Beauty Business Techniques Flashcards

What is the most effective way to build a referral program for a beauty salon?

Answer: Offer incentives to both the referring client and the new client

Dual-sided incentives motivate existing clients to refer while giving new clients a reason to book their first appointment.

Which financial document summarizes a beauty business's revenues, expenses, and profit over a specific period?

Answer: Income statement

An income statement, also called a profit and loss statement, shows revenues minus expenses to determine net profit for a period.

What does 'upselling' mean in the context of beauty services?

Answer: Recommending a higher-value service or add-on to a client's existing booking

Upselling encourages clients to upgrade or add complementary services to increase the total transaction value.

Which type of insurance is essential for protecting a beauty professional against claims of client injury during services?

Answer: Professional liability insurance

Professional liability insurance, also called malpractice insurance, covers claims arising from injuries or damages caused during professional services.

What is the purpose of a non-compete clause in a beauty salon employment contract?

Answer: To prevent an employee from working at a competing business within a certain area and timeframe after leaving

A non-compete clause restricts departing employees from opening or joining competing businesses within a specified geographic area and time period.

Which inventory management method restocks beauty products when they fall to a predetermined minimum level?

Answer: Par level system

A par level system sets minimum stock thresholds for each product and triggers reordering when inventory drops to that level.