Beauty Business Beauty Business Techniques 2

Question 1

What is the primary purpose of a SWOT analysis in a beauty business plan?

Accepted Answer

To identify strengths, weaknesses, opportunities, and threats

Answer

To calculate monthly revenue projections

Answer

To determine employee scheduling needs

Answer

To set retail product prices

Question 2

Which pricing strategy involves setting service prices lower than competitors to attract new clients?

Accepted Answer

Penetration pricing

Answer

Premium pricing

Answer

Bundle pricing

Answer

Cost-plus pricing

Question 3

What does the term 'client retention rate' measure in a beauty business?

Accepted Answer

The percentage of clients who return for repeat services

Answer

The number of new clients gained per month

Answer

The average tip amount per service

Answer

The ratio of walk-ins to appointments

Question 4

Which legal structure offers personal liability protection while allowing pass-through taxation for a solo beauty professional?

Accepted Answer

Single-member LLC

Answer

Sole proprietorship

Answer

General partnership

Answer

C corporation

Question 5

What is the recommended approach when handling a dissatisfied client's complaint about a beauty service?

Accepted Answer

Listen actively, acknowledge the concern, and offer a resolution

Answer

Explain why the service was performed correctly

Answer

Offer a full refund immediately without discussion

Answer

Refer the client to the salon manager and step away

Question 6

Which marketing metric tracks how much a beauty business spends to acquire each new client?

Accepted Answer

Customer acquisition cost

Answer

Return on investment

Answer

Conversion rate

Answer

Lifetime value