Should I hire part time staff

I currently rent a room 4 days a week and am at a stage in my business where I need to rent full time (7 days a week)

I am considering hiring an estie to work part time a couple of days a week and was just wanting some feedback, thoughts or advice from anyone who has considered or made the transition from being a sole practitioner to having staff.

I would want the estie to work for my company (not as an independent contractor) and I would provide training (in the system I have developed for facial treatments) and supply everything including clients.

I guess my main concern is that obviously if I were opening a day spa I would hire staff but should I be doing this if I am only renting a room?

Any thoughts are much appreciated.

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Permalink Reply by coldsalineplexus on February 15, 2014 at 9:34pm

Congratulations and good luck either way!!!

You might consider sub-renting your room and access to products and equipment on a per treatment basis. Renter collects her own $$; easier to manage on your day off.

Unfortunately certain costs associate with having employees (payroll costs) don't really become worth it until you have a few people working.

What if someone bought in as a partner?

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Permalink Reply by Nichola Weir on February 16, 2014 at 11:39am

Thanks...I will need all the luck I can muster :) I appreciate your advice.

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Permalink Reply by Cindy Greenwood on February 16, 2014 at 3:44am

Check your lease - I was renting and one of my clauses was that I could not hire a subcontractor.

You are in a tough spot - at that stage where you are growing and wondering what your next step is.

In the past, I would probably have encouraged you to look into opening your own place...but moving your business has it's own challenges. Don't get me wrong - it sounds like that is exactly what you will be doing in the future.

So - do whatever you can do to build up YOUR business, which sub renting would probably NOT do (someone else would be building their business off of your hard work and reputation). i think you would be able to protect your business better with an employee - and although maybe not as lucrative in the short term - would give you more control and keep you moving in the right direction.

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Permalink Reply by Nichola Weir on February 16, 2014 at 11:37am

Thanks Cindy! I do want to expand my business and 'warm' people up the idea that it consists of more than just me. I am allowed to hire staff where I am (they are very supportive and the massage therapist who rents here did the same thing last year). I guess the first step would be researching all of the legalities and financial responsibilities of taking on staff (I have no clue!!!)

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Permalink Reply by Relax & Rejuvenate on February 18, 2014 at 7:40am

Subletting is prohibited in most space leases. as pointed out, it limits you income upside to the rent you collect. Any why would someone pay you more than you are paying yourself -- so it generates no incremental income.

If you had a day spa, you would be renting from a different landlord. You are still a renter, investing in improving/building a business in someone else's space. You own your business in either scenario, so the venue is a non-factor.

You cannot have a sub-contractor who performs the same services you do -- sure, most ignore this little wrinkle in labor law, but a sub-contractor can only be someone who provides a unique service or skill you are not qualified to provide -- like massage therapy in this case. You can have an IC do massages for y our clients.

employees are great under the right circumstances, but you have to prepare yourself to deal with the costs and the inevitable explaining to candidates why your pay is appropriate.