Galerie de Beaute could be best described as a “mall of beauty professionals”. Galerie de Beaute will lease fully equipped units to state-licensed beauty professionals.
The owners of traditional salons often face difficulties when starting a business. It can be difficult to find a suitable location and equipment in high-traffic areas with affordable rent. Although 40% of beauty professionals own their own business, 60% are employed in a privately-owned shop.
Workers in traditional salons receive 50% commission. 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. Although booth rentals are attractive to many; there are some drawbacks. To be considered a booth renter and not an employee by the IRS and the state, a signed lease is required. If the audit finds that there is not a signed lease, then this could cause significant liability.
Owner investment may be supplemented by a long-term loan, or additional investment. Galerie de Beaute is able to complete the necessary leasehold improvements on the chosen site. Leasehold improvements can include the installation of equipment and plumbing as well as carpentry needed to construct 24 suites.
The first year profit was $17,000, rising to $37.500 by year three.
1.1 Mission
- Establish Ourstate’s first salon mall
- Provide high quality suites
- Maintain long-term financial stability
- A range of beauty and professional-care services are available to you
- Professional ethics must be maintained at the highest level
- Promote a positive environment that attracts talented entrepreneurs
- Be true to your community engagement
1.2 Objectives
- Galerie de Beaute offers an alternative to salon owners who are salon professionals.
- Galerie de Beaute allows hairstylists, nail technicians, and massage therapy professionals to set up a mini-salon without any capital outlay.
1.3 Keys to Success
- Galerie de Beaute is situated on the heavily traveled corridor of routes 13 & 40. Each day, the average traffic exceeds 20,000 vehicles.
- Galerie de Beaute is a popular choice for salon professionals, as the professional only has to pay a monthly fee. Salon professionals do not have to work for commission.
- Galerie de Beaute is a salon rental company that offers fully-equipped units. The rent includes the locked unit, utilities and insurance. Each salon professional will determine his/her own hours, set pricing, schedule appointments, and purchase supplies.
- Owners of traditional salons face many challenges when starting a new business. Purchasing equipment and finding a location in a high traffic area with reasonable rent is often difficult. 40% of all beauty professionals own their business. 60% work in private shops.
- Traditional salon employees receive 50% commission. Additionally, these employees often have to pay for products and supplies. These issues lead to high turnover in the industry. Salon owners have turned to booth renting in states that allow it.
- Although booth rentals are attractive to many; there are some drawbacks. 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 penalties.
- In several other states, salon malls have been opened (e.g. Maryland, Virginia Virginia, Ohio, Nevada. Ourstate, and those immediately adjacent do not, as yet, have any salon malls.