Final Review Flashcards
(37 cards)
What skills should a business owner have to succeed?
Problem solving Selling skills Management skills (numerical skills) Knowledge about business operation Communication skills Good costumer skills Creativity Self-confidence
What is the difference between accrual and cash accounting?
Cash accounting: records revenues and expenses when the cash is received or spent.
Accrual accounting: records revenues and expenses when it is earned (when the service is performed)
When can you find work as a medical aesthetician?
Beauty Day Spas Laser Centers Destination Spas Fitness Clubs Wellness Centers, Dermatologists, Cosmetic Surgeons, Home Business, Sales and Marketing Cosmetic Firms, Educator, Spa, Clinic Manager, Owner, Physicians, Hospital, Clinics, Dentistry
What are the types of facilities where a medical aesthetician could work?
Medical Spa: offers an expanded menu of services including injectables, prescriptions and more advanced treatments such as laser resurfacing
Day Spa: offers only treatments that promote relaxation
Resort Hotel Spa: spas associated with a hotel or resort complex
Destination Spa: type of spa business in which patrons travel to either the spa or the location as a vacation or retreat
Cruise ship spa: offers most of the services that land-based spas offer
What qualifications should a medical aesthetician have?
Medical Aesthetics Diploma
Good people skills
Knowledge of skincare
products
Can perform certain services required from medical aesthetician properly and effectively
Has some/good administrative ability
CPR Certificate
What tasks should a medical aesthetician be able to provide?
Should be able to perform treatments required by a medical aesthetician effectively
Should be able to maintain, organize and clean work area s to make sure services can be performed properly
Should have knowledge of products/services so that they could recommend treatment and products to client’s
List 6 reasons why a business will succeed and why one would fail.
Good Cash Flow Good Management Treats employees fairly and with respect Treats customers fairly and with respect Good People Skills Location Management is open to change Decisions are made on facts • Lack of income • Lack of cash • Lack of expertise • Expenses not managed • Poor planning • Poor understanding of the market • Weak economy
List the different sections of the business plan
Executive Summary (completed last) The Company Market Research Location (Floor plan) Understanding the Competition Understanding the Client Spa Menu Spa Operations Staffing Equipment & Supplies Statement of Goals Marketing & Advertising Financials References
Explain the importance of goal setting when operating a business.
It is important to set both short and long term goals in order to have a successful business. It sets out a path so that you know where you want to go and what You need to achieve.
What is the purpose of the mission statement?
A mission statement is important as it states the purpose of the business existence
Tells who you are
Why is it important to conduct market research?
Conducting market research will lower the risk of your startup. The reason it is important to understand the market, is that it allows you to understand market trends/demand and also allows you to be competitive offerings/pricing.
What should be included in a spa menu? (3)
Services offered
Pricing
Business Info (address, phone number, email address etc.)
Explain the importance of understanding the competition. (3)
- To have an understanding of market trends and needs
- To be able to price your services properly & competitively
- To make sure you are offering services clients want
Explain the difference between: (8)
- Premium Pricing – When you set pricing higher than the market value as to make Something appear more valuable
- Penetration Pricing – When you set prices lower for a short period time as a way of attracting more traffic
- Economy Pricing – Setting prices lower than the market value as a way of being more competitive and driving more traffic
- Product Bundling Pricing – Combining different services/products in a package as a way to entice clients to spend more by offering lower package prices
List and explain the 10 rules of customer service. (10)
- Competition is anyone the customer compares you to
- Attention to detail improves customer loyalty
- Great service starts with a great attitude
- Do what customers want not what you think they want
- Phones scripts are for reference
- Every client is different
- Build a relationship with each client
- Fix mistakes right away
- Small complaints can generate big improvement
- Anticipate problems
What are the factors that you should look for when choosing a location?
- Parking
- Ease of Access
- Visibility
- Crime Rate
- Appealing Appearance
What is the difference between marketing and advertising? (2)
Marketing is the process of any attempt to draw customers into a business or to create a desire for a service or product. It is the process of figuring out who is your target market and what are their needs and wants. With Marketing you are basically preparing your product for the marketplace.
Advertising however, is the vehicle/media used to deliver your message to the target, so for example a TV commercial. These are the messages that grab people’s attention and create interest in your product. With Advertising you are making your product and service known to an audience or marketplace.
What is the difference between external and internal marketing?
External marketing is any communications that is done outside of your business area for example a flyer distribution in your surrounding area.
Internal marketing is done in-house, using the resources available, as own customers list, in order to generate more revenue than that one client would ordinarily generate. It targets existing clients. Example: emails to customers, launch party, events
List the various types of media sources that you can use with advertising. (4)
- Radio Commercial
- Newspaper Ad
- Direct Mail
- Magazine
Why is cash important when operating a business? (2)
Cash is important in order to keep the business going without cash a business will not be able to operate properly and will eventually fail.
List and explain the 5 types of financing. (5)
- Angel Investors: individuals who provide capital for a business start-up, usually in exchange for ownership equity
- Bank Financing (most common): obtaining cash for a business from a financial institution (bank)
- Venture Funding: funding by a venture capital firm
- Mezzanine Funding: funding for a very small business that has not even opened its doors. It can come in the form of loans or equity.
- Personal Contribution: personal funds of the entrepreneur
Explain the difference between a silent and an active partner. (2)
Active partners contribute financially, but also are involved in the operation of the business. Silent partners however, they only provide financial investment, and they are not involved in the day to day operation of the business.
What are assets? (3)
Something that the company OWNS (Accounts Receivable, cash, equipment, supplies, inventory).
What are liabilities? (2)
Liabilities are anything that has to be paid out. Things that the business OWES. (Accounts Payable, Bank Loan)
