In past posts, we’ve discussed the differences between the various types of labor. Today, we’re going to dig deeper on rent, which means of course that we’re talking about renters; booth, chair, room – all the renters! If you are renting space in a salon or spa, then you have your own business and you are merely conducting that business in borrowed space from the owner (i.e. your landlord).
This kind of business structure tends to bring up a lot of questions around rent. We’ve addressed a few below and given you our best advice in the answers:
Can you be charged full rent for a part-time presence?
Absolutely. And you should be charged full rent even if you’re only in the space part-time.
Buy Why? How??
Because the salon/spa owner (aka your landlord) doesn’t get to pay a part-time mortgage. Or part time insurance. Or part time cleaning fees. Or part time any other costs of doing business. If the rent they need to charge is too high for you, then you need to look elsewhere. Any landlord that is willing to negotiate rent is probably doing their business a disservice, which will eventually trickle down to your business.
But What If I Pay a Percentage of My Sales As Rent?
So while this is technically legal, it’s a dangerous path to walk. Yes, it might seem more beneficial for the beauty professional, but when it comes to filing your taxes and your landlord filing their taxes, things get sticky. As always, address any issues or concerns with your personal accountant, but our advice is to steer clear of this method.
If You Rent How Do You Find Business? – Networking
Depending on where you live chances are there are opportunities to connect with other businesses in the networking space. We would suggest asking friends and family first for suggestions on some of the best networking events. You can look into your local Chamber of Commerce or do a Google search to help you. When you attend them, dress professionally, bring business cards, and get connected. This is a great way to get out and showcase you and your business. For a variety of other ways to attract business for yourself please take a look at one of our previous blogs, Networking Your Business in The Beauty Industry.
If you should have any questions, please contact us today!