Help, advice needed!

[TrudiMcL]

Hi! Was wondering if anyone here could help me and give me some advice!

I currently work in a well known and reputable beauty clinic based in Northern Ireland, there are 9 therapists working there, most of which are part time, and recently our boss has given us all the option of going self employed and working for ourselves under her name. She has given us a lot of information about how much more money we could make etc and has given us a weekly rent rate of £200 which some are saying is too much and some not! This amount includes rent, rates, broadband/wifi, receptionist, use of beauty room and nails bar and all electrical equipment until it needs replaced. I'm so confused as to what to do as everyone I have spoken to has said that £200 is far too much money considering the amount we get paid per hour at the minute.

I would really appreciate any advice !!

 

[user 111574]

Without knowing how much your salon charges for treatments and how busy you would be, it's difficult to give an opinion on the level of rent being asked.

Your personal situation and current finances will affect your decision.

It sounds like you have been given all the positives from the salon owner but you need to think about what you would loose.

Points to consider:

• You pay your own tax & national insurance
• You have to submit your own tax return & issue your own receipts to clients
• Fixed rent to pay even if a quiet week
• Your colleagues will become your competitors
• No holiday pay
• Who pays for equipment when it needs replacing?
• How much advertising does the rent include?
• What happens with retail stock & sales / commission?
• Will there be a dispute over who 'owns' which clients if you decide to set up elsewhere?
• Are you good at budgeting or do you need a weekly pay packet of a reliable amount?

Some of these points are quite straight forward to do yourself so not a problem really but you need to be aware of the paperwork behind being self employed.
Take you time over this decision and talk to family or friends who know your strengths. The owner won't be doing this to make a loss!

 

[attitude]

How many beauty rooms and how many spots at the nail bar?

 

[TrudiMcL]

How many beauty rooms and how many spots at the nail bar?

I've been offered a whole beauty room with a nail bar within it because I'm the only full time member of staff. There are 8 other girls who have been told they will have to share. There are 4 treatment rooms and 4 nail bars if that's helps !

 

[TrudiMcL]

Without knowing how much your salon charges for treatments and how busy you would be, it's difficult to give an opinion on the level of rent being asked.

Your personal situation and current finances will affect your decision.

It sounds like you have been given all the positives from the salon owner but you need to think about what you would loose.

Points to consider:

• You pay your own tax & national insurance
• You have to submit your own tax return & issue your own receipts to clients
• Fixed rent to pay even if a quiet week
• Your colleagues will become your competitors
• No holiday pay
• Who pays for equipment when it needs replacing?
• How much advertising does the rent include?
• What happens with retail stock & sales / commission?
• Will there be a dispute over who 'owns' which clients if you decide to set up elsewhere?
• Are you good at budgeting or do you need a weekly pay packet of a reliable amount?

Some of these points are quite straight forward to do yourself so not a problem really but you need to be aware of the paperwork behind being self employed.
Take you time over this decision and talk to family or friends who know your strengths. The owner won't be doing this to make a loss!

I know there is so much to consider! I've took all those points into consideration and come back with the same outcome because there are pros and cons of both going self employed and staying employed to my boss !

Our treatments are averagely priced examples would be:
£20-£25 for gel nails
£12-£30 for mani or pedi treatments
£5-£30 for waxing treatments
£5-£20 for general beauty treatments (tinting etc)

We offer massage and facials but I myself concentrate mainly on the above treatments especially nails!

Hopefully this helps ! Many thanks

 

[AcidPerm]

£200 a week is extortionate! I would expect £50 to be nearer the mark.
Your boss is effectively trying to make you redundant.
I think you should speak to an employment adviser at your local advice centre before you make any decision.

When you're self employed, she becomes your landlord and you become a seperate business entity so you wouldn't legally be working 'under her name' other than it's the name of the space that you rent.

Finally, if she chooses to put up the room rent or wants you gone, you have very limited rights as a self employed technician. Don't give up your job security unless it's what you really want to do.

 

[TrudiMcL]

We all thought this as well but she is not negotiating on price ! I have spoke to other girls who work in other salons near me and they are paying £175 a week for a nail bar only. That £200 includes rent, rates, liability, reception staff, maintenance, broadband/wifi and use of all electrical equipment ( waxers, nail lamps, couches etc) until they need replaced. Her argument for the price is that all we all have a well known client base and it's cheaper than starting out on your own with all the extra expenses!

I have no idea what to do because some of the girls are saying it's good for what you are getting especially when we add up what we would be making in a week. But most of them are arguing that it's too expensive for what it is but as I say she isn't going to negotiate prices !

 

[nailpod]

Perhaps take the offer and start looking at moving salons and or renting somewhere you can be the main therapist, as was previously mentions your colleagues become your competitors.
This happened to the hotel I worked at and it ruined some really good long term friendships due to this "client poaching" and luckily I was the only therapist so it didn't effect me, but massage therapists it was.

As mentioned the replacing of equipment is usually costed into the books meaning I work my depreciation of assets within a 5 year framework so in the meantime keep a portion saved to replace and when the 5yeats are up I sell the machine second hand and that is basically written off. Then the proceedings go to new machine. So to "share" equipment is not actually going to work out. As some therapists can be more cautious then others.

 

[daydreams01]

I think it depends on your area. If you work 5 days, it's £40 a day which in my area is v. Reasonable. Not sure about your area so it may differ but your salon prices seem fairly similar to where I am. (Greater London). So you would need to be pretty booked every day to make it viable for you. If you think about it you are paying less than NMW per hour to the owner for the use of the space if you worked an 8 hour day. If you are booked every hour, you could earn well out of it. Maybe if you are worried you would not be busy everyday, negotiate a cheaper rate for less days until you knew you could be booked for 5 days.
I think if you have an existing clientele that ask for you you could make it work well. Think about what you take on average a week or month. If your salon has a computerised system they can show you over the last 12 months what you take each month then you can figure out if it's something that would make you better off.
Remember though that if you are SE, your boss can no longer stipulate your working hours and you can set your hours, take hols without asking permission although you obviously wouldn't get paid if your not there earning! Sounds like she either wants to cut her wages bill or because of the new pensions regulations doesn't want to have to pay into all your pensions.

 

[FlawlessBeauty]

I think it's a bit expensive. You need to work out if it's going to be worth it to you.

Can you bring in your normal wages per week plus tax, £200 rent, stock and advertising?

I'm pretty sure you have to get your own insurance as you will no longer be an employee.

When it comes to holidays you choose what you like but you don't get paid and still have to pay out your rent.

Will new clients be split evenly between all staff?

Realistically you will be your own business and will need records of all incomings and outgoings.

When new electrical equipment is due you will want your own. Other staff should not be using your equipment or stock.

Does your rent include towels, laundry, client drinks, etc?

Months like December you'll feel rich and in January you'll feel poor.

If it works out being self employed is fantastic but if you're struggling to pay your bills it's awful. Have a good think and ask to see the diary for the year so you can have an idea of how much you bring in per month x

 

[AcidPerm]

I think charging £200 a week for London and parts of the South seems reasonable but I think in this case the rent is far too expensive for the area where the salon is roughly based.

Just based on Average house prices for the UK, (according to the Office of National Statistics)

Northern Ireland (where the OP is based) is £118k

In England, it's £227k
(Slough £287k)

Wales £143k
Scotland £141k

The OP should easily find a better deal elsewhere and it's reasonable to assume a percentage of the clients would follow so I think she could use this as a negotiating tactic. If everyone threatens to leave...

As others have said, if you are suddenly in competition with your fellow employees it will drastically change the atmosphere in the salon and unless everyone is very co-operative about sharing equipment it could become quite unpleasant.

 

[squidgernetball]

Devils advocate.

If this is your space that you're renting, could you sublet the nail table while you're in the treatment room? Just a thought.

You've got some good advice on here. Yes, I think it's expensive and yes, I think she's trying to make you self employed to avoid the hassle of employing.

As has been said, you can set your own hours, your own prices and holidays. Is she aware of this or is she trying to treat you as if you were still employed?

Good luck x

 

[RED STAR]

I don't think £40.00 a day is overly high.
I don't know the area, but you say it's a successful salon, so I'm assuming it's well marketed, well appointed, with all the bells & whistles!
Only you know how many clients will exclusivley request you for their treatments.
Only you know how much you take on an average day......

It is becoming very expensive to employ, so I suspect this is your employers concern......think it through, it might just be a very good idea!