Taking on self employed staff (60/40 split)

#1
Hi There,

I'm looking to open a salon and ideally would like to take on self employed staff and do the 60/40 commission split, with me supplying the products, water rates, gas etc.

If I go down this route, am I still able to use a central booking system (if I give them full data access to all clients who book in with them) and stipulate times the shop is open (they can choose which hours within the opening and closing times they want to work)? Can I also take a monthly rate to cover their area (for example if they decide to just work 1 day a month I'm not left with an empty station). If so, I could reduce the split to 50/50%.

How would it work in terms of consultation forms? Can I supply them with their logo on, just so that we are all using the same forms so it looks professional?

Any advice is appreciated.

Thanks
 

BannerPenguin

Well-Known Member
#2
There's a lot or murky situations in your post so I'll outline some options for you - this is just my opinion of course :)
  • Percentage split or monthly rate. Can't really do both. If someone only does 1 or 2 days, you rent out the other days to someone else.
  • Central booking system isn't wise as each person is a business so need to organise their own books. Also data protection issues.
  • While on the above point, they should all take their own payments too. Nothing through a central till.
  • Consultation forms, if it has their individual logo/business info on then sure but you're just doing them a favour that's coming out of your own pocket. I wouldn't worry. Again, all have to be stored by the individual and not accessed by you.

The key points are it has to be very clear they're all individual businesses and handle their own clients, bookings, payments and there is no crossover access by you or other therapists. It's basically like renting a house out to someone else. You're just a landlady :)
 

redlottie13

JUST BE NICE
#3
There's a lot or murky situations in your post so I'll outline some options for you - this is just my opinion of course :)
  • Percentage split or monthly rate. Can't really do both. If someone only does 1 or 2 days, you rent out the other days to someone else.
  • Central booking system isn't wise as each person is a business so need to organise their own books. Also data protection issues.
  • While on the above point, they should all take their own payments too. Nothing through a central till.
  • Consultation forms, if it has their individual logo/business info on then sure but you're just doing them a favour that's coming out of your own pocket. I wouldn't worry. Again, all have to be stored by the individual and not accessed by you.

The key points are it has to be very clear they're all individual businesses and handle their own clients, bookings, payments and there is no crossover access by you or other therapists. It's basically like renting a house out to someone else. You're just a landlady :)
Can I jump in here... Can I ask how you would split the money? As an owner I wouldn't trust someone to pay me what they owe or give me the correct amount? X
 

Haircutz

Super Moderator
Staff member
#4
Can I jump in here... Can I ask how you would split the money? As an owner I wouldn't trust someone to pay me what they owe or give me the correct amount? X
Charge a set rent then.
 

BannerPenguin

Well-Known Member
#5
Can I jump in here... Can I ask how you would split the money? As an owner I wouldn't trust someone to pay me what they owe or give me the correct amount? X
Yeah, I totally understand. I've always felt split is messy. Set rent is much better.
 

redlottie13

JUST BE NICE
#6

Haircutz

Super Moderator
Staff member
#7
I was asking advise. I would rather do a split as I'm providing a lot of clients x
That’s my point.
I think you’d be better off doing a straightforward daily room rental because you’d need to step back and allow the therapist to manage their own business. They’re not ‘your clients’ once that person becomes self employed and you will have no control over how she runs HER business.
 

hazelb

Active Member
#8
I was asking advise. I would rather do a split as I'm providing a lot of clients x
You cant just move clients around like she's an employee of yours. If you get someone in who's self employed they are a completely seperate business, they have their own clients, charge their own prices, do their own marketing, take their own money.

It does should like you want an employed person ( but by another name!), basically someone who you can book clients in with, but will then pay you a 60 / 40 split and you don't have to pay holiday pay, sick pay, pension. You tell them what rate to charge, when they can take their holidays and what their hours work... sorry that's an employee.
 

redlottie13

JUST BE NICE
#9
You cant just move clients around like she's an employee of yours. If you get someone in who's self employed they are a completely seperate business, they have their own clients, charge their own prices, do their own marketing, take their own money. It does should like you want an employed person ( but by another name!), basically someone who you can book clients in with, but will then pay you a 60 / 40 split and you don't have to pay holiday pay, sick pay, pension. You tell them what rate to charge, when they can take their holidays and what their hours work... sorry that's an employee.
Woooooooah hang on a minute. I haven't mentioned anyrhing in this post about my situation. She is employed by me and has been for 15 months and failing massively to hit 3x her wage 5 days perweek.
I am trying to do everything I can to keep her and one of those posibilities is to help set her up as self employed. I'm potentially giving her stock to start her business and a ready made business/clients to walk into rather than sacking her.
.... I know nothing about a split, as I have never done it. And currently I employ all of my staff x6 With good pay, sick pay 5% pension And an acheivable bonus scheme. And £100 worth of services per month.

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BannerPenguin

Well-Known Member
#10
Woooooooah hang on a minute. I haven't mentioned anyrhing in this post about my situation. She is employed by me and has been for 15 months and failing massively to hit 3x her wage 5 days perweek.
I am trying to do everything I can to keep her and one of those posibilities is to help set her up as self employed. I'm potentially giving her stock to start her business and a ready made business/clients to walk into rather than sacking her.
.... I know nothing about a split, as I have never done it. And currently I employ all of my staff x6 With good pay, sick pay 5% pension And an acheivable bonus scheme. And £100 worth of services per month.
.
May I ask, if she isn't hitting her 3x wage is that down to her or not enough customers or a mix of both?

Having a mix of self-employed and employed in your premises I imagine would be a pain and you get issues with data protection between businesses. I know you really want to help 'set her up' in her own business but she could take all those customers you give her and set up at home within the month and take them all and then you will be getting nothing. You're trying to do a really kind thing but sometimes it comes back to bite you.
 

redlottie13

JUST BE NICE
#11
May I ask, if she isn't hitting her 3x wage is that down to her or not enough customers or a mix of both?

Having a mix of self-employed and employed in your premises I imagine would be a pain and you get issues with data protection between businesses. I know you really want to help 'set her up' in her own business but she could take all those customers you give her and set up at home within the month and take them all and then you will be getting nothing. You're trying to do a really kind thing but sometimes it comes back to bite you.
Yeah this is unfortunately the conundrum I'm facing.
She knows something got to give, she's off sick at the moment with stress, and cried to me recently as she knows she's not bringing in enough for her job to be safe.
I absolutely adore her, I really don't want to lose her but I'm substituting her wage every month.....
She's very inconsistent. For example:
November -March she didn't make her wage. April - June she's doing X2 her wages so making money but only just breaking even, & not close to commission.
Beauty is popular in the area so I don't think it's a case of wrong location, plus it's central.
Her wage is £9ph -full time

Beauty is at the back of the shop and footfall is healthy. We have an A board and sign in the window to say we are beauty too, so passers by are aware.

Even with all my years in the industry I just don't know why. It's a head scratcher....

Our profit margin is healthy. Products are top quality, she is loved by staff and customers.
Her retention rate is 96% but she rarely gets new business. Even with a fantastic social media presence .... Lots of before and afters and training I've put her through.
The hair side is booming, we cross sell and cross promote with offers.

I would just be looking at beauty being separate....and renting the rooms is becoming more likely but I'm supplying clients so I'm unsure what to do there ...as you say she could be very ungrateful and bugger off with everyone.

She has been a fantastic staff member, and very loyal. But one thing I've learnt in this business is trust no one x
 
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