Are you finally tired of the 9-5 salon grind and want to run your own show? Is it the right decision to rent a booth or should you go for something else? In the article we will weigh all the pros and cons of a booth rental so you know if this move is your big win or is it a little too soon.
What Is A Booth Rental?
A booth rental is like a business arrangement where you, as an independent stylist, pay a weekly or monthly fee to a salon owner in exchange for the use of a station within their salon space. It is as if you become a tenant rather than an employee.
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Salon owners usually don’t just provide the physical space but they also provide basic utilities and maintenance. The rest is all the stylists responsibility, which may include:
- Setting your own price
- Handling taxes, insurance and licensing
- Purchasing all products
- Managing marketing and client booking and payments.
While this seems like a great way to finally be an owner of your own business, there are some pros and cons you must be wary of.
The Pros
The pros of booth rentals make it a very lucrative option for independent stylists and here is what they can expect from it:
1. Freedom To Be Your Own Boss
Once you rent a booth you no longer have to clock in and out on someone’s command. You can decide your own hours, what services you will give and what you want to charge for these services.
You can also plan your vacations just when you want and for however long you need. The freedom to make your own decisions is what most stylists strive for. No micromanagement, no nagging, just complete autonomy of being your own boss.
2. Get The Bigger Share Of Your Earning
When you work in a commission model with a salon you will end up paying 40%-60% of every single service you perform
3. Be The Creative Decision Maker
Being a booth renter means you can make your own creative decisions. No more letting the salon owner decide what product, tools or technique you choose. You can make decisions depending on the techniques you think are best and will work for your clients. This way you can also tailor your services and make them more niche specific. A personalized and more high end styling experience can make you a customer favorite.
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The Cons
The pros far outweigh the cons but it is important to know everything before you finally become a self employed beauty professional and decide to rent a booth.
1. Independence That Comes With A Price Tag
When you rent a booth weekly or monthly, this becomes a fixed business expense and you are required to pay no matter how many clients you serve. It can become slightly problematic to arrange that big sum every week or month and add to the stress of paying rent. If the month is slow and you did not have that many clients you may have to pay the rent right out of your pocket.
2. No Built In Benefits
Employment means a fixed salary that comes with perks. Independent stylists do not work on a salary or a fixed income, which means they do not have any of the benefits such as paid leaves, health insurance and more. As a small business owner you will be responsible for your own health insurance and other things such as taxes. These costs can also dig a hole in your wallet.
3. One Head Several Hats
Running a small business is no walk in the park. There are many things to do and you alone to do them. This is where it can become overwhelming. You will have to figure everything out on your own and perform tasks like book appointments, follow up on said appointments, make sure your product inventory is sufficient enough and you may even have to clean your station.
4. Client Acquisition Nightmares
If you do not have a loyal clientele already, renting a booth might not be the best idea. Booth rental salons are not really responsible for your marketing and the walk in clients may not always come your way.
In this case, you need to work on your marketing skills and advertise yourself so more and more people know about the services you offer and where you work. A good idea would be to be highly active on social media and gain traction there. Personal branding can help you get customers and the visibility you need.
Questions To Ask Before Renting A Booth
Be careful when renting a booth, here are some questions you should ask before you finalize your decision:
- What’s included in the rent? (utilities, cleaning, receptionist, towels, backbar products)
- How much is the rent, and how often is it due? (weekly, bi-weekly, monthly)
- Are there any hidden fees? (maintenance, late fees, supply charges)
- What is the length of the rental agreement? (short-term, long-term, flexible)
- Is there an exit policy or buy-out clause if I want to leave early?
- How many walk-in clients does the salon typically get?
- Does the salon offer marketing or promotional support?
- Am I allowed to sell my own retail products?
- What are the rules around branding and décor for my booth?
- What kind of insurance do I need, and is proof required by the salon?
- Are there restrictions on working hours or services offered?
- What’s the salon’s reputation and culture like and does it align with my brand?
Only if you are completely satisfied with the answers should you move towards renting a booth.
Tips To Successfully Rent A Booth
- Build a brand rather than just renting a booth. Post about your brand on social media and get clients.
- Add some personal touches to your service to be memorable for your clients. Budget wisely so you can easily pay rent and still have money for other essentials such as taxes, insurance and products.
- Build a community and join communities so you can network and also advertise your services.
- Keep educating yourself, take courses and get certifications so you can stay ahead of the crowd.
- Organize your services with digital tools so that the appointment process is as simple as it can be and this way you will also save time to invest elsewhere.
Conclusion
Do you feel ready to rent a booth? Select Salon Studios can help you with the complete process and get you up and running in no time. All you have to do is contact us and we will be more than happy to help you in this journey to entrepreneurship!
