Business Practices, State Laws and Rules, Salon Safety
Business Practices
Ownership and employment
Know the basic business structures - sole proprietorship, partnership, corporation, and limited liability company - and the trade-off each makes between control, liability, and taxation. Understand the common compensation models in salons: salary, commission, hourly plus commission, and booth rental. Booth rental means the stylist is typically an independent contractor who sets their own hours, supplies their own products, and handles their own taxes; treating a renter like an employee, or an employee like a renter, is a misclassification problem.
Money and records
Be able to discuss pricing, cost per service, product inventory, retail versus service revenue, payroll deductions, and record retention. Client records should capture service history, formulations, patch and strand test results, and any adverse reactions - they protect both the client and the licensee. Know why written agreements, receipts, and accurate tax reporting matter.
Marketing and professionalism
Questions often test soft skills: consultation, active listening, managing complaints, referrals, retail recommendations tied to a genuine client need, and confidentiality. Ethics questions usually point to the most transparent, client-centered answer rather than the highest-revenue one.
Traps and rule of thumb
Trap: choosing the answer that maximizes revenue but hides information from the client. Trap: assuming a booth renter is an employee. Rule of thumb: a written record and a written agreement solve most business disputes - if a choice involves documentation, it is usually the right answer.
State Laws and Rules
Who regulates what
In Wisconsin, cosmetology, barbering, aesthetics, electrology, and nail technology are regulated by the Department of Safety and Professional Services with the Barbering and Cosmetology Examining Board. Statutes set the broad authority; administrative rules (the 'Cos' chapters) carry the operational detail - sanitation standards, scope of practice, licensing and renewal, salon requirements, and disciplinary procedures. Know that the Board can investigate complaints, hold hearings, and impose discipline including reprimand, suspension, revocation, and fines.
Licensure
Understand the license types and that each carries its own training-hour requirement and scope. Only a licensed person may perform services for compensation; performing services without a license, or outside your scope, is unlicensed practice. Know the concepts of licensure by examination, reciprocity or endorsement from another state, apprenticeship routes, manager and establishment licenses, and the requirement to display the license. Renewal, continuing education, and fee requirements come from the current rule, so learn the categories and verify the numbers in the current text rather than relying on memory.
Practice rules
Expect questions on sanitation and safety standards, record keeping, advertising, sanitation of implements, and prohibited practices. Consumer protection themes recur: informed consent, honest advertising, and no claiming to cure disease.
Traps and rule of thumb
Trap: mixing up statute (broad) with rule (specific). Trap: assuming another state's license transfers automatically - endorsement is a process. Rule of thumb: when a question asks what is legal, pick the answer that requires a current license, correct scope, and documented sanitation.
Salon Safety
Chemical and hazard safety
Salon safety is written around OSHA. The Hazard Communication Standard requires a safety data sheet (SDS, formerly MSDS) for every hazardous product in the salon, accessible to employees, plus proper labeling of secondary containers. Employees must be trained on the hazards before use. The Bloodborne Pathogens Standard requires an exposure control plan, offer of the hepatitis B vaccination at no cost, personal protective equipment provided by the employer, and safe handling of sharps. Never mix chemicals such as bleach and ammonia, store peroxides away from heat and light, and keep products in labeled, closed containers.
Physical safety
Know electrical safety (grounded outlets, GFCI protection near water, no cords across walkways), fire safety (extinguisher types, clear exits), ergonomics (proper posture, adjustable chairs, lifting with the legs), and slip, trip, and fall prevention from wet floors and spilled product. Hot tools need intact cords and heat-safe resting surfaces; sharp implements need safe handling and disposal.
Emergency response
Know the sequence: protect the client, stop the service, provide first aid within your training, and call for emergency help when needed. Report injuries per salon policy and document the incident.
Traps and rule of thumb
Trap: believing an SDS is only needed for 'strong' products - it is required for every hazardous chemical. Trap: assuming employees buy their own protective equipment. Rule of thumb: if you cannot produce an SDS for a product in use, that is a violation.