Business Practices, Salon Management, and Georgia Law
Business Practices
The money side of the chair
Business questions reward basic literacy in pricing, compensation, and record keeping. Know the common compensation models. Salary pays a fixed wage. Commission pays a percentage of service revenue. Hourly plus commission and salary plus commission combine the two. Booth rental charges a fixed weekly or monthly rent, and the renter is self-employed, buying supplies, carrying insurance, and paying self-employment taxes. The salon issues a 1099 to a renter and a W-2 to an employee.
Pricing must cover direct costs (product), overhead (rent, utilities, insurance), and profit. Retail sales generate income with less labor than services; track your average ticket and retail-to-service ratio to see where your money comes from. Marketing includes social media, referrals, promotions, and community events, and retention matters more than constant acquisition.
Records, ethics, and communication
Keep client records that document services, products, patch tests, and any reactions, and retain them as long as state rules require. Protect client confidentiality. Book appointments accurately, confirm them, and know how to handle a late or no-show client policy. Telephone and online etiquette are testable: answer promptly, identify the salon, and confirm spelling of names and contact details.
Traps and a rule of thumb
Exams blur gross and net profit and blur employee versus independent contractor. Rule of thumb: 1099 means renter, W-2 means employee - and a renter does not get the salon's supplies, scheduling, or tax withholding.
Salon Management
Structures and functions
Ownership questions cover the sole proprietorship (one owner, personal liability), partnership, corporation, limited liability company, and franchise. Each differs in liability exposure and in how taxes are filed.
The classic management functions are planning (setting goals), organizing (arranging resources and jobs), directing or leading (motivating and supervising staff), and controlling (measuring results against the plan and correcting course). Leadership styles are commonly grouped as autocratic (the leader decides), democratic (the team contributes), and laissez-faire (the team is largely self-directed).
People and operations
Hiring starts with a written job description, then recruiting, interviewing, checking credentials, and onboarding. Performance reviews should be scheduled, documented, and based on stated standards. Delegation should be clear about the task, deadline, and authority. Conflict resolution depends on listening, restating the concern, and finding a solution both parties can follow.
Operations questions cover inventory control (par levels, first in first out), scheduling to match demand, safety and emergency planning (exits, extinguisher locations, first aid, blood spill cleanup), ergonomics (proper posture, adjustable chairs, breaks), and compliance with Georgia Board sanitation rules and OSHA bloodborne pathogen standards.
Traps and a rule of thumb
Students mix up the four management functions with leadership styles, and they confuse a sole proprietorship with an LLC when a question asks about personal liability. Rule of thumb: plan, organize, direct, control - if the statement describes setting a goal, it is planning; if it describes measuring results, it is controlling.
Georgia Law and Board Rules
Who regulates the industry
The Georgia State Board of Cosmetology and Barbers sits within the Professional Licensing Boards Division of the Office of the Secretary of State. The governing statute is O.C.G.A. Title 43, Chapter 10, implemented through the Board's rules. The Board licenses individuals and salons and inspects establishments.
Individual license categories include master cosmetologist, hair designer, esthetician, nail technician, and the corresponding instructor licenses, along with barber licenses. A salon must hold a valid establishment license, and licenses must be displayed where clients can see them. Licensees must keep the Board informed of current addresses and must not perform services outside the scope of their license.
Conduct and sanitation
Board sanitation rules set minimum standards for cleaning, disinfecting, and storing implements, for handwashing, for laundry, and for the physical facility. An inspector may enter and inspect a salon during business hours. Practicing without a license, allowing an unlicensed person to perform services, and aiding unlicensed practice are grounds for discipline. Disciplinary actions range from reprimand and fines to suspension or revocation. Renewal runs on a set cycle with continuing education requirements and late fees; confirm the current hours and deadlines on the Board's website, since rules and renewal dates change.
Scope boundaries and traps
Georgia law draws lines that general cosmetology training may not emphasize. Nail technicians, for example, may not cut living tissue. Services on infected or diseased skin and nails are refused and referred. Advertising must be truthful and must not promise cures.
Rule of thumb: when a general practice standard and a Georgia Board rule conflict, follow the stricter rule, and when in doubt, read the Board rule and document what you did.