Milady Business Skills 30 32

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MILADY
BUSINESS SKILLS
Seeking Employment. On the Job. The Salon Business

Preparing for Licensure- DO NOT PANIC
• Testing
• Interviewing Skills
• Salon Business Categories
• Finding Success in the industry

Preparing for Licensure
• To master course content:
– Develop strong study
– Test-taking skills
– Test-wise is having a complete knowledge of the subject matter and
understanding the strategies for taking tests successfully.

Becoming Test-Wise
• Plan a realistic study schedule.
• Read content carefully.
• Keep a well-organized
notebook.
• Build a detailed vocabulary list.
• Take effective notes.
• Organize and review handouts.
• Review past quizzes and tests.
• Listen carefully for test cues.

Holistic Hints
• Be mentally ready.
• Get rest the night
before the test.
• Dress comfortably.
• Anticipate text
anxiety.
• Avoid cramming the
night before.
• Determine if the
written test is
computerized.

Test-Day Strategies
• Relax and slow down physically.
• Review material lightly.
• Arrive early.
• Read directions and listen carefully.
• Ask if you do not understand.

Test-Day Strategies
• Skim test before beginning.
• Budget time.
• Wear a watch to monitor time.
• Begin as soon as possible.
• Answer easiest questions first.
• Mark skipped questions.

Test-Day Strategies
• Read questions carefully.
• Answer as many questions as possible
(guess if unsure).
• Look over finished test.
• Change answers with good reason
only.
• Check Test before submitting

Deductive Reasoning Strategies
• Eliminate incorrect options.
• Watch for key terms.
• Study the stem.
• Watch for grammatical
clues.
• Look at similar or related
questions.
• In essay questions, address
the issue.
• In reading tests, read
questions first.
Top down; General to Specific

True/False Strategies
• Watch for qualifying
words.
• To be true, entire
statement must be
true.
• Long statements may
be more likely to be
true.

Multiple-Choice Strategies
• Read entire question and
all choices carefully.
• Look for best choice.
• Eliminate incorrect
answers.
• When two choices are
close or similar, one is
probably correct.
identical, both must be
wrong.

opposite, one is
probably correct.
• “All of the above”
responses are often
correct.
• Note words like not,
except, but.
• Guess if you don’t know
(if there is no penalty).
• Answer to one question
may be in stem of
another.
Multiple-Choice Strategies

Matching Strategies
• Read both lists
before beginning.
• Check off items
from the brief
response list to
eliminate choices.

Essay Strategies
• Organize answer to cue
words in question.
• Think carefully and
outline answer before
you begin writing.
• Be complete, accurate,
relevant, well-
organized, clear.

• Practice correct skills often.
• Participate in mock exams.
• Be familiar with exam
bulletin.
• Make a list of implements,
materials, and supplies
needed.
• Keep equipment clean and
implements sanitary and
working.
Practical Exam Tips
• Observe other practical
exams.
• Locate exam site prior to
exam.
• Listen carefully to
instructions.
• Focus on your own
knowledge.
• Follow safety and sanitatio
procedures at all times.
• Look the part.

Goal-Affirming Questions
• What do I want from my
career?
• What areas are most
interesting to me?
• What are my strongest
skills?
• What are my best personal
qualities?

Personal Skills Assessment
• Posture and poise
• Grooming and personal hygiene
• Manners and courtesy
• Communications skills
• Attitude
• Personal habits
• Self-esteem and self-
confidence
• Honesty and integrity
• Dependability

Technical Skills Assessment
• Analyze skills in each area.
• Are skills suitable for any salon type? If not, why not?
• What skills should be developed to work in the desired salon type?

Technical Skills Assessment

Desired Employment Characteristics
• Motivation
• Integrity
• Good technical and
communication skills
• Strong work ethic
• Enthusiasm

Desired Employment Characteristics
• Motivation
• Integrity
• Good technical and communication skills
• Strong work ethic
• Enthusiasm

• Small independent salons
• Independent chain salons
• Large national chains
Salon Types

Salon Types
• Franchise salons- Great Clips
• Basic value-priced salons
• Mid-priced full-service salons
• High-end "image" salons or day spas
• Booth rental

Preparing for Employment
• Resume: a written summary of your education and work
experience
• Informs potential employer of achievements and
accomplishments

• Keep it simple and on one page.
• Print it on good-quality bond paper
(neutral shade).
• Include name, address, phone, and e-
mail.
• List recent relevant work experience.
• List relevant education and name of
school where you graduated.
• List your abilities and
accomplishments.
• Focus on information relevant to job.
General Resume Guidelines

General Resume Guidelines
• 20 seconds to sizzle!
• How many regular clients do you
serve?
• How many clients do you serve
weekly?
• What is your ticket average?
• What is your client retention
rate?
• What percent of revenue is from
retailing?
• What percent of revenue is from
chemical services?

• Complete contact information
• Make it neat and easy to read.
• Know your audience.
• Keep it short.
• Stress accomplishments.
• Focus on career goals; highlight
relevant performance.
• Emphasize transferable skills.

• Make it neat
• Include personal references
• Be realistic
• Include cover letter.
• Note skills with new
technologies.
• Use action verbs (achieved,
strengthened, increased)

• Avoid salary references.
• Avoid discussing why you left former employment.
• Avoid stretching the truth.

Focus on Achievement

Portfolio Preparation
• Diplomas, secondary
and postsecondary
• Awards and
achievements
• Achievement-oriented
resume
• Letters of reference
from employers
• Summary of
continuing education

• Statement of
professional affiliations
• Statement of civic
affiliations
• Before and after photos
of services
• Statement of why you
have chosen
cosmetology as a career
• Other relevant
information

Targeting the Establishment
• Accept that you won’t begin
where you want to be.
• Start now.
• Locate salons that serve your
preferred clientele.
• Obtain a list of salons.
• Watch advertisements.
• Check industry and social-networking
Web sites.
• Keep salon’s culture in mind.

Networking
• Call and use your best phone
manner.
• Explain that you are about to
graduate and are researching
potential positions.
• Ask if the salon is looking for a
stylist.
• Ask if you can make an appointment
to observe during the next few
weeks.

• Confirm appointment.
Networking

• Salon image
• Professionalism
• Management
• Client service
• Retail prices
• In-salon marketing
• Services
Salon Visit

Salon Visit Checklist

Note of Thanks

Arranging the Interview

Arranging the Interview
• Send Resume & Cover Letter
• Check Salon Website
• Confirm with phone call or email

• Social Security number
• Driver’s license number
• Names, addresses, phone
numbers of former
employers
• Dates of former
employment
• Contact information of
nearest relative

Interview Wardrobe
• Appropriate for position
• Fashionable and
flattering
• Accessories appropriate
• Hairstyle professional
and current
• Makeup/facial hair
appropriate
• Fragrance subtle
• Handbag or briefcase
(not both)

Dressed for Interview

Typical Interview Questions
• Are you flexible? Please explain.
• What are your career goals?
• What days/hours are you available to
work?
• Are there any obstacles to prevent
you from keeping your employment
commitment?
• What did you like best about your training?
• Are you punctual and regular in attendance?
(Will school director confirm your answer?)
• What skills are your strongest?
• What skills are your weakest?
• Are you team player?

Typical Interview Questions
• What assets would you bring to the
salon
and the position?
• What computer skills do you have?
• How would you handle a problem
client?
• How do you feel about retailing?
• Are you willing to attend training ?
• Describe ways you provide excellent
customer service.
• Share an example of consultation
questions you might ask a client.
• Are you prepared to work for one
year before you get your own clients?

Practical Service at Interview
• Confirm prior to interview whether you will be required to
perform a service.
• If so, make sure model is appropriately dressed and prepared.
• Take necessary supplies.
• Could be on a live model or a mannequin

The Interview
• Be on time.
• Turn off cell phone and
remove ear devices.
• Project a warm, friendly
attitude.
• Walk, sit and stand with
good posture.
• Be polite and courteous.
• Don’t sit until asked.
• Don’t smoke or chew
gum.

The Interview
• Don’t bring your own
drink or snacks.
• Don’t lean on or touch
interviewer’s desk.
• Appear confident.
• Speak clearly.
• Answer questions
honestly.
• Never criticize former
employers.
• Acknowledge interview
with thanks.

• What are you looking for in a
professional?
• Is there a job description I may
review?
• Is there a salon manual?
• How frequently does the salon
advertise?
• How long do employees typically
work here?
• Are employees encouraged to
grow in skill and responsibility?
How?
• Does the salon offer continuing
education opportunities?
• What does your training program
involve?
• Is there room for advancement?
• What are the requirements for
promotion?
• What benefits are offered?

• What outside activities is the salon involved in?
• What is the form of compensation?
• When will the position be filled?
• Should I follow up on your hiring decision?
INTERVIEW FOLLOW UP:
Thank you note or Call ( if suggested by interviewer)

Legal and Illegal Questions
• Race, religion, national origin
• Age or date of birth
• Disabilities or physical traits
• Drug use or smoking
• Citizenship

• How old are you?
• Describe your medical
history.
• Are you a U.S. citizen?
• What is your native tongue?
• Are you over the age of 18?
• Are you able to perform
this job?
• Are you authorized to work
in the U.S.?
• In which languages are you
fluent?

• Non-compete agreements
• Confidentiality agreements
• Cannot interfere with right to work

Tips for Success
• Learn about the establishment.
• Read industry journals.
• Attend trade shows/Continuing education

REVIEW
• What habits and characteristics do
test-wise students have?
• What is deductive reasoning?
• What are the four most common
testing formats?
• List and describe the different
types of salons available to
cosmetologists.
• What is a resume?
• What is an employment portfolio?
• List the items that should be included in
your employment portfolio.
• What are some questions that you
should never be asked when
interviewing for a job?

Chapter 31
On The Job

• Everyday behavior expected of a new employee.
• Habits of a good salon team player.
• Compensation
• Selling/Retail
• Building a Clientele

The School Environment
• Forgiving
• Correctable mistakes
• Adaptable schedules

The Salon Environment
• Salon and client needs first
• Salon computerization

The Real World
• Do not expect to get the
highest paid position doing
only what you like best when
you first graduate.
• The bad news is that you may
start at the bottom as an
assistant and work your way
up.
• The good news is that you
will be learning throughout
the journey.

Points for Client Service
• Put others first.
• Be true to your word.
• Be punctual.
• Be a problem solver.
• Be a lifelong learner.

Salon Teamwork
• Strive to help.
• Pitch in.
• Share your knowledge.
• Remain positive.
• Become a relationship builder.
• Be willing to resolve conflicts.
• Be willing to be subordinate.
• Be sincerely loyal.

Job Description
• Read it carefully.
• Make sure you
understand it.
• Ask necessary
questions.

Job Description Example

Compensation Methods
• Salary
– Flat rate
– Hourly rate
• Commission
– 25 to 60 percent
(experience required)
• Salary plus commission
– Basic pay
– Commission on
services and retail
• Tips

Employee Evaluations
• Formal evaluations
• Informal help
• Role model

Financial Planning
• Research and plan.
• Be aware of debts and
expenses.
• Build a personal budget
and live by it.

Give Yourself a Raise
• Spend less.
• Work more hours.
• Increase prices and/or services.
• Retail more. Most salons pay a commission on
products sold to clients.

Seek Professional Advice
• Research and interview
financial planners.
• Speak to bank officers.
• Questions to consider:
– How do expenses compare
to income?
– What is your balance after
expenses are paid?

Sell, Sell, Sell
• Ticket upgrading or
upselling services
• Retailing

• Know the benefits of products.
• Adapt to client’s personality and needs (hard or
soft sell).
• Be self-confident.
• Ask questions.
• Don’t misrepresent services or products.
• Don’t underestimate clients‘ intelligence.
• Be relaxed and friendly.
• Recognize when to close the sale.
Principles of Selling

Overcoming Objections
• Reword the objection.
• For example:
– You offer a client who has just received a color treatment a
shampoo for color-treated hair. She states she already has a
shampoo for color-treated hair.

Psychology of Selling
• Determine client’s reason for purchasing.
– To look better
– To feel better about self
– To solve a problem

Sales Techniques
• Ask client what products used now.
• Discuss products while using them.
• Place product in client’s hands.

Sales Techniques
• Advise client of product benefits.
• Keep retail areas clean, well-lit, appealing.
• Inform client of promotions and sales.
• Stress merits of using professional products.
• Offer quick styling lesson.

Points of Selling
• Establish rapport with client.
• Determine client’s needs.
• Recommend products/services
based on needs.
• Emphasize benefits.
• Close sale.

Building a Client Base
• Send birthday cards.
• Provide good service.
• Be reliable.
• Be respectful.
• Be positive.
• Be professional.

• Use business card referrals.
• Use local business referrals.
• Speak publicly.
Building a Client Base

Rebooking
• The process of getting the client to schedule a future
appointment before leaving the salon

On Your Way
• Practice makes perfect.
• Network with other
professionals.
• Become a lifelong
learner.
• Make career satisfaction
your goal.

Review • What is expected of a new salon
employee, and what are two
things you must do every day?
• What are six habits of a good
salon team player?
• What are the three most
common methods of salon
compensation you are likely to
encounter?
• What are five principles of
selling salon products and
services? Please explain them.
• What are six ways to expand
your client base?

Chapter 32
Salon Business

Objectives
• Going into business for
yourself.
• Responsibilities of a booth
renter.
• Factors to be considered when
opening a salon.
• Salon ownership.
• Business plan.
• Record keeping.
• Successful salon operations.
• Explain why selling services and
products is a vital aspect of a salon’s
success.

Going into Business: Booth Rental
• Responsible for:
– Own clientele
– Paying flat fee for rent
– Keeping records
– Maintaining insurance
– Complying with IRS
– Using own phone system
– Collecting service fees
– Purchasing supplies
– Maintaining inventory
– Advertising, incentives
– Paying for advanced
education
– Working in independent
atmosphere
– Adhering to state laws and
regulations

Opening Your Own Salon
• Vision Statement – long term picture of what the business is to
become
• Mission statement: description of the business, the market it
serves, the services offered, and so on
• Goals : benchmarks to help realize the mission and vision

• Create a business timeline.
– 1 year
– 2 to 5 years
– 5 to 10 years
– 10 to 20 years
– Over 20 years
• Consider business
feasibility.
• Choose a business name.
• Choose a location.

Location, Location, Location

• Written agreements
• Business regulations and laws
• Insurance
• Salon operations
• Record keeping
• Salon policies
• Useful resources

Types of Ownership
• Individual ownership
– Proprietor is owner and manager.
– Proprietor determines policy.
– Proprietor receives profits and bears all losses.

• Partnership (owned by two
or more parties)
– More capital is available.
– Ability and experience
are combined.
– Profits are shared.
– Partners assume each
other’s unlimited liability
for debt.
Types of Ownership

• Corporation
– Capital raised by
issuing stock.
– Stockholders own
interest.
– Corporate
formalities required.
– Income tax limited
to salary.
– Unemployment
insurance required.
Types of Ownership

• Franchise ownership
– Franchisor: existing successful business
– Franchisee: one who contracts with franchisor for use of
name, brand, and policies
Types of Ownership

Business Plan
• Executive summary
• Vision statement
• Mission statement
• Organizational plan
• Marketing plan
• Financial documents
• Supporting documents
• Salon policies

Purchasing Existing Salon
• Financial audit to determine value
• Written purchase/sales agreement
• Signed statement of inventory
• Investigation of loan defaults
• Confirmed identity of owners

• Use of salon’s name and
reputation
• Disclosure of client
information
• Disclosure of facility
condition
• Noncompete agreement
• Employee agreements
Purchasing Existing Salon

Drawing Up a Lease
• List exempt equipment and fixtures that are separate from lease.
• Agree on necessary renovations.
• Clarify option to sublease.

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

Business Operation
• Excellent business sense
• Knowledge of sound business principles

Business Management
• Sufficient investment
capital
• Efficiency of
management
• Good business procedures
• Strong computer skills
• Management/employee
cooperation
• Experienced personnel
• Excellent customer
service

Proper 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

Supplies
• Consumption: used in daily
business operation
• Retail: sold to clients

Service Records
• Records of all
treatments and
retail
• Client consultation
cards
– Hard copy
– Electronic file

Operating a Successful Salon
• Planning layout
• Hiring skilled and educated personnel
• Properly managing the front desk
• Efficiently using the telephone
• Effectively advertising salon services

Salon Layout
• Flow and volume of
services
• Adequate space
• Spacious, inviting
retail area

Hiring Considerations
• Skill level
• Personal
grooming
• Image as it relates
to the salon
• Overall 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.

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

The Front Desk
• Reception area
• Receptionist (salon
quarterback)
• Booking
appointments
• Appointment book

Good Telephone Usage
• Have a pleasant telephone voice.
• Show interest and concern.
• Be polite, respectful, courteous.
• Be tactful.
• Offer a 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 stylist 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.

Building Your Business
• Promote salon favorably.
• Attract and hold attention.
• Referrals are best form of
advertising.
• Develop ads (or outsource).
• Annual budget is 3 percent of
gross income.
• Plan ahead for holidays.

Methods of Advertising
• Newspapers
• Direct mail
• Classified/yellow pages
• E-mail newsletters
• Web site/ Social Media
• Giveaway promotional items
• Window display
• Radio
• TV
• Community outreach
• Client referral
• In salon videos

Selling in the Salon
• Selling is an important responsibility of the licensed professional.
Much of the salon’s success revolves around the sale of additional
salon services and retail products. Adding services or retail products
to each ticket means additional revenue.
• Everyone benefits!

Review • Name and describe the two most common
options for going into business for yourself.
• What responsibilities does a booth renter
assume? What are the disadvantages of booth
renting?
• List at least three factors that potential salon
owners should consider before opening a
business.
• Describe the types of salon ownership.
• List and describe the categories of information that
should be included in a business plan.
• Why is it important to keep good records, and what
types of records should be kept?

Milady Business Skills 30 32

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