Stylists are coming to a new fork in the road, they are deciding between “Salon” life and making a leap to freelance or “Booth Rental”. There are many reasons for the change in structure and depending on your clientele, scope of work, and income structure it is hard to decide which is right for you.
If you decide to rent a booth there are a few details to keep in mind:
- When you rent a booth, you need to take into consideration that your taxes will change. Falling under the “self employed category” means that you have to report your own taxes at a self employ rate, consult your CPA for all the details.
- A challenge for established stylists is that not all of your clients are willing to follow you. There’s a chance you may find yourself, on your own, having to rebuild your clientele.
- You need to come up with a system for scheduling and paying as you will also be the receptionist and cashier of your station.
- You will have to manage your own finances and be aware of your return on investment
- You will need to handle your own laundry! Clean towels don’t just grow on tree’s, you’ll need to find a service or wash and fold them yourself, make sure you have enough in rotation so you’re never without a towel.
- You are now your own boss and you can run your business however you like!
When working for a salon it can often be less of a headache as there is less for you to manage and worry about. You can go in, work on your clients, meet a schedule and be done. In addition, salons provide training and opportunities for career advancement. You can count on your salon to allow you security, vacation, and health insurance. Working for a salon can also provide encouragement as you’re working as part of a team with one goal in mind, the success of the salon is your success as well. However, if freelance is the right option for you you will see direct growth from the effort you put in it which can be the ultimate reward.