Beauty businesses can be divided into two categories: payroll and non-payroll. Those under the payroll category employ staff who are supervised by managers in the workplace. Meanwhile, non-payroll salons include renting work salons where self-employed individuals can offer their services. In non-payroll establishments, the working manager acts as a landlord and bears no authority regarding the operation of the rented workplace.
ORIGINS OF BOOTH RENTING
Booth renting in salon business industry can be traced back in 1916, based on the story shared by A’Lelia Bundles as told by her great-great-grandmother, Madame CJ Walker.
In the earlier days, booth rentals were widely utilized in the salon industry. However, this model of running a salon lost its popularity by the end of the 20th century. This downtrend in use of booth rentals can be attributed to emergence of various issues, including lack of structure, lack of professionalism of salon workers, feuds, and dishonesty in reporting of incomes. As a result, booth renting was banned in a number of states. However, the problems surrounding booth renting possibly roots from issues on proper execution. Owners and renters of booth salons can succeed in this type of venture if they learn how to properly operate a booth rental business system
There are not a lot of information about booth renting, and any information available normally contain incorrectly interpreted data. In booth renting, a salon owner rents his work place and salon amenities to salon-service providers for a certain price rent. For each booth rented, the working technician works on his own to promotes his services to clients and any other products that they may offer. Each salon technician is also in charge in managing his finances and taxes. Running a booth rental requires great discipline and wrong practices and arrangement can lead to its failure. Skilled beauty technicians may not be work well with running booth rentals. However, some individuals have sufficient technical and business skills to succeed in running a booth rental.
RELATIONSHIP OF TENANTS AND LANDLORD
Tenants and landlords must be able to build a good working relationship. Both parties should respect each other. Salon owners must be fully aware of their role as landlords, and booth renters should not forget that they are also tenants.
Meanwhile, in various booth rentals, some tenants and landlords show relationship normally observed between employers and employees. Other tenants, on the other hand, consider themselves as more of a freelance and thus do not consider the rental owner as their boss. Other relationships lying in between such cases can be also observed in other cases.
However, despite the confusion the surrounds the relationship of booth rental owners and renters, the owners should not forget their authority and implement the necessary management practices in their establishment.