Sideline Business?

[kimi1101]

Hey,

I've got my own salon and have just started offering a mobile spray tanning service. What I'm planning to do is get my friend trained up and buy another spray tan kit and get her to do the same, mobile spray tanning, but she lives about an hour from me so she could cover a different area that I wouldn't be covering, she would take some of the money that is charged for a tan, I would get the rest. But can I set this up as another company or do I need to keep it all the same as the salon? I'm just interested to have it seperate to see what parts do better than others etc.

Is it just as simple as setting another side of it up, and then declaring in my self assessment that I have two businesses?

 

[angelina221]

Will you be taking all the bookings?
I don't see why she would want to do this when she can just set up herself.
Most business is from word of mouth and once she gets started she may get more bookings from recommendations. She might start to feel that she could do it on her own and then that would cause problems.
Not meaning to sound negative but how much were you intending to charge clients and how much are you planning to give her?

 

[kimi1101]

I know what you mean. She is wanting to go back to tuni and is trying to save some extra money up, she wouldn't be able to afford to buy the kit for herslef which is why I suggested this because it will work well for both of us (I think). I've not thought out numbers properly yet but I guessed that she would take bookings etc and if I had any enquiries that I thought were more suited to her area i would pass them on and vice versa. It really came up because I wanna cover as much area as possible but an hours drive for me to do 2 or 3 tans then an hours drive home to me isn't worth it. But for her, if I was paying her £7 per tan and she was charging £15-£20, I would still have more than enough to cover my costs and then make some profit (from doing pretty much no work at all) and I would think giving her that much would make it worthwhile for her. But as I said I haven't though figures out properly yet...just playing with ideas in my mind. I just think it SHOULD be a good arrangement for us both.

 

[angelina221]

Well then it definitely wont work-lol
She's not even getting 50% and she has to do all the travelling, take the bookings and do all the work for £7 a tan!
If she gets enough clients she will think about setting up herself with the money she has made and also, how do you know she will tell you all the bookings she has?

 

[kimi1101]

I get your point. I'm just trying to help[ her and short of buying her kit for her (which I have offered to do) this was the best I could come up with to help her out. Thanks for advice.

 

[angelina221]

Well that's very nice of you
Maybe you could have this arrangement until she has the money to pay you back for the equipment and that way there will be no resentment and you will be great friends still

 

[kimi1101]

Yeah we could maybe do that. Thanks x

 

[Flesh_and_Bone]

I thought the same as Angelina when I read your idea and agree that it would be better to lend her the money for the kit and let her do her own thing in her area.

If you were taking her bookings for her, what would you do when she goes back to Uni and you have clients 2 hours away calling you to arrange a tan??

V kind of you to help your friend - we all need a pal like that.

Sx