Beauty Business Planning and Startup Flashcards
7 cards from real Beauty Business practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Beauty Business Planning and Startup flashcards as text
What is typically the most critical factor when selecting a location for a new beauty salon?
Answer: Foot traffic volume and convenient parking availability
High foot traffic increases visibility and walk-in clients, while convenient parking ensures existing clients can easily access the salon.
What does a triple net lease (NNN) require from a beauty salon tenant?
Answer: Payment of base rent plus a share of property taxes, insurance, and maintenance costs
A triple net lease shifts three additional cost categories—property taxes, building insurance, and maintenance—onto the tenant beyond the base rent.
What are 'leasehold improvements' in the context of opening a beauty salon?
Answer: Renovations made to a rented space to make it suitable for salon operations
Leasehold improvements are physical modifications—such as installing shampoo bowls, partitions, or flooring—made to customize a leased space for salon use.
Which of the following would be considered a one-time startup cost for a new beauty salon?
Answer: Purchase of salon chairs and shampoo bowls
Major equipment like salon chairs and shampoo bowls are capital expenditures—purchased once at startup—unlike recurring operational expenses.
What is the purpose of a Certificate of Occupancy (CO) for a new beauty salon?
Answer: It confirms the building meets local safety and zoning codes for the intended business use
A Certificate of Occupancy is issued by local government authorities to verify that a building is structurally safe and properly zoned for the planned business.
When analyzing a potential salon location, what does 'demographic fit' refer to?
Answer: How well the local population's characteristics match the salon's target client profile
Demographic fit measures whether the people living or working near the location—by age, income, lifestyle, and preferences—align with the salon's ideal client base.
What is a key benefit of negotiating a build-out allowance from a landlord before signing a salon lease?
Answer: The landlord contributes funds toward the cost of renovating the space for salon use
A build-out allowance is a cash contribution from the landlord to help cover renovation costs, reducing the amount of capital the salon owner must invest upfront.