Professional Practices and Business
The client relationship
Consultation, informed consent, confidentiality, and record keeping are the backbone. Keep a card or digital record with services performed, products used, patch or strand test results, and any reaction. Never disclose a client's information. Decline services outside your scope and refer.
Employment structures
Know the difference between employee (employer withholds taxes, provides supplies, sets schedule) and booth renter (self-employed, responsible for own taxes, supplies, and often insurance). Independent contractor status has legal tests; misclassification is a real risk. Carry professional liability insurance either way.
Money math you will actually be asked
- Markup on cost: retail price = cost ÷ (1 − desired margin) or cost × (1 + markup rate) depending on the wording. Read which one is asked.
- Gross profit = revenue − cost of goods. Net profit = gross − overhead.
- Service price must cover product cost, time, overhead, and profit.
Traps
Confusing markup with margin. Assuming a commission is profit. Forgetting that a business plan needs a break-even figure, not just a revenue goal.
Worked example
A retail product costs $12. You want a 40 percent margin on the selling price. Price = $12 ÷ (1 − 0.40) = $12 ÷ 0.60 = $20. If the question instead asks for a 40 percent markup on cost, price = $12 × 1.40 = $16.80. Same words, different answer - read carefully.