Just because a competitor across the street has shifted their salon to rent a chair or booth rental business model, does not mean that you should follow suit. You may be under pressure if they try to poach your staff or you lose a stylist or two however, sometimes-forced change is good and in this case you might be forced to take a long hard look at your business model to decide if its for you? If you have good quality staff and you’re happy with running the traditional model you need not worry. Nevertheless, it’s always better to keep your ear to the ground and be ready for any changes that your competitor might make at your expense right?
One of the basic issues in managing the switch to rent a chair is dealing with the present and future employment status of your employees. Ideally you should try and convince some of the more ambitious staff to be entrepreneurial and take a leap of faith, as your existing staff already knows the systems and procedures and are acquainted with the work and salon culture. This makes for a significantly smoother transition for all parties but not always possible. Moreover if your existing staff make the switch, it will be a testament to you and the team further sending a message to other stylist in your area that you must have something going on if your own team are keen to make the switch.
Depending on your Government’s Labor Laws, you may or may not be able to ask your staff to resign from his existing position in order to take on the new venture. There should be no termination from your side unilaterally or else you may spend considerable time in court dealing with unfair dismissal claims. It really has to be the employees idea and their free will to resign because they favor the new contract and concept, and are happy to, in writing, terminate their existing employment contract to become self employed. At this time, you will also be required to pay all holiday pays, superannuation, etc as if the employee were leaving your salon.
If you have any apprentices and you decide to change to rent a chair or booth rental, it goes without saying in most states and countries, you cannot terminate the apprentice. Be sure to do your dewdiligence with you local governing body. In this case you have to let them continue their training and employment with you till they organically move on, and till that time, your salon will have to run with a mixed structure.
If you’re planning to shift to the rent a chair model, systems and procedures need to be clearly defined for its success. The very first thing you need to determine is the booth rental contract including such topics as, percentage rent or flat fee, professional products and payment and supply, inventory and stock control, billing clients, will the stylist make there own appointments, marketing, etc…
Some of your qualified employees may not be ambitious enough to make the switch to a booth renter. Being an entrepreneur is not for everyone so do not terminate them or else again, you could be spending considerable time in court defending your actions.