location 6033 w.Bell Rd.#C Glendale AZ 85308
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5 Tips To Know For Renting A Salon Suite
As you may have noticed, the trend for beauty professionals is steering away from the traditional commission and hourly based pay methods to salon suite rentals. Stylists and spa therapists are quickly realizing they could have more freedom and make more money running their own business in a one or two person studio instead of working for someone else. “Be a boss” is becoming more than just a catch a phrase as more and more individuals jump on board.
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What does it really take to successfully run your own beauty business and see your dreams become reality? Here are some tips to follow as you begin your journey into business owner bliss.
1. Client List
Your core client list is your bread and butter, so this must be securely in place for everything else to run smoothly. They pay your bills and then some, am I right? Ideally, that group would keep you booked about 80% of your available working hours or more.
When moving from salon employee to suite owner, the transition can be tricky. Build relationships with your clients by finding common ground so that exchanging phone numbers is a natural thing. Also, become friends with them on social media. This will ensure that if you have to make a quick exit or don’t have access to their information through the salon, you are able to communicate with them just before or after you have moved. Their appointments stay booked – same time, new place. Generally speaking, about 15% won’t follow you but most of your clients will be thrilled to support you in your new business endeavors. You may even see your referrals improve!
And of course, at You Are Worthy Beauty Studio, you have a concierge to help you build your clientele – with walk-ins, marketing strategies, social media – above and beyond what you previously had!
3. Expenses
Starting your own business is a big deal. Get excited, but don’t forget to do the math and make sure you have all of your ducks in a row. Preparation is key! Here are what your startup and weekly/monthly costs will entail.
Start-Up Costs:
Security Deposit
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State board and business licensing
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Extra furniture and personal decor items
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Design and/or printing for business cards, menus and websites (include hosting)
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Marketing
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Back bar and retail
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Tools – scissors, blow dryer, etc.
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Renters/ liability insurance
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Rent
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Phone
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Start-Up Costs:
Once you’ve made sure you have enough in savings for the start-up costs, which can be anywhere from $500. – $3,000, it’s time to nail down whether or not you’re in a good position to handle the monthly costs.This means looking at what your monthly expenses will be versus how much money you’ll be bringing in. You need to have a firm grasp on what your average monthly gross income is based on your core client list. So, assuming you have what you need for start-up costs, let’s take a look at what a monthly scenario might be.
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Weekly/Monthly Expenses:
Rent
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Laundry
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Supplies
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Credit card fees
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Accountant fees
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Phone bill
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Money set aside for taxes
4. How do I pay myself ?
After doing the math and feeling confident to move forward with leasing a suite, the next step is to find an accountant you trust. An accountant will help you know what deductions you can claim on your taxes, how to file for quarterly instead of yearly payments, and help you stay on top of making those payments. They may even recommend filing to become an LLC and discuss the benefits of that with you, as well as opening a separate business bank account.
2. What to Charge
Rule of thumb is to avoid lowering your prices. You don’t want to sell yourself short out of fear that they won’t follow you. Express excitement about your new endeavors and expect loyalty. If you feel you need to increase your prices, do so minimally the first year of starting your own business. It’s best not to scare away faithful clients with a large increase on top of them driving to a different location and getting into a new routine.