Does it make sense to leave your current stable salon job and go it on your own?
While that really depends on your personality and comfort level, the short answer is, yes. It is smarter from an economic point of view, from setting your own hours, and not having to play by someone else’s rules.
Besides, if you are truly talented, and should be making a name for yourself, how can you when someone else’s name is on the door?
Let’s break down the finances of salon ownership in terms that anyone can understand.
Most salon owners are taking 35–60% of your sales to work for them. The US average as of March, 2018 has the national average at 60%. That’s right, you’re only taking home 40% of your sales.
Now tack on the fact that salon owners either expect you to cover your own supplies—or deduct them from your pay—often another 15–20% of sales.
In the worst case scenario, you’re left earning a mere 20% of your sales. That’s not earning a living. That’s highway robbery. That places many salon workers at or below the national wage average ($44,000).
If you’re below the national average, you’re working for poverty level wages.
If you’re earning less than 50% of your sales, you’ll never get ahead and you can forget saving for retirement. Did you know that 66% of Millennials and 38% of Gen Xers haven’t been able (or willing) to put away even $1,000 toward their retirement? Scary.
What happens in the reverse scenario? One where you choose to be your own boss, and rent a space at a salon rental (like Cosmo Salon Studios). Salon booth renters frequently mention keeping 80–90% more of their hard-earned money for the same amount of work they did working for someone else.
This is key. If you’re the owner, all that money is yours, minus only rent and supplies. This means you can afford to live comfortably and save for retirement.
In the case of Cosmo Salon Studios, you keep literally 100% of your sales from work or products. Here’s some of the benefits, and by that we mean “stuff you no longer have to deal with as a salon owner”
- Everything you need to start your business with minimum start-up costs
- Keeping 100% of the profits—because you earned them
- There’s no salon politics or drama in your own private Idaho
- Managing your own schedule, and your own hours
- 24/7 studio access
- Personalizing your salon space with your artwork, your playlists, and your decor. Who says your salon can’t be full of purple unicorns? We don’t judge.
- Setting your own prices for products and services
- Selling salon products you like—and keeping 100% of everything you sell
Wrapping up, it’s pretty clear that the benefits of salon ownership outweigh the multiple downsides of working for someone else. Maybe it’s time for you to make the switch?
References:
In the Style Seat: Booth Rental Vs. Commission Salons: Which Structure Is Right For You? June 8, 2017.
Elkins, Kathleen. CNBC: Here’s how much money members of Gesneration X have saved. September 20, 2017. https://www.cnbc.com/2017/09/19/how-much-money-gen-xers-have-in-their-savings-accounts.html
Farrell, Maureen. Forbes: How to Run a Beauty Salon: Costs. 105,101.
Lobosco, Katie. CNN Money: 66% of Millennials have nothing saved for retirement. March 7, 2018. https://money.cnn.com/2018/03/07/retirement/millennial-retirement-savings/index.html
