Professional Practices, State Law, and Business Skills
Professional practice questions test licensing, scope, records, communication, and business math. The exam expects you to follow your state board, protect client information, and price services so the business survives.
Law and ethics
- Display your license, renew on time, complete required continuing education, and follow state sanitation and scope-of-practice rules.
- Obtain informed consent, consult before service, and document services, products, and any reactions.
- Keep client information confidential; do not diagnose medical conditions; refer suspicious skin or scalp conditions.
- Carry appropriate insurance and complete incident reports when something goes wrong.
Business
- Price equals cost plus overhead plus profit; know your cost per service.
- Compare booth rent with commission, track retail sales, set a no-show policy, and keep financial records.
- Understand markup and break-even so discounts do not erase profit.
Worked example
A service uses $12 in product and one hour of your time; overhead is $20 per hour, and you want 20 percent profit. Price equals ($12 + $20) divided by (1 - 0.20), which is $40. Charging $30 leaves little after taxes, downtime, and supplies.
Traps that cost marks
Practicing outside scope, failing to document, mispricing, promising results you cannot guarantee, and sharing client information.