Do you want to receive your customers more professionally, but is the step too big to start your own business? Then rent your barber chair is a feasible option for most of the small hairdressing business owners. What you might be worried about is how much to rent a barber chair? Are those costs within my budget? In this article, we will guide you through how a chair rental business is operated.
What is Chair Rental?
Chair rental is the umbrella term used in the hairdressing industry for renting out your business space. When renting a chair, a company enters into a partnership with a self-employed person who offers services and sometimes products at your own risk in your business space. As an entrepreneur, you can generate extra income based on rental income or a percentage of the turnover of the self-employed person. When you start to compare seat rental to hiring new staff, there are several pros and cons that you should definitely consider. Let’s start with the downsides of chair rental over additional staff.
Barber Chair Rental or Hiring staff?
You are good at your job, getting more and more customers and at some point, you work more in your salon than on your hair salon. To get more breathing space, you are faced with the question: do I have to hire extra staff? This question may be the luxury dilemma that every successful hairdresser faces. This is also a subject where entrepreneurs are very outspoken and opinions differ enormously. But if you have the ambition to ever open multiple branches, additional staff is a risk that you should consider anyway. Fortunately, there are other options besides hiring. You can also rent out part of your business space, also known as chair rental. Chair rental is becoming increasingly popular in the hairdressing industry. In this article, we, therefore, focus on the pros and cons of chair rental compared to staff.
1. You don’t have to make any extra investments
As soon as you rent out a hairdresser’s chair to a self-employed person, they pay you money for your space. This means that you both make money from this deal. Moreover, the marketing to reach additional customers is done by the self-employed person to whom you rent out the chair.
2. Much less risk
With chair rental, you have much less financial risk than with staff. Staff can get sick, become unmotivated and you also pay for the days they go on vacation. You do have to deal with certain laws and you have to be careful that there does not seem to be a relationship of authority. In a nutshell, you may not require someone to perform personal work and you may not pay a salary to the self-employed person. It is also important that you draw up a good rental and cooperation agreement.
3. freelancers generate extra customers
Of course, you want to make sure you don’t run off with each other’s customers. But it can be very strategic to find a self-employed person who specializes in certain services. This could be someone who can perform really good paint treatments. But you could also choose to rent out your chairs to someone from a completely different industry. In this way, you do not get in each other’s way and you can both generate extra turnover from your joint customer.
Chair rental is an increasingly popular phenomenon in the barber industry. It can be an excellent way for the landlord to reduce housing or wage costs. It also offers possibilities to broaden the service, for example by working together with a nail stylist or beauty consultant. Sounds good, but there is more to it than you might think at first.
1. Chair rental can influence your branding
It is very important that you make clear agreements with the self-employed person to whom you rent out your barber chair. Think of the clothing style, working hours, and the way in which communication with customers takes place. As soon as this does not match, you run the risk that your personal profile will be affected. You can make workwear mandatory with staff, make clear agreements about working hours, and agree on a communication style. It makes a big difference if you find someone who matches your salon in terms of personality. That way you increase the chance that you are already aligned in many areas. Being self-employed is a big reason why someone decides to become a self-employed person. That is why it is a great challenge to impose something on the self-employed.
2. freelancers work on their own terms
Compared to staff, it is a lot more difficult to keep control over the self-employed person to whom you rent out a barber chair. The following situations might arise.
- The self-employed person decides to stop earlier than agreed;
- The self-employed person did not show up while there was an appointment;
- The self-employed person is so dominant that he takes over the look of your salon;
There are plenty of other points to consider. The most important thing is that you realize that a self-employed person runs his own business. That’s why it’s important that you find someone who reinforces your concept. Someone’s personality plays a major role in this, but also, for example, the services that someone offers.
Tip: look for someone who offers completely different services than you. This can be a strong addition to your offer and you can more easily attract a joint customer without getting in each other’s way.
3. Influence on you and your team
The moment there is a bad apple, this can have a negative influence on the atmosphere in your salon. A negative atmosphere in turn affects the productivity of your staff and can be felt by your customers. So here too it comes down to selectivity. Make sure you are selective when renting out your barber chair. For example, have someone test run for a month before offering them a rental contract for a longer period.
How Much to Rent a Barber Chair
How do you determine the price of the ‘chair’ to be rented? This question cannot be answered unambiguously. It depends on the annual operating costs associated with the property. If the property is rented by the chair lessor, the rental fee can be calculated per m2, to be increased by the costs of using the utilities.
The calculation of the compensation for the cooperation agreement is becoming more difficult. Other aspects come into play here. This includes the share in the other operating costs (advertising, laundry costs, depreciation of assets, etc.), but also the compensation for turnover to be transferred or lost profit from this turnover. The basic principle is that chair rental must be a win-win situation for both the landlord and the tenant.
There are all kinds of examples of seat rental prices: a fixed amount per day/part of the day, a percentage of the turnover or combinations thereof. Assume that both entrepreneurs receive/pay a fair price so that the cooperation does not stumble on financial grounds.
Without wishing to be exhaustive, when preparing for a seat rental, the following must still be taken into account:
To take out insurance as a lessor of commercial space or as a salon owner;
Insurance to be taken out by the chair tenant to cover his company’s liability;
the Disputes Committee Foundation (SGC),
registration in registers (Chamber of Commerce / Kennisplein)
Buma / Sena ; BIG register
As a chair rental company, remember that your insurance policies currently relate to the situation as a hairdresser entrepreneur. Check with your insurer whether and, if so, how the insurance policies should be adjusted when you become a landlord.
Chair rental offers opportunities, provided both parties have properly arranged and recorded their cooperation. If you want to make sure that there are no loose ends, then independent and expert advice and guidance is crucial.