Learning Objectives1.) Form a detailed business plan.2.) Differentiate between types of business ownership.3.) Have the theoretical tools necessary for selecting a business location and facility.4.) Use the theoretical tools necessary to set up a business.
Learning Objectives continued5.) Conduct an employee interview.6.) Choose the most suitable forms of advertising based on a budget.
The Business PlanDocument detailing all aspects of the business as it is as present and as it is envisioned.The “blueprint”Brainstorm and come up with primary list
The Primary ListTime to createWhy create it? Should you hire a consultant? Outcomes
The Primary List - ExampleDemand StructureMain client base BookkeepingDesired client base Expansion plansLocation Business licenseType of facility Zoning permitName of business InsuranceStyle and image AdvertisingMode of raising $
Secondary ListGive one page to each item on primary listBrainstorm ideas related to that itemExample: Insurance Malpractice Fire/water/property damage Personal disability Payroll/worker’s compensation disability
Business-in-a-binderOrganizes informationHold documentation and certificates neededEach item on primary list gets its own sectionDocument everything!
Types of Ownership1.) Sole proprietorship2.) Partnership3.) Corporation
Sole ProprietorOne self-employed owner and managerSuccess is the sole responsibility of the ownerDBA (doing business as) – permit required if a business is going to be conducted under a name other than the business owner’s own name.
PartnershipShared ideas, shared responsibility, shared liabilityGenerate additional investment capitalTwo or more people own a business, ownership may or may not be equally shared
CorporationShared by 3 or more individuals who are identified by a state- mandated charter (subject to regulations and taxation).Incorporated – protection from liability; personal assets protected from claims
Business Laws and RegulationsLocal Guidelines for parking, building codes, and so on.State Sales taxes, licensing, worker’s compensation, payroll taxes, census reportsFederal Payroll taxes, social security, unemployment compensation, insurance, MSDS
Location and FacilityDoes the area have a large enough population to sustain a business?Do you plan to be the sole operator, or do you plan to bring other hair-removal technicians into the business?Do you plan to lease a business that gives you room for growth or to lease something smaller and, down the road, vacate, and more to a larger facility?
Things to Consider:LocationFloor planLease**Consider available capital.Banks want to see in a business plan the kind of facility, location, square footage, and leasing cost before committing to a loan.
LocationEasily accessibleEasy to find with simple directionsCleary visibleFrontage appeal, eye-catching signAdequate parking, safe parkingOther businesses around to attract clientele
Floor planIs the KeyAdequate square footage with handicapped accessibility.Open to immediate reception areaTreatment rooms large enough for all equipmentOfficeStorage spaceClean, attractive restroomsGood lighting and ventilation
The LeaseEvaluate pros and consStudy the leasing agreement (who pays for what)Have a lawyer look at the agreementNew construction will need to be inspected and certificate of occupancy issued and displayed
Home BusinessesNot really an option for laser techs
Purchasing Existing BusinessesElicit advice from lawyer and/or accountantWhy is the business for sale?Can the name of the business be continued for a certain time?Will employees stay on under new ownership?
Purchasing Existing BusinessWill the cost of leasing the premises go up? How much?What equipment fixtures will remain?
Office SetupDispensary Contains all supplies for services, disinfectants, autoclaves, etc.Treatment Rooms Walls, floors, surfaces that are easy to clean and disinfect (NO CARPET!!!) Uncluttered Background music – soft and soothing
Phone TechniquesAlways provide your nameBe friendly and courteousIf they want to discuss services in depth, invite them in for consultation.Offer two choices when scheduling.NEVER put them on immediate hold.
Phone TechniquesHandling complaintsIf the problem needs to be looked at, invite the client to come in and be seen ASAP.Or sometimes a home-care remedy is all that is needed. Assure that the technician will call ASAP.
Booking TechniquesAppointment book versus computerized systemAppointment book less expensiveWrite in pencilInclude daytime phone number to confirm appointments (1 to 3 days prior)
Booking TechniquesAdvantages of computerized systemStores other pertinent infoHelp with stock and inventory controlPrint daily schedulesPrint reportsSpeeds cash-out process
Booking TechniquesRepeated no showsPolicy for charging for appointments not cancelled within 24 hour period Clearly posted Mention policy at time of booking and confirmation
InsuranceMalpractice Dereliction of personal duty or failure to exercise an accepted degree of professional skill (pg. 265)Equipment insurance – make sure YOU are covered
InsuranceBusiness owner’s liability Covers clients or employees being injured May also purchase fire, water, natural disaster, theft
InsurancePersonal disability People who suffer major accidents that prevent them from continuing work benefit from this coverage.
Service ChargesCPA can help Calculate using variables (overhead, materials, labor cost, acceptable fee in the area) Timing should be considered
Examples of ChargesLip - $100Chin - $100Full leg - $600Half leg - $350Arms - $200Underarms - $225Bikini - $200Brazilian - $450Back - $600
Advertising and MarketingCRUCIAL!!Well thought out and plannedThis is everyone’s responsibility.
ReferralsBest method of advertising!Client-referral incentive
Business Cards and BrochuresAttractiveFocus on the business’s philosophyPass out business cards!!
Recommendation of AdditionalServicesUpselling Client is talking about an upcoming vacation. Suggest bikini or leg hair removal.Cross-selling services
Chamber of CommerceMingle with local businessesProvide help and advice
Better Business BureauBeing a member indicates that a business is recognized for reputation and service.Offered membership after 5 years of providing quality service, without major complaints
Television/Radio/NewspaperTV – costliestRadio – better deal, effective for areas of high traffic/commuteAds in art programs – support community and tax deductible (Goodwill)
Mass MailingsReaches numerous local households and potential clientsCan be with or without a coupon
The Yellow PagesMost common form of advertisingNew clients
1.) How many types of ownershipare there? Name them.3Sole proprietorshipPartnershipCorporation
2.) Name two state regulated items.TaxesWorker’s compensationCensus reportsLicensing
3.) Name two federally regulateditems.TaxesSocial securityUnemployment compensationOSHA – guidelines like MSDS
4.) What are 4 points to considerwhen choosing a business location?The floor planAccessibilityVisibilityAppealParkingCapital
5.) What are three types of insurance that areimportant to have as a business owner? Malpractice Business owner’s liability Personal disability
6.) What are some effectivemethods of advertisement?ReferralsBusiness cards, brochuresTVRadioNewspaperMass mailingsInternetYellow pages
7.) What is the BEST form ofadvertisement?WORD OF MOUTH!!!
8.) When setting up your treatmentroom, what should you remember?NO carpetWalls, floors, surfaces should be easy to clean and disinfectUnclutteredSoft, soothing music
9.) If someone calls because of acomplaint what are your two options? Determine if they need to come in If they do then invite them to come in and see the laser tech ASAP. If they don’t, make sure the laser tech responds ASAP to recommend a home-care remedy.