Entrepreneurship, Employability Skills and Digital Literacy
What the exam tests
This domain tests basic salon business planning, costing and pricing, break-even, legal and insurance awareness, employability skills, and safe use of digital tools for bookings, payments, marketing and client data.
Core rules and concepts
- A business plan covers market survey, location, services, target client, staff, equipment, licences, insurance, pricing, promotion and working capital.
- Costing separates fixed costs such as rent and salaries from variable costs such as products. Break-even is fixed costs divided by contribution per service.
- Price must cover product, labour, rent, tax and profit; undercharging can hide a loss.
- Employability: a truthful CV, interview preparation, teamwork, punctuality and willingness to learn.
- Digital literacy: online booking, digital payment, social media promotion with client consent, strong passwords, data privacy and awareness of online fraud.
Worked example
Monthly fixed costs are ₹40,000 and average contribution per service is ₹200. Reasoned break-even: ₹40,000 divided by ₹200 equals 200 services per month. If the salon completes only 150 services, it does not cover fixed costs. The owner can raise contribution, reduce fixed costs or increase bookings, but must not simply ignore the gap.
Traps that cost marks
Do not post client photos without written consent. Do not ignore working capital or insurance. Do not use weak shared passwords. Do not confuse turnover with profit. Do not make false claims in advertising or on a CV.
Exam angle
Business questions reward the formula and the interpretation, not just the arithmetic. State the break-even figure and what it means.