Salon Success Secrets

Booth Renters Aren't Business Owners

• Lindsay Lowe & Jen Booth

Share episode

Send us a text

Ever wondered if booth renters in the beauty industry are truly business owners? Our latest episode challenges this common belief by dissecting the real differences between owning a business and merely owning a job. We promise you'll gain eye-opening insights into the financial risks and hidden stresses booth renters face, as we debunk the myth of freedom and wealth often associated with this model. We'll guide you through the maze of responsibilities that booth renters must navigate, from rent and taxes to marketing and product costs, all while exposing the allure of misleading promises made by real estate marketers. Listen as we emphasize the power of a team-based model in salons, illustrating how it can unlock greater opportunities, impact, and income potential.

The mindset of "me" versus "we" can be a game-changer, and we're here to show you why. By exploring the contrasting mindsets of booth renters and business owners, we highlight the importance of fostering teamwork and building a strong brand. Our personal stories, including a heartfelt tale of my grandmother's journey from booth rental to successful business ownership, underscore the transformative power of embracing a collective approach. Like a sports team, a cohesive salon environment can lead to unbeatable success. Discover the benefits of mentorship and leadership as we make a compelling case for thinking beyond oneself and investing in the strength of a team. Tune in for invaluable insights that could redefine your understanding of business ownership in the beauty industry.

Do you have a question for Blondes in Business: Luxury Beauty Business Podcast? Send a text or leave a voicemail at 855.650.3445 or send us an email to hello@thephdprogram.com. We would love to hear from you.
Start growing in business and leadership with powerful tools, advice and resources in your inbox every week:
Learn more about The PHD Program Events:


Upcoming Events | Phd Program


Learn more about The PHD Program Coaching:

https://keap.app/contact-us/4732115411329800

Learn more about The PHD Program Business School for Salon & Spa Owners:

https://keap.app/contact-us/8468267787462617

Are you ready to go all in? Join The PHD Program:


Apply to Join Us! | Phd Program


Listen to all the Blondes in Business: Luxury Beauty Business podcasts anytime, anywhere here:


Podcast | Phd Program

Speaker 1:

What's up and welcome to Salon Business School podcast man. We're here to help salon owners grow, become profitable, create sustainable businesses, and today we're going to be diving into a hot topic that you're not going to want to miss. It may even ruffle some feathers, but it needs to be talked about, and that is booth renters aren't business owners. So if you're excited, we're excited and pumped to deliver some information to you today on this topic.

Speaker 2:

Yes, such an incredible topic. You know, we know 100,000% that booth renters or suite renters or whatever fancy new name they slap on this um, this position is just they're not business owners. They own a job, and that's right. A lot of stylists go booth rental or service providers of all kinds go booth rental, thinking that they're stepping into freedom and wealth, only to realize they've walked straight into more stress, more work and more financial risk than they ever imagined. So today we're breaking it down. We're going to talk about what real business ownership looks like and why booth renters often struggle, and how a team-based model creates bigger opportunities, bigger impact and, yes, bigger income.

Speaker 1:

Yeah, and so when you think about it, let's first like what actually is a business, and so I love this definition of a business. Um, and the definition is a business is an asset that can generate revenue even when you step away. So what that means as a salon owner, if you're a business owner not even just a salon owner you can go away for the weekend to a tropical getaway, or you can go to the mountains for a week, and your business will still be able to operate without you. Another beautiful thing about a business is that you know it has systems, it has that structure, it has that sustainability, and I think, like Lindsay was saying earlier, I love this one too is like a business grows beyond you, like it lets the world, like live on even when you're not here. It lets you leave a taste of your legacy so that you can make a huge contribution in this world your legacy so that you can make a huge contribution in this world.

Speaker 2:

Yeah, you know, and I think that that's one of the most beautiful parts of business is that greater contribution into the world. Because, you know, the truth is like if your income stops the second that you stop working, you don't own a business, you truly do, just own a job. Like you can't, you know, be giving back in greater ways. Um, when, that is the truth, you know. Same thing, if, if you're the only one generating revenue, you don't own a business, you own a job. And that's the brutal truth about booth rental. That's what nobody talks about, you know.

Speaker 2:

I think what's really interesting to think about is how sexy the real estate marketers were about what a booth rental opportunity was. They were like come here, you're going to get all this freedom, you're going to get all this wealth. You know, um, you're going to get to keep the other half of your income, um, the brutal truth is that that's the farthest thing from the truth, because in every business there's expenses, there's all these different things, you know. So real estate agents are selling. You know, hey, we've got this booth rental opportunity, you're going to have freedom, you're going to have all this stuff, but that's the furthest thing from the truth, you know, and so I think it's it's amazing that we're bringing this to light and really diving into, you know, what is a real business.

Speaker 1:

Yeah. And so you know, I've had people on my team, I know Lindsay's had people on your team that have transitioned from, you know, being working in your team to a booth rental situation. So why, like what starts to conger up this idea and their thoughts that, hmm, maybe I'll choose rental because, hmm, I'll make more money, or, you know, maybe I'll work less. That's a good one, I love that one, that's always a good one. I just sit there and smile when they say that. You know they're like, yeah, I've decided to go out on my own so I can make a little bit money and work a little bit less, and inside I just chuckle because you just have no idea, right? And then another one too is like it's time for me to go out on my own because the salon owner is keeping too much of my money. I mean, they're keeping 50% or they're keeping 55%, and so I know that I can make way more money being by myself. And so what they don't realize is here's what really happened.

Speaker 1:

And for the business owners salon owners in this call you know exactly what we're talking about. They forget that the expenses start to pile up. You know there's rent, there's a back bar products, there's marketing, there's booking software, there's taxes, there's insurance, you know, and there's even the retirement savings which most people never think about. And that's one of our beautiful gifts is working or owning a team uh based salon. Commission salon is because we get to help our team think as millionaires and if you don't have that coach or mentor in your corner to help really create that reality of what's possible for you being in this industry so that you can actually retire with income coming in man, that can really be a default to setting yourself up for success for the future.

Speaker 2:

Yeah, you know, I think that that is obviously one of the things that we're most passionate about in this industry is really truly creating millionaires and also giving people the opportunity to love what they do and get to do what they love every day. You know, and so most people, when they go out on their own, they think that they're going to keep that other portion of the income, but now all those things like Jen mentioned are on their shoulders and they're your responsibility. You know, and I think another reality check about why it truly is a trap, um, you know to, to go into the booth rental side of of the world, um, is that a lot of times, booth renters start cutting corners on education, you know, and so many booth renters suite renters they stop investing in advanced training because it costs time and it costs money, and now both of those are a limited resource, and so what they, what happens, is they plateau in their skillset and they end up charging the same prices for years Because, first of all, they don't even think that they're worth anymore. Second of all, they know that their clients are going to realize, you know, I remember when he worked at such and such place you're doing all this stuff and now, like, why is it going up? Like I'm confused about what's happening here. You know, and also, I think a key thing here is, without a team to push them, their growth slows down. You know, because you know it's one of the laws of, you know, physics of the world. Like of the world, like, if you're not growing, you're decaying, and there's it's only one or the other. And so a lot of times people think that they're going for freedom, they think that they're going to get all this stuff, but the truth is they're just going to decay. You know, and I remember I recently ran into somebody at an event in our town and she, um, was like, oh my gosh, your hair looks so incredible.

Speaker 2:

And I was like, thank you. Actually, one of the girls at the salon, uh, just touched it up for me and so, um, you know, I'm feeling brighter. And she was like, oh man, I've been wanting to come in, you know, to see you guys for so long. I've been with the same gal for, you know, all these years, and you know she calls out all the time and she, you know, she just started going through a list of these things. She was like, I don't even know. The last time was that she went to any education and she was like and I just I feel like my look is suffering because of it. I was like wow for her to use the word suffering when she was telling me this like I mean, imagine how she feels.

Speaker 2:

And you know, I just, of course, listened to her and said, you know, you're always welcome. And I was like, and I just also want you to know, like we don't own clients, uh, stylists don't own clients, nobody owns clients. And, like your stylist I don't know who it is, she didn't tell me, so I have no idea. You know, like, truly, if they got into this business, like they got into this business because they want people to love their look and feel more confident, and if you're not feeling that way, I would invite you to look for that opportunity where you could. And so you know, if you're ever um, you know, if there's ever a time where she calls out or you're looking for that, like we would love the opportunity to serve you. And so I think you know that's a huge reality check that most booth runners don't think about when they get into. That is, they start cutting all those corners and it really makes their clients suffer.

Speaker 1:

That's so good. You know, I've even had somebody say before Jen, I think you, you really don't like booth runners. I was like, well, that's a strong word, my last name is booth, so I mean, you know, I don't know, but you know, um, now that I don't like Booth runners, like I just want to make a movement in our industry and I, you know, lindsay and I want to make impact in our industry. We want to bring beauty back to the beauty industry, and so part of us talking about this is because people just don't get it. And so, you know, the truth is like, if you're going to be a business owner, you've got to understand these key components of what it takes to be a business owner. And I feel like right now, on social media, you see all these people using these terms business owner, I'm a business owner. I'm like, yeah, not quite, because if you go on vacation tomorrow, you're not making any money. And so another beautiful part of that, too, with being a business owner is, you understand, like the me versus we mindset.

Speaker 1:

You know, I feel like sometimes, and a lot of times, you know, booth renders have to like hustle for every single client they're chasing, they're running after. I'm like come, please come see me. If you ain't looking, you ain't booking. What is it? No, I saw one that says I see you looking but you ain't booking. I was like oh, wow, okay, this is good. And so, like you know, their marketing is just very different from a business standpoint. You would never see Chick-fil-A saying I see you looking but you ain't booking, or coming in Like that's just not what a business would do.

Speaker 1:

And so, or you know, a lot of times we'll see from that me versus we mentality is like last minute cancellation, last minute cancellation. Sorry, girlfriend, how many cancellations? Or boyfriend, how many cancellations do you have to have? Like, like, what is that really doing to serve someone to their highest good? You know, instead of building those long term clients, they're always chasing the next booking. Or another one I love is when they show the receipt of how much it costs that salon centric or whatever would be another beauty spot. I'm like, well, why does the client care about that? Congratulations, you spent that much at salon centric. So, like I, just I feel like a true business owner that's going to create a movement and make impact. You know they're going to focus on we and not me.

Speaker 2:

Yeah, you know, because, jen, what we know is the power of team. A team can't be beat. You know, one of the biggest, best lessons from the book the Entrepreneurial Seizure if you haven't read that, that's an incredible book is this it's an individual can be beat, but a team can't be beat. So, man, that's huge. You know, like, imagine that, like you know, I think about, like you know, of course, like professional teams come to mind, like football teams, basketball teams, you know, whatever your favorite sport is, you know, if it was one person on the team, I, you know, basketball comes to mind because they have to set each other up for success, because there's not just like one all-star. You know, I feel like in football, sometimes, like the glory goes to whoever makes the touchdown, but the truth is like there's all those people that set that person up to make that touchdown so that person might get the credit that they scored the point, but it's that whole team that allowed that to happen. The same thing happens, you know, like if they weren't practicing off the field or off the court or off whatever it was practicing off the field or off the court or off whatever it was they would not win championships. Same thing happens inside of the salon, when salon owners or booth runners are like, oh, I'm gonna get all of that. You know, all these wonderful things are gonna happen. Truly, they're like thinking, hey, I'm actually gonna quit, I'm gonna, I'm gonna go there and then I'm going to, I'm not going to have to do anything. Nobody's going to know that I'm not practicing, nobody's not. Nobody's going to know that I'm not working on my education, I'm just going to chill. It's going to be great.

Speaker 2:

But if you don't, you know, if, if you aren't working together team, you don't have a system, support and structure to really create that consistent income, you know, like if it's just you, you don't have that consistent income. You also don't have a strong brand that attracts dream clients and other stylists. Because you know, at our huddle this morning we were talking about, you know, people who inspire you, and one of the people on our team said you know she gets inspired by the newest team members. Like you know, what are they wearing? How are they styling hair? What are some fun words that they're using?

Speaker 2:

You know you don't have that anymore. You're, you don't have that constant set of inspiration walking in the door. You know you're also missing opportunities for leadership, inspiration walking in the door. You know you're also missing opportunities for leadership, education and mentorship, and one of the biggest ways for you to grow is when you're able to give back, and that makes you such a stronger.

Speaker 2:

You know, stylist or esthetician or whatever your beauty pro role is inside of of our industry, our community, you know, and I think another thing that happens when you're not a part of a team, and why individuals can be beat and a team can't is is that when you work together as a team, you're able to make a bigger contribution to your community, and so it just naturally creates some reciprocity between people want to support you because they see how you're supporting others, and so you know. I think the key takeaway with this is that booth rental is small thinking and business ownership is big thinking, and so which one are you choosing? Because even when you just choose to be a part of a team, even if you're not the business owner, that's bigger thinking, that's going beyond me thinking about. We and your clients can feel that in every moment that they spend with you.

Speaker 1:

You know, for most of you, or some of you that are listening to this podcast, you know that my grandmother was a hairstylist as well. It took over her business and you know she told me a story. She started actually in a booth rental salon and this was probably back in 1979. Some of you probably can't even think back that far, but she said she started in a booth rental salon and she was all about like a great guest experience, understanding face shapes, understanding like skin tones. And so she said she worked with someone one day and, um, um, she was working with a T, a co-stylist, or not a co-stylist, just a team member that had been there booth rent situation, and that team member or person that was in there with her had called out and for some reason, this client comes in and she didn't get the call that her stylist was going to be out that day. And so the guest comes in, the client comes in, she's really upset because she's got this big gig to go to that night and she was really expecting to have her hair done. And so my grandmother was like, oh gosh, well, let me step in, like I have time. She was brand new, brand spanking new, and she's like I have time, let me help you, let me, let me support you and and let me give you this gift of feeling great for your, your events tonight. And so she did her hair. The lady loved it, absolutely loved it.

Speaker 1:

And the next day when, um, the stylist that was working with my grandmother came in, she was so mad. She said I can't believe you touched my clients, I can't believe you did her hair. And in that moment my grandmother said I knew that I never wanted to work in a booth situation because it felt dirty, it felt icky, and I know not all booth rental salons are like that but like I wanted to be part of a movement, I want to be a part of a place that would be willing to help each other, support each other. And so she said you know that that story just always resonates with me because that is so true Like you have so much, like Lindsay was saying, you're able to make such a much bigger contribution when you have that team behind you.

Speaker 2:

I love that story, you know I. I think it's just so inspiring to think about who you want to be in the industry. I think, too, as a business owner, just getting crystal clear on what you're allowing in your space. You know cause, jen, when you said that story, it reminded me of once upon a time I had a stylist who worked in the salon, um, who is now a booth renter, um, who we were changing up a system inside of the salon, about how we did our future reservations, how we got that next rebook set up for the client. And you know, we said, hey, we'll have somebody from the concierge team go up to them during processing and help get that set up, you know, and they can already start to, you know, get products lined up and you know all of these great things. This was several years ago. And, um, she was like, um, I don't want anybody coming up to my clients when they're processing. I was like, oh, okay, okay. So we had a lot of opportunities here, because nobody owns clients and we are here to serve them to their highest good. Here's our mission, you know for people to leave feeling beautiful inside and out, and we are all on that mission together.

Speaker 2:

This isn't a stylist driven experience, you know, and so I just want to present this question to you Will you be a part of that 1% that builds a real business?

Speaker 2:

You know, because when you build that real business, you allow service providers to make it past that 10 year statistic inside of the industry. So the ones that make it past there, they don't just rent a booth, they are building a legacy, whether that's inside your business, like whether you're the business owner who's helping them build that legacy, or you know, whatever that looks like. That's how a true legacy is built. And so just think about how do you want your legacy and every person on your team's legacy to be? And if you are currently a booth renter and you know you're wondering, hey, what's my next step? I would just invite you to look at the best commission salon in your area and go check it out and see if there's any opportunities. Because that's how true legacies are built when we all stand in our superpowers and work together to create a larger impact. That's how championships, teams are created, that's how we bring the beauty back to the beauty industry.

Speaker 1:

So, so good. So, um, I hope you got some great stuff today, some food for thought and, you know, in the meantime, in between time, keep building, keep growing and keep bleeding. We'll see you soon.