For a lot of stylists, booth rental is the crowning glory. Most of us join this industry to be independent and call our own shots. That being said, booth rental isn’t always rainbows and sunshine; there can be some struggles with it.
I’ve been sent so many questions from you guys, asking how to know when it’s time to go booth rent, what the process looks like, how best to prepare, and how to find a good salon. So today I am going to take you through some checklists on how to make a calculated decision on whether it is time to make that jump, and what you’ll need to do to prepare yourself for it.
Is it time to leave your commissioned salon?
In a lot of situations, a commission salon is the best place to build a business, but sometimes it’s not. If you’re thinking about going to booth rent, here’s a checklist for you to make sure the time is right.
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If you’re not working with your community, you will not be successful. If you’re not working with your true salon family, it’s probably time to think about making a move. Your community is a huge factor in your success. The salon itself can be wildly successful, but it doesn’t mean it’s the right salon for you.
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Your salon owner won’t allow you to try new marketing techniques. If they aren’t willing to listen to ideas you bring to the table, like trying a new marketing strategy or building your own website, I would definitely consider leaving.
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You aren’t able to have constructive conversations with the leader of your salon. If they aren’t open to discussion, interested in coaching you, or in partnering with you in the growth of the business overall, it might be time to leave.
Are you truly ready to grow your business as a booth renter?
Have a real heart-to-heart with yourself and assess if you’ve been putting in all the work to grow your business. Because if not, going to a booth rental environment isn’t going to be the magic key to everything. If you’re tempted to leave but have one of the three situations below, you might want to reconsider making a move:
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You aren’t building a clientele fast enough, but you aren’t comfortable using modern marketing techniques, please don’t leave your commission salon. It is twice as hard to build as a booth renter because now you have a financial pressure that didn’t exist before. Give it your all building your business and learning to use social media before you make the leap.
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You’re not seeing at least four referrals every month for three consecutive months. You should expect a 15 percent drop off of your clientele when you leave the salon, so it’s important to have a steady flow of clients. And if you aren’t seeing four new referrals a month, I can guarantee you will take an income hit when you strike out on your own.
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You aren’t ready to work twice as hard as you’re working now. Booth rental is a lot of work. You now have to get your own color, manage your taxes, maybe work on your own laundry. Are you going to have to manage retail? Are you ready to go all in on marketing and providing an incredible guest experience? If not, try to cut your teeth on those experiences before going out on your own.
Are you ready to go booth rental? Let’s dive into what to do to make it happen.
The top four things to look for when seeking out a booth rental salon
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Location. It doesn’t need to be the most beautiful street is in your area, but it has to be the right location for you. Think about traffic, your family, and the possibilities of building a clientele there. Choose an area that makes the most sense for you and your lifestyle at this time.
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Culture and vibe. Look at the salon’s community, their goals, and the kind of clientele they attract. The best salon location with the worst salon vibe is going to be doomsday. A salon that’s in a pretty good location with a killer vibe is going to be all good.
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Cost of rentals. Always make sure you can afford it. Sometimes you do have to pay the price to get that great location and culture, but is that realistic for you right now? Or is it better to go back to that checklist, work on social media and referrals?
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Their social media. Look for salons who prioritize culture and marketing, not because you expect them to build your clientele, but to work for somebody who thinks it’s as important as you do.
How to calculate your finances to determine if you can afford to booth rent
Let’s calculate the cost of the business that you have at this moment. I’m going to assume that you have some kind of base clientele before becoming a booth renter.
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Break down all of your services and how much it costs. First, look at the cost per color application. How much does it cost to do a root touch-up? Then look at your clientele and how many root touch-ups do you do in a month. Take that cost per application times the number of root touch-ups to get your root touch up cost for the month. Do the same thing for balayage costs and your other services. Guesstimate high; don’t undercut yourself in calculating how much it’s going to cost to run your business.
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Add 15 percent to stock your back stock properly. Have a small surplus of color, so you’re not running to the beauty supply store the night before your client comes in.
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Rent and pre-opening costs. Taking on a color or retail launch? Build in the cost of additional color or a resale license, permit, or business license for your city, county or state.
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Your website and other marketing. A website, cards, notecards, postage are marketing pieces you need to run a truly successful business. Set aside somewhere between eight hundred and one thousand dollars for your marketing costs.
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Don’t forget taxes. After subtracting color, cost of rent, marketing, and pre-opening expenses, deduct 35 percent of your income for taxes. You’re going to be paying a little bit more since you’re independent versus being an employee.
That final number is your take-home pay. If you lost 15 percent of your clientele, could you still pay the bills and have food on the table? Make sure that you are going to be in a good financial position if you’re going to make the leap.
How to prepare for your interview at your dream booth rental salon
Before you go into the interview, brush up on your social media profiles so salon owners can see what your target client base is, how you attract new business, and how motivated you are. Make sure to update your printed resume to show your experience and what classes you’ve taken.
When you come in for the interview, be motivated and show you want to be a part of something because that’s how you’re going to be hired onto a great team.
And remember, it’s the stylist’s job to interview the salon owner just as much as it is theirs to interview you. Ask about the culture, their typical client, growth goals and team dynamic. Ask all the questions that would be important to you in a work environment.
The most effective way to advise your clients of your big move
You calculated all the financials. You found the dream salon and you aced the interview. Now it’s time to let your clients know you’re moving.
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Collect your clients’ contact information. Gather your guests’ email and snail mail addresses so you can let them know about your move when you’re ready.
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Plan to make the announcement old school. You could post on social media, but only 3 to 10 percent of your followers will see the post. Or you could send an email, but those only get a 30 to 60 percent open rate, meaning 40 to 70 percent of your clients won’t get the memo. But with a physical card, you will get a 90 percent open rate. Start prepping those physical cards so you can maintain the relationship with your guests.
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Wait until you have the keys in hand and a firm date before you make an announcement. Delays happen all the time, and the less you change on your guests, the better. Keep booking clients as usual and then 7 – 10 days before your move date, send out your cards.
How to navigate “that conversation” with your boss
The best thing to do is to be open and honest. Say “I’m making this move because I think it’s the best thing for me in my career.” If you’re disgruntled, keep it to yourself; this really isn’t a good time to get into it.
Give them two weeks’ notice, unless your contract states otherwise, but have a contingency plan in place in case they terminate you immediately.
How to acclimate to a new space
Whenever you’re adjusting to a new team, come in with a piece of humble pie instead of what I call “coming in hot” or trying to prove your worth. The only thing that’ll do is get you ousted from the team. Be sweet, be kind, and be a team player while you get a sense of who everybody is and their personality.
For some clients, it’s a little inconvenient to get accustomed to a new space, so sell this to them as if it’s the best thing that’s ever happened in your business. Step up your service and perform a little bit bigger than you ever have before.
If you decide to go booth rent, stay hungry, stay aware, and know your numbers. There is no greater feeling on the planet than building a beautiful, successful business for yourself. I hope this gives you some clarity on how to make the change to booth rent with grace.