Booth renters are “the ghosts of the industry,” says Quest Resources’ Jeff Grissler.While the many advantages, of booth renting are obvious, Grissler points to a big negative many nail technicians may fail to consider the difficulty of getting credit or financing from a commercial bank based on your standing as a business owner. “Booth renters are not looked at as individual salon owners. They are viewed as tenants renting space from an owner,” says Grissler. In order to establish your business as legitimate and credit-worthy, he recommends booth renters take the following steps.
Sign a lease between you and your landlord that specifies a term and a dollar amount. Become a corporation or proprietorship so you are recognized by your state and Uncle Sam. Open a business checking account at your local bank. This may help you to get a business loan, car loan, or even a mortgage down the road. You will also be able to accept checks made out to your business account, which legitimizes your professional operation. Install your own phone line in your space. You will be viewed as an independent salon owner with your own number listed in the business directory. Establish your own account with a beauty product, distributor. This will enable you to build your, own credit and purchase products at wholesale, so you have higher profit margins. Manage you daily receipts, making deposits when needed, and report all your income truthfully on your taxes, while taking all legal deductions.
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