Partnership Arrangement

[Beauty143]

Hello everyone.

I am new to this forum and was wondering if I can get some advise on starting my beauty business.

I am looking to go into a partnership arrangement with an existing salon owner where the owner will buy products and I will have the use of the salon premises to deliver the treatments with proceeds being divided 50-50.

I will have to do my own marketing, leaflets and promotions. Would the cost of promotions, leaflets need to be divided equally as well? I would be grateful for advice on low cost marketing and promotion strategies that I can employ.

What would be the implications for me with respect to tax and VAT?

What booking system is best to use? I need to have a separate booking system but I do not want to spend too much money on it.

Should I start getting my brand, website and social media sorted beforehand or can I start with social media and then gradually build a website.

Is the partnership model better than commission based work or renting a chair? What would be more advantageous from the therapist point of view.

What kind of partnership contract should I draw? Does this need to be done through a lawyer or can it be done using a template? What would be the cost of solicitor? And can I see a template somewhere with important clauses to bear in mind?

How much would you set aside as a starting capital for the business?

Any other tips and advice would be really appreciated. This is completely new for me so I am looking to gather as much information as possible before I take the plunge.

Thank you so much

 

[Beauty143]

Hello everyone.

I am new to this forum and was wondering if I can get some advise on starting my beauty business.

I am looking to go into a partnership arrangement with an existing salon owner where the owner will buy products and I will have the use of the salon premises to deliver the treatments with proceeds being divided 50-50.

I will have to do my own marketing, leaflets and promotions. Would the cost of promotions, leaflets need to be divided equally as well? I would be grateful for advice on low cost marketing and promotion strategies that I can employ.

What would be the implications for me with respect to tax and VAT?

What booking system is best to use? I need to have a separate booking system but I do not want to spend too much money on it.

Should I start getting my brand, website and social media sorted beforehand or can I start with social media and then gradually build a website.

Is the partnership model better than commission based work or renting a chair? What would be more advantageous from the therapist point of view.

What kind of partnership contract should I draw? Does this need to be done through a lawyer or can it be done using a template? What would be the cost of solicitor? And can I see a template somewhere with important clauses to bear in mind?

How much would you set aside as a starting capital for the business?

Any other tips and advice would be really appreciated. This is completely new for me so I am looking to gather as much information as possible before I take the plunge.

Thank you so much

Also advice on type of insurance I will need to get along with guidance on a trusted insurance company to use would be greatly appreciated

 

[BannerPenguin]

When you say partnership, it doesn't really sound like a partnership. Sounds like a normal commission-based deal.

• I don't think you'd be splitting the costs of any marketing materials so that's all on you.
• The VAT threshold is £85k so until you hit that in turnover, you don't have to worry.
• You'll pay tax on your profit after you use your tax-free allowance if you stay as a sole trader. Seek accountant advice.
• The best booking system is really subjective. Ovatu was always decent.
• Hard to set up social media without a brand. A website some would argue could wait. It really depends on your budget. Realistically this is one of the most competitive industries out there at a time when the industry is being massively squeezed due to the cost of living so is experiencing a downturn. Getting clients is the number one hardest thing to achieve and no easy/cheap solution.
• Hard to know without more detail but this doesn't sound like a partnership. You're commission-based.
• If you want to be sure it's legally binding and legit, use a solicitor. A solicitor will cost a fair chunk of £££.
• Set aside a lot. I wouldn't even start a business in this economy without a year's worth of living expenses in the bank plus investment capital for the business. You need to be prepared that you aren't going to be earning much for a while.

My biggest piece of advice to give to someone is to identify your why. Why are people going to come to you? Why are they going to stop going to where they currently go?

Stuff like 'because I'm cheap' and 'because I'm good' isn't going to cut it typically.

 

[TheDuchess]

Hi Beauty143

You’ve had some really excellent advice from Banner Penguin, especially on understanding your “why”. Being able to do the work well isn’t enough to start a business - everyone in business is expected to be more than competent, clients don’t want to pay to visit you whilst you are still learning, they take your expert skill for granted, so understanding “why” they will come to you is essential.

Have a read through other threads because a lot of your questions have been discussed in detail before. I’ve just answered the thread below and you’ll find the info helpful

https://www.salongeek.com/threads/self-employed-commission-basis.338948/