Ok, I'm driving myself crazy- could use some input! And sorry this is so long... I'm partially venting (about myself!) :)
I have a smallish wellness center/spa. Currently its me and another esty, working opposite days and I've just hired 2 PT Massage Therapists. We have a Dr that 'rents' a room a couple times a month, too.
I haven't hired a front desk person yet. So, basically I'm running the front desk everyday... and I'm exhausted! On Tues/Thurs/and Sat mornings I see clients and run the front for myself. On Wed/Fri and Sat afternoons I don't see clients but I run the front for my other esty and now for the PT massage therapists. We're open 10-7 daily, so I'm there A LOT. (plus I have 3 kids and lots of other things that are being neglected, lol)
Which, I am the owner, I did sign up for this, so, yeah, I know I'm gonna be putting in the hours. :)
BUT, I need a front desk person now. I don't quite feel like I have the money to hire someone, but really, I'm spending all my time at the front desk and not marketing, so maybe freeing up my time would help! (so far, I've run my business completely debt free, no loans and no outstanding debt, so its cash flow only- I may look into getting a small business loan though, shortly, just for security and growth opportunities)
I'm thinking of hiring someone PT for the Wed, Fri and Sat PM shifts to take some of the pressure off me.
When I think about 'letting go' of this and having someone else open, close, greet, do computer work, etc etc ... it freaks me out! Just a few short months ago I was a solo practitioner, doing it all myself, and, yea, I'm kinda a 'control freak' (lol) so the thoughts of turning this over and trusting it to get done (right) is scary!
I know it has to be done... SO, can you all give me some thoughts on the kind of person I need to be looking for?
I've had some thoughts/suggestions:
1) a college-aged person (either in esty/cosmo school or not; we have 2 big colleges in our town)
2) an esty or MT looking to work in a spa setting and eventually jump into esty/MT work with us when we're busy enough to add another
3) One of the current employees. the MT I just hired PT has asked to do the front desk (and is qualified per her old job). She says it would be perfect on the days she's not scheduled for MT work and it would allow her to quit the MT job she's trying to get out of (she wants to transition into working for me and not her old place, but I'm not busy enough in MT to give her all the hours she needs)
4) a qualified receptionist/front desk manager (someone not in the industry, per se)
My thought on options 1-3 is that those all seem like very short term fixes... do I really want to train them to run the front desk just to have to train someone else shortly? BUT, it'd be nice to have someone in the industry up front.
I keep going back and forth on this, really.
HELP??
Tags:
Nicole
If they are commissioned then they are 1099 and independent which puts you in a situation where you must follow rules set by the IRS.
I wish I could TELL you what to do and you just do it. :) lol
All this work your doing now and mental energy is taking away from your business. The business has a life of its own and since you are under funded YOU must make up the gap with your own time and energy. Stop this and go market your business and get family, friends and husband to help!
You are trying to make decisions like your well funded (well funded is having 1 - 1.5 years of operating cash flow in the back) but your not and your current path says so (I could be totally wrong but it does not read so from the posts). Its only 6 - 9 months - buckle down and save all funds for the baby and keep your checking account very tight. Cash is king and cash flow and rainy day funds are the most important things, otherwise you may not need even commissioned esty's.
Look how many esty's on this board do what your doing?!? You have taken a big risk and its GREAT but do not get caught up in all that you are doing right now. What brings money into the business?:
1. You
2. Others Esty's
Concentrate on that and nothing else. Your great service and personality will win all business shortcomings over and all client's will understand and reward you with repeat business. Oh and get a great answering machine and set your new great website to take customer service requests and let your clients know how much your trying to make this work and how busy you are. They will admire you and respect you for it and will WANT to give you their money.
I really hope this helps. :))
Marty
SkinCareScience.com
Hey Marty,
As I understand it, in CA, the way I have it set up is correct.
My employees are *employees*, meaning I payroll them (and have been). They are not 1099.
Sorry, I'm responding in between clients, lol. I'll address others comments soon :)
Nicole,
Got it. So that is great but your paying 12% on top of what they make and since they ARE employees you can tell them what to do. So now I am confused on your BIG heart and overly concerned EMPLOYER HAT. Your the boss, tell them what to do and if your not a good boss YET learn quickly because your now not just an esty anymore.
Your not their friend - your their boss. That new business is there for one purpose and one result! To make you and your family money and provide your family with a great opportunity. Not to be best buddies with fellow esties, respectful and kind - Yes, but its your risk and your life - that is a huge thing most people cannot do.
My last post stands firm. :))
Concentrate on the one and only thing that makes money: Services and Product Sales
I don't care if you never buy anything from me, if you need an acid or fan brushes or things like that, you pay shipping and I will send to you. Don't be shy, I will help you and please ask your product mfgrs for help, they will help you and if they don't, consider dropping them.
Marty
SkinCareScience.com
That's right Nicole!
You are doing it absolutely correct! I have worked for two places as a commissioned employee - the employers deducted taxes and misc as required and I received W-2's NOT 1099's. I do part time work at one place - they even have forms to report cc and cash tips.
You can give your employees whatever job duties you feel are appropriate.
Including doing intake, checking out the client, rescheduling, cleaning up after themselves, etc. Job descriptions can and should be given to them at time of hire so that there is no confusion. If you do decide to hire a part time receptionist, your staff would probably agree to help out during the transition or when not staffed - why don't you talk to them? I have worked at an establishment in the past that did this. Most people are willing and enjoy working as a team so that the business runs smoothly.
You need to be making the best use of your time...you are much more than a receptionist!
If they are commissioned then they are 1099 and independent which puts you in a situation where you must follow rules set by the IRS.
This is 100% INCORRECT
There are TONS of jobs for employees who are paid entirely on commission. Sales people in just about every industry, starting with automobiles
Whether you are an employee or not HAS NOTHING TO DO WITH YOUR PAY SCHEME
No matter how employees are paid -- Commission only, hourly, hourly+commission, hourly vs. commission, salary or fee per service -- so long as they earn NO LESS THAN minimum wage x hours on the clock they can be classified and treated as employees.
It has everything to do with who is in control of the person's time/schedule, who provides the equipment and tools, etc.
What brings money into the business?:
1. You
2. Others Esty's
I would reverse that order, and expand #2 to "other technicians" since there are MTs involved.
If you have two or more technicians working for you, they will generate more income that you can by yourself. Track it, measure it and do the math. Picking up the service yourself = 100% of the revenue captured, vs 60 or 50% if you gave it to an employee
You should be doing more services on the margin -- to pick up those clients that would have slipped through if you were stuck on the desk. This is easy to quantify.
We ran our customer service center for 12 years with 3 FT employees. We added a 4th because we found we could easily capture 2 -3 more appts per day AND avoid at least one blow up (cancellation / no show / therapist out) each day. This more than paid for the cost of the extra person
Yes, you are right. But who would pay a commissioned esty and not 1099. I have experience with the IRS and and IRS agent said if done correctly it is the correct way to do this within this industry.
Follow the guidelines for a 1099 and most fit within the way esties work and the way they run their business. Yes their are exceptions but for the most part hair, nail and skin are very independent by nature and control their own hours.
Talk to an IRS agent regarding payroll tax violations and 1099 within the tax code as it pertains to our industry and I am sure it will help.
Marty
SkinCareScience.com
But who would pay a commissioned esty and not 1099
People who are concerned about quality and consistency. You can't train or require an IC to follow your protocols and procedures. They do what they want, including wear what they want.
If you are offering branded facials, protocols must be followed and certain products used. IC's cannot be forced to use certain products or to follow certain procedures. If they don't want to do the Accu-lift Facial massage featured in your signature treatment, they don't have to do it.
I want all of our customers to have an equally excellent experience, regardless of their technician. To ensure consistency, I choose to use employees and can't understand why anyone would do otherwise.
Valid points, but...
Then you have hired or attached the wrong person to you. Skin care and treatments are as much an individual craft as they are a learned experience and practiced one.
What happens in my facial room has nothing to do with manners and professional outside the room. I am 1099'ing what goes on in the room and aligning myself with the right esty outside the room who shares the same philosophies and professionalism as I.
Just a different way of dong business but what you mention is wanting to CONTROL a person and CHANGE a person through an employee / employer relationship and that is really another problem: Not hiring the right individual from the start.
Marty
SkinCareScience.com
1099's are for IC's.
I think this has always been the WRONG way to pay staff in this industry.
I am currently solo but if I did hire, would never pay my employees as IC issuing a 1099.
The right way to do it is to hire as employee (whether commission or salary) do the payroll deductions as required by LAW. R&R doesn't make just valid points...they are the facts.
AGREE. What you are describing is EXACTLY why all my estheticians are employees - I have very specific facial protocol, I want certain equipment used, I want clients to be able to migrate between estheticians when needed (hello - female-dominated industry means leaves of absence for pregnancy, days out to stay home with sick kids, etc. etc. etc.) and have a consistent experience of my business. I want notes taken a very specific way so that another therapist can pick up and help out. I want a TEAM approach to taking care of our clients, rather than every-woman-for-herself, which are the personality types you attract when you make the position a 1099.
I'm much less concerned about this for Massage Therapists, which is why they are 1099's. I supply some basic oils and things, and they're welcome to add things they think are beneficial to the massage, the only restriction being that they be insured and work within their scope of practice.
Further, I don't desire to have any involvement with the process of designing and purchasing supplies for manicures and pedicures, so my nail techs rent and provide all their own supplies (the basic equipment is mine).
You really do get the behavior you ask for when you propose each of these different working arrangements.
I guess you hired a slew of the wrong people too!
Why do you have to control them and change them, can't you just accept them for who they are?!?!?!?
Congrats on the three-headed approach
But to the original topic of the post, do you have dedicated front desks staff? How is that handled?
Can't quite tell if this is a reply to my post or a different one, and I can't tell if this is sarcasm, but my system really works for me, and I do agree with your prior post about quality and consistency.
I do have dedicated front desk staff - the full time person is on salary, and the part time person is hourly. They are great, they understand that they work for ME, they understand and enforce my policies, and I think they do a great job converting callers to clients.
Edited to add: My desk staff do WAY more than just receptionist work - marketing, ordering, maintaining the spa. I have 3 businesses so I have structured it in such a way that those types of tasks do not fall on me. Also, the FT person is technically the manager although we rarely have staff issues. She is the one who assigns work to the PT person.
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