
What is a sole proprietorship?
A business owned by one person
What is the term for business expenses that fluctuate?
variable costs
What is the right approach for conflicts involving employees?
responding quickly and diplomatically
Who do employees typically regard as the leader of the team in the salon?
manager
What aspect of employee relations includes active listening?
positive communication
What is an employer's top financial priority?
payroll
What costs should you cover for employees to the best of your financial ability?
benefits
What happens when stockholders buy additional shared of stock?
they increase their ownership interest in the corporation
What type of business is managed by a board of directors?
corporation
Why should you require the services of a competent lawyer and tax accountant if you want to form a corporation?
to ensure compliance with complex state rules and regulations
What is a benefit of renting a booth or space within an established salon?
you gain experience by running a business on a small scale
What are two of the most important factors when choosing the location of your salon?
visibility and accessibility
What is the term for locating a business close to other businesses that offer different products and or services?
one-stop shopping
Why is parking a critical element in attracting business?
safety and convinience are important marketing features
What is a function of the federal agency called the Small Business Administration (SBA)?
helping small business succeed
What is true of financial management?
It is the cornerstone of a successful business plan
What helps you learn how to forecast (make predictions) about your business?
becoming familiar with specific costs related to running the business
What should your dispensary feature in addition to ease of mobility?
adequate storage space
What evokes a professional ambiance in the salon?
Style of the salon
What do you communicate to your employees by setting Clear goals and objectives and by acting consistently?
that you are a person of your word
What is the term for items you might offer your employees, such as tickets to educational conferences?
incentives
How quickly should you answer the phone in a professional setting?
within three rings
What should you do after asking a caller for permission to put the caller on hold?
allow enough time for a response
What is the protocol for missed calls in a professional setting?
check messages often and respond as quickly as possible
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