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RENTING SPACE as a Beauty Service Provider

About 70% of our students have long term goals of self-employment.  We offer the following advice to our students: Choose your start-up location in a neighbourhood where you see yourself in the long run.  Clients will follow if you move nearby 😉

In this article, we review different rental options for budding beauty industry entrepreneurs.

RENTING SPACE IN A SPA or SALON

Renting a room (or chair) in a spa or salon is a good way to get your toes wet in the world of commerce. This option allows a certain amount of independence, it’s like renting a room  in a house where a family lives. For example, you may be able to set your own hours, but will be limited to their hours of operation.

A benefit of this arrangement is cross-promotion.  Renting space from an existing beauty business could give you access to a pool of existing clients. People who rent space in a spa/salon usually do so with the hopes that their business will also be visited by that spa/salon’s regular clients.  Cross promotion is mutually convenient ONLY when you rent from an establishment that offers different services than you.

Be prepared for conflict if you offer the same services as your landlord!

What can I expect my rental fee to be?

Your rental fee will depend on multiple factors.  The location of the establishment and the size of the room you will be renting are primary factors. The best way to conduct your research is to inquire about other places renting nearby (even if you are not interested in those locations).  

Also ask what is included in the fee. Things to consider are:

  • How will your clients pay? Will you be getting your own pos or will you be using theirs? 
  • Will their receptionist be greeting your clients? 
  • Will you be using their washer/dryer?
  • Who will clean the common areas?

RENTING SPACE IN A COMMUNITY

Renting space in a community such as My Lofts or Citizen Salon Studios is a new concept worth exploring! This option is good for service providers with a small-medium client base. It allows for more independence and is an excellent choice for service providers whose goal is to earn a comfortable income.

Renting space in a community is like living in a furnished condo with utilities and amenities included. Rent is understandably higher as it can include equipment, furniture, and services such as online booking and marketing. It also includes maintenance of common areas.

Another pro of renting space in a community is the love and support from your neighbours. You all have something in common- an entrepreneurial spirit and your love for the beauty industry!

On the other side of that coin, your neighbours are also your competitors. There’s nothing wrong with a little competition! We advise our students to see competition in a positive light- it keeps us on our toes and reminds us daily to treat our clients like important guests J


RENTING SPACE ALONE

Renting a store front space is a goal for service providers who want to run an entire operation. This option requires a larger financial investment and an existing client base.

This option is like renting an entire house for yourself and your family (staff). It is maximum commitment for maximum independence. You are responsible for every aspect of your business.

We do not recommend renting an entire spa/salon in hopes to rent out rooms/chairs while you build your clientele.  Do not overextend yourself! What if you aren’t able to rent ‘that chair’ or ‘that room’ in time?

Making sound financial decisions during the start-up phase is what will take your business into year 2. Try not to rely on credit and keep your overhead as low as possible for as long as possible.


Are you interested in self employment? ESG offers short training courses to help you reach your goals one step at a time.

With ESG, you can custom-design your beauty career by taking the courses you are interested in. If you are joining the beauty industry, we recommend starting off with esthetics basics like Manicures and Pedicures or Waxing and Tinting.

EXECUTIVE SPA GROUP

Beauty Industry Resource Centre

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Life AFTER Esthetics training

What happens after you complete your esthetics training?

Executive Spa Group provides all students with career and employment resources to guide them in their beauty industry careers.

Starting your first job after beauty school can be daunting. You may find that your spa job may be different than what you were expecting. At Executive Spa Group, our Beauty Career and Employment consultants have knowledge and experience to help you align reality with expectations.

Some information we like to prepare our students with is knowledge in employment laws so that you understand your rights and responsibilities as an employee.

Reading and keeping your pay stub is a good habit. Your pay stub provides important information including your EI and CPP contributions. It’s always a good idea to track your hours so that you can read your pay stub.

Reading your pay stub can be pretty confusing, especially when it comes to all of those deductions. 

Employers must deduct on your behalf from YOUR OWN wages the following:

1. Employment Insurance aka “EI”

Like it’s name says, this is insurance you pay every pay cheque in case you are laid off or become ill, or your parents or child become ill, or you have a child and can no longer work.

***NOTE: you do not qualify for EI if you are fired or quit your job.

2. Canada Pension Plan aka “CPP”

This is money that your employer must pay on your behalf from YOUR OWN wages. This money goes into a “savings account” and you only have access to it when you turn 65 years old. If you choose to retire early you may in fact access your CPP, however, you will be penalized by receiving a lesser amount than if you would have waited.

3. Taxes- this money is deducted from YOUR OWN wages to pay towards making Canada the great country we know and love. It goes to pay for all sorts of things, like our education and healthcare system, fixing our roads, providing social programs, etc.

The amount of taxes you pay depends on your marital status and whether or not you have children. 

Though all of the deductions can be infuriating when you receive your pay cheque, just think, on top of paying all those deductions, YOUR EMPLOYER must also pay additional EI and CPP out of their own pockets to be able to offer you a job. 

In addition to paying your wages, your employer has to match the amount of CPP you pay, dollar for dollar, plus an additional 1.4X the amount you pay for EI. 😱

Makes one appreciate their employer just a little more, doesn’t it? 


EXECUTIVE SPA GROUP

Beauty Industry Resource Centre

(780) 604 2772

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Beauty School Edmonton Success Story

beauty school edmonton
Beauty School Success Story: Fabi

Fabi always had a passion for hair, however, life took him a different direction. After years of working in the trades, he decided life is too short to not do what you love!

Fabi trained in Manicures and Pedicures at ESG and landed a hairstyling apprenticeship position at Barber Ha on Whyte Ave, Edmonton, Alberta. Thank you Fabi for letting us be part of your ever-growing career in the beauty industry.

Congrats Fabi for successfully completing your training at ESG!
Shout out to Barber Ha for being a great mentor and welcoming this lad into your space. 🙏🏼

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Executive Spa Group

info@executivespagroup.com
(780) 604-2772
executivespagroup.com
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