Renting a room
I'm looking to start my own business. I think I want to take a step at a time so I'm looking into renting a space. Not sure exactly where to start. If anyone has any advice it would be greatly appreciated.
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Permalink Reply by Stacey Walsh on
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See what kind of opportunities are in your area - I'm in a really small town so my only option was to rent in a hair salon. If you're somewhere bigger there are probably spas or even something like a wellness center. Decide what would fit you best, and then just start calling the places you can find to see if they have a room available. You'll want to set up a time to view the room and facility, and that's when you can find out about price, what's included, etc.
One thing that helped me tremendously was the salon was willing to let me do a commission split initially, til I built up some business. That way if I had a dead week or spend most of my time out promoting, I didn't lose money paying rent. Some places will give you your first two weeks of rent for free and that also helps!
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Permalink Reply by Stacey Mitchell on
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Do you know if there are legal forms I need to file, such as taxes ? Just trying to have all my ducks in a row before I get started. Thank you!
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If you're going to have a business name (other than just using your own name), you will file your assumed name with your county register of deeds, but of course you'll need to have your location first. As far as taxes go, you'll want to file quarterly so find yourself an accountant, but there's nothing needed until you start earning money. And of course keep your receipts for every expense for quarterly filing as well.
Basically finding a location is the first thing you need to do - you can't do much in terms of paperwork til you have your address.
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You COULD go ahead and file for your federal tax ID number. From what I understand most independent people just use their Social Security # (I do) but you could get an EIN assigned if you ever plan to have employees.
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Thank you for all your help. I still need to get a few more things figured out before I start looking for a space. I want to make sure I have everything I need in terms of products and supplies first. Thanks so much!
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Permalink Reply by coldsalineplexus on
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Yes, the other benefit to having an EIN is when dealing with vendors, some of them require it to "prove" that you are a "real" business and not just an individual placing a vanity order. Good clinical skincare companies should understand what's up since so many of us do practice solo, but in case you decide to carry boutique items in the future this could become an issue, and will definitely be an issue if you opt for LLC protection.
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It really depends on your location, but you won't have to do those things until you actually lease the space and see what's what. For example, if you are the only person in the facility who is licensed under the board of cosmetology (i.e., there are no other estheticians, hairdressers, barbers, manicurists, etc.), then you may have to get a cosmetology establishment license through the board of cosmetology. However if there are others who are licensed through cosmo, you probably don't need a separate cosmetology establishment license.
Same goes for your occupational license - in many cases, one license for the whole building is fine. When you start selling products (and this is a big question to ask when you are touring spaces, is whether you are allowed to carry and sell your own products), then you will probably need your own account with any relevant sales tax agencies (for me it is city and state, but I know some also have localities), which could result in having your own occupational license, which usually just costs a small renewal fee each year.
You'll want to have a state reseller's license (where I am, this is tied up with my state sales tax account), which some vendors require to sell to you at wholesale prices and without tax.
Tax wise, in terms of your business entity, unless you are already in possession of substantial assets/wealth that you need to protect, most people start out their first year simply doing business as themselves and get an EIN that way. Alternately, you can start as an LLC from jump to be really safe and avoid future paperwork. You can get an EIN at the bank when you open your business account, or do it yourself ahead of time at the Secretary of State website. The EIN is like the social security number for your business - you'll use it next year when you file this years' Schedule C for your taxes.
TBH, when I opened, I was pretty clueless about this and learned from the two other business owners in the building (dress shop and makeup artist), from my banker, and by making phone calls to the state board.
As long as you are licensed and have your insurance (hopefully you have ASCP since you're on this site - they're great!), then the worst case scenario would be that you miss a step and have to go back and pay a little penalty (if even). These agencies are pretty sympathetic to newbies starting out in small business because that is where a lot of their revenue comes from, so as long as you try your best, consult with other small business owners, and ask a banker or bookkeeper if you get really concerned, you'll do fine!
Then, keep amazing records of your expenses and revenue. You may or may not want to use a bookkeeper for the first year... I didn't until about year 3, but that was possible because my dad had taught me Quicken as a kid. I still feel more secure now that I do have a bookkeeper.
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Wow, sounds like a lot you need to know just to rent a space. I'm glad I asked this information is very helpful. I have been doing my research but this saves a lot of time. Right now I'm trying to lease a space in a salon that has separate rooms for different services. So the best way I can explain it is the landlord rents out the rooms (about 10 or so) to different people, stylist, nail techs, massage therapist, ect.
I currently work at a salon and spa and its just not what I want. My ultimate goal is to own my own salon and spa, however I was planning to work at my current job for at least another 5 years before I went out on my own. For several different reasons I want to work for myself as soon as I can. I'm just tired of working for someone else. Starting small wasn't in the plan but neither was renting a room. I'm a great esthetician and since I was in high school this has been my dream.
Thank you for all the helpful advice. Your awesome! I appreciate both of you for helping me out with this information. Still have a bit of work to do but you have made it much easer on me.
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I'm in the exact same situation as you. Have been working for someone else but for various reasons just decided it's time to move on. An opportunity to do a booth rental came up and it just felt right. I'm really excited and also scared but I'm going to do it! The owners are willing to do commission the first couple of months and I'm going to promote like crazy. One thing that is important to me is that I do microcurrent and have some LED lights which sets me apart from other Estheticians in the area. You really need something that makes you different from the rest. I'm trying really hard not to spend too much initially because I would buy every product and piece of equipment out there if I could! Good luck to you!
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Good tips thank you. I have a decent clientele but will stay a little longer to build a little more. Hope everything works out!
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Great advice Cathy!
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Thank you. Making sure I'm doing everything ahead of time so once I get up and running it will be a lot easier.
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