Entrepreneurship, Salon Management and Customer Service
This domain tests basic business planning, salon operations, pricing, record-keeping and customer service. Questions often ask how to calculate break-even or how to handle a complaint without losing the client.
Core rules
- A business plan states the service, target client, location, competition, costs, price and marketing.
- Separate fixed costs (rent, salaries) from variable costs (product per service).
- Break-even = fixed costs divided by (price per service minus variable cost per service).
- Keep appointment, stock, income and expense records; issue receipts.
- Price for profit, not just to beat the salon next door.
- Train staff in hygiene, consultation and complaint handling.
- Handle complaints by listening, apologising for the experience, investigating, offering a fair solution and recording the outcome.
- Get consent before using client photos in marketing.
Worked example
Fixed costs are ₹30,000 per month. A facial sells for ₹1,000 and uses ₹400 of product. Reasoning: contribution per facial is ₹600. Break-even is 30,000 ÷ 600 = 50 facials per month. This shows how many services must be sold before profit starts; it is not the same as total revenue.
Traps that cost marks
- Confusing revenue with profit.
- Ignoring rent and salaries when pricing.
- Keeping no written records.
- Arguing with a complaining client.
- Using client images without consent.