‘Devy Salon Deals with Risks’


The complete definition about risk, risk is a condition in which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for. Risk can be defined as any issue that affects an institution’s ability to meet its objective. There are two types of risks, which are negative risk and positive risk. Negative risk is a condition when the realized return is smaller than the expected return, we can call it loss. Positive risk is a condition when the realized return is greater than the expected return, we can call it as a gain.

This paper addresses about risks faced in a business. I choose a type of businesses that runs in hair and beauty service. The reason I pick this business type in this paper because I am excited about hair and beauty problem and it is interesting to explore what the risks faced when we run a business like hair salon, hair and beauty service. For the sample of this paper, I choose DEVY SALON.


Devy Salon was established at February 1985. Mrs. Yetty Gitri Setyawati ran this business in her own house, located at Karang Waru Kidul TR II no. 505 Jogjakarta. The name Devy came from her first daughter who had just born in 1984. In the beginning, she had no parlor, she did it all by herself. The services were cutting and coloring hair. The orders came from her neighbor because just few people known about Devy Salon.

As the time goes by, Devy Salon was getting bigger and bigger. More people knew about the fame and good skill that Mrs. Yetty had. Devy Salon was more popular and popular. Word of mouth was the good way to Devy Salon to meet many orders. Therefore, in 1995, Devy Salon moved at Magelang Street. The strategic location made Devy Salon more exist. In 2005, Devy Salon moved next to the previous place. Finally, from 2006 until now, Devy Salon located at Magelang Street 196 Jogjakarta.

Here is the recent information about Devy Salon:

Owner             : Mrs. Yetty Gitri Setyawati

Location          : Magelang Street 196 Jogjakarta

Telephone       : 0274 – 7891924

Time order      : Monday – Saturday at 9am – 8pm

Sunday at 10am – 8pm

Services          : Facial Services (eyebrow waxing and makeover)

Body Service (steam and body scrub)

Nail Services (manicures and pedicures)

Hair Care Services

(tints, highlights, perm, style, rebonding, hair extension    and hair cut)

Vision              : Committed to meet the needs and satisfied of consumers and believe the importance of feeling confident and comfortable with one’ self.


From the information above, I can conclude that business is not a gambling that hoping to get lucky. We have to manage the risks to control the business in order we can meet our objective from that business.

Devy salon, as the business in a hair and beauty service sector, has many risk factors that can affect the business to meet the objective. The factors are needs and consumer satisfaction, the professional parlors, technology, location, competitor and supplier.


In facing the risks, Devy Salon has to manage and control it. This business is not like gambling that hope to get lucky. Devy Salon has to move, find the way to minimize the risk so it can meet the gain from this business. In this session, I will address how the Devy Salon deals with the risks.

Stay in the vision

The vision of Devy Salon has already addressed above that is committed to meet the needs and satisfied of consumers and believe the importance of feeling confident and comfortable with one’ self. It can be the guideline of Devy Salon to treat the consumer as good as it can do.

Promote routinely

To keep the existence, Devy Salon can promote its business through advertising in local newspaper, or by making flyer about the services and specialization. It is very helpful that make Devy Salon more known by people.

Special treatment

To keep the consumer always stay, Devy Salon gives extra service, may be it can be said as a bonus service. Devy Salon gives one time extra service for consumer who has already done four times same services. For example, when I have already done manicure for four times, I will get free service manicure for one time service. Beside that, Salon Devy also gives free mineral water for its consumer. It is a simple way, but it can make the consumer comfort to be there.

Recruitment and selection

Dealing with the professional parlors who worked, Devy Salon does a good recruitment and selection when it wants to seek additional parlor. It is very important to have a good skill and good personality parlor. It will help the salon to keep the consumer feel satisfied. Nice and friendly parlors make the consumer feel comfort and happy when they go to Devy Salon. The honest parlors can help the owner maintain the cash flow because there is no corruption in money, equipment, etc.

Update the technology and salon tools

Nowadays, technology is developed very fast. Updating technology can support Devy Salon in the case of giving services. For example, when consumer wants to curl her hair, with the newest technology, it can be done with digital hair curling that will give better result. With new technology and salon tools, consumer can get better result quickly.

Understand more the target market and specialization

The specialization if Devy Salon is makes a curl hair with manual or digital curling. With many competitors out there, Devy Salon has to compete hardly. Beside through promotion, bonuses and special treatment for consumer, Devy Salon has to know the target market for the business. For this case, the target markets of Devy Salon are students, college, and people who have low-middle income. Devy Salon gives prices for the services from Rp 20,000.00 for cutting until hundreds for hair extension and curl; it depends on the brand of equipment and the portion used.

Control and monitor the stocks of equipment

The equipment can be like shampoo, masker, hair dye, tonic, etc. If the condition is in emerge (not enough stocks of equipments) and it is too long to wait the supplier, Mrs. Yetty buys the equipment by herself, it is a pity with higher price than if she orders is in large quantity from her supplier. To minimize the run out of equipment stocks, Mrs. Yetty as the owner has to control and monitor the availability equipment in Devy Salon. She orders it from the supplier before the stocks are getting very low.


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