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Excerpt: Did you dream of owning a salon only to wake up to the nightmare of dealing with a booth renter who is making your life hell? She refuses to fold the towels, doesn’t sell retail because she’s an “Artist”, keeps asking when you are going to do some advertising and reminds you constantly that you can’t tell her what to do because she’s an independent contractor.
All of this stomach-churning drama could be avoided if you had a contract… An agreement between you and your stylists outlining where your salon is headed and what your stylists need to do to go there with you.
You have a right to determine how your stylists will look and act, because it is ultimately your business. Your clients don’t know or care what the working arrangement is, they only know what their experience is and you have a responsibility to make sure it’s the right one.
An agreement can ensure that you are working to create the salon of your dreams, with stylists who don’t give you nightmares. What kinds of things should be addressed in your contract?
- Dress Code - Wouldn’t it be nice if everybody came to work looking like they worked in the salon industry, with their hair and makeup done and in nice, stylish clothes?...
- Absences and No-Shows - What happens if stylists are going to be late or miss work? Who’s responsibility is it to reschedule their clients?...
- Distribution of duties - Who is responsible for helping with the towels? If you don’t have a receptionist, whose job is it to greet the customers and answer the phones?...
- In-Salon Conduct - What kind of conversations and actions are appropriate in front of clients?...
As the laws vary from state to state, you may want to seek the advice of one of these professionals if you have questions about your stylist agreement.
Source: http://thestyliststoolbox.com/?p=49
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Excerpt: Booth renters, also referred to as "independent contractors," lease space from a large salon or a suite of small salons. If you choose to go this route, you won't be an employee; rather, you'll be your own boss and pay a landlord either a flat rate or a percentage or your business.
Suites to the sweet One common work environment for the "indie" is a small mall of salon suites, rented separately and housing one or two stylists. Included in the rent are utilities, furniture, cleaning services and sometimes reception services. Indies with a clientele rent the space, come and go as they please and run their own businesses. Some of those with double suites hire assistants or sublease the second suite.
In some cases, every independent contractor has a key; in others, the mall posts working hours and hires people to open and close. Another difference involves the extent of perks that come with the lease. You may have access to health insurance, continuing education and other benefits that are more affordable through a group purchase than an individual one.
Keeping the distinction between indie and employee protects working stylists, because no one can take advantage of them. A salon owner cannot have it both ways. For example, the owner cannot operate as a regular salon business setting hours, having a dress code, requiring attendance at staff meetings and so forth and then claim that it's a booth rental salon and fail to pay workmen's compensation and business taxes for each stylist… Advantages and Disadvantages: The biggest hurdle to become a booth renter is building a book. You have to recruit all of your own clients. Other disadvantages include:
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You must take the time to perform "ownership" tasks like meeting with distributors and ordering products.
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Other than perhaps a colleague down the hall, you never have anyone to cover for you if you leave the salon to get continuing education, stay home with a sick child or take a vacation.
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You may need to hire business advisors such as a lawyer or accountant to help you with responsibilities like doing your taxes, making sure you have adequate liability and other insurance and checking your lease and everything else you sign…
But there are advantages as well, most resulting from the flexibility that comes with the tremendous freedom you have as an independent contractor.
- You can set whatever hours you choose and work as little or as much as you want and as client demand requires.
- If you like, you can come in only when you have clients. With a cell phone, you can be available for clients 24/7 from wherever you are.
- You can wear what you like.
- You can use and sell whichever products suit you best…
Source: http://www.firstchair.com/FirstSkills/FirstSkillsLanding/tabid/92/Default.aspx?tid=2&cid=11116 -----------------------------------------------------------------------------
Excerpt: Renting booths vs. hiring employees is one of the most controversial and divisive issues in salon management today. Many people are going into booth rental without a clear understanding of its consequences. As a result, the lives and standard of living of everyone working in the beauty profession is now affected.
Division between salon owners who hire employees and salon owners who rent booths is making it difficult to address the many deep-rooted challenges facing all of us… Booth Rental: The Salon Owners’ Perspective When you follow the booth rental business model you are in effect just a landlord. Of course, many salon owners perceive it as a positive that they do not need to:
- Pay workers compensation or federal and state employment taxes
- Offer training and education.
- Provide liability insurance.
- Advertise for new customers.
- Manage employees.
The negative side of this business model is that, well, you are in effect just a landlord. Which means that as the salon owner you must deal with:
- Minimal or non-existent business growth, as you are dependent on rental income and working long hours behind the chair yourself…
- The inability to manage and educate staff, and create and promote a well-managed business with a professional and positive atmosphere.
- A lack of quality control standards – and the damage that this can cause your salon’s reputation…
- Exposure to audits by state and federal taxing agencies, which are currently targeting our profession…
- The inability to sell other salon services or products…
A recent government report showed that 95% of all business failures are due to a lack of management skills. By choosing to be a “landlord” rather than a “business manager” you are putting the success or failure of your salon in the hands of your tenants. However, because each of your independent contractor tenants views themselves as business owners, too, their decisions will be motivated by their own needs and goals, not yours. Booth Rental: The Stylist’s PerspectiveFor a stylist, renting a booth can be very attractive. As an independent contractor you can:
- Set you own schedule.
- Manage you own business.
- Keep all of your earnings (less the booth rental fee).
- Choose your own product line...
On the negative side, though, renting a booth means you must:
- Advertise for new customers…
- Do your own bookwork, including filing and paying quarterly income taxes.
- Pay the “employer’s” half of your social security taxes…
- Pay an ever-increasing booth rental fee.
- Purchase your own supplies and equipment.
Plus, as an independent contractor you will not qualify for disability or unemployment payments if times get tough…
Source: http://hcds4you.com/blog/booth-rental-is-it-right-for-you/
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Excerpt: These days, it is quite common for a salon or spa to be made up of independent booth renters. It is estimated that over 70% of salons and spas are comprised of independent contractors running a "business within a business." What do all of these businesses have in common? At the end of the day there is still one person responsible for the overall look, feel and service that is delivered by the salon or spa... the owner.
The owner of a booth rent salon or spa has many different challenges than the owner of an employee-based business. Three important areas for a booth rent salon owner to consider are 1) Charging what You Need to Charge, 2) Streamlining Your Retail, and 3) Training Your Team… Charging What you Need to Charge! - Many booth rent salon owners spend a considerable amount of time just keeping their booths filled! It is important to take a look at how you are determining what to charge and confidently present what you are willing to "offer" an independent contractor.
Always remember that this is your business and you need to make sure that you aren`t compromising your needs just to keep the space filled!... Streamlining your Retail. - Booth rental salons have unique retail processes. Independent contractors may carry their own line of product or you, as the owner, may choose to manage all of the retail sold out of the business.
Either way, it is imperative that the retail selections in your business be displayed as a seamless system in the salon or spa… Training Your Team - One thing that both booth rent and employee based salon owners have in common is that when a client is dissatisfied, they want to see the owner of the business! The owner is always accountable when a client says, "I am Unhappy!" Even though a booth rent salon does not have "employees" you can still create a "team" around the group of people you work with…
Source: http://interhair.com/classified1.php?action=show&link_id=467
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Excerpt: Salon Owners: Do You Want Booth Renters or Employees? Is there a wrong choice? There absolutely is no wrong choice! As a management consultant I consider having booth renters and/or employees excellent ways to run a salon or spa business; what becomes a problem is how they are set up and how they are run.
That is why the majority of business owners fail – because they are not doing what’s necessary to protect their financial investment. When all is said and done business owners discover their business plan lacks three crucial issues: The Lack of a Legal Structure; The Lack of a Profitable Structure and The Lack of a Management Structure. That is true with either an employee-based or booth rental business or having a combination (a combination becoming popular in the beauty industry nationwide). Let’s look at both sides and help clear things up the best we can…
Source: http://www.nwstylist.com/features/2009/0409_features/0409_ca_tx_salon_owners_do_you_want.html
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