Galerie de Beaute is best described as a mall of beauty professionals. Galerie de Beaute offers fully equipped units for state-licensed professionals in the beauty industry.
Traditional salon owners face many difficulties when opening a new business. It is sometimes difficult to locate a location in a high-traffic area and purchase the equipment. Although 40% of beauty professionals own their own business, 60% are employed in a privately-owned shop.
Traditional salon employees receive 50% commission. These employees may be charged for supplies or products used. This can lead to high turnover within the industry. Salon owners have turned to booth rental to solve these problems. Although booth rentals are attractive to many; there are some drawbacks. Signed leases are required in order to be considered booth renter, and not employee by the IRS and state. If an audit is performed and there is no signed lease, this could involve significant liability, including back taxes, interest and penalty.
To supplement the owner’s investment, a long-term loan will be obtained or additional investments made. This will help Galerie de Beaute make the required leasehold improvements to the selected 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
- Offer high-quality suites
- Maintain long-term financial stability
- Access to a range of beauty and personal-care specialists
- Professional ethics must be maintained at the highest level
- A progressive environment attracts talented entrepreneurs
- Remain true to your community involvement
1.2 Objectives
- Galerie de Beaute can be an option for salon professionals who wish to become salon owners.
- Galerie de Beaute offers salons for hairdressers, nail technicians, and massage therapists the chance to open a small salon with very low start-up capital.
1.3 Keys To Success
- Galerie de Beaute lies on the heavily used corridor of route 13 and 40. On average, there are more than 20,000 vehicles per day.
- Galerie de Beaute is a popular choice for salon professionals, as the professional only has to pay a monthly fee. The salon professional is no longer required to work as a commissioned employee.
- Galerie de Beaute gives salon professionals the opportunity to rent fully equipped units. Rent includes utilities, insurance, and the locked unit. Each salon professional can set their own hours, price, schedule appointments, purchase supplies, and set up pricing.
- Traditional salon owners face many difficulties when opening a new business. It is sometimes difficult to find equipment or a place in a high-traffic location that rents well. 40% of the beauty industry’s professionals work for a private company, while 60% work in a salon.
- Traditional salon employees receive 50% commission. These employees may also be charged for the supplies or products they use. These issues lead to high turnover in the industry. Salon owners have had to resort in some cases to renting booths in the legal states.
- Although booth rentals may be appealing to some, there are some drawbacks. Signed leases are required in order to be considered booth renter, and not employee by the IRS and state. A signed lease is required for booth renters. If a audit is done and no lease is provided, it could result in significant liability including interest and penalties.
- In several other states, salons malls were also established (i.e. Maryland, Virginia Virginia Ohio Nevada There are no salon malls in our state or the immediate vicinity.