The digs deep when it comes to member support. This time they�ve grasped the nettle of �rent a chair� with a warts and all guide on the realities and legalities of this popular barbering business model. Whatever the question, members get access to an expert that can help. Get the full picture at nhf.info. What you need to know � �rent a chair� employees are essentially running a separate business inside your business. They are responsible for their own NI, tax, insurance, business stationary, complaints procedures, equipment, products, training and more. Employers can�t dictate their hours, dress, price, behaviour, the products they sell or the services they offer. What you need to think about before you do it � employers benefit because contracts can offer flexibility and they don�t have to pay NI, holiday pay, sick pay, maternity or paternity or pensions contributions but they lose control over the standards, hours, price, service and brand. What you MUST have � a legal watertight contract between shop owner and chair renter to clearly define responsibilities, finances and most importantly tax (the NHF offers contracts free to members).
The contract must also include how long the chair renting agreement is to last, how the agreement can be ended by either party, what happens if things go wrong, and notice periods. Be detailed and include everything that�s included or excluded. How you should charge � it�s easy to lose money on renting chairs if employers don�t get the sums right. A blend of a fixed weekly or monthly rent plus service charges (license fee) along with a percentage of the takings may work well. To work out the license fee divide the rent and rates of the shop by the number of chairs. To work out the service charge add the cost of the services provided in the contract such as phone, laundry etc and divide that too. Add these two figures together and remember to charge VAT. These costs are the fixed cost per week or month. Additional revenue will come from the employers agreed percentage of the takings from each client. How to manage it � the contract along with clear measures of control on how money will be taken and paid plus a shared understanding of the VAT and tax liabilities for both parties will ensure that �rent a chair� models run smoothly.
Always seek professional advice. Picture credit: Courtesy of the NHFIf you've got grand ideas, start your own barber shop. If you are in the hair styling industry, one of the most frustrating aspects to being an independent contractor or employee is that your level of clientele may hinge on the professionalism of your barber shop owner. If you believe you can do a better job managing a barber shop and reel in more clients, perhaps it’s time you put your theory to the test. Managing a shop requires dedication, time and energy, in addition to excellent people skills and a good business sense. Observe your employers before you jump in, detailing how you will improve your barber shop. 1. Determine what services you will offer based on services provided at previous employers or local competition. If you are already in the industry, one of your greatest sources of feedback is your current clientele. Ask them what changes or services they would like to see implemented. Determine if you will open a co-ed shop or offer additional services such as pedicures, manicures, waxing and shoe shining.
2. Contact your state’s cosmetology board or licensing department to learn the requirements and fees for obtaining a barber shop permit. For example, in the state of Texas, a barber shop must have at least one sink, wash basin, or hand sanitizer for every three chairs or stations. Obtain your business license and sales tax permit. 3. Develop a business plan that details operating costs, start-up costs, advertising costs, staff requirements, anticipated clientele and how you intend to compete. Create a competitive pricing list to determine what type of profits you can expect and how much you can afford to spend on your rent. Generally, your rent should not exceed 10 percent of your projected gross revenues. 4. Scout out potential locations for your business. Moving into a location that has already been zoned for barbering will significantly reduce your workload and eliminate the need for building permits or zoning approval. Busy barber shops may have a waiting period between clients. Look for a location in a shopping center or near other businesses that your clientele frequent.
Contact a commercial broker to show you vacancies. Be sure to thoroughly research your broker and ensure that he understands your business needs. 5. Hire an attorney to review the details of the lease agreement, such as the landlord’s responsibility with repairs, expansion potential, early lease termination clauses and what happens if an adjacent business moves out. Hire an accountant to learn the tax requirements for hiring an independent contractor or an employee. 6. Get your shop inspection ready. Equip your facility with adequate equipment, supplies and cleaning products. Address all public safety, licensing and sanitation regulations. Then contact your health department to set up an inspection. 7. Hire well-groomed, licensed barbers. If hiring contractors, ensure that they have liability insurance coverage. Develop a dress code policy for your employees. Encourage employees to avoid gossip. 8. Offer discounts to your existing clientele for customer referrals. Host a grand opening.
Get your barbershop listed in local directories. Start a website for your shop. Suggest an Article CorrectionUser ReviewedHow to Start a Barbershop Starting your own business is a big decision. However, if you are good at what you do and have thought about starting your own barbershop, consider the following: Everyone needs a haircut. A good barbershop can do well, even in a recession, because hair will not stop growing no matter what the economy does. Once you get your barbershop business started, it is relatively easy to maintain. You can start a barbershop by following just a few steps. Get a barber's license if you do not have one before you open a barbershop. Do research on local legal conditions that you must meet to open a barbershop by going to your state government's website. Apply for a business license. Make a budget for your business and ensure that you have funds to cover all the necessary start-up costs, including money for the lease, equipment, supplies and wages.
Write out a business plan that includes your future goals, a time line, your budget and an exit plan in case the business fails. Go to your state's Department of Revenue website to find out the state's tax rules and to fill out forms to get your Sales Tax ID number. Locate a good place for your barbershop and work out terms for a lease. Purchase all necessary equipment and supplies for your barbershop business and hire employees if you need to. Research other shops to get a good idea of how much you should charge and what services you should provide to be competitive. Do some marketing to make sure you get your barbershop's name out there. Put your business plan into action and open your doors for business. Show more unanswered questions Do your research when purchasing equipment and shop around to get the very best price. Make sure you have a good calendar system set up to schedule your appointments. Check out the Chamber of Commerce to get a wealth of information on requirements the local government may have to open a business in your state, city and county.