Going from employed to self employed

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GlitterTreats8614

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Hi all

I'm after a bit of advice...words of wisdom. Sorry long post, but really need help!

I am taking over a salon soon. At the moment myself and the other therapist are employed. I am obviously going to be self employed now. The other therapist wants to go self employed, which I've agree. It means she can do more hours as she'll be making more money rather than being employed.

At the moment all the products are obviously supplied by the salon owner as we were both employed. The clients go between us sometimes depending on who is free. We offer free removal of produts as well (if we've applied them).

I wanted to keep it so that the clients come in and they don't feel too much has changed, especially straight away.

Questions now that we're both going to be self employed:


Products
I was going to say the salon provides it so each client gets the same choice of colours, same brand of wax, etc.
Doing 60/40 doesn't make it too worth while for the other therapist. A previous salon I worked in charged 12% of takings to cover products. (works out roughly the cost per service) is this a good idea?
I'm not sure how having two self employed nails techs providing their own products would work well. One client sitting one side having a red but the client next to her wants that but the other therapist doesn't have that colour. Once in a while is fine, but given the clients are used to coming in and picking whatever would that work?

Removal of products
I am going to suggest a small charge for this soon, would you say the client should have to go to the therapist that applied it?

Hope someone can help!

Thanks
 
If you’re taking over a salon then there are a LOT of things to consider.

It’s not really simple just ‘both being self employed’ as technically you’ll be the business owner and the other self employed.

As the business owner you’re liable for lots more admin, premises repairs (normally), corporation tax potentially etc etc.

Also, being self employed the therapist has to take her own bookings and payments (can’t be taken by the business), she also needs to pay for her own insurances and products. She can also work any hours she wants and charge whatever price she likes as well as making it clear she is a separate business and the business is just a landlord. Anything less and you risk HMRC fines for avoiding employment law.

The business would also need to pay for its own insurances and overheads too.

You really want to speak with an accountant about the best setup and also a solicitor to review the business takeover, lease and paperwork.

Big switch in thought process from another self employed person to business owner :)

Realistically, employing is usually the best route but has its own financial implications and pitfalls.

How comes the other owner giving it up? Normally a good way to see red flags.
 
There’s a very sound reason why 60/40 split is the Industry standard. She’ll still be earning more than when she was employed.

Why would you only charge 12% to cover just product costs?
Surely, you’d be running at a loss?

How will you pay your phone, electricity, water, council rates, insurances, furniture wear & tear, salon repair costs, advertising, accountants fees, etc?

Can the business really afford two Nail Techs? Are you and the other Tech fully booked every day?

What’s the current annual turnover?

Is it a long lease? Are you responsible for maintenance & repairs to the salon?

Speak to a solicitor/accountant before signing anything.

It’s a HUGE change going from employed to Business Owner and you need to go into this fully prepared.

Make sure you have a written contract between you and the self employed therapist setting out the terms of your arrangement.

What will you do if the other therapist decides to run a half price offer for 5 weeks? Will you match it?
What if the other therapist decides to offer an additional service such as lashes?
What if the other therapist decides to take a months holiday with short notice?
What if the other therapist decides to go on maternity leave and asks her recently qualified cousin to take over her slot? (A self employed person is entitled to do that).
What if she goes on maternity leave and asks you to keep her desk free for her?

You need to look at every proposal from a ‘how does this benefit my business’ perspective.

Maybe also see if there are any small business courses available in your area that you could sign up for? They’re great for networking and giving you feedback on your ideas from a different perspective.
 

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