The Beauty Business Chapter 10 - Milady Esthetics

A realistic benchmark for the net profit of a salon, spa, or barbershop is ______.

15%

David needs advice from his friend and mentor, Raul. They went to beauty school together and worked at the same location as beauty pros for five years. Each has always wanted to open his own professional, full-service establishment. However, while David's business is still a mere idea and dream, with any concrete plans at a standstill, Raul's has been open and flourishing for more than two years. So,when David finally calls Raul to ask his advice, why does Raul tell David that he must come up with a thorough vision statement?

Because a vision statement would give a long-term picture of what the business is to become.

Xavier's instructor has told him repeatedly that in addition to the artistic aspects of the beauty industry, he should also have a keen business knowledge of it. Why did Xavier's instructor give him this advice?

Because it will serve him well in managing his professional finances and business practices

Jamal is the proud owner of a newly opened establishment in the downtown area of his community. He has been hard at work these past few weeks in an effort to create his business's brand identity. Which of the following will Jamal want to focus on the MOST in those efforts?

Determining point of difference

.Gwen's business growth has been at a standstill for months. Her establishment does see its fair share of regular clients, so she has been able to pay the bills, but little new business has come in, and she is worried about the future. Her assistant manager, Darlene, has been trying to convince Gwen to engage in more viral marketing. If she is to do so, what will this MOST likely mean?

Engaging in more social media campaigns

Wilson is in disbelief. He cannot believe that his longtime friend Umberto has opened up his own business after all these years servicing clients. "Maybe you've arranged some other business structure to make it work? Because I cannot believe you are a sole proprietor," says Wilson to Umberto. How can Umberto demonstrate to Wilson that he is, in fact, the sole proprietor of his establishment?

Explain that he alone manages and assumes all of the expenses as well as receiving all profits

Wilson is in disbelief. He cannot believe that his longtime friend Umberto has opened up his own business after all these years servicing clients. "Maybe you've arranged some other business structure to make it work? Because I cannot believe you are a sole proprietor," says Wilson to Umberto. How can Umberto demonstrate to Wilson that he is, in fact, the sole proprietor of his establishment?

Explain that he alone manages and assumes all of the expenses as well as receiving all profits.

Which of the following is the MOST important reason to create incentives in the form of money or prizes for your employees?

Incentives can inspire employees to achieve more.

Why will you need to purchase insurance when you open your own business?

It protects you against malpractice suits.

What should be your primary concern when planning and constructing the best physical layout for the type of business you envision?

Maximum efficiency

If you are interested in booth rental, which of the following states should you NOT move to?

Pennsylvania

What should be done if a client calls to book an appointment with a particular professional on a particular day and time, but that professional is off that day?

Suggest other times that the professional is available.

Javier owns and runs one of the hottest beauty businesses in Manhattan. His clientele includes lots of actors, actresses, and leading, high-power businesspeople. Javier's establishment services hundreds of clients every week. Which of the following is MOST likely Javier's biggest expense every month?

Supplies

Yvonne has just spent the better part of her week interviewing beauty professionals to fill the position vacated when Stacey left to start her own business. Yvonne knows it will be very difficult to replace Stacey because she was one of the most accomplished beauty pros. However, she is determined to do so. One candidate among all others, Tara, did stand out over the course of the week, so Yvonne is probably going to choose to hire her. If Yvonne adheres to the recommendation within the text, why is she likely going to hire Tara over all of the other candidates?

Tara's image matches the image of Yvonne's establishment, not too trendy but just trendy enough.

If you are an owner of a salon, spa, or barbershop, which of the following is TRUE?

There is no guarantee of any profits.

If you are an owner of a salon, spa, or barber shop, which of the following is TRUE?

There is no guarantee to have profits

Which part of your business plan should outline all of the research obtained regarding the clients your business will target ?

Vision statement

Which of the following is the MOST important question to ask yourself when creating your brand identity?

What is my business's point of difference?

Which of the following types of business ownership is MOST likely to raise capital by offering shares of stock to stockholders?

a corporation

Franco is trying to convince his business partner, Vicky, that they should be using viral marketing at their business to get the word out more effectively and increase clientele. Vicky is not so sure; she prefers the old-fashioned methods of mail advertisements, occasional radio spots, and word of mouth. "Exactly!" exclaimed Franco when Vicky told him about her feelings. "We need to use good old word of mouth, just in a less old-fashioned way!" Which of the following could be effectively added to the old-fashioned word of mouth that would MOST likely make it viral marketing in Franco's eyes?

a smart device or computer

What does adding services and retail sales to your service tickets mean for your business?

additional revenue

Which of the following BEST encapsulates promotional efforts that are paid for and that are directly intended to increase business?

advertising

Because there has been much confusion at Henry's establishment in the past few months over who should be doing what and why, he has asked his assistant to prepare an outline of employee and management levels and responsibilities and a thorough description of how the business should run when all of the individuals perform according to the outline. What will Henry's assistant be creating?

an organizational plan

Xavier's instructor has told him repeatedly that in addition to the artistic aspects of the beauty industry, he should also have a keen business knowledge of it. Why did Xavier's instructor give him this advice?

because it will serve him well in managing his professional finances and business practices

The key duty of receptionists is ______.

booking appointments

Samuel takes pride in running his business efficiently, effectively, and with the best interests of not only his clientele but also his employees in mind. Because of this, his business has been very successful for him. And, with this success, he always tries to share the profits and wealth with those who work so hard for him. With this in mind, which of the following is Samuel LEAST likely to do?

continuously change and alter his tipping policy

Maura, a beauty professional at a very popular and trendy downtown establishment, has been considering taking the leap and opening her own business. If she does everything in the right order, which of the following will be her first objective toward achieving her goal of becoming a business owner?

determining the feasibility of the business

Which of the following is NOT one of the top three ways that clients find a service provider, according to the Professional Beauty Association (PBA)?

dissatisfaction with another service provider

Gwen's business growth has been at a standstill for months. Her establishment does see its fair share of regular clients, so she has been able to pay the bills, but little new business has come in, and she is worried about the future. Her assistant manager, Darlene, has been trying to convince Gwen to engage in more viral marketing. If she is to do so, what will this MOST likely mean?

engaging in more social media campaigns

Which of the following is an essential set of benchmarks that, once achieved, helps you to realize your mission and your vision?

goals

Since Samantha started her business three years ago, there have been constant, nagging issues with her personnel. She is almost to the point where she is considering getting out of the beauty and wellness business altogether. Which of the following is Samantha having problems with?

her employees

Ursula is working on a description of the key strategic influences of her business, including the varied services she will offer and the high quality she expects those services to provide. What, exactly, is Ursula working on?

her mission statement

Orlando has been working day and night to open his own business. Two nights ago, he completed his executive summary. Last night, he worked on his financial documents. And today and this evening, he's been working on his supporting documents. Over the past several days, which of the following has Orlando been preparing?

his business plan

Which part of your business plan should include a description of how the business will run administratively?

organizational plan

Which of the following will be LEAST important in becoming a successful entrepreneur?

paying employees a salary instead of a commission

Javier owns and runs one of the hottest beauty businesses in Manhattan. His clientele includes lots of actors, actresses, and leading, high-power businesspeople. Javier's establishment services hundreds of clients every week. Which of the following is MOST likely Javier's biggest expense every month?

salaries

.Which of the following is built into most booth rental agreements?

self-sufficiency

Which of the following is the BEST vehicle for others to promote you and your business via viral marketing?

social media

Kendra is considering opening her own full-service establishment. She has just begun taking preliminary steps in that direction. What she knows for certain at this early stage is that she wants to be in charge of making her own rules and is more than responsible enough to meet all of the duties and obligations of running a business. Which of the following business models would MOST likely be best for Kendra?

sole proprietorship

.Your personnel is your ______.

staff

Laura is the proud owner and operator of a new beauty business. Because she has just opened her doors, she has a very small budget for getting the word out about her new establishment. Given her financial constraints, which of the following is likely to be Laura's BEST way to market her new business?

viral marketing

The modern version of word of mouth is ______.

viral marketing

You will want to base your business location on ______.

your primary clientele and their needs