Table Of Contentsalon
management
Hairdressing and Beauty Industry Authority Series
Start Hairdressing! – The Official Guide to Level 1 Martin Green and Leo Palladino
Hairdressing: The Foundations – The Official Guide to Level 2 Leo Palladino
Professional Hairdressing – The Official Guide to Level 3 Martin Green, Lesley Kimber and
Leo Palladino
Beauty Therapy: The Foundations – The Official Guide to Level 2 Lorraine Nordmann
Professional Beauty Therapy – The Official Guide to Level 3 Lorraine Nordmann, Lorraine
Appleyard and Pamela Linforth
Safety in the Salon Elaine Almond
Patrick Cameron: Dressing Long Hair Patrick Cameron and Jacki Wadeson
Patrick Cameron: Dressing Long Hair Book 2 Patrick Cameron
Trevor Sorbie: Visions in Hair Trevor Sorbie, Kris Sorbie and Jacki Wadeson
Mahogany: Steps to Cutting, Colouring and Finishing Hair Martin Gannon and Richard
Thompson
The Art of Hair Colouring David Adams and Jacki Wadeson
Bridal Hair Pat Dixon and Jacki Wadeson
The Total Look Ian Mistlin
Men’s Hairdressing: Traditional and Modern Barbering Maurice Lister
African-Caribbean Hairdressing Sandra Gittens
The World of Hair andThe World of Skin Care Dr John Gray
Aromatherapy for the Beauty Therapist Valerie Worwood
Indian Head Massage Muriel Burnham-Airey and Adele O’Keefe
Manicure, Pedicure and Advanced Nail Techniques Elaine Almond
The Complete Make-Up Artist: Working in Film, Television and Theatre Penny Delamar
The Science of Cosmetics andThe Beauty Salon and Its Equipment John V Simmons
salon
management
Martin Green
Australia Canada Mexico Singapore Spain United Kingdom United States
Salon Management
Copyright © Martin Green 2001
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For more information, contact Cengage Learning, Berkshire House, 168–173 High Holborn,
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All rights reserved by Cengage Learning 2000. The text of this publication, or any part
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or otherwise, without prior permission of the publisher.
While the publisher has taken all reasonable care in the preparation of this book the
publisher makes no representation, express or implied, with regard to the accuracy of the
information contained in this book and cannot accept any legal responsibility or liability for
any errors or omissions from the book or the consequences thereof.
Products and services that are referred to in this book may be either trademarks and/or
registered trademarks of their respective owners. The publishers and author/s make no
claim to these trademarks.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
ISBN 1-86152-660-1
First published 2001 Cengage Learning
Printed in Italy by G. Canale & C.
contents
■ ix foreword how much should you spend?
■ xi acknowledgements themed surroundings
general tips for salon design
introduction 1 what colour?
■ 22 time management
1
■ 23 stress management
planning for business 3
■ 4 the business plan
writing a business plan 2
table of contents page
principles of marketing 25
the executive summary
your business idea
■ 26 marketing
sole trader, partnership or limited company?
market information
key personnel
competitor comparison
define your business objectives
consumer research
services, products and/or treatments
who are your customers?
existing market climate
the marketing plan ■ 29 market strategy for new business
the operational plan price leadership
financial forecasts and analysis unique or specialist strategy
appendices focused strategy
■ 9 starting a business? the basic facts ■ 30 market strategy for an existing business
self-employed? market retention
income tax market expansion
national insurance diversification
employing others
keeping records ■ 31 market segmentation
evaluating market segments
examples of records
■ 15 leasing premises ■ 32 the marketing mix
■ 16 want to buy a franchise? ■ 32 SWOTanalysis
■ 18 is my credit good? ■ 33 pricing
can I see my credit file? break-even
contribution costs
■ 19 salon refit?
how often should you refit?
vi contents
■ 34 marketing opportunities through information electronic payment systems
technology seeking authorisation
efficiency and profitability code 10 authorisation calls
projection and speculation daily financial summaries
occupancy levels monitoring till transactions
■ 61 weekly financial summaries
3
end-of-week records
beginning to manage the receipts, invoices and petty cash
business 39 monitoring the bank account
■ 66 single-entry book-keeping
■ 40 records, systems and procedures
monthly accounts (cash book)
■ 40 routine duties making entries into the cash book
monitoring the daily transactions and events pre-printed accounting books
the appointment schedule cheque books, paying-in books and business
computerised appointment systems cards
stock management and control cash payments
■ 47 products ■ 68 managing VAT
product branding principle of VAT
retailing who collects VAT?
merchandising VAT registration
merchandising ‘nitty gritty’ how does VAT work?
good ‘deals’ VAT returns
what if I don’t pay VAT on time?
■ 50 client record management
working out VAT
computerised client databases
what do databases do? ■ 70 your annual accounts
understanding accounts
4 balance sheet
profit and loss account
beginning to manage money 55
notes to the accounts
■ 56 summary ■ 75 budgeting and cash flow forecasting
■ 56 money in general cash flow forecasts
income business manager’s checklist
expenditure
fixed costs
5
variable costs
■ 57 payment methods: advantages and employment 81
disadvantages
■ 83 recruitment and selection
cash
evaluating staff requirement
cheque
job analysis
debit card
job description
credit card
person specification
charge card
looking to future employment needs
■ 58 till operations application forms
basics curriculum vitae
contents vii
advertising the post the supervisor’s role
advertising vacancies the supervisor supporting staff
short listing problems with individuals
interviewing and selection equal opportunities
the panel interview disciplinary action
the one-to-one interview grievance procedure
asking the right questions
■ 107 paying wages and PAYE
conducting the interview
technical talk
making a job offer
PAYE and NICs: the legal requirements
contracts of employment
working out the wages
■ 96 rights and obligations at work PAYE codes
what new employees must be told in writing income tax rates
employer’s obligations pay adjustment tables
employees’ obligations taxable pay tables
national minimum wage which table do I use?
national minimum wage and junior staff how do I calculate the right amount of tax to
working time regulations deduct?
compulsory rest periods how do I calculate the right amount of national
holiday pay under the working time regulations insurance to deduct?
statutory minimum notice completing form P11 (deductions working sheet)
statutory sick pay (SSP) wages book and payments to employees
statutory maternity pay (SMP) payments
maternity rights devising a pay formula
notifying the employer where do I get more information?
maternity leave and maternity absence
■ 115 health and safety at work
employees’ rights on returning to work
the law
recovery of SMP payments by employers
what the law requires
employees’ rights on the sale of a business
management of health and safety at work
transfer of employees in a business sa le
regulations 1992
■ 100 termination of employment and employee health and safety policy
rights risk assessment
termination by notice carrying out risk assessment
resignation by an employee control of substances hazardous to health
dismissal by the employer regulations (COSHH) 1988
termination by mutual agreement employers’ liability (compulsory insurance) act
fixed-term contracts 1969
termination by breach the reporting of accidents (RIDDOR)
gross misconduct and gross negligence recording accidents
employees’ rights on termination of employment electricity at work regulations 1989
fair dismissal procedure for misconduct health and safety (first aid) regulations 1981
fair procedure and dismissal for capability fire precautions
■ 103 personal development and measuring fire precautions act 1971
effectiveness personal protective equipment (PPE) at work
regulations 1992
the appraisal process
workplace (health, safety and welfare) regulations
self-appraisal
1992
the chain of delegation: the supervisor
viii contents
manual handling operations regulations 1992 appendices
provision and use of work equipment regulations
(PUWER) 1992 ■ 134 appendix 1: legislation and useful
addresses
health and safety (information for employees)
UK statutes and regulations
regulations 1989
European directives
useful addresses and telephone numbers
6
■ 137 appendix 2: business, inland revenue and
promoting the business further 125 H.M. customs and excise information
helplines
■ 126 public relations where can I get leaflets and forms for tax and
DIY PR other information?
the press
■ 139 appendix 3: investors in people and the
employing a PR consultant
nationally approved salon campaign
how much will PR cost?
investors in people (IIP)
■ 127 photography and photo sessions nationally approved salon campaign (NASC)
why do it?
■ 141 appendix 4: recommended reading list
putting it together
plan of action
■ 143 index
on the day
what’s the price?
the size is right
■ 130 hairdressing competitions
‘live’ competition (on the day)
■ 131 the British Hairdressing Awards
how do they work?
how can I win?
■ 133 the British Hairdressing Business Awards
how to enter
the judging
ix
foreword
Exhilarating, frightening, boring, hard work, enjoyable.
These are just some of the words that I hear from hair-
dressers and beauty therapists. Which word would
you choose to describe setting up or running your
own business?
Most people start with the best intentions and good
ideas but get bogged down with all the paperwork,
systems and procedures, rules and regulations. This
book from Martin Green, himself an experienced
salon owner, puts everything into perspective, giving
you facts, tips and a wealth of examples on how to
manage your business. What’s more the book can be
used as a companion to the NVQ/SVQ Level 4
Management qualification.
Running your own salon is rewarding. Invest in this
book and see why ‘exhilarating’ is the first word I
used.
Alan Goldsbro
Chief Executive
Hairdressing And Beauty Industry Authority
