Salon Business, Entrepreneurship and Salon Management
This domain tests whether you can plan and run a salon as a business: costs, pricing, break-even, records, marketing and legal obligations. Expect a calculation question and scenario questions on cash flow or pricing.
Business plan essentials
Concept and target client, location and footfall, services and price list, equipment and fit-out, staff plan, licences, insurance, marketing, and three-year financial projection.
Costs and pricing
Fixed costs do not change with clients served - rent, salaries, insurance, subscriptions. Variable costs rise per service - product, disposables, laundry, commission. Contribution equals price minus variable cost. Break-even services = fixed costs ÷ contribution per service. Price using cost-plus, competitor and value-based methods, and include your own salary as a cost.
Records and compliance
Client record cards, consent forms, patch-test records, incident log, stock register, appointment diary, GST registration and returns as applicable, shops and establishment registration, trade licence, fire safety, and clinical waste disposal.
Marketing and retail
Google Business Profile, social media with consented images, reviews, referral offers, retail recommendations linked to the service, and a booking system that reduces no-shows.
Worked example
Fixed costs are ₹50,000 per month, average service price is ₹500 and variable cost is ₹150. Contribution is ₹350. Break-even = 50,000 ÷ 350 = 143 services per month. Over 26 working days that is about 5.5 services per day. If the salon reliably does only 4 per day, it makes a loss; the owner must raise prices, add retail, cut fixed costs or increase bookings.
Traps that cost marks
- Forgetting owner's salary, rent deposit or GST in the price.
- Pricing below cost to beat a competitor.
- Mixing personal and business cash.
- No written consent for marketing photographs.