Chapter 23 Review Questions | Milady's Standard Professional Barbering
December 03, 2019
Chapter 23 Review Questions
Identify two ways a barber may be self-employed in the barbershop. Independent contractor or Booth renter
Define booth rental. A form of self-employment, business ownership, and tax designation with certain responsibilities for bookkeeping, taxes, insurances, and so forth
List and define six types of ownership under which a business may operate.
Sole proprietor - Business structure with a single owner and manager of a business
Partnership - Business structure in which two or more people share ownership, although not necessarily equally
Corporation - Business ownership shared by three or more people, called stockholders
Limited Liability Company - Provides owners with protection from acts or debts associated with the company
S-Corporation - Business entity with features similar to a corporate structure that allows company income to be reported through the owners’ personal income tax returns like a limited liability company
Franchise - Business ownership in which there is brand name recognition, support, group purchasing, and ongoing training for self and staff
List 14 tasks that should be performed before opening a barbershop.
Determine the type of ownership
Review current tax law to plan the best worker classification(s) for the business
Retain a lawyer and an accountant
Determine the services to be offered and the market to be reached
Determine the type of shop environment desired, including theme, mood, and decor of the premises
Find a suitable location
Create a business plan
Arrange for financing or capital investment
Plan and research equipment, fixtures, and furnishings
Establish shop policies, procedures, and protocols
Arrange for advertising and publicity
Recruit barbers
Design a plan to establish good public relations within the community.
Define established barbershop business. An established barbershop is one that is in operation at the time that it is put on the market for sale and that has a solid, repeat clientele.
Describe the best location for a barber shop. The barbershop must be located in a population area large enough to support it. It should be near other active businesses such as supermarkets, restaurants, or banks that attract walk-by and drive-by traffic.
What is the best form of advertising? Word of mouth
Explain the value of summary sheets.
Make comparisons with other years
Detect any changes in demand for different services
Order necessary supplies
Check on the use of materials according to the type of service rendered
Control expenses and waste
Identify two ways in which revenue is generated in the barbershop. Selling services and grooming supplies
Explain why product knowledge is important to successful retail sales. When barbers provide accurate purchasing advice to clients, the sale of one item almost inevitably leads to the sale of others on a regular basis.
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