The Parlour Salon is a Booth Rental Hair Salon
Booth rental means you own your own business. You are your own boss, which means there is no one looking over your shoulder, telling you how to run your business or treat your clients. Although this may sound appealing, this type of business model is only successful if you find the right salon and the most effective way to drive your business. Here at The Parlour, you will get to work with a team of stylists, to give you that commission based feel of being a part of something, while maintaining your own business. It’s the best of both worlds. Here’s what you will want to know:
Understanding the Booth Rental Business Model for Cosmetologists
To understand the booth rental business model, it is important to also understand that all cosmetologists work under one of two broad classifications:
In other words, the salon you work for will either hire you as an employee (W-2 employee), which means you will work under the direct supervision of a salon owner/manager, or you will work as a self-employed hairstylist, renting a work station (often called a booth or a chair) in a salon.
The booth rental business model allows you to remain an independent stylist, with the owner or manager of the salon acting as your landlord. The booth rental business model is not suited for everyone; however, for many cosmetologists, this type of format can result in a great deal of professional and financial success, provided it is properly executed and operated.
- Payroll employee
- Non-payroll independent contractor
In other words, the salon you work for will either hire you as an employee (W-2 employee), which means you will work under the direct supervision of a salon owner/manager, or you will work as a self-employed hairstylist, renting a work station (often called a booth or a chair) in a salon.
The booth rental business model allows you to remain an independent stylist, with the owner or manager of the salon acting as your landlord. The booth rental business model is not suited for everyone; however, for many cosmetologists, this type of format can result in a great deal of professional and financial success, provided it is properly executed and operated.
How Salon Booth Rental Works
Salon chair rental is a fairly simple premise: a licensed cosmetologist (or barber, nail technician, or esthetician) rents a space in a salon. In exchange, the salon owner provides a work space and amenities for the cosmetologist to use. In essence, the salon booth rental model results in businesses within a business.
If you choose this type of model to grow your cosmetology business, you will be responsible for:
In other words, to make this type of business arrangement a success, you must be both a good stylist and a good businessperson. You must be willing to handle administrative responsibilities in addition to focusing on your craft.
If you choose this type of model to grow your cosmetology business, you will be responsible for:
- Promoting your services
- Building your clientele
- Providing your own styling products
- Handling your own accounting and tax obligations
In other words, to make this type of business arrangement a success, you must be both a good stylist and a good businessperson. You must be willing to handle administrative responsibilities in addition to focusing on your craft.
Benefits and Drawbacks of Salon Booth Rental
From a stylist’s perspective, chair rental can have both its advantages and drawbacks. For most stylists, choosing this type of model for their cosmetology career means plenty of independence. As independent contractors, they are able to:
However, there are a number of negative aspects of salon booth rental, as well. Independent stylists must be prepared to:
- Set their own schedule
- Manage their own business
- After the booth rental fee, keep all of their earnings
- Work as little or as much as you want.
However, there are a number of negative aspects of salon booth rental, as well. Independent stylists must be prepared to:
- Maintain their own books, including filing and paying quarterly income taxes
- Market themselves to attract new business
- Earn less money while they build their clientele
- Purchase their own equipment and supplies
- Pay for their own health insurance and receive no benefits (no vacation time, retirement plan, etc.)
Understanding State Laws
Although renting a chair in a salon is a tenant/landlord relationship, it is important to understand that laws differ from state to state. Know these laws! Contact your state’s Department of Labor for more information on your rights and obligations as an independent contractor and booth renter. You may need to obtain a booth rental and/or independent contractor license in addition to your cosmetology license. For example, in Louisiana, cosmetologists must possess a Booth Rental/and Operators License, while in Kentucky, cosmetologists working under this model must possess an Independent Contractor license.
Choosing a Salon
Choosing a salon is an important decision for a booth renter. First (and arguably most importantly), you must consider the location of the salon. You may choose a salon based on where you live, but is it really the best location for business? The salon you choose must be easily accessible for your clients and, ideally, highly visible. It must also be clean, updated, and filled with other renters with the same high professional standards and performance. You will find all of these things at The Parlour. I, as the owner, am committed to providing a clean, updated, beautiful and professional place to work in. The last thing you want to do is set up shop in a salon that is known for its poor-quality stylists.
Negotiating a Contract
A salon booth rental arrangement must include a contract between the cosmetologist and the salon owner. At The Parlour Salon, it is required to sign a lease agreement. You must have a contract to protect yourself legally and to establish your status as an independent contractor with the Internal Revenue Service (IRS).
A basic contract should include:
A basic contract should include:
- The lease rate
- The length of the contract
- Language regarding cancellation of lease.
- Use of a station and chair with a fatigue mat
- Use of electricity and water
- Use of the shampoo area, towels, hair dryers, and other salon equipment
- Access to selling retail to your guests
- Salon website
- Paying the taxes on the salon
- Protecting the salon property from damage
- Indemnifying the salon from losses resulting from your actions or omissions that harm a third party
Marketing Your Services
One of the most important aspects of working in a booth rental business is marketing yourself so that you can attract new business. Although you may choose this type of salon arrangement as a new stylist, experienced stylists often choose to rent salon space because they have already built a strong clientele base.
There are a plethora of ways to market yourself and your hairstylist business, such as through a website and social media platforms. Your website should feature your training, experience, list of client services, and before-and-after client pictures. In addition to a website, you must have ways to drive traffic, which often includes advertising, incentives for client referrals, and teaming up with local businesses for cross-marketing efforts.
There are a plethora of ways to market yourself and your hairstylist business, such as through a website and social media platforms. Your website should feature your training, experience, list of client services, and before-and-after client pictures. In addition to a website, you must have ways to drive traffic, which often includes advertising, incentives for client referrals, and teaming up with local businesses for cross-marketing efforts.
Protecting Yourself and Your Business
As an independent contractor, you must protect yourself and your business by carrying personal liability, disability insurance, and health insurance. You must also protect yourself by keeping good records and paying all necessary taxes. Many stylists use accounting or financial software programs (like Intuit or QuickBooks) that keep expenses, taxes, and income organized and readily accessible for tax purposes. Keep in mind that as an independent contractor, you can deduct business-related expenses, such as the purchase of equipment and supplies, so it is important to establish and maintain a concise system of bookkeeping.
It is also important to understand your rights and obligations as a tenant. Pay close attention to the lease’s policies and procedures and understand your actions can result in legal action by your landlord. For example, performing services outside the scope of the terms of use may breach your lease and give the salon owner the right to pursue compensation for the breached lease.
It is also important to understand your rights and obligations as a tenant. Pay close attention to the lease’s policies and procedures and understand your actions can result in legal action by your landlord. For example, performing services outside the scope of the terms of use may breach your lease and give the salon owner the right to pursue compensation for the breached lease.
Send a Message to Apply for Booth Rental at The Parlour
I hope this gives you an introduction to what you can expect as a booth renter hairstylist. Speaking for myself, this business style has afforded me to build the life that I’ve always wanted. Working behind the chair when I want to, traveling when I want to, and calling the shots on being with my children when I want. For me, there is no other way! Message me for any questions or about applying as a renter at The Parlour Salon. I would love to have you!
Nicole Klein
[email protected]
504-813-0542
Nicole Klein
[email protected]
504-813-0542
Address / Phone5243 Tchoupitoulas Street
New Orleans, LA 70115 ph (504) 518-5640 |
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We'd love to have you visit soon!