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Contents
- Operating practices
- Jargon and special features
- Sales mix
- Seasonality
- Factors affecting sales
- Prime records
- Customers, terms offered
- Suppliers, terms obtained
- Trade specific legislation
- General legislation
- Health and safety legislation
- Employment legislation
- Licensing requirements
- Sources of further information
Investigation Matters
Further Action
After the interview it will normally be necessary to obtain further information to enable an effective review of the business results to be made. (see Investigation matters: Business Economics Exercise). When gathering that information, there are features of the hairdressing trade which should not be overlooked.
a. For a trial week, each stylist should keep a record of work done by:- listing each of the services offered by the salon with the price beside it
- noting the number of times each of the services is provided in the trial week by that stylist
- keeping a record of the tips received
c. Also for the trial week, a record should be kept of retail sales by:
- listing each product/item sold in the salon, with the individual cost and selling prices beside it
- noting the number of each product/item sold in the week
e. Estimates should be made for the trial week, supported by records wherever possible, of the cost of items
- thrown away
- stolen by staff/customers
g. Estimate the total income received in the year/period from ancillary sources, eg. wig work for local theatrical groups, if not fully recorded.
NOTE: Remember to exclude VAT from all the above figures if the accounts are drawn up net of VAT.
When gathering the further information required to complete the Means Test :-
- obtain all private bank etc. accounts and identify entries of £500 or more
- obtain details of all sources of income and items of expenditure other than normal day to day expenditure, together with supporting evidence.