Salon Management and Entrepreneurship
Domain 9 - Salon Management and Entrepreneurship
This domain tests the business side: planning, legal compliance, pricing, stock, staffing and the numbers that decide whether a salon survives.
Planning and compliance
A business plan states the concept, target client, location logic, service menu and prices, staff structure, equipment list and financial projection. Registrations typically include shop and establishment registration, GST registration once turnover crosses the threshold (verify the current rate and threshold), a municipal trade licence and a fire no-objection certificate. Keep MSDS, consent forms, staff qualification records and an incident register.
Operations
Appointment scheduling with realistic service durations; client cards carrying consultation and patch-test history; inventory with par levels, FIFO rotation and one accountable person; weekly hygiene audits; daily cash reconciliation and digital billing.
Pricing and numbers
Know your cost per service: product used + therapist time + overhead share. Fixed costs (rent, salaries, utilities) do not move with volume; variable costs (product, laundry, commission) do. Contribution per service = price − variable cost. Break-even = fixed costs ÷ contribution.
Worked example
Monthly fixed costs are ₹60,000 (rent ₹20,000, salaries ₹30,000, utilities ₹5,000, misc ₹5,000). Average service price is ₹500 and product cost per service ₹100, so contribution is ₹400. Break-even = 60,000 ÷ 400 = 150 services a month, about 5 a day over 30 days. Reasoning: below 150 services the salon loses money, so staffing and promotions can be planned against a real number rather than a feeling.
Marketing and ethics
Google Business Profile, consent-based before/after posts, referral offers and loyalty programmes. Never publish a client's photograph without written consent, and never discount below cost to fill a diary.
Traps
- Confusing revenue with profit.
- Ignoring product cost when setting prices.
- Storing client data without consent or security.