SUCCESSFUL SALON AND SPA MANAGEMENT COURSE MANAGEMENT GUIDE CLASS SIGN-IN SHEET 1 INSTRUCTOR NAME: DATE TAUGHT: SUBJECT: SALON AND SPA MANAGEMENT TOPIC: SALON AND SPA TYPES AND THEIR LOCATIONS LESSON OBJECTIVES: Upon completion of the lesson, the student will be able to: 1. Understand the basic laws, rules, and regulations associated with salon and spa ownership. 2. Discuss the five basic types of salons and spas. 3. Understand the variety of ownership options available for salon and spa owners. 4. Choose a name for a salon and spa. IMPLEMENTS, EQUIPMENT, SUPPLIES REQUIRED: STUDENT INSTRUCTOR ITEMS x x Successful Salon and Spa Management x x Student Workbook x pens, pencils TEACHING AIDS (audio/visual equipment, handouts, etc. used by instructor): 1. Board 2. LCD projector and Instructor Support PowerPoint Slides FACILITY: Theory classroom TIME ALLOTMENT: 1 2 hours (adjust based on school schedule and student activities/participation) PRIOR STUDENT ASSIGNMENT: 1. Read Chapter 1, Successful Salon and Spa Management EDUCATOR REFERENCES: 1. Successful Salon and Spa Management 2. Successful Salon and Spa Management Workbook STUDENT SIGNATURES STUDENT SIGNATURES (If more space is needed, use reverse side of form.)
SUCCESSFUL SALON AND SPA MANAGEMENT COURSE MANAGEMENT GUIDE CLASS SIGN-IN SHEET 1 INSTRUCTOR NAME: DATE TAUGHT: SUBJECT: SALON AND SPA MANAGEMENT TOPIC: SALON AND SPA TYPES AND THEIR LOCATIONS LESSON OBJECTIVES: Upon completion of the lesson, the student will be able to: 1. Understand the basic laws, rules, and regulations associated with salon and spa ownership. 2. Discuss the five basic types of salons and spas. 3. Understand the variety of ownership options available for salon and spa owners. 4. Choose a name for a salon and spa. IMPLEMENTS, EQUIPMENT, SUPPLIES REQUIRED: STUDENT INSTRUCTOR ITEMS x x Successful Salon and Spa Management x x student workbook x pens, pencils TEACHING AIDS (audio/visual equipment, handouts, etc. used by instructor): 1. Board 2. LCD projector and Instructor Support PowerPoint Slides FACILITY: Theory classroom TIME ALLOTMENT: 1 2 hours (adjust based on school schedule and student activities/participation) PRIOR STUDENT ASSIGNMENT: 1. Read Chapter 1, Successful Salon and Spa Management EDUCATOR REFERENCES: 1. Successful Salon and Spa Management 2. Successful Salon and Spa Management Workbook INSTRUCTOR NAME DATE TAUGHT INSTRUCTOR NAME DATE TAUGHT INSTRUCTOR NAME DATE TAUGHT INSTRUCTOR NAME DATE TAUGHT INSTRUCTOR NAME DATE TAUGHT INSTRUCTOR NAME DATE TAUGHT NOTES TO EDUCATOR: 1. Review chapter, entire lesson plan, and Instructor Support PowerPoint Slides prior to lesson. 2. Review Learning Reinforcement Ideas/Activities and determine which are to be used. 3. Check projector to ensure working properly. 4. Gather all materials and supplies needed for demonstrations prior to starting class. 5. Have students sign in for class and document attendance based on school s procedure.
LEARNING MOTIVATION (WHY?) This chapter discusses many of the important elements related to starting your salon and spa effectively. Effective salon and spa management is not as simple as having the desire and technical skills needed to have a solid clientele. There are many business functions that need to be explored in detail by anyone interested in operating his or her own business. Chapter 1 begins the explanation of this process by outlining the types of salons and spas that you should consider operating, ownership options, and the process of choosing a name for your salon and spa. As you explore salon and spa ownership, you will discover the need for help from many different people. You may have already considered the need for support from your friends and family, but have you given consideration to the questions that a business consultant, lawyer or accountant can answer? This text will provide you with an overview of some of the business needs you will encounter. This chapter specifically discusses what you need to think about as you choose your salon and spa type (which often means location), how you re going to secure financing (salon and spa ownership) and the crucial marketing step of choosing a salon and spa name. PRESENTATION OF THE SKILLS AND/OR INFORMATION LESSON PLAN 1 SUBJECT LINE IN-DEPTH NOTES (Information to share during presentation) I. TYPES OF SALONS AND SPAS For each type of salon and spa, review the advantages and disadvantages outlined in the chapter. A. Hotel B. Department Store/Fitness Center C. Mall/Shopping Center D. Freestanding E. Medical II. SALON AND SPA OWNERSHIP Discuss each salon and spa ownership option outlined in the chapter. Discuss the advantages and A. Sole Proprietorships disadvantages of each, emphasizing that each student needs to consider his or her own individual situation when B. Partnerships deciding what his or her best option is. C. Corporations D. Limited Liability Corporations (LLCs) E. Franchises F. Employee-Owned Corporations G. Leased Space and Booth Rental III. Naming a Salon and Spa Discuss the strengths and weaknesses of the sample salon and spa names in the text, emphasizing the likelihood that a customer would be able to remember the name, know how to spell the name, and have a general understanding of the services available and the culture of the salon and spa based on the name.
SUMMARY AND REVIEW Let s review: There are five types of salons and spas that should be considered by anyone planning on owning his or her own salon and spa. Each has unique advantages and disadvantages. Those considerations should be used first to determine which type is a good fit for you and second to make a plan for success. For example, you might decide that a mall/shopping center salon and spa is right for you because of the traffic flow and convenient location that will attract customers to your salon and spa. With that decision made, you can begin to plan the costs involved with renting space as well as what promotions will work well in the mall/shopping center environment. The next important consideration involves deciding who will own the salon and spa. There are many options ranging from sole proprietorship and partnerships to employee-owned corporations and affiliations with franchise salons and spas. There is no one right answer for everyone. Like deciding the type of salon and spa that is right for you, the many different kinds of salon and spa ownership must be weighed carefully. Advantages and disadvantages of all ownership types must be reviewed as they affect your particular situation. Finally, naming your salon and spa is a key to your success. Many people will try to find your salon and spa on the Internet, so your salon and spa name must be easy to remember and spell. It may be tempting to be trendy, but remember that your salon and spa name has to stand the test of time, so it is best to keep the name simple and ensure that it appropriately describes your salon and spa business. LEARNING REINFORCEMENT IDEAS AND ACTIVITIES 1. Have students complete Chapter 1 of Successful Salon and Spa Management Workbook. 2. Have students complete review and final testing with Milady s Successful Salon and Spa Management Online Licensing Preparation. 3. Have students identify three different types of salons and spas and answer questions about each. (LP 1, H- 1) Then, using the answers to the questions, have the student briefly discuss with the class what was learned. 4. Ask students to interview a local salon and spa owner. (LP 1, H-2) 5. Ask students to interview a local salon and spa manager. (LP 1, H-3) 6. Have students contact two Web designers. Students should find out the costs involved with creating a Web site for their salon and spa as well as what information the Web designer would need to create an effective Web site for the salon and spa. (Students may want to consider contacting Web-design schools in the area. Students that are close to graduation can answer the necessary questions and are more likely to be open to an informational interview.) 7. Have students review five salon and spa Web sites. Ask that they rank the Web sites based on their effectiveness. Students should pay special attention to the salon and spa name and how well it appears to represent that salon and spa. Students should also be able to describe in detail the reasons why they feel the Web site is effective or ineffective. 8. Ask students to complete a digital scavenger hunt within the community in which they live, work, or go to school. (See instructions in LP 1, Teaching Tool #1.) 9. On the lines below, write any activities, assignments, or ideas that have been used effectively with this lesson in order to aid other instructors who may use this lesson plan in the future.
LP 1, H-1 SALON AND SPA TYPES Answer the following questions for three different salons and spas in your community. You can find this information by conducting research on the Internet or by interviewing salon and spa personnel. SALON AND SPA 1 1. What is the name of the salon and spa, and under what category from the text does it fall? 2. What services are offered by the salon and spa? 3. What are the strengths/advantages of the salon and spa? Consider the technicians, salon location, and anything else that may contribute to salon and spa success. 4. What are the opportunities for improvement/disadvantages of the salon and spa? Consider the technicians, salon location, and anything else that may hinder the success of the salon and spa. SALON AND SPA 2 1. What is the name of the salon and spa, and under what category from the text does it fall? 2. What services are offered by the salon and spa? 3. What are the strengths/advantages of the salon and spa? Consider the technicians, salon location and anything else that may contribute to salon and spa success. 4. What are the opportunities for improvement/disadvantages of the salon and spa? Consider the technicians, salon location and anything else that may hinder the success of the salon and spa.
SALON AND SPA 3 1. What is the name of the salon and spa, and under what category from the text does it fall? 2. What services are offered by the salon and spa? 3. What are the strengths/advantages of the salon and spa? Consider the technicians, salon location and anything else that may contribute to salon and spa success. 4. What are the opportunities for improvement/disadvantages of the salon and spa? Consider the technicians, salon location and anything else that may hinder the success of the salon and spa.
LP 1, H-2 SALON AND SPA OWNER INFORMATIONAL INTERVIEW QUESTIONS 1. How long have you owned your salon and spa? 2. Why did you decide to open your own salon and spa? What did you think about when you were considering your options? 3. There are many different types of salon and spa ownership (partnerships, corporations, etc.). What kind of ownership does this salon and spa have? Why did you choose that kind of ownership? 4. What do you see as the advantages and disadvantages of salon and spa ownership? If possible, please share three advantages and three disadvantages. Advantages: 1. 2. 3. Disadvantages: 1. 2. 3. 5. What do you wish you had done differently when you first became a salon and spa owner? Why?
LP 1, H-3 SALON AND SPA MANAGER INFORMATIONAL INTERVIEW QUESTIONS 1. How long have you been a salon and spa manager? 2. Please briefly describe what your role as a salon and spa manager entails. 3. What is the best part of your job? 4. What is the most challenging part of your job? 5. What do you wish you had done differently when you first became a salon and spa manager? Why?
LP 1, Teaching Tool #1 DIGITAL SCAVENGER HUNT A digital scavenger hunt provides students with a fun way to collect real-world data to be discussed in the classroom. Provide limited instructions (outlined below) and encourage the students to be creative! 1. Identify what items in the community the students should look for. For example, Chapter 1 s list may include salon and spa names/signage or locations. 2. Set clear expectations for how many items need to be collected on the scavenger hunt. Avoid overwhelming the students. Three to five items are plenty to facilitate a good discussion. 3. Define the period of time that the students have to collect the information. For example, if they receive the assignment on Monday, they may have until the end of the week to e-mail the information to the instructors. Give the students several days to complete the assignment and encourage them to look for the information in their environment instead of making special trips to new places. 4. Determine how information is to be collected. Students may wish to take pictures with their cameras or cellular phones and e-mail the results to the instructor. If the students do not have the ability to collect data in that manner, they can collect brochures from the businesses that they wish to discuss. Whatever data is retrieved, it should help the student discuss the finding in the classroom. 5. Have each student briefly discuss their findings with the class. Be sure each student discusses why they chose the examples that they did.
Chapter 1 Salon and Spa Types and Their Locations
Setting Up Your Salon and Spa Business Licenses/sublicenses Alternative or special licenses Milady, a part of Cengage Learning. Photography by Dino Petrocelli
Setting Up Your Salon and Spa Business Read and follow the licenses required for business ownership Write all salon and spa services you wish to offer in the establishment See what licenses are needed
What Type of Salon and Spa Do You Want? Hotel salon and spa Department store/fitness center salon and spa Mall/shopping center salon and spa Freestanding salon and spa Medical spa
Hotel Salons and Spas Hotel offsets remote location by expanding salon and spa into a day spa Extensive range of services: massage, makeup, hair removal, body wrap, Botox injections, manicure, acrylic nails, pedicures, false eyelashes, permanent makeup, etc.
Hotel Salons and Spas Additional services may be controlled by: cosmetology/barber board medical board
Hotel Salons and Spas Leasing Potential unusual clauses sign placement cleaning and maintenance charge system through the hotel hours of business decorating subcontractor clause customer dispute settlement
Department Store/Fitness Center Salons and Spas Salon and spa relies on department store/fitness center for clients and marketing Operates in a leased space area Often contracts with a chain salon or spa
Department Store/Fitness Center Salons and Spas Chain salon and spa supply distribution mass purchase of salon and spa supplies salon and spa contacts home office for supplies Accounting and auditing system Base rent plus a percentage of profit
Department Store/Fitness Center Salons and Spas Considerations: compatible image clarify advertising customer complaint process style shows details of employee benefits, accounting procedures, etc.
Department Store/Fitness Center Salons and Spas Benefits: store lunchroom employee discounts paid vacation/sick pay group insurance profit-sharing
Mall/Shopping Center Salons and Spas Convenient location stores surrounding a center atrium strip center allowing customers to go directly into your business Rent flat rent plus a percentage of sales
Mall/Shopping Center Salons and Spas Rent varies based on: location type of mall economy Negotiating rent consider demographics, traffic patterns, seasonal considerations, etc. hire an attorney/business consultant
Mall/Shopping Center Salons and Spas New location will have floor, walls, ceiling, toilet, heat/air capabilities, electrical connections, display window Existing location you will have to work with what you have, but it may be more cost-effective as much of the work has been done
Freestanding Salons and Spas Corporation/partnership owns the property rent goes to pay for the property landlord/salon and spa owner arrangement if owner lives in the structure, possible tax deductions
Medical Spas Western and holistic medicine combined with spa services Must have a physician s license or partner with a physician Services may include Botox, laser hair removal, chemical peels, Restylane, and dermatological services
Sole Proprietorships Advantages least expensive complete control keep all income profits flow to owner s personal tax return easy to dissolve
Sole Proprietorships Disadvantages unlimited liability and legal responsibility (personal assets are at risk) limited funding employee benefits are not directly deductible from business income
Partnerships Advantages easy to establish increased ability to raise funds partnership opportunity may attract employees complementary skills
Partnerships Disadvantages jointly and individually responsible for the actions of the other profits must be shared decisions must be shared, which may cause disagreements may have a limited life
Types of Partnerships to Consider General partnership Limited partnership and partnership with limited liability Joint venture Milady, a part of Cengage Learning. Photography by Dino Petrocelli
Corporations Considered by law to be a unique entity Can be taxed, can be sued, and can enter into contractual agreements Owners are shareholders Shareholders elect a board of directors Remains even if ownership changes
Corporations Advantages shareholders have limited liability shareholders can only be held accountable for their investment in stock of the company can raise funds through sale of stock can deduct cost of benefits to officers and employees S corporations can be elected
Corporations Disadvantages more time and money than other forms of organization monitored by state and federal agencies higher overall taxes
Subchapter S Corporations Shareholder can treat the earnings and profits as distributions and have them pass through to his or her personal tax return If there is a profit, the shareholder has to pay himself or herself wages
Limited Liability Company (LLC) Owners are members Time limit can be continued at expiration if desired Must not have more than two of the four following: limited liability to the extent of assets continuity of life centralization of management free transferability of ownership interests
Franchised Salons and Spas Successful due to marketing and organizational strengths Offers standardization
Franchised Salons and Spas Advantages strong consumer marketing group purchasing power uniform bookkeeping systems centralized training noncompetition from same franchise exclusivity of product line help with interior design legal and business assistance programs group insurance rates group health insurance
Franchised Salons and Spas Disadvantages high initial costs restrictions in franchise agreement franchisor might go out of business other franchisees could hurt your reputation may be difficult to sell profits shared with franchisor high continuing costs
Employee-Owned Corporations Employee owns stock in the company Only works if the personalities are compatible
Employee-Owned Corporations Advantages motivated employees align employees interests with shareholders recruit/retain key employees compensate for lower salaries pay employees in a tax-efficient way increase loyalty raise working capital realize owners investment
Employee-Owned Corporations Disadvantages falling morale if share price falls administration costs dilution of share ownership unrealistic expectations
Leased Space and Booth Rental Owner contracts a given area of space Owner subdivides the space into several areas Each space is rented to a different practitioner
Leased Space and Booth Rental Advantages you do not pay workers compensation or federal and state employment taxes you do not offer training and education you do not provide liability insurance you do not advertise for new customers you do not manage employees
Leased Space and Booth Rental Disadvantages minimal or nonexistent business growth high staff turnover unable to manage and educate staff no quality control lack of teamwork exposure to audits unable to sell other salon and spa services
Naming a Salon and Spa Your salon and spa name must: be easy to spell be short enough that people can remember it clearly identify services offered Your salon and spa name should not: be so trendy that it becomes outdated when trends change Milady, a part of Cengage Learning. Photography by Dino Petrocelli
Summary Each state has its own laws for salon and spa ownership All technicians need to be licensed by the appropriate board There are five types of salons and spas
Summary Salons and spas can vary in types of ownership Corporation style of ownership offers greatest financial security against lawsuits Franchised salons and spas allow for easier startup Your salon and spa name should be easy to spell and remember