Legal Distinctions for your Booth Rental Business-By Kim Lento

Many of us in this industry have contemplated going into business for ourselves.
Some of us want to be our own boss. Some have great ideas and want the opportunity to bring them to fruition. Some want to do it their way. Some can not find the right place to build their careers, and some do not have the financial means to go for the gold and build their dream business and feel Booth Renting is a good option to get there. What most of us do not know are the legal distinctions to grow and succeed in a Booth Rental Business.

Did you know that 78% percent of Booth Rental salons are not profitable?

Here is a checklist to see where you fit in with running a legal and ethical Booth Rental Business:

Do you have a clear and written contract?

Do you have a clear and written contract, if so has it been updated each year? When is the last time you looked at it? It just as much protects you as it does the owner; for the IRS it makes it clear you are your own business.

Do you set your own schedule/hours?

Do you set your own schedule or does the owner, if the owner does, it must be in the contract or it creates a grey area; are you an employee?

Do you set your own prices/menu?

How do you set prices? If the owner does this again it creates a grey area for the IRS. Your prices should be set based on your expenses and what you want to make for profit.

Do you have a separate business checking account?

A clear way to track what is spent and received in your business.

Do you have your own liability insurance?

The owner's liability insurance does not cover you. Also it sets you apart as your own domain.

Do you pay taxes on all revenue/income produced?

The IRS is slow, not stupid. You are only hurting yourself by not being in integrity with paying your taxes.

Purchase your own supplies?

Are you purchasing from the distributor with your own account and meeting with the DSC yourself or is the owner your distributor? Do you purchase your supplies within a budget?

Do you have a marketing and referral program?

Do you have a plan for your marketing? Do you know who you are targeting, how long it will run, your objective and what is your budget? Do you track your marketing as well as your referrals?

Do you have a personal growth plan?

Do you have a plan to get you where you want to be? Is your tongue in your mouth and the tongue in your shoe going in the same direction? Or are you doing a whole lotta hoping and wishing?

Do you have a clear understanding of money in/out?

Do you know what's coming in and what needs to come in to pay the bills? Do you know with the money going out how much of your gross sales/income you can spend on each expense to plan for profit?

Take a look at where you stand inside of operating your business legally and ethically.

And with the information provided how you can use this information to have your business grow and succeed to set yourself apart.

Sometimes we are in the dark because we just don't know; well now you know, who are you going to be in representing our industry?

Knowing is the first step and taking action in your business is the second. So take yourself on, what are you going to work on in your business?

Salon Training International has several ways to support you in these aspects of your business; Booth Rental Manual, Coaching Solutions, Coaching Club and YBN.