Hi - I am hoping the seasoned pros on here can provide some advice/tips.

I'm about a week away from graduating, and two of my classmates have approached me about sharing a space. We work different hours in our "main" jobs, so it sounds like a good way to split costs while just starting out. However, we all have different ideas and I'm not sure which is the best route to go.

One gal would like to find a retail/office space with a couple of seperate rooms and start up a small spa - including partnering up as a business. I am really worried about this, as I feel it is a bigger risk than renting a room and splitting the time individually & as seperate entities. We have found some office space that might be a compromise - shared waiting areas & sinks, but a seperate room. But most are not near complimentary practices (such as massage, nails or hair). I am wondering if we would struggle to build clientele with this setup.

I found a space that is in the converted "basement" of a salon with a private entrance & bathroom (with seperate sink/dispenery area in the facial room), that is opening up because the current esty is retiring. The location is right on a busy street with cafes, etc. and is month to month. The other gals in the building do nails and massage. This seemed like an ideal start up spot but one gal feels the basement doesn't get enough light. 

You can see where this gets sticky! I've got a business background, as well as some specific skills, so I am pretty confident I can eventually build a business. But I can only work about 6 days/month which I always planned to do mobile or in a tiny space for cost control until I'd established a solid block of business.

Any thoughts on this? Tips/suggestions/cautions or "wish I'd done it this way" ideas?

Thanks much!  

 

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Hi Kate, I know being self employed is the ideal situation for most of us, and it is so tempting when you have people willing to go into business with you, but have you considered working for a spa for a year or two prior to going out on your own? There is really so much value in doing this. When you work at a high volume spa with a good reputation, you get to experience a lot of different client types and skin situations. The spa brings the clients to you, there are other more experienced estheticians to bounce ideas off of and get help from, you get advanced training and (usually) get to work with multiple product lines without having to make huge starting investments in a line only to discover that it doesn't meet your needs. Also, you really get a feel for what you are good at, and what you like doing. I find that when going out on your own, it's great to have a speciality, something you are extremely confidant at treating or a service that you are especially good at providing. Regardless, I think it is wise to start small and take baby steps. Lower risk business ventures, lower cost and working as separate business entities = better working relationships and less risk of problems with your business partners. I'll give you an idea of how my career path has looked. Granted, we all have different experiences and I'm sure others will weigh in here and offer their advice as well, but here is how it worked for me: I started working at a large, well known day spa when I was 17 as a spa attendant and receptionist, fell in love with the field and decided to go to esthetics school. I got my license in March of 2002, and worked at the spa. There are bad things about working at a big spa. I eventually got tired of all the pressure to upgrade services and sell, sell, sell. I also wanted to be able to take more time with clients rather than rushing them in and out the door. In March of 2008, one of the women I had worked with for many years and I decided to go out on our own. We found a nice sized room available in a hair salon with very reasonable rent. We jumped at the opportunity, and now it has been almost five years. We set ourselves up as completely separate business entities, and we split the room up by the days of the week. She has the first three days of the week, I have the last three, and we alternate Saturdays. We have separate service menus, websites, etc. Some ideas that have worked well for us- Don't just split the cost of equipment down the middle. Decide how much money you will each invest in the practice and purchase individual items. For example, she purchased the microdermabrasion machine, and I purchased equipment to equal the dollar amount for the microderm machine (in this case, electric facial table, facial machine, towel warmer and furniture for the office). At the time we started, she wasn't sure if she would be in the business for very long, so my thinking was that if she decided to leave, all I would loose is microderm, and I could either buy her out, or if things were financially tight, let her take the machine and I'd still be able to perform the majority of my services. This may be obvious, but don't share professional product or wax pots. It's much easier to remain responsible for your own consumables, rather than having little discussions about who filled up the wax pot last, or who uses the most of an expensive masque. Keep separate cabinets and carts. Figure out a system for any shared consumables, barbicide, paper towels, tissue, water, cups, etc. Decide on cleaning schedules, the easiest thing is that the room should be spotless, trash should be empty, wax pots wiped down, etc, at the end of each persons time in the room. It's a good idea to have this all spelled out in the beginning (maybe even in writing, nothing legal necessarily, but just a list of your agreement) rather than having issues about it in the future. Renting from a salon definitely has advantages as they can help send you clients. When you have slow times you can visit in the salon, introduce yourself to their clientele, do hand treatments on people while their color is processing, etc. I give salon employees 50% off so they can try my services and talk about me to their clients. I've been very lucky. When we started our business in 08', I didn't know the economy was going to tank the way it did. If we had been set up in a higher cost/ high risk sort of situation, it would have been much more difficult to stay afloat. I like the fact that my business partner and I are not legally tied to one another. If one of us has a life change and needs out, we're free to do so without hurting the other too much. As it is now, I'm faced with the decision of growing. We could move up to a bigger space, or invest in new products and equipment. I'm leaning towards the latter. We can continue to grow our business in our current environment, and perhaps down the road, open a larger business. I know that was long, but when I was starting out I would have loved to hear someone's full story. Ultimately, trust your intuition. You have business experience. This is just one perspective of many. I'm cautious, most comfortable with minimal risk, you may be just the opposite, and that certainly has advantages as well. Good luck! Andrea

Wow! For some reason when I hit add reply, all of my paragraps went away. Must be because I typed this up on a tablet. My response seemed a lot more clear when it was organized into sections rather than a big long ramble! ;) 

Sorry about that! 

No worries! It was clear to me. Thanks for the excellent reply, Andrea. Yes, I think you have perfectly captured what is worrying me about this. My full-time corporate job is my main source of income and it gives me a bit of a cushion. But I would never risk it or cut into my hours unless 100% sure it would pay off. And I'm a cautious person, too. I know I could handle the risk (worst case, financial loss) of 1/3 rent for a few months on just a small room in a spa...but definitely not any more than that.

I'd actually started checking the job listing to see if anyone was hiring part time for the holiday season, or needed the occasional person to fill in. I was hoping to get my toes wet without jumping in with a big commitment. To be honest, I wouldn't have even considered renting space at this stage if I hadn't been asked. :-) This reply really helps, because it validates my concerns.

Excellent point on the products & equipment, too. I have all my own equipment and a good supply of product, because I've been practicing on friends/family at home. It's quite an expensive investment and I don't want an awkward situation of a broken machine or used up product.

The skillset mix will be interesting. The two other gals have completed the same program as me, but I did various advanced training. Including doing Face Reality's acne program, a sugaring certification, and I have an upcoming class on PCA peels. I want to specialize in acne but also took advantage of the student discounts offered in other things to expand my skillset (and see what I liked). Neither of the other two gals have done any advanced training, and it makes me wonder if they understand the market.  

My pleasure! It sounds like you've taken some great steps to set yourself apart. Expanding your knowledge base is really key in this industy. 

The basement space in the salon sounds ideal since it is month to month....and your own restroom- that is a rare find in a room rental situation! If you decide to pursue a partnership with them, perhaps they would be willing to try a lower cost, less commitment option with the condition that you guys will all re-evaluate at 6month intervals to decide if it's time to make a bigger move. I'd be willing to bet that

once they are knee deep intrying to build a clientele, they will be glad that they opted for a lower risk venture! You can always move up later. 

As for the lighting issue, there are no windows in my office (although there are in the salon area where my clients wait), but we have made up for it by having very nice lighting. We have wall sconces on a dimmer switch and a gorgeous piece of wall art- an rather large framed wrought iron tree- that we glued small christmas lights behind. You can't see the actual lights , but it adds a beautiful glow behind the tree and really   adds to the ambiance. There are ways around creating a nice feel without windows. And, it's temporary, once you have a good client base you can always decide to move to a more ideal space. 

It sounds like you've got your head in the right place and will make the best decision for yourself. 

Thanks Andrea! I really appreciate your insightful reply. I went to look at the place this weekend, and also a treatment room there that will be available after Thanksgiving. Great location, small place, and potential for referrals. One of my friends from school is considering looking at it. I drafted some questions for us all to "ask ourselves" based on your feedback, and feedback from a business friend of mine. So, we shall see!

Love the lighting ideas! Thanks again,

Kate

Hi Kate,

I was thinking of doing the Face Reality's acne program.  Would you recommend the program?  I graduate in January.  I have been working on my teenage sons friends and having good results with the line I'm using.  

Does the program use all their own products?  Thanks so much.

Hi Michelle -

I thought they had a really good program. It's a DVD, but they walk you through the steps and include all the forms. Yes, it is based on their products. I can't buy them until licensed so I cannot personally vouch for them. But, they have excellent reviews and I'd rather buy acne-specialist products from FR than "guess" my way through multiple products.

The only thing I'm not sure about is how I will build my opening order. Their recommendations (not required) total over $1,000. I will probably start with just the basics & enough to treat my daughter first to get a feel for it.

It was very helpful as a comprehensive understanding of acne. Hope that helps!!

Kate

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