Galerie de Beaute could be best described as a “mall of beauty professionals”. Galerie de Beaute can lease fully equipped units for state-licensed beauty pros.
Traditional salon owners face many difficulties when opening a new business. It is not always easy to purchase equipment or find a location with low rent in high-traffic areas. 40% of the beauty industry’s professionals own their business. 60% work in a privately owned shop.
The traditional salon environment pays 50% commission to employees. These employees are often charged for supplies and products utilized. This can lead to high turnover within the industry. Salon owners have had to resort in some cases to renting booths in legal states. Booth rentals are appealing to many but they have some disadvantages. To be considered a booth renter and not an employee by the IRS and the state, a signed lease is required. If there is no signed lease and an audit is conducted, you could be subject to serious liability. This includes back taxes, interest, and penalty.
An owner’s investment can be supplemented with a long term loan or additional investment. This will help Galerie de Beaute make the required leasehold improvements to the selected site. Leasehold improvements refer to the installation and maintenance of electrical, plumbing, carpentry, and other equipment required for 24 suites.
First year profit is $17,000 and will rise to $37.500 in year three.
1.1 Mission
- Establish Ourstate’s first salon mall
- Provide high quality suites
- Maintain long-term financial stability
- Provide access to a spectrum of beauty and personal-care professionals
- Professional ethics must be maintained at the highest level
- A progressive environment attracts talented entrepreneurs
- Keep your community commitments true
1.2 Objectives
- Galerie de Beaute can be an option for salon professionals who wish to become salon owners.
- Galerie de Beaute is a salon that will allow hairdressers, nail technicians and masseuses to start a business with minimal capital investment.
Success Keys 1.3
- Galerie de Beaute’s location is on the corridor between routes 13-40, which is heavily traveled. The average daily traffic is more than 20,000 vehicles.
- Galerie de Beaute is attractive to salon professionals because the professional pays a set monthly expense. Salon professionals no longer have to be commissioned employees.
- Galerie de Beaute is a salon rental company that offers fully-equipped units. The locked unit, utilities, as well as insurance are included in the rent. Each salon professional will decide on his/her working hours, pricing, appointments, and supplies.
- Owners of traditional salons face many challenges when starting a new business. It can be difficult to find a suitable location and equipment in high-traffic areas with affordable rent. 40% of all beauty professionals own their business. 60% work in private shops.
- Employees in traditional salon environments are paid 50% commission. These employees may also be charged for the supplies or products they use. These problems lead to high turnover. Because of these challenges, salon owners have resorted to booth rental in those states in which it is legal.
- While booth rentals can be very attractive, there are some drawbacks. A signed lease is necessary to be considered a booth occupant and not an employee of the IRS or the state. If an audit is performed and there is no signed lease, this could involve significant liability, including back taxes, interest and penalty.
- In several states, such as. Maryland, Virginia, Ohio and Nevada). Ourstate, and those immediately adjacent do not, as yet, have any salon malls.