The Aspiring Stylist with Tracey Franklin

Morgan Franklin: Welcome to the
Aspiring Stylists Podcast with

Tracey Franklin. Where to begin,
grow and aspire to become the

best stylist you can be. Whether
you're thinking about becoming a

stylist opening a salon, or
developing your skills as an

experienced stylist the next
step of your beauty career

starts here. Each week we'll
discuss strategic ways to

design, plan and execute on
becoming a stylist that excels

behind the chair and above the
bottom line. Here's your host,

Tracey Franklin.

Tracey Franklin: Today I want to
talk about how the changing

stylists preferences and the
industry trends are shifting

more towards booth rental, we
can no longer deny it. Salon

suites and independent stylists
models are in high demand. I've

personally noticed this shift
myself, the desire for style

independence, it's always been
there, but it's definitely grown

and it continues to grow now at
a rapid rate. I hate to be the

person that brings up COVID. But
I've noticed the biggest shift

in this post COVID generation of
stylists COVID forced us to

figure things out for ourselves.

So many of us stylists were out
of the salon for 246 months, we

had to figure things out without
the guidance of leadership and

salon owners. And we did it as a
stylist. We did it and it's made

everyone more independent. I
want to talk about the main

differences between commission
based and booth rent salons.

Now, if you've never been a
salon owner, you don't

understand the numbers. I mean,
why would you as a commission

paid employee, the owner of the
salon is paying you anywhere

from 40 to 50% of the services
you perform. And for that

exchange, everything will be
taken care of for you. They're

going to put clients in your
chair, they're going to make

sure you have the products you
need, they're going to have

someone taking care of the
business end of all the

transactions. And if that salon
owner is good at what they do,

they're also going to offer you
continued education

opportunities and help you track
your numbers and set your goals,

they're going to be a huge
cheerleader for you and support

system. If you're an independent
stylist, you either rent a suite

of your own or you rent a chair
in a salon, you're gonna collect

100% of your earnings. And
you're also responsible for 100%

of your success. I think social
media changes everything. And

you see what you want to see
when you're looking. I think

social media has definitely
brought more light to both

models, not just focusing on
commission based salons or

independent models, you're
really seeing a lot of both now,

there are very few stylists out
there that aren't marketing

their self on social media. And
that's good, we need to be doing

that. With the rise of
independent stylist and the rise

of Instagram, where it was
mostly big salons in the past

and the feed you were seeing now
there are so many more

independent stylist and they're
showing up as well. I completely

understand the allure of being
your own boss. I mean, out of my

23 year career in the industry.

So far, I've been the boss for
21 and a half of that I get it.

But being the boss is hard.

Whether you're a team of one or
a team of 12, you have to be so

dedicated to the success of this
team. If you're highly

motivated, super fierce, you're
a go getter, you're a good

business person, then you're
probably going to be alright. If

you're confused, and you don't
know how the system works, or

you're just out there hoping it
all works out. I wish you luck.

So what are stylists even
looking for? What are they

looking for in their work
environment today that they

weren't looking for in the past?

It's simple freedom. They want
the freedom to work when they

want to work. They want the
freedom to wear what they want

to wear. They also want the
freedom to align their self with

the brands that they believe in.

I feel like in the past stylists
were kind of willing to exchange

this freedom to be part of
something bigger to have a

safety net a strong start. You
know, that's what commission

salons offer. But now more and
more stylists are taking this

leap into independence right out
of the gate. One day, they're a

student in beauty school and the
next day, they're a small

business owner, this can all
feel very overwhelming. In the

beginning, it's unlikely that
you have a clientele. You have

some friends and some family
members and there may be a few

clients that you recruited at
school but you do not have a

full book, okay? You just don't.

And whatever you have. If you
think it's enough, I promise you

you're going to need more. Well,
maybe you've been at this a

while When you've been
considering going independent, I

encourage you to take a good
look at your clientele. Find out

how did they end up in your
chair? Did the salon recruit

them? Or did you? That's
important to know, if the salon

has put most of the clients in
your chair, the chances that

they stay at that salon are
good. Do they absolutely love

the salon space or the brand of
products that the salon carries?

I can speak to this we've had
many stylists leave through the

years as they do. People that
are dedicated to the way we do

things and the Aveda brand
typically stay with the salon. I

think stylists are surprised by
that, I asked you to consider

all of these questions, because
they're big indicators of

whether or not a client will
follow you or stay at the salon,

you're going to need to know
approximately how many of these

clients would follow you if you
decided to leave. If you've

spent very little time
recruiting your own clients,

you're going to need to consider
ramping this up big time. It

won't be hard, it won't be hard
to go through your book and

analyze and see how many of
these clients you recruited for

yourself and how many the salon
put in your chair. There are a

lot of considerations that are
going to influence a stylist

decision to maybe move away from
a commission based salon. If

you're a money motivated
stylist, then you're probably

looking at that split and you're
thinking I can do better than

that. Maybe you can. But I do
think the numbers will surprise

you. If you're running your
chair, like a small business,

doing all the things, tracking
your numbers tracking your

expenses, then you're probably
going to find very slim margins,

you could potentially earn seven
to 12% more as an independent

stylist working the same exact
book. Does that number surprise

you? It did me? Now you're going
to need to ask yourself, if

seven to 12% more is worth all
the extra work that you're going

to have to put in to earn it. So
if you're thinking about going

independent, you're probably
wondering, what are these

initial costs, what's this going
to cost me? Well, it's going to

vary, and it's going to vary
depending on the space, you're

going to rent. If you're going
into a suite where your salon

chair, your station and your
shampoo bowl are included,

you're gonna save a lot of
money. Now, these items are

expensive. And if you're just
going to be renting a room,

you're going to be responsible
for this equipment, plus any

plumbing and electrical
expenses. But perhaps maybe

you're going into a fully
functioning salon and you're

just renting a chair there, then
all the above will be included

in this model as well. Either
way, you will still be

responsible for obtaining your
business license and an

insurance policy that supports
your new small business. You

will also be responsible for
stocking your color bar, your

back bar products and any retail
items you hope to sell. This

will be a surprisingly large
expense, you're going to need to

consider any specialty equipment
that the salon you currently

work in offers. So if you intend
on offering any of these

specialty services, you're going
to have to buy this equipment

for yourself. And this can range
anywhere from processing lamps

to hair extension equipment. If
you're working in a commission

based salon, you probably have
no idea what it costs for you to

perform your services there. So
this is going to be a really

hard comparison. But with
ongoing expenses. If your book

stays about the same at the
Commission salon that it does

independently, then your ongoing
expenses are going to be very

similar. An independent stylist
is going to have to effectively

manage their finances in order
to guarantee any kind of

profitability. Now this will
probably be easier for somebody

that takes the time to manage
their home finances. If you're

on top of your game with your
own personal budget, you know

exactly what your expenses are
every month and how much you're

going to have leftover then this
may not seem like you know a big

deal to you. If that's a no. If
you're living paycheck to

paycheck and you have absolutely
no idea what your monthly budget

should look like then you've got
a lot to learn before

considering an independent
model. So again, taxes let's

talk taxes. How does commission
versus independence really play

out? Well, when you work at a
commission based salon your

taxes are taken care of for you
during payroll. The owner of the

salon is withholding these taxes
from your check contributing

half of your Social Security and
making sure those get turned in

properly. As an independent
stylists. You're going to be

responsible for all of your
taxes and making sure they're

paid on time. My recommendation
is to find a good accountant

with a small business
experience. What are some of the

benefits and downfalls of these
two models? Well, the potential

financial benefits of
independence are that seven to

12% we talked about earlier. And
please remember that is under

the best circumstances and
you're going to have to put in

the work. operating
independently can also have its

downfalls. If you don't create a
sustainable budget and track

your expenses, you're also again
going to need to double down on

that self promotion. Without the
salon phone ringing and placing

clients in your chair. Every
client you recruit, every client

you're going to need is on you.

So without a big salon with a
solid reputation marketing on

your behalf, what is this going
to look like for you? Well, if

you're an established stylists
with a full book of loyal

clients willing to follow you
anywhere, then recruiting a

whole new band of clients isn't
going to be a huge concern for

you. But if you're a brand new
stylist with a wide open book, I

encourage you to rethink
independence. At this time,

you're going to need a salon
with a marketing strategy and a

solid reputation to help you
establish yourself. Depending on

the services that you offer,
you're going to need four to six

clients a day, and you're going
to be needing them sooner than

later so that you can provide
for yourself. Building up a

clientele this size isn't
something I recommend you take

on alone, there's going to be
challenges of managing all the

aspects of your role. Whether
you're a small business owner,

you're renting a booth, you're
working in a commission salon,

being a commissioned stylist for
the most part, well, you're able

to come in and work your magic
and then go home, your salon

owner is taking care of
everything from product orders

to the appointment confirmations
and all that marketing I

mentioned before. As an
independent stylist, you will be

responsible for all of it,
running to the supply house,

making sure the bills get paid,
creating content, making sure

your clients are confirmed,
booking all the appointments,

the list goes on and on. You're
gonna have to be really good at

managing your time in order to
make all of this work so that it

doesn't feel like a huge burden.

So I want to talk about that
team feel in an independent

setting. I feel like this is
actually pretty easy to create

if you're a good person. I know
a lot of stylists that rent

salon suites and have built
friendships and support systems

with their neighbors. And this
can be even easier in a salon

setting with booth rent, you
still get to be part of a team

while maintaining that more
independent structure. So if

we're talking continued
education, we all know this is

going to play a huge role in
your success. No matter what

business model you use. In a
commission salon, the owner will

likely facilitate the majority
of your continued education at

their expense. I've also been
willing in the past to

contribute to advanced
certifications that I feel like

are going to be a good fit for
my salon. As an independent

stylist you are still going to
need continued education maybe

even more than a commission
based stylist because you're

going to need to stand out, you
will have to create reasons for

people to want to sit in your
chair. Again, you're not going

to have the benefit of the salon
placing clients in your seat. I

feel like the points of
difference between a commission

salon and an independent salon
used to be a lot greater. There

used to be amenities commission
salons offered that weren't

often seen in independent
salons. Things like specialty

equipment, coffee bars, massage
chairs, these are just a few of

those amenities that big salons
offer that you're seeing more of

now. I think the biggest
components of a great client

experience can be offered
anywhere. Your clients deserve a

clean and beautiful space to
receive their services, quality

services and product
availability and an amazing

connection with a stylist who is
passionate about what they do.

This is a secret sauce guys, and
it can literally be created

anywhere. I've often wondered,
you know, do client expectations

change when you go to a booth
rent model? I really don't have

a lot of experience with this. I
feel like building a loyal

clientele is totally possible as
an independent stylist. I mean,

it absolutely is. You just have
to be willing to put in the

work. I've said it I know I'm
getting redundant at this point.

But you have to be willing to
put in the work. You have to

keep in mind all the things that
the salon owners do to build

rapport in the community. So
maybe you need to volunteer for

a cause that means something to
you or join a networking group

for Small Business Owners. You
certainly need to be maintaining

a strong presence on social
media. People need to know who

you are, where you are and what
you're About and you're not

going to have that big salon
reputation to fall under

anymore. Luxury services, I
think are something that can be

experienced anywhere. On a much
smaller scale, of course and an

independent model. Luxury is an
eye of the beholder. You know, I

want to talk about a time when I
went to a day spa and Knoxville,

I was completely blown away by
this place, they had these blue

marble walls, and it just looks
so high end. And so luxury, I

couldn't wait to spend the day
there, you know that that was my

perception of it, someone else
may come in and think it's very

average. Again, it's it really
is up to the person, I will say

a lot of luxury product lines
are exclusive to big salons

only. So getting a well known
luxury product lines probably

going to be kind of difficult
for an independent stylist. But

the products that you use are
only one component of the luxury

experience. So you can
definitely make this up to them

in other ways. So we know that
the beauty business is a highly

competitive market. And there's
going to be challenges with

client retention. And it's
difficult under the best

circumstances. I mean, people
are really moody, you know, I

have clients that have remained
loyal to me throughout my entire

career. I've had clients that
have left me for long periods of

time and come back and of
course, some that came once and

never came back. And at the end
of the day, you're going to have

clients who are extremely loyal
and won't stray. And you're also

going to have clients that are
all over the place and don't

mind bouncing around from
stylists to stylist. If you're

considering moving away from a
commission based salon, you need

to do your research, and you
need to do the math and you need

to be honest with yourself. Do I
have what it takes to be

successful independently? I
think the answer is yes. If

you're willing to do the work
and the numbers had up I think

the answer is yes. But it's not
a decision that needs to be made

in haste. Don't make this
decision based on one bad day or

one thing your boss said that
you didn't want to hear. So what

is the future for commission
based salon? Is there a future

in this industry for this model?

Maybe it's because I'm so deeply
ingrained in the commission

model because I've never
experienced anything else. Or

maybe it's because I know how
beneficial this business model

can be to people who need
guidance, leadership and

accountability. I still have
hope. But I can't ignore the

evidence. Our industry is
shifting as it so often does.

The best thing that we can do is
keep our hearts and our minds

open to the limitless
possibilities our industry

provides.

Morgan Franklin: Thank you for
joining us on this episode of

anytime soon. The Aspiring
Stylist Podcast with Tracey

Franklin. If you enjoyed
listening and you want to hear

more, make sure you subscribe on
Apple Podcast, Spotify or

wherever you find your podcasts.

The Aspiring Stylist Podcast
with Tracey Franklin is a Morgan

Franklin Production. Today's
episode was written and produced

by Morgan Franklin editing and
post-production by Mike

Franklin. Want to find out more
about Tracey and the Aspiring

Barber and Beauty Academy go to
aspirebarberandbeauty.com