Tramez Cooper

Dr.Anasatacia Coakley
Salon Management
Homework

1. List the types of ownership under which a spa/salon may operate. Define each

The types of ownership under which a spa/salon may operate is

● Sole proprietorship- In a sole proprietorship or individual business, the proprietor

serves as both manager and owner. A lone owner is in charge of establishing all
rules and taking all necessary actions related to managing a business.
● Partnership - Two or more people share ownership in a partnership, albeit this
does not always imply an equal distribution of the wealth. A partnership has many
advantages, including expanded financial resources for investing in the company,
access to a larger talent pool, and the added benefit of shared duties and
decision-making.
● Corporation - One of the finest ways a business owner may safeguard their claims
is to incorporate. The majority of people opt to incorporate for just this reason, but
there are additional benefits to this type of ownership. For instance, the corporate
business form allows for tax savings, increased business flexibility, and simpler
capital financing. A company can raise capital by issuing shares or stock
certificates.
● Booth Rentals- Renting a booth or space in an established salon is a popular
approach for people to get company management experience on a much smaller
scale. In a variety of venues, such as beauty salons, skin care centers, and day
spas, booth rentals, as they are more frequently known, have grown in popularity.
In a booth rental, the esthetician must pay the owner a certain rental charge as
well as the agreed-upon amount for utilities in order to use a particular area within
the owner's business. All essential company operations, such as maintaining her
own clientele, supply, and records, must be carried out by the renter. Remember
that just because you rent a space doesn't imply you automatically have control
over everything.

2. What are the two important factors in determining a location is good for you.
 Two important factors that determine a good location are visibility and accessibility.

3. What is a business plan?

A business plan is a fundamental business tool that offers a method for comprehending
crucial components of business development. It is a written description of your company
as it is today and as you anticipate it will be in five years, year by year. An executive
summary, a marketing strategy, a strategic design and development plan, an operations
plan, and a financial plan are just a few of the crucial sections that should be included in
this document as a way to assist you make well-informed decisions.

4. Why is it important for the small business owner to keep accurate records?

It is important for a small business owner to keep accurate records because it is important
for complying with your island's standards, laws, taxes, and personnel.