Hi Geeks
I am hopefully starting my own tanning salon at the end of september. I am currently writing my business plan, doing a bit more research and negotiating rent for a premises and have gotten a bit stuck....
I was originally looking into incorparating a nail salon within my business to generate extra revenue. I still believe this will be the right thing to do in the area I am setting up in. I believe it will be a prime site with little competition. The problem is I have no idea about the technical side of nails, have no training in this area, and do not know where to source the correct products from, never mind know what the best products to use actually are. I am new to business and I am not confident that I would even be able to afford to employ a nail tech for the first 6 months of my business anyway.
To get around this problem I decided that I could either rent out a workspace for a nail tech or go into a profit share scheme. I ended up deciding to go with a profit share scheme.
Whoever I decide to work with I want to treat fairly and give them a percentage that I am happy with, but importantly that the nail tech is happy with and can make a living out of. One of the benefits in my opinion of not employing somebody is the fact that most nail techs who are good at their job tend to get frustrated with low hourly rates and leave. I do not want to be looking for new staff every year. This way if I do it properly they can make more money than they would if they were employed and they will hopefully stay a long time, so we can both build our businesses.
This is what I had in mind:
The nail tech will have a large area near the front of the salon by the window. I advertise for them weekly as part of my advertising budget, and take bookings for them. I will also purchase any nail desks/chairs if required. The nail tech will need to provide own insurance and products to use on clients. I would want to arrange a profit share of 65/35% split in the nail techs favour.
Is 35% about right? As I say I want to treat the person fairly so they are happy and hopefully stay a long time.
Any advice at all will be very much appreciated.
I am hopefully starting my own tanning salon at the end of september. I am currently writing my business plan, doing a bit more research and negotiating rent for a premises and have gotten a bit stuck....
I was originally looking into incorparating a nail salon within my business to generate extra revenue. I still believe this will be the right thing to do in the area I am setting up in. I believe it will be a prime site with little competition. The problem is I have no idea about the technical side of nails, have no training in this area, and do not know where to source the correct products from, never mind know what the best products to use actually are. I am new to business and I am not confident that I would even be able to afford to employ a nail tech for the first 6 months of my business anyway.
To get around this problem I decided that I could either rent out a workspace for a nail tech or go into a profit share scheme. I ended up deciding to go with a profit share scheme.
Whoever I decide to work with I want to treat fairly and give them a percentage that I am happy with, but importantly that the nail tech is happy with and can make a living out of. One of the benefits in my opinion of not employing somebody is the fact that most nail techs who are good at their job tend to get frustrated with low hourly rates and leave. I do not want to be looking for new staff every year. This way if I do it properly they can make more money than they would if they were employed and they will hopefully stay a long time, so we can both build our businesses.
This is what I had in mind:
The nail tech will have a large area near the front of the salon by the window. I advertise for them weekly as part of my advertising budget, and take bookings for them. I will also purchase any nail desks/chairs if required. The nail tech will need to provide own insurance and products to use on clients. I would want to arrange a profit share of 65/35% split in the nail techs favour.
Is 35% about right? As I say I want to treat the person fairly so they are happy and hopefully stay a long time.
Any advice at all will be very much appreciated.
