Help please, buying a salon

[Puddy89]

Hi all, so I'm in the process of potentially buying an established salon.
At the moment the owners work there full time and have three members of staff paying a percentage of their earnings to the salon.
I have worked independently for the last 10 years.When I last worked in a salon on a self employed basis 13 years ago I paid them £180 a week and supplied all of my own products/colours. I was allowed one weeks grace a year and had to be there full time 9-5.
In my area I think a lot of salons charge a % of the stylists earnings per week.
Can anyone tell me what you or your stylists pay to your salon and what they get in return for it if anything. I. E. Stock/holiday/sick pay.
Also what area of the country you are in please?
At this moment in time I won't be able to be in the salon full time so will hopefully be able to have one of the existing stylists manage or maybe just trust the existing stylists to just get on with their work and day?!

Any help and advice would be greatly appreciated.
I don't even know where to begin to get advice.

Thank you x

 

[BannerPenguin]

As they’re self employed they can charge what they like, work whatever hours they like and come and go as they please.

I don’t think you can expect them to do ‘salon duties’ as they aren’t employed.

But as they’re self employed, you don’t have to give them any sick pay or holiday pay.

you may want to see what their current rental agreement says. The issue is, you want to still get paid when they’re on holiday/sick ideally.

You actually have little say over the renters so just keep this in mind as I can’t see how it would work without you being there full time.

 

[Starting out]

Hi all, so I'm in the process of potentially buying an established salon.
At the moment the owners work there full time and have three members of staff paying a percentage of their earnings to the salon.
I have worked independently for the last 10 years.When I last worked in a salon on a self employed basis 13 years ago I paid them £180 a week and supplied all of my own products/colours. I was allowed one weeks grace a year and had to be there full time 9-5.
In my area I think a lot of salons charge a % of the stylists earnings per week.
Can anyone tell me what you or your stylists pay to your salon and what they get in return for it if anything. I. E. Stock/holiday/sick pay.
Also what area of the country you are in please?
At this moment in time I won't be able to be in the salon full time so will hopefully be able to have one of the existing stylists manage or maybe just trust the existing stylists to just get on with their work and day?!

Any help and advice would be greatly appreciated.
I don't even know where to begin to get advice.

Thank you x

From what I’ve been reading if taking over the business and renting the unit carefully check over the lease by a solictor it’s a must

 

[AcidPerm]

I think you’re being unrealistic to expect a group of self employed chair renters to manage your salon when you aren’t there, even just opening and locking up, so you’ll probably need to employ someone separately to manage the salon.

If you try and fudge it by offering one of them a better rate to take on minimal duties, you could come unstuck if HMRC decide to class it as a sham employment situation.

You might have a small group of renters who are keen on building their own business and play fair but you’re just as likely to have the odd disruptive person who will steal stock or cause issues between the staff and a salon owner really needs to be around to stay on top of these things.

 

[Starting out]

I think you’re being unrealistic to expect a group of self employed chair renters to manage your salon when you aren’t there, even just opening and locking up, so you’ll probably need to employ someone separately to manage the salon.

If you try and fudge it by offering one of them a better rate to take on minimal duties, you could come unstuck if HMRC decide to class it as a sham employment situation.

You might have a small group of renters who are keen on building their own business and play fair but you’re just as likely to have the odd disruptive person who will steal stock or cause issues between the staff and a salon owner really needs to be around to stay on top of these things.

That’s well informed info from AcidPerm, you can’t expect self employed people to manage your business from what I have read up on HMRC although there’s plenty salon owners that try,

I think buying a business you need to be involved 100% from the offset

 

[BannerPenguin]

One more point I want you to consider is LOADS of salons are going bust/selling up right now so I hope you're buying the business for next to nothing.

 

[Starting out]

One more point I want you to consider is LOADS of salons are going bust/selling up right now so I hope you're buying the business for next to nothing.

Some might be paying you to take over the lease, Where I work a salon close by is really struggling but even if she shuts up shop she has a good few years left on lease, she is thinking she may have to pay someone to take it over, stuff strange times

 

[Xskyzx]

All vietnamese nail shop, we get pay around 60/40 (60% of whatever you make that week and 40% go to the owner) plus they charge you supply so you bring home around less than 55% of whatever you makes. And we are on 1099, and have to come on time and leave on time doesnt matter if we have customers or not. (Like an employee but we are contractors.

 

[Betty]

You need to be very careful... I strongly advise that you carefully read this article published on the BBC on 20th July 2020:-
"A self-employed hairdresser from Lancashire has won the right to claim for notice, holiday and redundancy pay. " Hairdresser Meghan Gorman wins case over 'false self-employment'

 

[Caz1919]

I really agree with Banner I think your mad I know quite a lot who is closing down and just working from home(cabin)... or not renewing their lease as the landlords did not give them help they just don’t know what’s going to happen ...You could be stuck with a lease!!!.. I owned a very busy salon for 20 years I sold it as I had my kids early 40s wanted to spend time with them... it was the best thing I did I just work from home and NO HASSLE ... The one thing I Learnt back then is don’t trust anybody (staff) if you’re not gonna be there you’re crazy..If you do go a head please get a solicitor to check everything..This Cov-19 is going to be here for a while be very careful....

 

[Caz1919]

One more point I want you to consider is LOADS of salons are going bust/selling up right now so I hope you're buying the business for next to nothing.

I agree !!

 

[Feline]

As a nail tech who rented a few places I’ll tell you, one weirdo in a purpose made place for rental (known as booths in the US) tried to control me entirely and lost the absolute plot when I left due to his antics, for some reason he felt that he owned me since I rented a space there - which was dead anyway likely due to his attitude, he didn’t even get the fact that I had the freedom to leave .

... and the amount of hairdressing settings I have worked in (briefly) who expect self employed people on the other industries to ‘chip in’ on the rest of the salon, too many to mention. I have to say I find it an unreasonable expectation, not to mention a pressure I don’t need. Same industry or not.

I left every place that tried that on with me, and avoided the ones who stipulated it in pre rental meetings. If you want self employed people to stay, and be relatively decent, it might be worth not expecting them to chip in.

Everyone’s focussed on and building their own dream just like you, so to expect others to take time from theirs to build yours.. see what I mean? It will create resentment.

If you want to run a decent business you’ve got to be able to hire the staff and respect that work is paid for.. most especially in today’s climate.

Hope it works out well for you, best of luck !x