The Salon Booth Rental Guide 2023: Win-Win Space Sharing

Whether you’re a salon owner or stylist, salon booth rental offers a unique way to bring in extra income.

In this post, I have summarised the most important parts of the salon booth rental business. 

I have also added valuable tips on how to automate your booth rental system. This can help you decide whether you should charge a monthly fee or take a commission. This tip alone could save you thousands of dollars.

salon booth rental guide

This guide includes the following:

What is Salon Booth Rental? 5 Ways a Salon Owner can Benefit from a Booth Rental System 5 Benefits for Stylists of the Salon Booth Rental Model How Can I Make Money With My Booth Rentals? Automate Your Booth Rental Program with a Salon POS Conclusion – Now is a Great Time to Try Booth Rental

What is Salon Booth Rental?

Salon booth rental is a business model that involves two parties directly benefiting from the arrangement. A stylist will lease salon space to provide hair services, and the salon owner will receive income from the temporary tenant. The stylist pays a fixed recurring fee and/or a percentage of their sales.

This arrangement benefits both parties because it can reduce costs and add revenue for both the stylist and the owner.

The agreement specifies the terms of the rental arrangement, such as how much the salon vendor will pay per month, how long they will rent the space for, and what services they are allowed to provide from that location. The agreement should also include a clause specifying what will happen if either party decides to terminate the contract early.

5 Ways a Salon Owner can Benefit from a Booth Rental System

If you’re a salon owner, renting chairs to stylists can be a great source of steady income. Here are some benefits of this business model.

  • The owner can start making money immediately
  • There are no or low start-up costs involved
  • No benefits to pay like health insurance plans, 401 programs, or paid vacation days
  • Provides easy-to-predict passive income each month
  • It’s straightforward to set up with the right salon software

5 Ways Stylists can Benefit from the Salon Booth Rental Model

So which option is better for you: rent a booth, work as an employee, or start your own salon? There’s no correct answer. All options have advantages and disadvantages. To help you make the best decision, here are some benefits of renting a booth.

  • It’s a low-cost way to start your own business without setting up your own expensive location
  • Only pay a fixed monthly fee or a small percentage of your earnings and keep the rest
  • Be your own boss and get paid more (or at least have the possibility to do so)
  • Set your own schedule and have your own clients
  • No need to hire employees

business plan for booth rental salon

How Can I Make Money With My Booth Rentals?

Booth rental businesses can make money in several ways. The most common way is through monthly fees charged to booth stylists. Another option is to charge a set amount per hour. This can work well for salons where stylists work long hours, but not for salons that only operate during specific times. A third option is to charge a percentage of each stylist’s commission.

When renting out a booth at a salon, do you charge a monthly fee or take a commission?

Both options can be lucrative, but choosing which will suit your business model best depends on your accounting habits and business goals. When renting, you’re more likely to live comfortably with an even amount of income. However, if you opt for commission, you may end up making much more money if your renters are talented and bring in an ample income.

So far, a large majority of salon owners have opted for a fixed monthly fee. This is partly because the commission or percentage model requires more administration and accounting.

However, good salon software can automate commission sales.

Deciding on the Rental Rate for a Salon Booth

Renting out booth space in a salon opens up a whole new source of revenue. You need to decide on a profitable rental price point yet low enough to attract stylists who want to work with you.

If you can’t find enough stylists, consider offering more amenities or updating your location, so it appeals to more customers. If you have too many stylists interested in booth rental, remember that you can always raise the rates.

Automate Your Booth Rental Program with Salon POS Software

Booth rent collection is a time-consuming and tedious task for salon owners. But Salon POS software can automate it easily. With this feature, booth owners automatically charge their rent and fees to booth renters. There’s no need to use cash or checks, and the software makes the process easy to track.

Here are some examples of use cases to look for:

Make onboarding a breeze  and welcome your new salon booth renters with a prompt text or email. Send them their rental agreement and payment information, and they can enter it directly. With the payment information stored automatically in their employee profiles, stylists and other new booth hires can access it instantly.

Easily create legally binding documents . Your renters are entering agreements with you. How do you make sure they sign the right ones? Create legally-binding contracts for salon booth rental using forms. In this way, the renter’s agreement is accessible in a transparent and trustworthy manner.

Collect rent automatically . With the automation of rent, your business will never have to worry about chasing stylists, cosmetologists, or others for checks or cash again. Eliminating confusion over due dates is one less hassle on your plate.

Deduct commission from rent . Make it easier for your stylist by automatically deducting their product sales commission from their rent. This will save you time during tax season and stop confusing your independent contractors with 1099 forms. It’s a simple switch that saves salons time, money, and paper.

Rental payment information and history.  The stylist can easily see their payment information and update anything different. They can also find the booth rental agreements in the employee profile.

Mangomint makes it easy for salon owners to manage their booth renters with their seamless payment integration. With Mangomint Pay, salon owners can create different payment accounts for each service provider, ensuring all service sales are automatically routed to the appropriate bank accounts.

business plan for booth rental salon

By using Mangomint Pay , booth renters can easily manage their own payments and track their earnings, giving them more control over their income. This not only benefits them but also benefits salon owners by reducing the administrative burden of managing multiple payment accounts.

business plan for booth rental salon

Additionally, Mangomint allows you to create custom forms for your booth renters to sign. You can create these forms in Mangomint and have your booth renters sign them electronically.

Mangomint also allows you to track your booth renters’ performance by providing detailed reports on their sales and services. You can use these reports to see if your booth renters are bringing in their own clients or not.

Conclusion – Now is a Great Time to Try Booth Rental

Booth rental can generate more income for salon owners by allowing them to get paid for areas that might otherwise go unused. Still, it can also enable stylists to start their own businesses and work without the overhead costs of owning a physical space.

Automation is the key to running a successful salon business, and the old way of collecting rent with cash or checks is time-consuming and challenging to keep track of. But it’s easy with a good salon POS with features for managing a booth rental program.

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How to Run a Successful Booth Rental Salon

Mar 17, 2022 By SALONORY

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Image of Hair Salon Chair

Are you opening a salon and wondering how you will secure talent? Or are you looking to change your business model around and entertaining the idea of turning your available chairs into booth rentals? Either way, you have come to the right place for salon business advice.

At SALONORY, we have our finger on the pulse of all things salon. Salons are lucky to have a variety of ways to staff their salons, and being able to offer booth rentals is just one way.

While offering booth rentals is a popular business method, they have their pros and cons just like any other model. In this article, we will help you determine whether or not offering booth rentals is right for your salon and business.

What Are Booth Rentals, and Why Are They Popular?

Let’s first look into just what booth rentals are exactly. Instead of hiring stylists to work at your salon full-time, you can offer a booth rental model if you have open chairs. This allows stylists and barbers to rent their chairs and salon stations from you. Instead of having to pay full-time stylists, you will have talent paying you to rent your stations. This model also provides flexibility for stylists and makes it easier to attract talent as many salons are currently facing a labor shortage . Booth rentals could also create an entirely new stream of revenue for you — depending on what your existing business model looks like.

The Drawbacks of Salon Booth Rentals

While there are many upsides to offering booth rentals, there are some drawbacks that salon owners should be aware of. Here are some of the most important factors to consider:

  • Salon owners may not be able to make as much money from the services being offered since stylists are paying to rent the booth.
  • Booth rentals may come and go, providing a lack of stability during slower periods of time.
  • Salon owners may not be able to bond with, build relationships and get to know stylists since their position is most likely temporary.
  • It can be hard to build and establish a culture with a revolving door of talent.
  • The lines can get blurry when it comes to branding and using hair styling products that your salon stands behind. Contract stylists may have their own products they like to use.
  • Salon owners miss out on the opportunity to build a loyal and consistent clientele base since clients usually come and go with stylists.

Image of a salon with two hair salon chairs

Running a booth rental salon may not be for everyone, but if you’ve decided to pursue this type of revenue stream, here are some tips for success that can lead you to run a successful program.

 1. Set Boundaries and Rules

Since stylists will be coming and going, there can be issues with consistency or stylists following ground rules and participating in your salon’s unique culture. To help mitigate this, offer a set of boundaries and rules that you have stylists agree to. Here are some areas we find to be helpful to focus on creating rules around.

  • Salon Cancellation Policy
  • Rent payments
  • Service profit share
  • Lease terms
  • Salon responsibilities (cleaning, organizing, etc.)
  • Product usage
  • Scheduling transparency

2. Create Lease Terms that Work for Your Salon

If you would like to make your booth rental salon more stable, you can create lease terms for stylists that are more long-term. For example, instead of having stylists sign month-to-month leases, offer incentives for having them sign on for longer lease terms. These incentives could be discounts on rent or higher profit share.

3. Make Rent and Profit Sharing Feasible for You and Attractive to Stylists

Knowing what your salon can handle in terms of costs and income is important to finding the perfect balance in what you charge for rent and how much profit you share with your stylists. Take a look at your finances and keep close track of how the booth rental program is affecting your revenue and costs — negatively and positively.

Hair Stylist cutting client's hair

4. Show Your Renters that You’re Invested

While these stylists may not be a part of your core staff, their success ultimately determines your success, too. You can let these stylists know you appreciate their time, business and presence by making them feel a part of the salon family.

5. Create Thorough Contracts

Lastly, you will want to create thorough contracts that help protect you and uphold your booth rental program rules. Your contracts should include information about your boundaries and rules, using all hair salon supplies , rent and lease terms, revenue opportunities and more information on dismissal and termination.

Every salon is different. To figure out if offering booth rentals is right for your business, try it out and measure your success throughout the first few months.

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Booth Rental Salon Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Beauty Care Sector » Beauty & Hair Salon

Are you about starting a booth rental salon? If YES, here is a complete sample booth rental salon business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a booth rental salon. We also took it further by analyzing and drafting a sample booth rental salon marketing plan template backed up by actionable guerrilla marketing ideas for booth rental salons. So let’s proceed to the business planning section .

If you are interested in the salon business and looking towards launching a business as an aspiring entrepreneur, one of your best bet is to launch a booth rental salon business. The right time to start such business is now because this business concept is presently at its growing stage.

Booth rental salon is operated or owned by a person known as booth renter. Their responsibility is to lease space from a large salon or a suite of small salons to hairstylists, barbers and similar businesses who may not want to shoulder the responsibilities of owning a standard salon facility.

The booth rental method simplifies the financial aspect of owning a salon. All you need to do to run this business is to provide the space and charge each stylist a set amount for rent.

A booth rental salon business could be a fun, profitable and interesting for someone who is a contractor and has business perseverance and smartness. With the right location, top-notch facility and good marketing skills, you can accommodate top profile hairstylists and barbers et al who would want to run their business from a booth rental salon facility.

Starting up a booth rental salon business may not require huge startup capital, but it needs a significant investment capital, solid planning, and attention to detail in order to keep your business profitable. The bottom line is that if you are determined to explore the entrepreneurial world by starting a standard booth rental salon business, then you should consider going through the business plan below.

A Sample Booth Rental Salon Business Plan Template

1. industry overview.

Booth rental salon business is part of the hair salon industry and the industry includes salons that primarily offer hair care services such as haircutting, hair coloring and hairstyling services. In addition, these companies may also provide facials and makeup applications (except permanent makeup) and retail beauty products.

The Hair Salon industry has managed to untangle its early post – recessionary bumps. Rising consumer sentiment and per capita disposable income have boosted industry growth over the five years to 2017. This has also led to increased demand for ancillary services relating to haircuts such as hair modification treatments (e.g. straightening procedures and perms), skin-care services and massages.

In the coming years, the industry is forecast to exhibit continued growth. Per capita disposable income and consumer confidence will keep rising as the unemployment rate continues to decline, providing consumers with more discretionary income for luxury services at hair salons.

The Hair Salon industry is indeed a growing sector of the economy of the united states of America and it generates over billion annually from more than 1 million hair salons (booth rental salons inclusive) scattered all around the United States of America.

The industry is responsible for the employment of over 1.4 million people. Experts project that the industry will grow at a 1.8 percent annual rate between 2012 and 2017. No player can boast of having a lion share of the available market in this industry.

Research conducted by IBISWORLD reveals that the Hair Salons industry is in the mature phase of its life cycle. Industry value added, which measures the industry’s contribution to the overall economy, is projected to grow at an annualized rate of 1.9 percent in the 10 years to 2022. Over the same period, GDP is forecast to increase at an average annual rate of 2.1 percent.

Therefore, the industry is growing only marginally slower than the economy as a whole, which suggests that the industry is mature. Additionally, the industry exhibits characteristics of mature industries such as stable long-term demand and minimum product innovation. Product innovation has grown at a relatively steady rate over the five years to 2017.

The booth rental salon line of business is very open to any aspiring entrepreneur who has the capacity to open and run his or her booth rental salon. Just ensure that your booth rental salon is located in an environment with the right demography and you will be fine.

2. Executive Summary

Estee Jones® Booth Rental Salon®, Inc. is a licensed booth rental salon business. We have been able to secure a standard facility in a central and busy district in Colorado Boulevard, Pasadena – California.

We are a booth rental salon company that is set to compete in the highly competitive and fragmented hair salons industry not only in Pasadena – California, but also throughout the United States market because we intend opening our booth rental salons in key cities across the United States.

Estee Jones® Booth Rental Salon®, Inc. will run a world – class booth rental salon. We intend to lease space to hairstylists, barbers and similar businesses who may not want to shoulder the responsibilities of owning a standard salon facility.

Our business goal is to become one of the leading booth rental salons in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry. Our workers are going to be selected from a pool of certified, creative and highly experienced workers in and around Pasadena – California and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company and to compete with leading booth rental salons in the United States and throughout the globe.

At Estee Jones® Booth Rental Salon®, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Estee Jones® Booth Rental Salon®, Inc. is owned by Estee Jones. A core professional with hands-on experience to run booth rental salon business.

3. Our Products and Services

Estee Jones® Booth Rental Salon®, Inc. was established with the aim of maximizing profits in the hair salon industry as a booth salon renter.

We want to compete favorably with the leading booth rental salons in the United States which is why we have but in place a competent team that will ensure that our booth rental salon facility meets and even surpass our customers’ expectations.

We will work hard to ensure that Estee Jones® Booth Rental Salon®, Inc. is not just accepted in Colorado Boulevard, Pasadena – California, but also in other cities in the United States of America where we intend opening our chains of booth rental salons.

Our products and services are listed below;

  • Providing booth salon spaces for rentals
  • Merchandise sales of hair salon related products

4. Our Mission and Vision Statement

  • Our vision is to establish a standard and world class booth rental salon facility whose facility and brand will not only be accepted in Colorado Boulevard, Pasadena – California, but also in other cities in the United States of America where we intend opening our chains of booth rental salons.
  • Our mission is to provide a standard booth rental salon that can attract some of the leading hairstylists, barbers and similar businesses who may not want to shoulder the responsibilities of owning a standard salon facility. We want to build a booth rental salon brand that can favorably compete with other leading brands in the hair salon industry cum booth rental line of business.

Our Business Structure

Estee Jones® Booth Rental Salon®, Inc. is a booth rental salon company that intends starting small in Colorado Boulevard, Pasadena – California, but hope to grow big in order to compete favorably with leading booth rental salons in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business cum brand we want to own. This is why we are committed to only hire the best hands within our area of operation.

We will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Booth Rental Salon Manager

Human Resources and Admin Manager

  • Sales and Marketing Executive

Facility Manager

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Booth Rental Salon Manager:

  • Serves as project manager of the organization; works directly with employees
  • Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices
  • Maintains quality service by establishing and enforcing organization standards
  • Ensures that the organization works in line with international best practices
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
  • Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales and ensuring that all our salon booth spaces are rented out
  • Creates new markets cum businesses for the organization
  • Empowers and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization
  • Responsible for making sure that buildings (salon booths) and our services meet the needs of the people that work in them
  • Supervising multi-disciplinary teams of staff including cleaning, maintenance, grounds and security
  • Ensures that basic facilities such as water and heating, are well-maintained
  • Allocating and managing space between buildings
  • Ensures that facility meets government regulations and environmental, health and security standards
  • Advises businesses on increasing energy efficiency and cost-effectiveness
  • Overseeing building projects, renovations or refurbishments
  • In charge of services such as cleaning, security and parking, to make sure the surrounding environment is in a suitable condition to work
  • Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the Human Resource and Admin Manager in an effective and timely manner

6. SWOT Analysis

Estee Jones® Booth Rental Salon®, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured booth rental salon business that can favorably compete in the highly competitive hair salons industry in the United States and the world at large.

Part of what the consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Estee Jones® Booth Rental Salon®, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Estee Jones® Booth Rental Salon®, Inc.;

Our core strength lies in the power of our team. We have a team of certified, creative and highly trained and experience workers, a team with excellent qualifications and experience in the booth rental salon line of business.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry. Another strength that counts for us in the location of our booth rental salon; it is located in one of the most ideal locations for such business in Colorado Boulevard, Pasadena – California.

As a new booth rental salon in Colorado Boulevard, Pasadena – California, it might take some time for our booth rental salon to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive hair salons industry; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

  • Opportunities:

No doubt, the opportunities in the booth rental salon line of business are massive considering the number of hairstylists and barbers in the United States who are embracing the option of cutting cost. As a booth rental salon company, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new booth rental salon in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

The fact that renting a booth in a salon can be a cost-effective for both the salon owner and workers makes it an ideal business model for hairstylists and barbers who just want to start small and grow big. This business model gives room for aspiring hairstylists and barbers to pitch their business in highbrow areas without necessarily breaking the bank.

All they need to do is to ensure that their services are top – notch and they won’t have to spend loads of cash maintaining the facility or marketing their services. It is the responsibility of the salon booth rental company to promote and maintain their salon booths.

Lastly, booth rental salon operators, in a bid to generate more revenue for their business engage in retailing hair products. They are also involved in rental of salon tools and equipment.

8. Our Target Market

Before starting our booth rental salon in Colorado Boulevard, Pasadena – California, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of hairstylists, barbers, tanning and nail specialists et al who need small spaces in our booths to run their business.

Estee Jones® Booth Rental Salon®, Inc. will work towards providing services, facilities and environment that will help us reach out to our target market. In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our services. Below is a list of the people that we will specifically market our facility to;

  • Hairstylists
  • Manicure and pedicure specialists
  • Tanning specialists

Our Competitive Advantage

Surviving in the business world as a booth rental salon company operator requires more than your expertise and creativity but also how to network with key people that matters; entrepreneurs that can rent your salon booths.

Because of the competitive nature of the booth rental salon line of business, there is an increasing degree of related business activities, with big players dominating the market. We are quite aware that to be highly competitive in the booth rental salon line of business means that you are not only expected to be able to make available top – notch and safe salon booths, but you must be able to meet set targets.

Our competitive advantage is anchored on the state of the art booth salon facility that we have. So also, we have a team of certified, creative and highly trained and experience workers. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Another strength that counts for us is the location of our booth rental salon; it is located in a very busy area that is highly suitable for such business in Colorado Boulevard, Pasadena – California.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Estee Jones® Booth Rental Salon®, Inc. is established with the aim of maximizing profits in the booth rental salon line of business and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Estee Jones® Booth Rental Salon®, Inc. will generate income by offering the following services;

  • Providing booth salon space for rentals

10. Sales Forecast

One thing is certain, there would always be aspiring entrepreneurs /hairstylists, barbers and related business owners who would need to cut cost of starting the business hence the need to rent a small salon space in a booth rental salon facility.

We are well positioned to take on the available market in Pasadena – California and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow our booth rental salon business to enviable heights.

We have been able to critically examine the booth rental salon market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Pasadena – California.

Below are the sales projections for Estee Jones® Booth Rental Salon®, Inc. It is based on the location of our booth rental salon facility and of course our target market;

  • First Fiscal Year: $120,000
  • Second Fiscal Year : $350,000
  • Third Fiscal Year : $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same facility as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.

Our unique selling proposition is that we are well positioned, we offer state-of-the-art facility, people can easily access our facility, and our various payment platforms are highly reliable.

Our sales and marketing team will be recruited based on their vast experience and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Estee Jones® Booth Rental Salon®, Inc.

Our corporate goal is to grow Estee Jones® Booth Rental Salon®, Inc. to become one of the top 10 booth rental salon brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Pasadena – California but also in other cities in the United States of America where we intend opening our chains of booth rental salon facilities.

Estee Jones® Booth Rental Salon®, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Open our booth rental salon business with a big party
  • Advertise our booth rental salon business on national dailies, local TV and radio stations
  • Promote our booth rental salon business online via our official website and all available social media platforms
  • Introduce our business by sending introductory letters alongside our brochure to hair stylists, barbers, tanning specialists and manicure and pedicure specialists and key stake holders in Pasadena – California
  • Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
  • Make use of attractive hand bills to create awareness and also to give direction to our booth rental salon facility
  • Adopt direct mailing coupon marketing approach
  • Position our signage/flexi banners at strategic places in and around Pasadena – California

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for hairstylists, barbers, tanning, manicure and pedicure specialists in the whole of Pasadena – California and other cities in the United States of America where we intend opening our chains of booth rental salons which is why we have made provisions for effective publicity and advertisement of our business.

Below are the platforms we intend to leverage on to promote and advertise Estee Jones® Booth Rental Salon®, Inc.;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al
  • Install our billboards in strategic locations all around Pasadena – California
  • Distribute our fliers and handbills in target areas
  • List our booth rental salon business in local directories/yellow pages
  • Advertise our booth rental salon in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff  wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized facility and services) and we don’t intend to charge less than what our competitors are charging their clients in Pasadena – California and throughout the United States.

Be that as it may, we have put plans in place to offer discount services once in a while. The prices of our services will be same as what is obtainable in the United States’ booth rental salon facility open market.

  • Payment Options

The payment policy adopted by Estee Jones® Booth Rental Salon®, Inc. is all inclusive because we are quite aware that different customers prefer different payment options but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Estee Jones® Booth Rental Salon®, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via Point of Sale Machine (POS)
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for renting our salon booth facility without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your facility is conducive enough for workers to be creative and productive. This is what it would cost us to set up Estee Jones® Booth Rental Salon®, Inc. in the United of America;

  • The total fee for registering the business in the United States of America – $750
  • Legal expenses for obtaining licenses and permits – $1,500
  • Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000
  • The total cost for hiring Business Consultant – $5,000
  • The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800
  • The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
  • The total cost for leasing facility for the business – $150,000
  • The total cost for facility remodeling to fit into the type of booth rental salon facility – $80,000
  • Other start-up expenses including stationery – $1000
  • Phone and utility deposits – $3,500
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
  • The cost of launching a Website – $600
  • The cost for our grand opening party – $15,000
  • Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand ( 350,000 ) U.S. dollars to successfully set up a medium scale but standard booth rental salon business in the United States of America.

Generating Startup Capital for Estee Jones® Booth Rental Salon®, Inc.

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a booth rental salon.

Estee Jones® Booth Rental Salon®, Inc. is a private business that is solely owned and financed by Ms. Estee Jones and her partner. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

Since they are the sole financier of the business, they have decided to adopt the following means to generate startup capital for the business;

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the Bank

N.B: We have been able to generate about $150,000 ( Personal savings $100,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

One of our major goals of starting Estee Jones® Booth Rental Salon®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to lease our state of the art salon booths a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Estee Jones® Booth Rental Salon®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Securing a standard facility and reconstructing the facility to fit into the kind of booth rental salon facility we want to manage: Completed
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the business: Completed
  • Graphic Designs and Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
  • Creating official website for the business: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress

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08.21.2023 12 min read time

Your Ultimate Guide To Salon Booth Rental (How To Make Money Renting The Chair)

  • Businesses/Owners

shutterstock_1646624188-min (1)

Many beauty and grooming professionals are drawn to the salon booth rental for a number of good reasons.

If you’re a hairdresser or barber, renting a booth can give you more freedom compared to working full-time at a traditional salon.

Meanwhile, if you’re an owner or manager, you could enjoy increased stability and potentially lower costs.

A booth rental salon business can be attractive and rewarding, but it also comes with challenges.

Like with most business ventures and careers, you need to determine if it’s a good fit for your style, goals, and personality. And if you decide to go down the booth rental route, it’s important to figure out the best strategies to grow your business or career.

And that’s exactly what we’ll tackle in this post.

Below, we’ll dive into the world of salon booth rental. We’ll look at the pros and cons of this business model and offer best practices for success.

This article has sections for both owners/managers and renters. So whether you’re someone who’s running the booth rental salon or you’re renting a chair, you’ll find some useful information below . 

What is a salon booth rental?

Salon booth rental is a business model in which the salon or barbershop earns revenue by renting out chairs in the location. Unlike traditional salons or barbershops, a booth rental business doesn’t employ the stylists. Instead, they’re treated as renters.

How to run a booth rental salon [for owners/managers]

Pros and cons of owning or running booth rental-based salon.

Owning or running a booth rental salon comes with some advantages and disadvantages. It’s important to be aware of these pros and cons so you can figure out if salon booth rental is the best path for you.

Pro: You have a more hands-off approach to HR 

When you’re renting out chairs, you essentially have a landlord-tenant relationship versus an employer-staff relationship with the people working at your location. As such, you don’t have to actively manage them or their work.

There’s no need to monitor attendance, fill out employee tax forms, or do any heavy HR tasks, so you’ll have more time and resources that you can use in other areas of your business.

Pro: Reduced costs in certain areas of the business 

You could also potentially lower your costs, at least when it comes to manpower. Unlike salons that pay full-time employees, you don’t have salary costs and there’s no need to pay for employee benefits.

Those who rent booths at salons and barbershops typically use their own products and supplies, so you may find cost savings there as well.

Pro: Relatively more stability income 

When you’re running a commission-based salon, your income may vary widely depending on how many clients you get. With a booth rental establishment, your income is relatively stable because you’re able to collect a fixed amount of rent regardless of how many clients have walked through your doors .  

curlcornerstudios

Con: Less control over people and how the salon is run 

Renters at salons and barbershops aren’t your employees, so you have limited control over how they perform their work. You don’t have a say on what products they decide to use or how they choose to administer their services.

This isn’t necessarily a bad thing if you like the hands-off approach. But if you prefer being in control of the day-to-day activities of your salon, then booth rental may not be right for you .

Con: The team may not be as unified as those who work full-time

Commission-based salons that employ stylists or barbers can initiate team-building efforts, plus the people working there are around each other on a consistent basis. This leads to stronger employee relationships.

Achieving that level of unity is more difficult for booth rental salons.

People who rent chairs are running their own independent operations, so they’re looking out for their businesses first. And since they keep their own schedules, they may not be around as much. All that leads to a less unified team.

Con: Lack of brand consistency

Since your chairs are being rented by independent stylists, each individual has their own style and ways of doing things. This can lead to a lack of consistency when it comes to your salon’s brand experience.

This isn’t much of an issue if you simply want to collect rent and you’re not interested in building a brand. But if you do want to create a name for your salon, then a booth rental set up isn’t the best choice.

Best practices when running a booth rental salon

Now that you have an idea of the pros and cons that comes with running a booth rental salon, let’s look at the ways on how to do it effectively.

Know your rent numbers and keep expenses under control

Unless you own the building or space, you’re likely paying rent on your location. If you want to stay profitable, you need to keep your rental expenses under control. According to Randi Rose, co-founder at Thrive Business Services, if you’re running a booth rental salon, “you want your rent to be no more than 25% of your expenses.”

So, run the numbers in your business. Calculate your rent against your other bills and make sure it’s not taking up over a quarter of your expenses. If you discover that you’re spending too much on rent, then you can find ways to either lower your expenses or cook up ideas to bring in more revenue.

Craft a solid renters agreement

Come up with a solid contract for your salon booth rental. The specifics of this will vary, depending on your location and type of salon but generally, the following components should be outlined in your agreement:

  • Term of the agreement (i.e., fixed lease, month-to-month, or week to week) 
  • The rent amount 
  • The use of premises (i.e., how the space should be used, what’s allowed, what’s not permitted)
  • The equipment and property that you’ll provide and what you won’t provide
  • Salon booth rental rules of conduct, cleanliness, etc.
  • Expenses that you’ll cover (i.e., utilities, taxes, maintenance, etc.)

If possible, have a legal professional go over your contract before handing it off to renters. The goal is to create a fair agreement between the two parties.

Build good relationships with your renters

Earlier, we discussed that one of the drawbacks of having a booth rental salon is the lack of unity among stylists . While it’s true that you can’t impose employment rules on your renters, you can still promote a sense of unity by building healthy relationships with them.

This starts with choosing renters who are a good fit for your salon. Interview different stylists and get a feel of how they’ll fit in with your personality and with other barbers or hairdressers in the space. You want people to get along, even if they’re working independently.

And once you have people renting, make an effort to get to know them and strive to foster a work environment that encourages people to collaborate or at least be friendly with each other.

Here’s an example from LePosh Hair Studio that seems to have mastered it as evident from the image below:

leposh salon example

Doing so improves the atmosphere in your salon and promotes unity, ultimately benefiting everyone including the customers who walk through your doors.

Give them a hand

While you’re not strictly required to do so, consider assisting stylists with marketing or running their business. Make things easier by providing backup equipment or products in case they run out. You could also provide mentorship opportunities to improve their craft.

If your business has an Instagram page , consider promoting the various stylists renting at your salon or barbershop.

You could also help them with managing their calendar. One way to do this is to set them up with salon scheduling software so their clients can easily book appointments. You can give them a link to their portal that they can easily share.

Why go through all the trouble? Simple: showing stylists that you have their back builds loyalty. They’ll stay with you longer and be better tenants overall — and that’s great for your business.

Remember: when your tenants succeed, YOU succeed with them.

How to succeed as a salon booth renter [for freelance/independent stylists]

Pros and cons of renting a chair.

If you’re a stylist considering salon booth rental, here are some of the top pros and cons to factor in.

Pro: More time flexibility 

The biggest draw of salon booth rental for stylists is the schedule flexibility that it affords. If you’re a salon booth renter, you have control over your hours and vacation days . You won’t have a boss looking over your shoulder and there’s no need to clock in and out of work. All that can be incredibly attractive, particularly if you prefer to have a flexible lifestyle.

Pro: You keep more of what you earn 

Traditional salons that employ stylists typically offer commissions on top of their salaries. Commission structures vary from one salon to another, but they usually range from 35% to 60%.

If you’re an independent stylist, you don’t have to worry about commissions. Instead, you earn gross revenue from the services that you provide. This can potentially lead to higher income.

Pro: More freedom with how you serve clients

When you’re an employee, you need to play by the salon’s rules. You have to use the products they sell and you may feel limited in terms of the types of services you can provide.

If you’re a renter though, you have a lot more freedom with your work. You’re able to use your favorite products and your own supplies. Plus, you can build your personal brand as opposed to marketing the salon as a whole.

Con: It takes more work to be a booth renter

When you rent a booth, you’re in charge of your own business — and that comes with more work than being an employee at a salon. As an independent stylist, you file your business taxes (which are a lot more complicated than employment tax filing) and you have to worry about health benefits, marketing, supplies, etc.

If you’re up for all of that, then great. But if the thought of going through all the admin work doesn’t appeal to you, then the rental route probably isn’t the best fit.

Con: Your income can fluctuate 

One of the biggest advantages of being an employee is that you’re subject to a guaranteed wage every month. While your commissions may vary, your employer is required to pay you minimum wage at the very least. That provides some financial cushion regardless of how many clients you serve.

This isn’t the case if you’re renting a chair. The amount of income you earn is directly proportional to the number of customers who sit on your chair. That’s all well and good if you have a steady stream of clients. But if your business goes through a slump, your income will take a hit.

And remember, rent is still due every month, so you should always have financial reserves in the event that your monthly income can’t cover your expenses.

Con: You must purchase all the tools and products you use

The salon where you rent isn’t required to provide you with products or supplies beyond the actual chair or booth. You’re in charge of purchasing styling products and maintaining your equipment, so you have to budget accordingly.

Be aware that while you are keeping more of what you earn, you also have more expenses.

Best practices for stylists renting a chair or booth

If you decide to pursue the booth rental route, here are some tips on how to successfully manage your independent business.

Select the right location

There are many factors that come into play when evaluating the right salon. Let’s start with the biggest one: location. When deciding where to set up shop, you need to think about:

Your clientele. What types of customers are you after? Where do they live and work? For obvious reasons, you need to select a salon that’s located in areas that your customers frequent, so iron out your client personas before signing a rental agreement.

Your budget. Salon booth rental prices can be as low as $250 , but can also go up to $1,200 a month. It’s a wide range, to say the least. The amount you’ll pay will largely depend on the location. Salons or barbershops that are in high-end, high-traffic areas can command higher salon booth rental prices than those in less-than-ideal locations.

Make sure the salon is a good fit for your style

Choosing the right salon isn’t just about location or rent. You should also consider the atmosphere, people, and overall feel of the place. Is the salon’s environment and design appealing to you and your clients?

Vier Hair Loft, for example, offers a space that works well for stylists who need a creative edge.

What about the other people in it? While it’s true that your landlord isn’t your boss and other renters aren’t technically your co-workers, you’ll still spend a considerable amount of time in the location. You want to make sure that you’re comfortable.

Vier Hair Loft

Keep your business ducks in a row

Being an independent stylist or barber comes with more paperwork and responsibilities, so be sure to stay on top of your business.

Review your rental agreement and make sure everything is in order. Be organized and meticulous with your paperwork and other records. This is particularly important since you’ll be filing taxes for your business. If possible, get yourself a good accounting or bookkeeping app to keep everything in check.

Arm yourself with the right tools and solutions

When you work at a salon, your employer will provide you with the tools you need to do your job. This may include styling products, equipment, even software like payment processing and appointment scheduling.

When you’re renting a chair, all that becomes your responsibility. So, it’s important to select the best products and solutions for your biz. As a barber or hairdresser, you probably have favorite hair styling brands, which is great, but what about the tools you need to manage your business?

Appointment scheduling software , for example, is critical. Select a booking app that allows your clients to conveniently book your services.

Consider Booksy , which is loved by numerous independent stylists because it offers all the features you need to stay on top of your appointments. In addition to having a booking link that you can add to your website and share with clients, Booksy lets you take bookings directly from Google, Instagram, and Facebook.

Booksy also integrates with payment processors like Stripe and Square, so you can collect deposits and accept multiple payment types including cash and credit cards.

And remember when we talked about staying on top of your records? Booksy helps you do just that with insights. The software sheds light on your appointment history as well as a performance dashboard so you know which clients and services are bringing you the most revenue.

Continuously market your biz

One of the benefits of being a salon employee is that the company takes care of marketing the brand and bringing in clients. This isn’t always the case when you’re a salon booth renter . While your salon may help with marketing, the bulk of the work rests on your shoulders.

We talked about salon marketing in-depth on the blog, so here are some quick tips with links if you want to go deeper:

  • Implement Instagram marketing by posting content and engaging with your audience.
  • Keep clients updated and stay top of mind with email marketing.
  • Promote your business locally and increase your presence in your neighborhood.
  • Explore and test various marketing ideas, including promotions, loyalty offers, and word-of-mouth marketing. There are tons of options; you just have to find the best fit for your biz. 
  • Create a content production machine to beat your competition

Salon booth rental: is it right for you?

Salon booth rental can be a flexible and lucrative path. It’s not for everyone, but if you have the working style and personality for it, you’ll find it to be incredibly rewarding. We hope the insights above gave you some clarity on whether or not it’s a good fit for you.

And if you are looking for a tech partner who can help you navigate salon booth rental with ease, get more bookings , and make your business grow, try Booksy for free . With tons of features, we’ll help you stay on top of your business growth, without spending hours managing it. 

business plan for booth rental salon

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Small Business Trends

Booth rental guide for salon owner and stylists.

booth-rental

There are multiple ways to run a salon business. The owner can rent or buy a space and hire employees who work for a set wage. Or they can set up a salon booth rental arrangement. The latter option provides some unique benefits both for business owners and those who rent the space. The following post is your complete guide for finding a booth and/or renting booths to stylists.

What is Booth Rental?

booth rental

With a booth rental salon, the salon owner simply rents chairs to other licensed cosmetologists instead of hiring them to work for a set wage. The owner gets the profits from renting the space. And those who rent the space essentially run their own business within the larger salon. They can set their own schedule and are responsible for their own marketing and client management. But they benefit from having the space and amenities of the established salon.

How Much does Booth Rental Cost?

The exact cost of salon booth rental varies based on the salon’s location and the type of amenities offered. The average cost falls around $400 to $600 per month. However, salons in upscale neighborhoods and high traffic areas like Manhattan may charge thousands per month. And salons in areas with less traffic may charge as little as $200 per month.

How does Salon Booth Rental Work?

If you are in the process of finding out how to open a hair salon or h ow to open a nail salon or your already own a salon, booth rental would simply allow you to earn income from renting each chair in your location. Each stylist pays a monthly fee and/or a percentage of their earnings.

If you’re a stylist, salon booth rental allows you to essentially start your own business without setting up your own location. You simply rent the space from a booth rental business and start bringing in clients. You pay a monthly fee or a small percentage of earnings and keep the rest.

Small Business Deals

Why you should consider renting a booth as a stylist.

If you’re starting out as a stylist, you have to consider whether to rent a booth or look for more traditional employment. Here are some reasons to go with a booth rental business.

Be Your Own Boss

When you rent a booth from a salon, you’re basically an independent contractor instead of an employee. This means you get to book your own clients, set your own hours, and build a brand that’s entirely your own. As long as you follow the rules of your rental contract, you don’t have to worry about traditional employment constrictions.

Set Your Own Schedule

booth rental, schedule

Salon booth businesses don’t operate like other local businesses. Since you’re not an employee, you can schedule clients only for the times you’re available. If you’re a busy parent, you can just schedule clients when the kids are in school. If you want to build a robust business, you decide how many clients you can handle each day.

Save on Startup Costs

For those who know they want to start their own beauty business, booth rental provides a low-cost way to build a client base. You don’t need to secure an entire building, purchase all your own supplies, and go through complicated permitting processes. You only rent the space.

Have Your Own Clients

However, you’re still responsible for booking your own appointments. And your clients are your own – not the salon’s. So if you ever choose to start your own full salon or move to a different location, you can easily keep your customers.

Be Based in an Established Salon with Your Own Business

An established beauty salon can also provide some important authority for your new business. It provides a professional setting to host your appointments. And the brand name may even carry some weight.

What are the Disadvantages of Booth Renting?

Renting a salon booth provides a lot of benefits for certain stylists. But it’s not right for everyone. Carefully consider the following elements before signing on.

You’re Paying Rent as a Salon Booth Renter

When you work for a salon, you receive a paycheck without having to invest anything upfront. But as a booth renter, you pay for the space and amenities. This may be worth it for some, but could be difficult for those without any startup cash or clients.

Less Name Recognition than Larger Salons

Your salon booth is its own business. So you’re still going to be up against larger competitors. Your business model as an independent stylist needs to be able to gain clients steadily through the years.

You are Responsible for Your Own Supplies

The salon you rent space from will likely provide large items like chairs and access to sinks and phones. But salon renters normally use their own tools. So you do need to budget for these purchases.

Booth Rental Tips for a Profitable Business

If you do decide that a salon booth rental business is right for you, a well thought out business model and plan can keep you on track. Here’s how to maximize profits while growing your clientele.

Plan Your Business Model

Working as a stylist in a booth rental salon means you’re basically starting your own business. You offer your own services and prices. You determine if you only want to work certain hours and if you’ll accept walk-ins. List your services, policies, expenses, and projections early on so you can stay on track.

Develop a Pricing Strategy

Part of your business model should include prices for all your services. This helps you customers know what to expect and can help you determine how much you need to work to meet your earnings projections each month.

Get Your Record-Keeping Right

Once you get started, you need a way of tracking earnings, expenses, and customers. Some new stylists just use spreadsheets. But you may want an actual accounting software to manage finances, a CRM to track customer interactions, and a calendar to book appointments.

Marketing and Promotion

Invest in marketing your services. Utilize social media, local advertising, and word-of-mouth to increase visibility.

Specialize in a Niche

Consider specializing in a specific niche or style that sets you apart from competitors and attracts a dedicated clientele.

Maintain a Professional Image

Keep your booth clean, organized, and professional. This reflects on your business and can significantly impact customer perceptions and satisfaction.

Continuously Upgrade Your Skills

Stay updated with the latest trends and techniques in the industry. Consider attending workshops or training sessions to enhance your skills.

Build Strong Customer Relationships

Focus on building lasting relationships with your clients. Personalized service and understanding their preferences can lead to repeat business and referrals.

Know Your Products and Services

Many stylists offer a variety of hair care products along with their services. Keep a list of everything handy at your booth. And get to know each item and its price so you can speak intelligently when customers ask.

Schedule Your Appointments and Consider Salon Software

Appointment scheduling is a major factor that stylists work on daily. A calendar system or salon software can help you manage these. For example, Salon Iris allows you to customize forms to send to customers and easily collect data and complete transactions. And Boulevard is a business management solution that automates booking and personalizes appointment data.

Understand that Marketing Your Business is Incredibly Important

Marketing is a pivotal aspect of running a booth rental business. As a booth owner, you’re not just managing a physical space but also building a brand and attracting customers. Here’s a deeper dive into why marketing is essential and the strategies you can employ:

The Significance of Marketing for Your Booth Business:

  • Self-Reliance: Unlike being part of a larger store or establishment, booth owners often don’t benefit from the overarching marketing strategies of a bigger brand. This makes individual marketing crucial.
  • Building Brand Identity: Marketing helps carve out a unique identity for your booth amidst potential competition.
  • Attracting and Retaining Customers: Regular marketing initiatives help in not only attracting first-time customers but also retaining them and encouraging repeat business.

Effective Marketing Strategies for Booth Owners:

  • Platforms: Utilize platforms like Instagram, Facebook, Pinterest, or even TikTok, depending on your target audience and product offering.
  • Engagement: Regularly post updates, promotions, or behind-the-scenes content to engage your audience.
  • User-Generated Content: Encourage satisfied customers to share photos of their purchases, which can serve as organic testimonials.
  • Google My Business: Ensure you have a listing on Google My Business to appear in local searches.
  • Pay-per-Click (PPC) Campaigns: Invest in ads that target local keywords related to your booth’s offerings.
  • Visibility: This can offer significant visibility, especially if your target audience aligns with the event’s attendees.
  • Partnerships: Collaborate with event organizers for special promotions or booth placements.
  • Loyalty Programs: Encourage repeat business by offering loyalty cards or discounts for regular customers.
  • Newsletters: Regular updates about new arrivals, special promotions, or events can keep your audience engaged.
  • Personalization: Send personalized recommendations or offers based on past purchases.
  • Collaborations and Partnerships: Partner with complementary businesses or local influencers for shoutouts, giveaways, or collaborative events.

Make Sure You Choose the Right Salon

booth rental

The salon you choose should match your values and goals for your business. For example, if you plan to start a luxurious brand, choose a salon that is in an upscale neighborhood with modern decor and amenities.

Choose a Salon in the Perfect Location

booth rental

You also need a salon that is convenient for both you and your customers. Distance is important, but also consider the types of customers in the area and local amenities like parking and walkability.

Starting a Booth Rental Business as a Salon Owner

If you’re a salon owner, renting chairs to stylists can bring a steady income source. Here are some ways to maximize this business model.

What to Include in Booth Rental

Before working with stylists, you need to make it very clear what they can expect. For example, your rental fee may include:

  • salon chair
  • hair dryers
  • coffee, water, and snacks
  • office tools like a phone and printer

How to Make Booth Rental Profitable for Your Business

booth rental, profitable business

When you own a booth rental salon, you turn a profit based on your ability to attract stylists. You can attract more stylists by offering features that may help them attract customers. For example, salons in high traffic areas tend to be popular. However, if you don’t have the best location, offer more options like spa services that renters can offer their clients.

Deciding on the Rental Rate

The rental rate needs to be enough for you to turn a profit. But it also needs to be low enough that stylists are willing to pay it each month. If you have trouble attracting enough stylists, you may need to offer more amenities or improve your storefront so it appeals to more customers. If you have too many stylists interested in booth rental, you may want to raise rates.

Advantages of Renting Chairs in Your Salon

Running a salon rental business can be significantly less involved than running a traditional salon. Here are some top advantages:

  • No need to hire and train employees
  • Ability to earn passive income through monthly rent
  • Easy to predict income each month
  • No need to build a full service and pricing list

Disadvantages of Renting Chairs in Your Salon

However, renting chairs to independent stylists can also have drawbacks. Here are some to consider:

  • Lack of control over services offered at your location
  • Damage to reputation if customers have a bad experience with a stylist
  • Complications with employment law over dealing with independent contractors
  • Losing customers to chair renters in your salon, if you also provide stylist services there

The Legal Aspects of Booth Rental

Before you can start a salon using this business model, it’s important to get the legal aspects right. Here are some issues to consider.

Contracts and the Booth Rental Salon Agreement

Your rental agreement should lay out what space they’re provided and any add ons that are included. It also needs to state exactly what they can and can’t do. For example, are they responsible for doing their own laundry? Can they sell their own products? What behavior is not tolerated around other renters and their clientele? A signed agreement with all this outlined may help you cut ties with any contractors who don’t follow the rules.

Each state has different laws when it comes to booth rental. For example, you may have to meet certain requirements for working with contractors or supplying physical space. Check with your state business office for specifics.

Protecting Yourself

Stylists who rent booths are generally responsible for their own insurance. Professional liability can protect against some legal action from clients. For salon owners, general liability can protect against injury on site.

Chair renters are responsible for tracking and paying taxes based on their earnings. And salon owners must also pay taxes on their rental income. Specific rates vary by state.

Developing Your Own Company Policies

Each salon needs policies for what stylists are allowed to do and what’s included in rental agreements. And then renters need policies for what services are offered and how customers can book and keep appointments. For example, write out rates for all services and let customers know when payment is expected and how and when appointments can be canceled.

How do I start booth renting?

First, find a salon in your area that suits your needs. For example, if you need to bring in new customers, look for salons in high traffic areas. Then compare prices and amenities. Once you find a salon, invest in the tools and supplies that are not included, like hair tools and beauty products from your favorite brands.

What are booth renters responsible for?

Booth renters are usually responsible for running most aspects of their business, including:

  • Creating service lists and prices
  • Communicating with customers
  • Appointment scheduling
  • Providing services

Should I charge booth rent or commission?

When you rent chairs in a salon, you can either charge a flat monthly fee or a percentage of each renter’s commission. Rent is more predictable. However, you may earn more with commission if your renters bring in a solid income. Consider how much accounting you’re willing to do and how much predictability is worth to your business model.

Are booth renters considered employees?

No, booth renters in a salon are independent contractors. They basically run their own business. But they use some amenities at the salon.

How do I prepare for a booth rental?

If you’re thinking about renting a booth at a salon, here are some things to consider:

  • Read your rental agreement to learn exactly what is included
  • Invest in your own tools
  • Market your services online or locally
  • Get a salon software
  • Schedule appointments

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A Guide to Salon Booth Rentals for Stylists and Owners

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There is a lot that happens behind the scenes when operating a successful hair salon. People may not realize all that goes into recruiting and retaining high-performing stylists, while also allowing owners to benefit from their investment. This guide focuses specifically on salon booth rental for stylists: how it works and how renters and owners can maximize their agreements.

What is a salon booth rental?

A booth rental salon is a type of salon in which stylists rent out individual “chairs” or salon stations from a salon owner. The establishment may or may not be stocked with supplies—this varies by salon. But a hairstylist can expect at least a salon chair, a mirror, a hair-washing sink with running water, and basic workplace requirements (e.g., Wi-Fi, heat, and air conditioning).

A newer variation of booth rental salons is the salon suite . Stylists rent a fully stocked suite and run independent businesses alongside other renters.

Managing a booth rental salon is one of many options. Some business owners manage employee-based establishments offering commission, salary, or hourly wages. With a commission model , stylists earn a commission percentage of the business they bring to the salon. Some salons have both renters and employees working side by side.

business plan for booth rental salon

Salon booth rentals for stylists

With employee- and commission-based salons, stylists don’t have to cover the costs of their workspace, as they would in a rental system. However, they may have less authority over certain salon-wide decisions such as branding, interior design, or marketing strategies. This guide will cover the pros and cons of renting a salon chair, plus common questions and tips.

Pros of renting a salon chair

More independence: Renters can manage their schedule, choose the products they like, and set their own prices.

No need to pay utilities: Typically the salon owner covers the cost of utilities such as Wi-Fi, water, and electricity.

Lower maintenance: Renters have responsibility for their own booth, but the owner usually handles upkeep for the larger salon space (i.e., the bathrooms and waiting area).

Possibly marketing support: The owner may have a marketing or social media team that handles salon marketing, which helps stylists get connected with new clients.

Cons of renting a salon chair

Business logistics: A renter is running their own salon business; this means being responsible for customer service, billing, business taxes, and other logistics.

Overhead costs: The provider has to buy essentially everything but utilities; this includes products for all styling and services, tools, marketing, education, and possibly a salon assistant.

Marketing and social media: Even if an owner has their own salon marketing tools, the individual stylist usually still needs to build an online presence to find (and keep) clients.

No insurance or retirement: Unlike employees, renters don’t have built-in insurance (health, disability, and liability) and retirement plan options; these must be entirely self-funded.

Expenses associated with running a salon booth

Which expenses stylists cover depends on the salon. When considering a salon booth rental vs commission system, ask the owner which supplies are provided for renters and which the renter has to bring. Does the rental include styling tools? Do stylists bring their own products? How about towels? Does the salon let renters use office supplies: Wi-Fi, a phone, and a printer? All of these can become significant expenses for the renter.

Also ask if renters are responsible for marketing their booths — a small financial expense, but one that’s costly in time. Does the salon support their efforts or offer salon marketing tools? Does the salon require renters to participate in their salon marketing efforts?

How to find the right salon booth rental

Finding a good-fit salon can take time but the right space, location, and community is worth the effort. Some considerations are common to all workplaces: How far is the commute? What are the benefits? But a stylist should ask several salon-specific questions when considering a booth rental. As a starting point, make sure you understand or observe:

Does the salon offer any incentives, such as commission toward retail sales?

What is the salon marketing policy? Do renters have to contribute?

What do current renters say about the ownership?

What is the stylist community like?

Are there educational opportunities for renters?

How does the salon space look and feel?

Is the location convenient for clients? Does it get foot traffic?

For stylists with an established clientele, will you lose customers if you move?

business plan for booth rental salon

How to set up your salon booth rental

Renting a new booth is exciting — and exhausting. To help, we created an entire set of supplies needed to set up a salon booth rental for hairstylists. This list does not include the supplies that the owner typically provides, such as display shelves, waiting area seating, lighting fixtures, and washing sinks.

Styling tools: Hairdryer(s), flat iron, curling iron/wand, diffuser, hair rollers

Cutting tools: Combs, scissors, razors, clippers, and trimmers

Hair care products: Treatments (e.g., serums and oils), shampoo and conditioner, performing and relaxing products, styling and finishing products

Hair color products: Hair color, developer, toners, gloss and glazes, bowls, brushes, foils, and gloves

Hair accessories: Clips, headbands, hairnets, bobby pins, extensions and associated supplies (e.g., clips, glue, or tape)

Salon supplies: Salon capes, spray bottles, towels, disinfecting solution, and cleaning supplies

Salon booth rentals for owners

Operating a rental salon specifically will require the owner to invest significant time and energy or to hire a strong operator to manage the business. Owning a salon can be a good business opportunity, especially for those with industry experience and/or a desire to mentor future stylists. But the disadvantages, elaborated below, can be frustrating.

Pros of running a booth rental salon

Fewer employee expenses: Employees are independent contractors in a booth rental, and the owner typically does not pay for employment taxes, retirement, or health insurance.

Consistent income: Renters provide consistent income for the salon that can be poured back into the business.

Less social media required: Stylists usually run their own social media accounts, which relieves some of the burden on the salon to market itself.

Cons of running a booth rental salon

Marketing to stylists: The stylists recruit clients, but the salon has to recruit stylists. This often requires the owner to invest in a salon marketing strategy and branding in competitive marketplaces.

High turnover costs: Turnover can be high in the beauty industry, and salon owners have to absorb the costs of recruiting, training, and possible re-dos for more junior stylists.

Managing independent service providers: The salon owner has little control over the actions of booth renters unless they have a solid contract stating otherwise. It isn’t easy to let go of a booth renter who is tarnishing the salon’s reputation.

High overhead: Salons aren’t cheap to run; the owner covers all costs associated with the space: building insurance, property taxes, maintenance costs, utilities, and more.

How to set up and stock salon booth rentals

Potential owners might wonder, “What does a salon booth rental include?” There is no right answer, but a salon owner might start with informal interviews with stylists in their network. Try asking:

Which supplies are need-to-haves in a salon booth?

Which supplies are nice-to-haves?

What perks would compel you to choose one booth rental salon over others?

What perks are commonly offered but not compelling to stylists?

What do stylists expect from rental salon marketing specifically?

Supplies and perks are added expenses, of course, but these thoughtful touches can help a salon attract seasoned stylists in a crowded market. Also, consider whether you will supply styling tools and products. At hair salons, stylists typically have personal preferences and bring their own.

As an owner, keep in mind that some basic supplies are effectively required. For hair salons, this list includes salon chairs, mirrors, hair-washing sinks, and utilities, at minimum. Providing towels and laundry service is helpful. Other attractive investments include appointment scheduling software as well as a regular cleaning service for the bathrooms, waiting area, windows, and overall space.

business plan for booth rental salon

Legal considerations for salon owners and booth renters

Renting a salon chair or booth is a business partnership with legal implications defined below. Of course, stylists and salon owners should consult their legal advisors for specific, personalized advice.

What is a salon booth rental agreement?

Salon owners and booth renters are in a tenant/landlord relationship, which is governed by state laws. The Behind the Chair blog notes that a salon booth rental agreement could be either a written lease agreement or a rental contract. A written lease gives the stylist independent tax status, sets a start and end date, and states the rental fee and included amenities.

A rental contract tends to be fuller and may:

Grant the stylist exclusive use of a salon booth and its amenities (e.g., a chair, mirror, electric outlets, storage space)

Give the stylist access to shared spaces, including the hair-washing station and the restrooms, as well as appointment-booking technology

Lay out community expectations, such as displaying a license, holding liability insurance, and keeping the booth area tidy.

What are salon booth rental rules?

Booth renters must abide by the “rules” laid out by the salon owner, usually in the salon booth rental agreement. These stipulations could be about maintaining the space, such as sweeping up hair and washing out foot baths. They could also cover technical matters, such as requiring renters to keep their own books.

What is salon booth rental insurance?

Stylists that rent space in a salon should hold salon booth rental insurance. Their lease or rental agreement may even require it. Booth insurance is typically an add-on to liability insurance, which protects hairdressers, cosmetologists, and barbers against lawsuits or claims about services provided. Booth insurance isn’t a luxury, according to the National Association of Barbers . The policy ensures a stylist is covered when unpredictable accidents happen, because the salon’s policy may not cover them.

business plan for booth rental salon

Commonly asked questions about booth rentals

Do employees bring their own devices.

Stylists: Check the salon booth rental agreement, which likely notes whether or not you are responsible for your own tools.

Salon owners: You get to decide whether your salon provides renters with devices such as heat styling tools and hairbrushes. Stylists, especially seasoned ones, likely already have preferred tools and will bring them. But providing them can be a perk that attracts booth renters, especially for new stylists.

Who brings the supplies in a salon booth rental?

Operating a hair salon booth requires much more than devices. The stylist also needs scissors, combs, brushes, rollers, foil, hair treatment chemicals, and more. The stylist and owner together should consider not only who brings the supplies but also who re-stocks them and who covers the costs. Knowing these details ahead of time can reduce tension later.

Where can a salon owner find stylists for hire?

Salon owners can find talented stylists in their communities in several ways:

Create job postings on general job boards such as Indeed and LinkedIn or on specialized beauty industry websites.

Ask for referrals from your network of friends and colleagues but also acquaintances; try asking around in unexpected places, such as children’s sports events or high school reunions.

Expand your network by attending trade shows, conferences, and other industry events.

Check with local beauty and cosmetology schools , which may host job fairs and/or maintain a network of alumni and new graduates seeking work.

Social media and online platforms for beauty professionals can also match stylists with salon owners.

business plan for booth rental salon

There’s a single tool that can minimize your risks and maximize the rewards.

Salon booth rentals can be profitable, even enjoyable, for both owners and stylists — but only when managed well. Investing in appointment scheduling software can smooth out operations and refine the business. Try out DaySmart’s solution free for 14 days, or get in touch with our sales team today .

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business plan for booth rental salon

Booth Rental Guide for Salon Owner and Stylists

salon booth rental

Ashley Wisener

  • August 4, 2023

What is Salon Booth Rental?

Salon booth rental is a business model in which a stylist leases salon space from an owner to provide hair services. The stylist pays a fixed recurring fee and/or a percentage of their sales to the owner. This arrangement benefits both parties because it can reduce costs and add revenue for both the stylist and the owner.

If you would like to explore booth rental opportunities for you, we recommend getting in touch with Salon Spa Connection .

Benefits of Salon Booth Rental for Stylists

Be your own boss.

As a booth renter, you are your own boss and have complete control over your schedule and your pricing. This can be a great way to have more flexibility and autonomy in your work life.

Keep more of your earnings

Typically, booth renters only pay a fixed monthly fee or a small percentage of their earnings to the salon owner. This means that you can keep more of your hard-earned money.

You can use this tool to calculate the cost of booth rentals.

Build your own client base

As a booth renter, you are responsible for bringing your own clients to the salon. This can be a great way to build your own reputation and brand.

Work in a professional environment 

Even though you are renting a booth, you will still be working in a professional salon environment. This means that you will have access to all of the necessary tools and resources to provide high-quality hair services.

Have more control over your work environment

As a booth renter, you can choose the salon that best suits your needs and preferences. You can also choose the booth that you want, and you can decorate it to your liking.

Have more opportunities to grow your business

You have more opportunities to grow your business. You can offer new services, expand your client base , and even hire your own staff.

Benefits of Salon Booth Rental for Salon Owners

Increased revenue.

Salon booth rental can be a great way to increase revenue for a salon. By renting out booths to stylists, the salon owner can generate additional income without having to invest in additional space or staff.

Reduced overhead costs

The salon owner does not have to pay for the stylist’s utilities, insurance, or marketing costs.

Improved salon atmosphere

By having a variety of stylists working in the salon, clients can have more choices and the salon can offer a wider range of services.

More flexibility in scheduling 

Salon owners can be more flexible in scheduling when they have booth renters. This is because booth renters are responsible for their own bookings and appointments.

Less liability

Salon owners have less liability when they have booth renters. This is because booth renters are responsible for their own actions and their own clients.

How to Find a Salon Booth Rental

If you are interested in renting a booth at a salon, there are a few things you need to do. First, you need to do some research to find salons in your area that offer booth rentals. You can do this by searching online or by asking around your network of friends and colleagues.

Once you have found a few salons that you are interested in, you need to contact the salon owner to inquire about availability and pricing. Be sure to ask about the specific terms of the rental agreement, such as the length of the lease, the amount of the monthly fee, and the percentage of sales that you will be required to pay to the salon owner.

Tips for Renting a Salon Booth

Do your research.

Before you sign any rental agreements, be sure to do your research and understand all of the terms and conditions. This includes the length of the lease, the amount of the monthly fee, the percentage of sales that you will be required to pay, and any other fees or charges.

Negotiate the terms

Don’t be afraid to negotiate the terms of the rental agreement. If you are not happy with the terms that the salon owner is offering, be prepared to walk away.

Be prepared to invest in your own business

As a booth renter, you will provide your tools, products, and marketing materials. Be sure to factor these costs into your budget when considering renting a booth.

Be professional

Even though you are renting a booth, you are still representing the salon. Be sure to dress and act professionally at all times.

Be flexible 

The salon industry is constantly changing, so be prepared to be flexible with your schedule and your services.

Build relationships 

Get to know the other stylists in the salon and build relationships with them. This will help you to refer clients to each other and to create a more supportive environment.

Market your business

Even though you are renting a booth, you are still responsible for marketing your business. This includes creating a website, advertising your services, and networking with other professionals.

Set realistic expectations

Renting a booth in a salon is not a get-rich-quick scheme. It takes hard work and dedication to be successful. Be realistic about your expectations and be prepared to put in the effort.

Salon booth rental can be a great option for both stylists and salon owners. If you are considering renting a booth, be sure to do your research and understand all of the terms and conditions before you sign any agreements. By following these tips, you can find a salon booth rental that is a good fit for you and your business.

Additional Information

Here are some additional things to consider when renting a salon booth:

  • The location of the salon. Consider the location of the salon in relation to your target market. You want to be in a location that is convenient for your clients.
  • The size of the booth. Make sure that the booth is big enough for you to work comfortably. You will need enough space for your tools, products, and clients.
  • The amenities that are included. Some salons offer amenities like free Wi-Fi, use of a break room, or access to a laundry service. Make sure that the salon you choose offers the amenities that you need.
  • The salon’s policies. Find out about the salon’s policies on things like booking appointments, cancellations, and late payments. Make sure that you understand the policies before you sign any agreements.

Ashley Wisener

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Salon Business Plan Ultimate Guide + Free Example

business plan for booth rental salon

July 6, 2023

Adam Hoeksema

When it comes to starting a salon, you may be eager to dive into the world of beauty and make your clients look and feel their best. However, it's important to recognize that writing a business plan is a crucial step, especially when seeking support from potential lenders and investors.

While it may not be the most exciting task, a well-prepared business plan demonstrates your commitment and professionalism, making it an essential tool to secure the necessary funding and outline your salon's path to success. It's also important to make sure your business plan and financial projections are realistic and inline with some industry averages for salons .

This guide is going to help you walk through the following:

  • Salon Business Plan Outline
  • Conducting Market Research for Your Salon Business Plan
  • Creating Financial Projections for Your Salon Business Plan

Example Salon Business Plan

Salon business plan faqs.

With that in mind as the path forward, let’s dive in. 

What Should be Included in a Salon Business Plan?

A salon business plan must convincingly show to prospective financiers and loan providers why clients would opt for your salon, why you or your crew are best suited to oversee the salon operations, and how the financial projection to ensure a favorable financial return on their investment. Here is a thorough breakdown of our complimentary salon business plan template .

‍ Salon Business Plan Outline ‍

I Executive Summary

II Market Analysis

III Business Description

IV Marketing and Sales Strategies

V Menu of Services and Pricing

VI Operational Plan

VII Financial Plan

  • Startup Costs
  • Projected Financial Summary
  • Annual Sales, Gross Profit and Net Profit
  • Key Financial Ratios
  • Watch how to create financial projections for your very own salon
  • Income Statement
  • Balance Sheet
  • Cash Flow Statement

VIII Conclusion

How to Conduct Market Research for a Salon Business Plan

At the core of any salon business plan is market research. It's necessary to understand your position within the market and establish that there is a substantial demand for your unique salon concept, location, and pricing tiers. You can delve more into our salon market research approach here, but essentially, you're seeking to understand your competitors, obtain insights on potential customer traffic, select an ideal location, and foresee any seasonal trends that may affect your business. Below are some tools and tactics for executing market research for your planned salon.

What Will be the Cost to Advertise my Salon?

We suggest using Google Keyword Planner to help you identify which keywords to promote to attract customers to your salon's website. The tool also offers an estimate of the cost per click for advertising using various keywords, as demonstrated below:

business plan for booth rental salon

What Keywords are Customers Searching for?

We use both Google Keyword Planner and Ahrefs to identify which keywords are driving traffic to your competitors' websites. For example, you can run a report on a competitor's site to identify the keywords they rank for and the amount of organic traffic each keyword garners. This data can guide your SEO initiatives.

business plan for booth rental salon

How Seasonal are Salons?

We like to utilize Google Trends to determine how seasonal your salon concept might be. For instance, you can observe below that the search volume for “salons near me” in the United States is somewhat seasonal in nature.  June is consistently the peak, with the late fall tending to be the low point of the season

business plan for booth rental salon

How Many Customers Visit my Competitors Each Month?

Finally, we recommend pulling foot traffic reports on your competitors to understand the average number of customers they typically serve in their salons. You can see an example below showing the number of visits per month for a specific location:

business plan for booth rental salon

Ultimately, your potential customer base's size for your salon will be a crucial assumption underpinning your financial projections. Thus, grasping how many customers frequent your competitors can help you predict potential traffic to your salon.

How to Create Financial Projections for a Restaurant Business Plan

With comprehensive market research completed, it's time to develop financial projections for your salon. Our salon financial projection templates rely on various factors, such as client traffic and service capacity, to form the basis of your revenue projections. While some salons may have limitations on the number of available appointments, others may be constrained by the time it takes to deliver services effectively. Creating accurate financial projections is crucial to showcase your salon's potential to repay loans and provide a return on investment to potential stakeholders. To achieve this, consider the following steps:

  • Estimate startup costs for your salon
  • Forecast revenue (employee based, booth rent, salon suite, hybrid)
  • Project supplies and labor cost
  • Estimate your operating expenses like rent and utilities
  • Calculate how much investor or loan capital you will need to open

Our salon projection template will guide you through this process and help format your projections in a standard format that meets the requirements of potential investors or lenders. Typically, startup salon projections should include an integrated income statement, balance sheet, and cash flow forecast.

By following these steps and utilizing our salon projection templates, you'll have a solid foundation for presenting your salon's financial outlook and demonstrating its potential profitability.

Below you will find the text of our salon business plan. You can also access a downloadable Google Doc version of this salon business plan template here , enabling you to make personalized edits. Additionally, we have created a helpful video walkthrough that guides you through the process of tailoring the business plan to suit your salon concept.

Table of Contents

Executive Summary

Our salon, called "Lux Beauty Spa," is a full-service beauty and wellness center that aims to provide a luxurious and rejuvenating experience for all of our clients. Our mission is to enhance the beauty and well-being of each individual that walks through our doors, through personalized and expert services. 

We will offer a wide range of services including hair styling, nail care, skin treatments, massage therapy, and more.

Our target market is women and men of all ages who are looking for a high-quality beauty and wellness experience. We will be located in a high-end shopping center in downtown to attract our affluent target market. Our projected start-up costs are $200,000, and we anticipate reaching profitability within two years.

Market Analysis

The beauty and wellness industry is growing, with a projected global market size of $716.3 billion by 2027. In our target market, there is a growing demand for high-end beauty and wellness experiences, and a trend towards holistic and natural approaches to self-care.

Our main competitors include established high-end salons and spa centers in the area, but we differentiate ourselves through our focus on personalization and luxury. We will also offer services and products not commonly found in traditional salons, such as custom skincare treatments and exclusive hair care lines.

Business Description

Lux Beauty Spa will be a limited liability company (LLC), owned and operated by two experienced beauty professionals. We will be fully licensed and insured, and comply with all state and local regulations.

Services Offered:

Lux Beauty Spa will offer a comprehensive range of beauty and wellness services, including:

  • Hair styling: We will have a team of skilled hair stylists offering cuts, coloring, and styling services for all hair types. We will use high-quality hair care products and tools, including well-known and exclusive brands.
  • Nail care: Our nail technicians will offer a variety of nail services including manicures, pedicures, and gel polishes.
  • Skin treatments: Our licensed estheticians will offer custom skincare treatments, including facials, peels, and microdermabrasion. We will use only the finest and natural skincare products.
  • Massage therapy: Our licensed massage therapists will offer a range of massage services, including Swedish, deep tissue, and hot stone.

Marketing and Sales Strategies

To attract and retain clients, we will employ several marketing and sales strategies, including:

  • Online advertising: We will create a professional and attractive website, and use targeted online advertising to reach our target market.
  • Promotions and discounts: We will offer promotions and discounts to new clients and for special occasions, such as birthdays and holidays.
  • Loyalty program: We will reward our regular clients with exclusive discounts and special offers.
  • Referral program: We will incentivize our clients to refer their friends and family to Lux Beauty Spa with discounts and bonuses.

Menu of Services and Pricing

Our menu of services and pricing will be competitive with other high-end salons in the area. We will offer packages and memberships for regular clients, as well as a la carte services for those who prefer one-time treatments. Our prices will reflect the luxury and quality of our services and products.

Operational Plan

Lux Beauty Spa will operate 7 days a week, from 9 AM to 9 PM. Our staffing will include a manager, hair stylists, nail technicians, estheticians, massage therapists, and a receptionist. We will use scheduling software to manage appointments and ensure efficient use of our resources. Our inventory management will include regular monitoring of product levels and restocking as needed. We will also keep detailed financial records and regularly review our performance to make necessary adjustments to our operations.

Financial Plan

Our projected start-up costs are $200,000, which will cover rent, equipment and supplies, marketing, and salaries. Our operating expenses will include rent, utilities, supplies, salaries, and marketing. Our sales revenue will come from services and product sales, and we anticipate a steady growth in revenue over the next two years.

Our financial projections show we’ll break even in year 3 and grow profit considerably after that.

All of the unique financial projections you see below were generated using ProjectionHub’s Salon  financial projection template s. Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

business plan for booth rental salon

Projected Financial Summary:

business plan for booth rental salon

Annual Sales, Gross Profit and Net Profit:

business plan for booth rental salon

Key Financial Ratios:

business plan for booth rental salon

Watch how to create financial projections for your very own salon:

business plan for booth rental salon

Income Statement:

business plan for booth rental salon

Balance Sheet:

business plan for booth rental salon

Cash Flow Statement:

business plan for booth rental salon

Lux Beauty Spa is poised to become a leading luxury beauty and wellness center, offering personalized and expert services to our affluent target market. With a strong focus on quality and luxury, we are confident in our ability to achieve profitability and success in the beauty and wellness industry.

What should I include in a salon business plan?

A salon business plan should include sections on executive summary, company description, market analysis, target market and services, pricing and packages, marketing and promotion strategies, location and facilities, staffing and management, and financial projections.

How can I determine the ideal location for my salon?

When selecting a location for your salon, consider factors such as foot traffic, visibility, accessibility, competition in the area, parking availability, and proximity to your target market. A location near residential areas or commercial districts with a high demand for salon services can be ideal.

How can I estimate financial projections for my salon?

Financial projections for a salon should include estimates for start-up costs, monthly expenses (such as rent, utilities, products, and employee salaries), projected revenue based on service pricing and expected clientele, and a break-even analysis to determine when your salon will become profitable.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Build a client experience

Run your business, grow your business, build your brand, size of business, how much is booth rent at a salon [2024 update].

Working commission can be frustrating. You spend so much time working with clients only to have 50% of your earnings paid to the salon. That’s why in the last few years, so many beauty professionals have channeled their entrepreneurial side and moved into booth or studio renting.

Renting a booth at a salon is a great way to gain independence and control over your career. If you’re considering booth renting – ask yourself these questions:

  • Do you want to create an intimate salon that reflects your personal style?
  • Do you have an existing client base that would follow you if you left your current salon?
  • Do you want to have flexibility in your working hours?
  • Do you want to run your own business?

If you said yes to any of these four questions, this is for you ! At GlossGenius, we’ve worked with thousands of MUAs, booth renters, and hair stylists and wanted to share some tips on working independently! We’ll walk you through every step of building a successful beauty business, from what to consider when booth renting to how to grow your social media following. Let’s get started – here are the pros and cons of working commission versus booth renting .

What Are the Advantages of a Commission Salon?

Here are some of the advantages to being on commission at a hair salon:

  • Team of employees to share experiences with
  • Structured education (depending on the salon, you may have to pay for this)
  • Employee benefits such as 401(k) plans and health insurance (depends on the salon)

What Are the Advantages of a Booth Rental?

Here are some of the advantages of being a business owner and renting your own booth:

  • Be your own boss. Set your own hours
  • Create a one-of-a-kind salon culture
  • Experience more privacy with clients
  • Escape salon drama
  • Make more money: don’t share your earnings
  • Larger responsibility - you are responsible for growing your own clientele and tracking your finances

Going independent and looking for the perfect app to help you run your business? Get a free 14-day trial of GlossGenius.

Where Should I Go to Booth Rent?

Many GlossGenius professionals are owners of a beauty salon suite. A great example is one of our partners, Sola. A salon suite company like Sola empowers you to customize your studio and create an intimate environment that reflects your personal style. You have 24/7 studio access and can set your own hours/prices.

Where to booth rent

Here are some other common salon job posting sites, make sure to filter your search for booth/suite/studio/chair rentals:

  • Behindthechair
  • MyBeautyList
  • If there is a particular salon you'd like to work in, contact them directly and ask if they have any openings.

When looking for a salon, ask:

  • How long have they been open?
  • How many days will you get to use the booth?
  • What type of compensation is being offered?
  • Are there other charges that are not listed here?
  • Is there a written contract of these terms?
  • Is there a minimum contract length?
  • What type of clientele do their stylists typically service?
  • Do they know what services are most requested?
  • Will they market you on their social media? Irrespective of what they plan to do, you should be marketing your own services on social media like Instagram, Facebook, and Pinterest -- it’s the fastest way to gain a following!

How Much Is Booth Rent at a Salon?

The average booth rental salon costs a monthly fee of $400, but the range can be from at least $250 to $1,200 per month for a booth. Location is the main reason for this variation. Higher end rent districts like Manhattan can even charge up to $1,000 per week for booth rentals. Here’s what to consider:

Compare your prices: Check with other stylists at the salon and surrounding salons to see what they’re paying for rent.

Check your additional costs : What sort of extra services is the salon providing? Is it just space? You might be paying less for certain salon booth rentals, but they won’t provide a phone, equipment or supplies. Watch out for these extra charges:

  • electricity and water payments
  • using the salon during non-business hours
  • referral fees for walk-in customers who are referred to you by salon
  • additional taxes
  • advertising, personal insurance and supplies.

Count your clientele: If you're just starting out, you will more than likely be offered a commission based pay (usually 50/50). Most owners prefer to booth rent to those who have a solid following. So if you are just starting out from hairdressing school, it’s better to work in a salon and build your clientele and credibility. It’s not worth it to booth rent if you only have one or two clients and you’re paying $150/week on rent.

Consider how long you will be there: if you plan on renting the booth for a longer period of time (ex: a year instead of 3 months), some salon owners may be willing to give you a discounted rate.

Consider payment frequency: is the booth rental agreement weekly or monthly? It may make a difference to you if you are paying $75 a week vs. $300 a month if your earnings are unevenly spread throughout the month.

What Do I Need to Start and Grow My Salon Business?

Sam Gorden Glam

Find a platform that will enable you to run everything all-in-one. For example, GlossGenius keeps everything integrated to make your life easier. Use it for: 

  • A beautifully designed, custom online booking site to impress clients: Clients can view what services you provide and book you immediately. You can set your availabilities on the site to easily limit the hours that clients can book you. A site that looks stunning and is easy to use will help you stand out among other stylists.
  • Email and text message marketing messages: Clients are 20x more likely to read your text message and they’re 7x as likely to book you on text message. Check out how one GlossGenius stylist earned $1,500+ in appointment bookings in less than an hour with our text feature.
  • A hardware-free payments solution: Our payment processor uses a card scanner, no card swiper required. We offer the industry’s lower processing rates at 2.6%, so you can start saving immediately.
  • Reminder Notifications: Set notifications for yourself and for your own clients so you can save a ton of time and reduce no-shows and last minute cancellations.
  • Automated client notes and thank you notes: automatically store notes on each client after an appointment and send thank you notes so that your clients know that they’re appreciated! Having this automated is powerful because it will save you so much time and ensure you’re staying on top of it!

If you’re ready to become a salon booth renter, or own your own salon, be sure to start a free trial with GlossGenius !

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The 7 best salon booth rental software solutions

business plan for booth rental salon

If you’re thinking about trying out a salon booth rental software, it’s probably because you know that renting out booths in your salon is a great way to increase your salon’s clientele and boost your salon profits without having to market your business or worry about managing a full-time staff. But you might be new to salon software in general, especially if you’re a new business owner.

If you’re thinking about salon booth rental software, it’s worth a shot — booth rental software can automate rental processes, help you with appointment booking, team management, inventory control, and even salon marketing.

But booth rental software, like any software, is constantly changing and adapting to customer needs and beauty industry challenges. That’s why, in this post, we’ll get into:

  • What booth rental software is
  • Our short list of the top salon booth rental software, including standout features
  • The benefits of using a booth rental software
  • What to consider before investing in a booth rental software

business plan for booth rental salon

What is salon booth rental software?

Salon booth rental software offers booth rental salons a tech-based solution for renting out their booths or chairs to individual stylists and technicians, and it also allows them to manage their online bookings and appointments in the same software.

Salon booth rental software is specifically designed for booth rental salons — salons that rent out chairs or booths to independently contracted hair stylists and beauty technicians rather than hiring full-time staff or renting out a full studio space. Booth rental software is a great option for salon owners who want to keep their salon busy and increase their profits but aren’t ready to bring on permanent staff.

Top 7 software for salon & spa booth renters

If you’re operating a booth rental salon, software can help you schedule and manage a team of independent stylists and avoid the chaos of scheduling conflicts and inventory issues. But booth rental software can, and should, do a lot more for your salon business.  Let’s take a look at the top booth rental software and the features that set them apart.

1. DaySmart Salon

business plan for booth rental salon

Source: https://www.daysmartsalon.com/booth-renters/

Caption: with daysmart salon, you can access client appointments on any device.

DaySmart Salon is a salon software with dedicated features for day-to-day salon business management, team management, client communication, booking, and scheduling. 

  • Provides features specifically for booth renters: DaySmart’s salon software for booth renters is tailored to help booth renters grow their client base, avoid client no-shows, and customize the client experience, and you can access it from your mobile device or computer.
  • Lets you track client history and client notes: You can keep detailed client notes from every client visit, including the services you provided, customer preferences, and even products they purchased.
  • A Basic plan for $29/month, which includes all the tools booth renters need
  • A Deluxe plan for $69/month
  • A Premier plan for $129/month
  • A Platinum plan for $249/month

2. Homebase

business plan for booth rental salon

Source: https://joinhomebase.com/health-beauty/

Caption: homebase lets you create and distribute your schedules for your salon staff, all with our mobile app.

Homebase is a team management software specifically designed for small businesses that employ hourly workers, and its many features include easy-to-use tools for time tracking, payroll, team communication, and scheduling. Even better, you can access them all from your desktop, iPhone, or Android.

  • Designed for hourly workers: It’s ideal for managers of hourly employees who often communicate, make appointments, and track their hours using their phones and don’t work a typical 9-5 schedule. And in a booth rental salon, where stylists are coming and going on their own schedule, you need one source for communication and schedule tracking to avoid double-booking booths or stylists or scheduling appointments when stylists aren’t available.   
  • The free plan includes a broad range of features: Time clocks, scheduling, employee profiles, employee messaging, and job posting and applicant tracking are all available for free. That means you can have your salon software with dedicated inventory management and client booking without having to pay for an extra tool.
  • A Free plan
  • An Essentials plan for $16/month,
  • A Plus plan for $40/month
  • An All-in-One plan for $80/month

business plan for booth rental salon

Source: https://www.rosysalonsoftware.com/

Caption: rosy helps you avoid no-shows by sending clients text reminders.

Rosy’s suite of tools lets you book and schedule client appointments, communicate with clients via text and email, offer point-of-sale (POS) services, track business reports, manage your salon inventory, and create marketing campaigns for your salon.

  • Flexible options for booth renters and booth owners: Booth renters don’t have to provide their business details to get access to front-desk booking services, and both renters and owners can adjust their software permissions and maintain privacy.
  • Created by former salon and spa owners: The company’s founders understand the challenges salon managers face every day, and they designed their platform to solve those problems.
  • Pricing: Rosy’s booth rental software plans include:
  • A Standard plan for renters at $19/month
  • A Standard plan for owners at $29/month
  • A Premium package for renters at $27/month
  • A Premium package for owners at $37/month

business plan for booth rental salon

Source: https://zolmi.com/

Caption: zolmi gives booth renters control over their schedules..

With Zolmi, salon owners and staff can schedule salon staff, book client appointments, streamline client messaging to reduce no-shows, automate client review requests, track reports, and manage POS transactions from any device.

  • Booth renters maintain control over their schedules: Booth renters can have autonomy over their own appointments, but the app still allows them to report necessary insights to owners like backbar costs — fees stylists pay for using salon supplies — and inventory updates.
  • Clients can book appointments online at any time: According to Zolmi customers, 60% of their customers book appointments when the salon is closed, so Zolmi lets customers book appointments even when the salon is closed and takes booking off of the stylist’s plate.
  • A free Manage plan that lets you book appointments and send email reminders to customers
  • A Grow plan for $9/member/month lets you handle contactless payments, send SMS reminders (for $0.05 a message), and unlimited business reporting

5. Salonist

business plan for booth rental salon

Source: https://salonist.io/features/analytics

Caption: salonist helps you track your sales and expenses.

Salonist is a salon software for salons and spas — including booth rental salons — with tools for online booking and appointments, customer management, inventory management, employee management, location management, and POS services.

  • Automatically tracks transactions and tax liabilities and generates reports on spending: Salonist booth rental software takes the manual legwork out of managing your own expenses.
  • Lets customers purchase service packages: You can use Salonist to create packages based on specific customer preferences and increase your revenue by batching services to create higher-ticketed items.
  • A Basic plan for $29/month
  • A Starter plan for $59/month
  • A Business plan for $99/month
  • An Enterprise plan for $149/month

business plan for booth rental salon

Source: https://university.zenoti.com/app

Caption: zenoti customers get free access to courses from zenoti university.

Zenoti offers cloud-based salon software for salons and spas to manage their online booking, appointment scheduling, customer management, and billing and payments.

  • Customers get free access to online courses: Zenoti customers can learn and upskill with over 100 courses offered through Zenoti University.
  • Support for switching from other platforms: Zenoti’s services team works with you to migrate all of your data from your old platform to Zenoti
  • Pricing: Zenoti doesn’t offer upfront pricing options on their website, but interested customers can contact Zenoti for a custom quote.

7. SalonTarget

business plan for booth rental salon

Source: https://www.salontarget.com/simulator/salontarget-simulator.html

Caption: test out salontarget’s services with their software simulator.

SalonTarget salon software offers salon owners and managers solutions for online booking, email marketing, automated client communication, and business reporting.

  • Test out their services without signing up: Their software simulator gives you a quick look at their product interface and how it functions.
  • Install customer tablets at your salon booths with their Premiere Plan: Tablets let customers easily re-book appointments and add on to their service with extra offerings and promotions.
  • Pricing: SalonTarget doesn’t display pricing options directly on their website, but you can reach out to SalonTarget’s sales team for a custom quote.

Benefits of salon booth rental software

Renting your booths out to individual contractors has benefits for your bottom line, but it also comes with additional headaches like rental agreements, contracts, scheduling, booking, and invoicing. Booth rental software takes the stress out of renting by automating this process and keeping everything you need on one platform. Here’s how.

Less paperwork

Working with booth renters means you don’t have the same administrative responsibilities as an owner with a full-time staff. You don’t, for example, have to worry about tax liability with contractors the way you might with traditional W2 employees.

But you still have to worry about compliance with local labor laws, rental contracts, rental agreements, and keeping your booth renter’s insurance and emergency contact details stored safely.

Fortunately, Homebase’s tools for hiring and onboarding let your independent contractors read, e-sign, and securely store all of their important documents, paperwork, and employee handbooks within the platform even before their first day of work at your salon. And with Homebase HR , you can schedule a chat with a live HR expert to make sure you’re doing everything right.

Easier scheduling

One of the great things about being a booth renter at a salon is the flexibility you have over your own schedule, but it can get complicated for salon owners and their customers when they don’t know who’s working at their salon on any given day.

Homebase’s scheduling tool lets you build and share your perfect schedule easily with your salon team. Our app will even send automatic reminders to employees to remind them of upcoming shifts, and you can add personalized shift notes and reminders when you need to.

Expense tracking

While salon owners don’t pay independent booth owners the way they pay regular staff, they still have expenses to consider. Salon owners often let booth renters pay for the use of their salon’s products and items, and booth renters are usually responsible for reporting these costs to the salon owner.

Inventory is valuable, and you don’t want any of it falling through the cracks, so you need to make sure your salon booth rental software offers specific features for inventory management and expense reporting.

Improved client retention

Salon booth rental software can streamline so many behind-the-scenes processes for your salon, but how can it help you with retaining new clients?

After all, clients may not know that your salon operates on a booth rental model, and they may see your renters as your salon ambassadors, even though they are independent contractors.

A salon booth rental software should make the end-to-end client experience so easy the client barely notices it. The client should be able to book online with their preferred stylist, get an appointment confirmation and reminder, pay at checkout, be able to book a future appointment easily, leave a review, and have notes about their personal preferences and services stored in a single place.

And the easier you make the booking, scheduling, and re-booking process for your booth renters, the more they can focus on providing outstanding client experiences that keep them coming back.

Things to consider when choosing booth rental software

Salon managers and owners who feel ready to move your booth rental process off of a spreadsheet and onto software may be excited about all the time you’ll save. But there can be a learning curve to new software, so there are some things to consider before investing your time and resources.

Think about your budget

Salon booth rental software can make it easier for you to bring more renters into your hair salon and increase your revenue, but you want to make sure the benefits outweigh the cost. How many booth renters will you need to make your investment worth it?

If, for example, you only have two renters and you’re new and still growing, you can test out salon software that offers a free or very low-cost plan. See if your renters like using it and find it easy to use first, and you can always scale from there.

Set business goals

You may have a big vision for your salon and long-term goals, but you need to get specific and strategic about how booth rental software is going to help you get there.

Think about your short-term goals for the next three months, six months, and year. You could, for example, outline your business goals like this:

  • In the next three months, I want to bring on two new booth renters.
  • In the next six months, I want to test out a salon booth rental software to see how it can help me grow.
  • In the next year, I want to have almost all of my booths rented out to stylists.

Positive customer experience

Renting out your salon booths to independent contractors can bring a lot of financial stability to your growing salon, but it’s also important to consider the effect it will have on your client base. While booth renters essentially work for themselves, clients may not be aware of that arrangement and may see your renters as the face of your business. They may feel that your salon has an in-house divide where there actually isn’t any!

The right salon booth rental software can help to create a unified front for your clients by letting them book appointments online with any of your booth renters the way they would with your salon staff.

And if the booth rental software you choose offers a team communication tool to help you promote a sense of teamwork among your salon of independent stylists, that’s even better.

Does it offer a free trial?

One of the first questions you should ask when trying out new booth rental software is, “Does it offer a free trial?” There can be a lot to learn with new software, and you and your staff will need time to experiment with it and see if it makes your day-to-day work at the salon more efficient and better for customers.

(And, by the way, with Homebase , you’ll be able to use our scheduling, time tracking, and team communication tools for free, forever. )

Build a great salon team with Homebase

Bringing booth renters into your salon can help you maximize your profits without having to do the heavy lifting of marketing and building a client base on your own. And booth rental software is there to make that even more manageable and help you grow.

But as a small business owner, profit isn’t your only vision — you probably want to assemble a great team behind you, even if that team isn’t necessarily on your payroll.

Homebase is here for small business owners who not only want to grow, but want to grow alongside their people. Our tools for team hiring and onboarding, payroll, team communication, and employee happiness were all designed to make your business life easier and to attract and keep satisfied employees.

Homebase helps you create a great place to work.

Salon booth rental software FAQs

homebase customer photo

What should I look for in salon software?

When researching salon software, it’s best to look for features for:

  • Appointment booking
  • Employee scheduling
  • Inventory management
  • Mobile access
  • Time tracking and employee payroll

You’ll also want to make sure the software you choose will help you improve the customer experience, is budget-friendly for you, is upfront about all of their costs, and helps you meet your salon business goals. And, most importantly, they should offer a free trial, so you can try it out before you invest your time and resources!

How do I get more salon booth renters?

You can get more salon booth renters by using the same strategies you might use to get more full-time staff, and it’ll be especially easy if your salon has a great local reputation for bringing in clients and taking care of your people. Promote your salon booth rental opportunities by:

  • Posting on social media
  • Uploading your job description to popular job search sites (which you can do with Homebase hiring and onboarding )
  • Creating classified ads in your local paper or on Craigslist
  • Attending local hair shows
  • Reach out to local cosmetology schools
  • Starting an apprenticeship or mentorship program at your salon

What is salon management software?

Salon management software helps hair, nail, and beauty salons and spas manage their client and employee tasks, including booking and scheduling appointments, communicating with clients, processing point-of-sale transactions for credit card payments, and even marketing their businesses.

Does Homebase offer salon management software?

Homebase doesn’t offer software specifically for salon management, but Homebase does offer tools to help small business owners — including salon owners — manage every aspect of their day-to-day, behind-the-scenes team operations so they can focus on thriving. Think of Homebase as your one-stop shop for:

  • Hiring and onboarding
  • Time clocks and time sheets
  • Team communication via text message
  • Employee happiness
  • HR and compliance

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Booth Rental Guide for Salon Owner and Stylists

There are multiple ways to run a salon business. The owner can rent or buy a space and hire employees who work for a set wage. Or they can set up a salon booth rental arrangement. The latter option provides some unique benefits both for business owners and those who rent the space. The following post is your complete guide for finding a booth and/or renting booths to stylists.

What is Booth Rental?

With a booth rental salon, the salon owner simply rents chairs to other licensed cosmetologists instead of hiring them to work for a set wage. The owner gets the profits from renting the space. And those who rent the space essentially run their own business within the larger salon. They can set their own schedule and are responsible for their own marketing and client management. But they benefit from having the space and amenities of the established salon.

How Much does Booth Rental Cost?

The exact cost of salon booth rental varies based on the salon’s location and the type of amenities offered. The average cost falls around $400 to $600 per month. However, salons in upscale neighborhoods and high traffic areas like Manhattan may charge thousands per month. And salons in areas with less traffic may charge as little as $200 per month.

How does Salon Booth Rental Work?

If you are in the process of finding out how to open a hair salon or h ow to open a nail salon or your already own a salon, booth rental would simply allow you to earn income from renting each chair in your location. Each stylist pays a monthly fee and/or a percentage of their earnings.

If you’re a stylist, salon booth rental allows you to essentially start your own business without setting up your own location. You simply rent the space from a booth rental business and start bringing in clients. You pay a monthly fee or a small percentage of earnings and keep the rest.

Why You Should Consider Renting a Booth as a Stylist

If you’re starting out as a stylist, you have to consider whether to rent a booth or look for more traditional employment. Here are some reasons to go with a booth rental business.

Be Your Own Boss

When you rent a booth from a salon, you’re basically an independent contractor instead of an employee. This means you get to book your own clients, set your own hours, and build a brand that’s entirely your own. As long as you follow the rules of your rental contract, you don’t have to worry about traditional employment constrictions.

Set Your Own Schedule

Salon booth businesses don’t operate like other local businesses. Since you’re not an employee, you can schedule clients only for the times you’re available. If you’re a busy parent, you can just schedule clients when the kids are in school. If you want to build a robust business, you decide how many clients you can handle each day.

Save on Startup Costs

For those who know they want to start their own beauty business, booth rental provides a low-cost way to build a client base. You don’t need to secure an entire building, purchase all your own supplies, and go through complicated permitting processes. You only rent the space.

Have Your Own Clients

However, you’re still responsible for booking your own appointments. And your clients are your own – not the salon’s. So if you ever choose to start your own full salon or move to a different location, you can easily keep your customers.

Be Based in an Established Salon with Your Own Business

An established beauty salon can also provide some important authority for your new business. It provides a professional setting to host your appointments. And the brand name may even carry some weight.

What are the Disadvantages of Booth Renting?

Renting a salon booth provides a lot of benefits for certain stylists. But it’s not right for everyone. Carefully consider the following elements before signing on.

You’re Paying Rent as a Salon Booth Renter

When you work for a salon, you receive a paycheck without having to invest anything upfront. But as a booth renter, you pay for the space and amenities. This may be worth it for some, but could be difficult for those without any startup cash or clients.

Less Name Recognition than Larger Salons

Your salon booth is its own business. So you’re still going to be up against larger competitors. Your business model as an independent stylist needs to be able to gain clients steadily through the years.

You are Responsible for Your Own Supplies

The salon you rent space from will likely provide large items like chairs and access to sinks and phones. But salon renters normally use their own tools. So you do need to budget for these purchases.

Booth Rental Tips for a Profitable Business

If you do decide that a salon booth rental business is right for you, a well thought out business model and plan can keep you on track. Here’s how to maximize profits while growing your clientele.

Plan Your Business Model

Working as a stylist in a booth rental salon means you’re basically starting your own business. You offer your own services and prices. You determine if you only want to work certain hours and if you’ll accept walk-ins. List your services, policies, expenses, and projections early on so you can stay on track.

Develop a Pricing Strategy

Part of your business model should include prices for all your services. This helps you customers know what to expect and can help you determine how much you need to work to meet your earnings projections each month.

Get Your Record-Keeping Right

Once you get started, you need a way of tracking earnings, expenses, and customers. Some new stylists just use spreadsheets. But you may want an actual accounting software to manage finances, a CRM to track customer interactions, and a calendar to book appointments.

Know Your Products and Services

Many stylists offer a variety of hair care products along with their services. Keep a list of everything handy at your booth. And get to know each item and its price so you can speak intelligently when customers ask.

Schedule Your Appointments and Consider Salon Software

Appointment scheduling is a major factor that stylists work on daily. A calendar system or salon software can help you manage these. For example, Salon Iris allows you to customize forms to send to customers and easily collect data and complete transactions. And Boulevard is a business management solution that automates booking and personalizes appointment data.

Understand that Marketing Your Business is Incredibly Important

As owner of your own booth, you’re also responsible for marketing to customers. Set up social media accounts, purchase local search ads, or sponsor local events.

Make Sure You Choose the Right Salon

The salon you choose should match your values and goals for your business. For example, if you plan to start a luxurious brand, choose a salon that is in an upscale neighborhood with modern decor and amenities.

Choose a Salon in the Perfect Location

You also need a salon that is convenient for both you and your customers. Distance is important, but also consider the types of customers in the area and local amenities like parking and walkability.

Starting a Booth Rental Business as a Salon Owner

If you’re a salon owner, renting chairs to stylists can bring a steady income source. Here are some ways to maximize this business model.

What to Include in Booth Rental

Before working with stylists, you need to make it very clear what they can expect. For example, your rental fee may include:

  • salon chair
  • hair dryers
  • coffee, water, and snacks
  • office tools like a phone and printer

How to Make Booth Rental Profitable for Your Business

When you own a booth rental salon, you turn a profit based on your ability to attract stylists. You can attract more stylists by offering features that may help them attract customers. For example, salons in high traffic areas tend to be popular. However, if you don’t have the best location, offer more options like spa services that renters can offer their clients.

Deciding on the Rental Rate

The rental rate needs to be enough for you to turn a profit. But it also needs to be low enough that stylists are willing to pay it each month. If you have trouble attracting enough stylists, you may need to offer more amenities or improve your storefront so it appeals to more customers. If you have too many stylists interested in booth rental, you may want to raise rates.

Advantages of Renting Chairs in Your Salon

Running a salon rental business can be significantly less involved than running a traditional salon. Here are some top advantages:

  • No need to hire and train employees
  • Ability to earn passive income through monthly rent
  • Easy to predict income each month
  • No need to build a full service and pricing list

Disadvantages of Renting Chairs in Your Salon

However, renting chairs to independent stylists can also have drawbacks. Here are some to consider:

  • Lack of control over services offered at your location
  • Damage to reputation if customers have a bad experience with a stylist
  • Complications with employment law over dealing with independent contractors
  • Losing customers to chair renters in your salon, if you also provide stylist services there

The Legal Aspects of Booth Rental

Before you can start a salon using this business model, it’s important to get the legal aspects right. Here are some issues to consider.

Contracts and the Booth Rental Salon Agreement

Your rental agreement should lay out what space they’re provided and any add ons that are included. It also needs to state exactly what they can and can’t do. For example, are they responsible for doing their own laundry? Can they sell their own products? What behavior is not tolerated around other renters and their clientele? A signed agreement with all this outlined may help you cut ties with any contractors who don’t follow the rules.

Each state has different laws when it comes to booth rental. For example, you may have to meet certain requirements for working with contractors or supplying physical space. Check with your state business office for specifics.

Protecting Yourself

Stylists who rent booths are generally responsible for their own insurance. Professional liability can protect against some legal action from clients. For salon owners, general liability can protect against injury on site.

Chair renters are responsible for tracking and paying taxes based on their earnings. And salon owners must also pay taxes on their rental income. Specific rates vary by state.

Developing Your Own Company Policies

Each salon needs policies for what stylists are allowed to do and what’s included in rental agreements. And then renters need policies for what services are offered and how customers can book and keep appointments. For example, write out rates for all services and let customers know when payment is expected and how and when appointments can be canceled.

How do I start booth renting?

First, find a salon in your area that suits your needs. For example, if you need to bring in new customers, look for salons in high traffic areas. Then compare prices and amenities. Once you find a salon, invest in the tools and supplies that are not included, like hair tools and beauty products from your favorite brands.

What are booth renters responsible for?

Booth renters are usually responsible for running most aspects of their business, including:

  • Creating service lists and prices
  • Communicating with customers
  • Appointment scheduling
  • Providing services

Should I charge booth rent or commission?

When you rent chairs in a salon, you can either charge a flat monthly fee or a percentage of each renter’s commission. Rent is more predictable. However, you may earn more with commission if your renters bring in a solid income. Consider how much accounting you’re willing to do and how much predictability is worth to your business model.

Are booth renters considered employees?

No, booth renters in a salon are independent contractors. They basically run their own business. But they use some amenities at the salon.

How do I prepare for a booth rental?

If you’re thinking about renting a booth at a salon, here are some things to consider:

  • Read your rental agreement to learn exactly what is included
  • Invest in your own tools
  • Market your services online or locally
  • Get a salon software
  • Schedule appointments

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Medima Krasnodar is an annual event that brings together medical professionals, producers, and suppliers of medical equipment and materials from Russia and abroad. It is an opportunity for professionals to share their knowledge and experiences, as well as demonstrate the latest equipment and technologies.

The event is held in the city of Krasnodar, Russia, at the Congress st. 1. The business program of the exhibition is tailored to the needs of practicing medical specialists, offering seminars, master-classes and round tables on current topics.

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COMMENTS

  1. The Salon Booth Rental Guide 2023: Win-Win Space Sharing

    Salon booth rental is a business model that involves two parties directly benefiting from the arrangement. A stylist will lease salon space to provide hair services, and the salon owner will receive income from the temporary tenant. The stylist pays a fixed recurring fee and/or a percentage of their sales. This arrangement benefits both parties ...

  2. How to Run a Successful Booth Rental Salon

    Booth rentals could also create an entirely new stream of revenue for you — depending on what your existing business model looks like. The Drawbacks of Salon Booth Rentals. While there are many upsides to offering booth rentals, there are some drawbacks that salon owners should be aware of. Here are some of the most important factors to consider:

  3. Booth Rental Salon Business Plan [Sample Template]

    The total cost for facility remodeling to fit into the type of booth rental salon facility - $80,000. Other start-up expenses including stationery - $1000. Phone and utility deposits - $3,500. Operational cost for the first 3 months (salaries of employees, payments of bills et al) - $40,000.

  4. The Booth Rental Business Model for Cosmetologists

    Salon chair rental is a fairly simple premise: a licensed cosmetologist (or barber, nail technician, or esthetician) rents a space in a salon. In exchange, the salon owner provides a work space and amenities for the cosmetologist to use. In essence, the salon booth rental model results in businesses within a business.

  5. How to get started as a salon suite renter and make a business plan

    A business plan allows you to see and dive deeper into your demographic, your target market, your mission, and your vision for your business. Because if you're in a suite, you are running a business. Having a mission, being very clear on who you are, what your brand is, and what your brand promise is, are all things that need to be in your ...

  6. Salon Booth Rental Business Plan Template

    A: A comprehensive business plan for a salon booth rental business should include essential elements such as market analysis, your salon's business model, financial projections, marketing strategies, and operational plans. These components are vital in understanding the beauty industry, managing your finances, and outlining how you will create ...

  7. Salon Booth Rental: Ultimate Guide For Owners and Freelancers

    According to Randi Rose, co-founder at Thrive Business Services, if you're running a booth rental salon, "you want your rent to be no more than 25% of your expenses.". So, run the numbers in your business. Calculate your rent against your other bills and make sure it's not taking up over a quarter of your expenses.

  8. Salon Booth Rental: 3 Steps to Maximize Profit (2023)

    3 Ways Salon Owners Can Maximize Their Salon Booth Rental Profits. The above limitations don't mean that salon owners can't maximize their profits, save on excess costs, and scale their income while operating a thriving, happy, and profitable rental booth salon. 1. Try scheduling software.

  9. Booth Rental Guide for Salon Owner and Stylists

    The exact cost of salon booth rental varies based on the salon's location and the type of amenities offered. The average cost falls around $400 to $600 per month. However, salons in upscale neighborhoods and high traffic areas like Manhattan may charge thousands per month.

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    Only you can decide. No matter which salon model you choose, you still need to market, take payments, and manage inventory. Our software can help you manage the business side of your salon. Try it free for 14 days. Learn how to optimize your salon profits as a salon business owner with booth rentals.

  11. A Guide to Salon Booth Rentals for Stylists and Owners

    A booth rental salon is a type of salon in which stylists rent out individual "chairs" or salon stations from a salon owner. The establishment may or may not be stocked with supplies—this varies by salon. But a hairstylist can expect at least a salon chair, a mirror, a hair-washing sink with running water, and basic workplace requirements ...

  12. Salon Booth Rentals: The Complete Business Guide

    A salon booth rental agreement should set out in detail what a booth renter is responsible for. In addition to the duties outlined in the agreement, the renter is responsible for all the things a small business owner typically handles, including: Business operations. Bookkeeping and tax accounting. Maintaining appropriate insurance coverage.

  13. Booth Rental Guide for Salon Owner and Stylists

    Salon booth rental is a business model in which a stylist leases salon space from an owner to provide hair services. The stylist pays a fixed recurring fee and/or a percentage of their sales to the owner. This arrangement benefits both parties because it can reduce costs and add revenue for both the stylist and the owner.

  14. Running a Booth Rental Salon: 3 Steps to Maximize Profit

    A booth rent salon is an salon (such as a beauty, nail, or hair salon) where the owner list out individual show. For example, renting a chair and a mirror to an individual stylists in a coat salon. ... additionally gain a greater understanding of how much each chair is Photo go Business Plan [Beginner's Guide] really making. 2. refine team ...

  15. Why You Should Consider Renting a Salon Booth

    The costs of renting a booth vary by city and salon, but booth rentals are generally much less expensive than salon suites. Booth rental pricing can range from $250 to $1,200 per month. In larger cities, such as New York or Los Angeles, booth rentals can cost around $1,000 a month, while booth rentals in smaller cities can be less expensive.

  16. Salon Business Plan Ultimate Guide + Free Example

    To achieve this, consider the following steps: Estimate startup costs for your salon. Forecast revenue (employee based, booth rent, salon suite, hybrid) Project supplies and labor cost. Estimate your operating expenses like rent and utilities. Calculate how much investor or loan capital you will need to open.

  17. How Much Is Booth Rent at a Salon? [2024 Update]

    The average booth rental salon costs a monthly fee of $400, but the range can be from at least $250 to $1,200 per month for a booth. Location is the main reason for this variation. ... How to Write the Perfect Salon Business Plan in 6 Steps. The Ultimate Guide to Building Your Team as a Beauty Pro. Follow Us. Join our Genius Newsletter. Get the ...

  18. The Best Salon Software for Booth Renters

    Salon booth rental software offers booth rental salons a tech-based solution for renting out their booths or chairs to individual stylists and technicians, and it also allows them to manage their online bookings and appointments in the same software. ... A Business plan for $99/month; An Enterprise plan for $149/month; 6. Zenoti. Source: https ...

  19. Beauty Show Krasnodar 2024

    Beauty Show Krasnodar is an event that provides beauty industry professionals with the opportunity to upgrade their skills and explore the latest products and technologies in the South of Russia. Featuring a variety of master-classes and workshops, the event is a great place for hairdressers, manicurists, beauticians, make-up specialists, masseurs, and beauty salon managers to come together ...

  20. Beauty Show Krasnodar 2025

    Beauty Show Krasnodar 2025 is one of the largest events for beauty industry professionals in the South of Russia, taking place in Krasnodar. It is an ideal platform for exhibitors to showcase their products and technologies to a wide range of beauty professionals, such as hairdressers, manicurists, beauticians, make-up specialists, masseurs, and beauty salon managers.</p> <p>The exhibition ...

  21. Booth Rental Guide for Salon Owner and Stylists

    The exact cost of salon booth rental varies based on the salon's location and the type of amenities offered. The average cost falls around $400 to $600 per month. However, salons in upscale neighborhoods and high traffic areas like Manhattan may charge thousands per month. And salons in areas with less traffic may charge as little as $200 per ...

  22. Beauty Show Krasnodar 2024

    Beauty Show Krasnodar is an unmissable event for beauty industry professionals in the South of Russia. It is a showcase of the latest products and technologies for beauty salons, fitness clubs and spa centers, offering unique opportunities for visitors to upgrade their skills and realise themselves. Exhibition visitors include hairdressers, manicurists, beauticians, make-up specialists ...

  23. Medima Krasnodar 2024

    Medima Krasnodar is an annual event that brings together medical professionals, producers, and suppliers of medical equipment and materials from Russia and abroad. It is an opportunity for professionals to share their knowledge and experiences, as well as demonstrate the latest equipment and technologies. The event is held in the city of Krasnodar, Russia, at the Congress st. 1.