4 Myths & Truths About Going RentalNov 01, 2020
Many stylists describe going independent as the next level of their career. They talk about it as the ultimate way to freedom, but other aspects of booth rental need to be discussed. It isn’t for everyone, and unless you're ready to take it on, it could be a bad fit. My goal is to lead you to a decision based on all the facts and based on proactive decision making. There are so many pros and cons about both commission and booth rental, and what might be good for some is not necessarily right for others. Let's dig into this and see what might be best for you.
Myth #1- You’re just renting a chair; location doesn’t matter
If you are in an unhealthy commission salon, rental sounds like a dream! But there are also unhealthy rental salons. Whether you choose a commission or rental structure, salon choice is vital! Look for a salon that values what you value; look for salons with stylists who have the same vibe and same worth ethic. This isn’t just a chair to rent; the salon's atmosphere and environment are paramount for your success.
Myth #2 - Complete Control Means Complete Freedom
Renting a chair means that you are in complete control of your business. The good part is that you get to control your schedule and which products you use and means you are responsible for your inventory, business licenses, taxes, marketing, and continuing education. You might be in complete control of you, but there is no control over the person next to you. What if your neighbor doesn’t have the same standards you do? This is why finding a rental salon with similar standards as you is so important.
Myth #3 - You get to keep all of your money
Indeed, everything you make comes directly to you, but you will likely be making the same amount as a lot of commission stylists after you pay taxes, rent, and product inventory. Most states will tax you with a self-employment tax coupled with income tax. Make sure you are working with a tax pro to meet all deadlines and that you are setting aside money every week in a separate savings account specifically to pay taxes. You know I love a good budget; make sure you have a separate budget for your business and a separate bank account; pay yourself after you’ve deducted your taxes and costs at the end of the week.
Myth #4 - Growth will be automatic
Any growth only comes from us taking personal responsibility and taking the right actions to grow. Not all of your clients will follow you, and that's ok, but you have to be prepared for it. Take the opportunity to rebuild your books with ideal clients who value you. Technical growth is also your responsibility; make sure you are budgeting money every month to set aside for that class you want to take. The good part about this is that when you choose, a class and your own money is on the line, you will extract all you can from that class. You’ve earned that education, and it will show up in the first-class service to your clients.
Some of these myths could be huge slaps in the face when you’re met with opposition. But with careful planning, it can be a great move for certain stylists.
One last thing...
Support can be hard to find when you are a renter. Being completely on your own in your business can feel quite lonely. Having someone on your side who can help you with decisions and keep you accountable to reach your goals is crucial. That is why having a coach who is dedicated to being that support for you is so helpful. If you haven't already, make sure you book a free discovery call with one of our coaches today.