Basic Beauty Business Flashcards
6 cards from real Beauty Business practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Basic Beauty Business flashcards as text
What is the primary purpose of a business plan for a new beauty salon?
Answer: To secure financing and guide operations
A business plan outlines financial projections, target market, and operational strategy, which is essential for securing loans and guiding day-to-day decisions.
Which federal agency requires beauty businesses to follow workplace safety regulations?
Answer: OSHA
The Occupational Safety and Health Administration (OSHA) sets and enforces standards for safe working conditions in beauty establishments.
What does the term 'retail backbar' refer to in a salon business context?
Answer: Professional products used during services
Backbar products are professional-grade items used by stylists during services and are not typically sold to walk-in customers.
Which pricing strategy involves setting service prices just below a round number, such as $49 instead of $50?
Answer: Charm pricing
Charm pricing uses prices ending in 9 or 99 to create a perception of better value in the customer's mind.
What is the most common legal structure chosen by independent beauty professionals starting out?
Answer: Sole proprietorship
Most independent beauty professionals begin as sole proprietors because it is the simplest and least expensive business structure to establish.
In a beauty business, what does 'client retention rate' measure?
Answer: The percentage of clients who return for repeat services
Client retention rate tracks how many existing clients continue to book appointments over a given period, reflecting customer loyalty.