Salon business regulations business law
Bạn đang xem bản rút gọn của tài liệu. Xem và tải ngay bản đầy đủ của tài liệu tại đây (211.37 KB, 13 trang )
Salon business
Regulations
Business laws
Insurance
Salon business
♦ Local regulations
– Building renovations ( local business codes )
♦ Federal laws
– Social security, unemployment compensation,
cosmetics and luxury tax, OSHA
♦ State laws
– Sales tax, licenses, employee compensation
♦ Income tax laws
– Both federal & state government
♦ Insurance
– Malpractice, premises liability, fire, burglary & theft &
business interruption
Salon business
♦ Salon ownership & operation
– Individual ownership
• Privately owned business
– Proprietor is owner & manager
– Proprietor determines policy
– Proprietor receives profits & bears all losses
– Partnership
• Privately owned by two or more parties
– More capital is available
– Combined ability and experience
• Makes it easier & possibly more successful
– Profits are shared
• Not always equally
– Partners assume each other’s unlimited liability for debt
Salon business
♦ Corporation
– Ownership shared by stockholders
– Charter is required by state
– Subject to taxation & regulation y state or province
– Managed by Board of Directors
– Profits shared by stockholders
• Profits proportionate to number of shares owned
– Stockholder cannot lose more than original investment
Salon business
♦ Purchasing an established salon
– Written purchase agreement
• Advice from both an accountant & an attorney is advised
– Inventory statement
– Investigate to make sure no default in the payment of
debts
– Correct identity of owner
– Use of salon name & reputation
• Called “Blue Sky”
– Non-compete clause
Salon business
♦ Drawing up a lease
– Exempt equipment & fixtures that are separate from
lease
– Agree on necessary renovations
– Option to sublease
♦ Protection against fire, theft, lawsuits
– Keep premises secure & locked
– Purchase insurance
• Liability, fire, malpractice, burglary
– Do not violate medical law
• Refer clients as needed to a physician
– Know cosmetology law & sanitary codes in your state
Salon business
Keep accurate records
ignorance of the law is no excuse
Business operation
Sufficient investment capital
Efficiency of management
Good business procedures
Cooperation between management and employees
Trained & experienced salon personnel
Pricing of services
Salon business
♦ Allocation off money
– A good accountant & accounting system are
valuable
♦ Average expenses
♦ Importance of record keeping
– Good records are necessary to meeting
requirements of local, state/province, & federal
laws regarding taxes & employees
Salon business
♦ To determine income, expenses, profits,
loss
♦ To assess value of salon for prospective
buyer
♦ To arrange financing
♦ For various reports
– Income tax, social security, unemployment &
disability insurance, accidents, payments of
some leases
Salon Business
♦ Weekly/monthly reports
– Make comparisons with other years
– Detect change in demand for services
– Check on use of material
• As compared to the types of services rendered
– Control expenses and waste
Salon Business
♦ Daily records
– Allows owner to know how well business is
functioning
• Sales slips
• Appointment books
• Petty cash receipts
– Check with accountant to determine how long to keep
these documents
Salon Business
♦ Purchase and inventory records
– Help maintain perpetual inventory
– To prevent overstocking
– Alert you of pilfering
– To establish net worth of business at year end
• Consumption supplies are used in daily operations. Retail
supplies are sold to clients
– Plan future orders
– Service records
• Keep record of all treatments given & merchandise sold
Summary
♦ There are many considerations in
establishing a business that range from
selecting an efficient salon layout, to
inventory control, to payroll record
maintenance, to filing accurate tax returns,
to maintaining a loyal, happy clientele. A
great deal more research and planning will
be required than simply mastering the
contents of this chapter.
