Cosmetology License Exam Career, Communication, and Salon Business Flashcards

24 sample cards from the Career, Communication, and Salon Business deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What is a sole proprietorship?

   A business owned and operated by one individual who is the sole owner, receives all profits, makes all decisions, and assumes all expenses, losses, and liabilities.

2. What is a partnership in salon ownership?

   A business owned by two or more people who share decisions, responsibilities, investment, profits, and liabilities according to a partnership agreement.

3. What is a corporation?

   A business structure owned by stockholders and managed by a board of directors; it is a separate legal entity that limits the owners' personal liability.

4. What is a business plan and why is it needed?

   A written description of the business that includes its goals, organization, financial projections, marketing strategy, and operating procedures; it guides decisions and is required to obtain financing.

5. What are typical key components of a salon business plan?

   An executive summary, vision/mission statement, organizational plan, marketing plan, financial plan/projections, and supporting documents.

6. What regulations and legal requirements must a salon owner address?

   Business licenses and permits, cosmetology/health and sanitation regulations, OSHA and safety rules, zoning laws, tax registration, and employee labor laws.

7. What types of insurance should a salon carry?

   Liability (malpractice/professional and general), property insurance, fire insurance, business interruption insurance, and workers' compensation for employees.

8. What is a lease and what key terms should a salon owner review before signing?

   A lease is a contract to rent a space; review the rent amount, length of term, renewal options, who pays for utilities and repairs/improvements, exclusivity, and whether the lease can be assigned/sublet.

9. Why is location important when leasing salon space?

   Because visibility, accessibility, parking, foot traffic, demographics of the surrounding area, and proximity to competition directly affect the salon's ability to attract and retain clients.

10. What is ticket upgrading (upselling)?

    The practice of recommending and selling additional services or higher-priced/add-on services to a client during their visit to increase the value of the ticket (e.g., adding a conditioning treatment to a haircut).

11. What is the difference between upselling services and retailing products?

    Upselling (ticket upgrading) recommends additional or upgraded in-salon services; retailing recommends and sells take-home products for the client to use at home.

12. Why is retailing products important to a cosmetologist's income and the client?

    It increases revenue and commission, builds client loyalty by ensuring proper at-home maintenance, and helps clients keep the results achieved in the salon.

13. What factors determine how a salon prices its services?

    Overhead costs (rent, supplies, utilities, labor), the stylist's skill/experience level, local market and competitor pricing, demand, and the desired profit margin.

14. What is the formula for calculating the retail price markup percentage on a product?

    Markup % = (Retail price − Cost) ÷ Cost × 100. For example, a product costing $10 sold for $15 has a markup of ($15−$10)/$10 × 100 = 50%.

15. How do you calculate profit on a service or product?

    Profit = Total revenue (income) − Total expenses (costs/overhead).

16. What is a clientele and why is building one essential?

    A clientele is a stylist's regular, returning customers; building one ensures steady income, referrals, and a sustainable career, since repeat clients are the foundation of salon success.

17. What are effective ways to build a clientele?

    Provide excellent service, ask satisfied clients for referrals, rebook clients before they leave, use a referral/reward program, maintain client records, follow up, and network within the community.

18. What is the most powerful and cost-effective form of salon marketing?

    Word-of-mouth advertising from satisfied clients and their referrals.

19. Name common forms of salon marketing and advertising.

    Word-of-mouth/referrals, social media and a website, local print/online ads, promotions and discounts, loyalty programs, business cards, community events, and email/text reminders.

20. What is the difference between rebooking and a referral?

    Rebooking is scheduling a client's next appointment before they leave to ensure their return; a referral is when a satisfied client recommends the stylist/salon to new potential clients.

21. What should you do to prepare for the cosmetology licensure exam?

    Review your textbook/state curriculum, study consistently with practice tests, learn the format (written theory and practical/skills portions), get adequate rest, arrive early, manage time, and know your state's rules and requirements.

22. What is deductive vs. inductive reasoning on exam questions?

    Deductive reasoning eliminates wrong answers to reach the correct one; inductive reasoning works from the specific facts to a general conclusion—both help analyze multiple-choice questions.

23. What should a professional resume for a cosmetologist include?

    Contact information, a career objective/summary, education and licensure/certifications, relevant work experience and skills, accomplishments, and references—kept concise, accurate, and focused on achievements.

24. What is a portfolio and why should a cosmetologist build one?

    A collection of photographs and documents showcasing the cosmetologist's best work, skills, certifications, and accomplishments; it demonstrates ability to potential employers or clients during interviews.

What this deck covers

Career, Communication, and Salon Business flashcards FAQ