January - Stylist and Salon Newspapers

What You Don’t Know Will Cost You
by Ken Cassidy
The reality of the old saying “What you
don’t know will cost you” is what complicates
the lives of business owners and managers in
the beauty industry.
Adjusting your business model is crucial
to stay in business, as well as to be profitable.
Most owners are overpaying their
employees in all the wrong ways and not
creating profits for their company. If owners
are not aware of where employees cost them
the most, they are setting up their businesses
to fail.
There are three crucial elements to
protect, guide and direct an owner’s success.
Without the internal structure in place, most
owners are constantly back peddling to resolve
issues that come up on a daily bases. We
call this management style MSU, (Making
Stuff Up).
Take this new year as an opportunity to
restructure business for the next economic
business increase. It is coming sooner than
you think. Will you be ready to bring on
more staff and get things in line with your
current staff? Your business plan should
incorporate several items that you probably
do not have in place if you are like most small
beauty business owners. Here is an outline
of what is needed to protect your financial
investment and your dream.
A Partnership Agreement
This should be in place in case something
happens between two or more partners. The
agreement should clearly define how disputes
should be worked out, regardless of the reason
for separation. (no nasty divorces).
An Employee Agreement
With the way the IRS looks at the beauty
industry, as well as the State and judges, it is
more important than ever to have clarity with
your employees to prevent any disagreements
that come as a result of an audit, a court case
or an unemployment hearing.
A Policy and Procedure Manual
Every owner with employees needs to
have a policy and procedure manual in place.
They simply state the policies of your company
and the procedures to be followed by
those in your company. What most owners do
not realize is that these manuals will contain
Federal and State mandated guidelines and
cover a variety of issues. These issues can
show up at the work place on any given
day without warning such as the policy on
bereavement leave, maternity leave or harassment
of any type, etc. (Remember MSU)
Front Desk Agreements
We compensate and reward front desk
personnel differently than our service providers,
but it is equally important to make sure
they are aware of your expectations.
14 | JANUARY 2011 | TEXAS STYLIST & SALON
Now for those owners who choose other business
choices rather than having employees.
5. Medical Contract Referral
If an owner of a salon or spa wants to
rent out space to a physician, they need an
Independent Medical Contract Referral and
Space Rental Agreement. This protects the
salon / spa owners from the medical issues
that you may not be familiar with, among
other things, and protects your spa.
Salon Suites Agreements
This is another business choice: leasing
out private rooms that are self-contained.
This agreement is between a property and a
tenant, and must be clearly identified as such
with the IRS, State and / or a judge.
Salon / Spa Space Sublease Agreements
If an owner is going to have rental stations,
tables or rooms and does not own the
building where their salon / spa is located,
they need a SSL Agreement. This is necessary
to make a clear-cut separation between the
owner and the booth renters according to the
authorities. If an owner owns the building
where their salon / spa is located, they would
need a Space Lease Agreement.
Setting Up Your Business by Using
Independent Contractors
This is where you would contract with a
company or individual to come into your establishment
and perform a service. According
to the authorities, most of the beauty industry
does not qualify as an Independent Contractor
working within their salon or spa. This is
because of the incorrect way one usually goes
about using the contractor and setting up business
with these individuals. We get calls on a
weekly basis from owners going through an
audit, and most owners are losing the battle.
This costs them dearly in back taxes, penalties
and interest for that time period.
Management Forms
Having the correct Management Forms in
place to direct your staff, whether employees
or renters, will simplify any owner’s business
life.They should support your legal documents
if set up correctly. When is the best
time to implement these legal documents?
The first of the year is the ideal time to start
with a clean slate tax wise. If you cannot incorporate
them then, you will want to at the
beginning of a new quarter.
Every owner in the beauty industry should
have a foundation that will protect their
businesses legally and profitably, as well as a
great management structure to guide, direct
and reward all working within your company.
Reevaluating your business plan and starting
over in today’s economy has never been as
important, as all of us are subject to the same
laws and regulations as larger companies.
Ken Cassidy is President of Kassidy’s Salon Management consulting company.
He can be contacted at kassidy122@earthlink.net or www.kassidys.com.
JANUARY 2011
PP
9-10: Empire and ARROJO present Masters of Beauty Skills Certification
Program, Minneapolis, MN MastersOfBeauty@empire.edu
PP
14-22: Nail Those Profits at Sea Cruise, St. Martin, St. Kits, St.
Lucia 1-800-809-6623 www.nailthoseprofitsatsea.com
PP
17-18: Beauty Expo USA, Las Vegas www.beautyexpousa.com
PP
23-24: Tools of the Trade Class - Cutting and Styling Classes
featuring Dwight Miller, Albie Mulcahy, Alan Papaleo and Ian
Gavet, Doubletree Hotel, Houston, TX (254)495-0189 or visit
toolsofthetradeclass.com
PP
29-31: Long Beach International Salon & Spa Expo, Long Beach
Convention Center probeauty.org/ISSE
FEBRUARY 2011
PP
6-7: Empire and ARROJO present Masters of Beauty Skills
Certification Program, Kentucky - MastersOfBeauty@empire.edu
PP
19-22: Bronner Bros. International Hair Show, Atlanta, GA,
www.bronnerbros.com
PP
26-27: The Makeup Show LA, www.themakeupshow.com
PP
27: Beauty School Forum, Barristar Productions, Kissimmee, FL
www.barristar.com 800 SHOW-432
PP
27-28: Day Spa Expo, Las Vegas, NV www.dayspaexpo.com
MARCH 2011
PP
6: 3rd Annual Reign of Style Hair Competition and Show at The
Seattle Center Exhibition Hall, Seattle, WA www.reignofstyle.com
PP
6-7: Empire and ARROJO present Masters of Beauty Skills Certification
Program, Nashville, TN MastersOfBeauty@empire.edu
PP
6-7: Prof. Beauty London, www.professionalbeauty.co.uk/london
PP
6-8: IBS New York, Jacob Javits Center www.ibsnewyork.com
PP
6-8: International Esthetics, Cosmetics and Spa Conference
IECSC New York, www.iecsc.com
PP
12-14: America’s Beauty Show, Chicago, IL 1-800-883-7808
www.americasbeautyshow.com
PP
13: American Board of Certified Haircolorist Exam, Chicago, IL
www.haircolorist.com
PP
13-14: ABA Canada, Montreal, Quebec www.abacanada.com
PP
13-14: The International Congress of Esthetics and Spa, Dallas-
Arlington Convention Center, Arlington, Texas 1-800-471-0229
www.LNEONLINE.com
PP
18-20: Beauty International’s Worldwide Leading Trade Fair for
Professional Cosmetics, Nail, Foot and Wellness Professionals,
Düsseldorf, Germany (312)781-5180 www.mdna.com
PP
18-21: Cosmoprof Bologna, Italy www.cosmoprof.com
PP
20: Sorme Treatment Cosmetics Makeup Workshop at the
Maxwell Hotel, Seattle, WA www.sormeworkshops.com
PP
20-21: Spectrum International Beauty Expo, Los Angeles, CA
(310)680-7367 www.sibe.us
PP
27-28: Tools of the Trade Class - Cutting and Styling Classes
featuring Dwight Miller, Albie Mulcahy, Alan Papaleo and Ian
Gavet, Doubletree Hotel, San Antonio, TX (254)495-0189 or visit
toolsofthetradeclass.com
PP
26-28: Midwest International Salon & Spa Expo, Rosemont, IL
probeauty.org/ISSE
PP
27-28: ABA Canada, Toronto, Ontario www.abacanada.com
APRIL 2011
PP
3-4: The International Congress of Esthetics and Spa, Miami
Beach Convention Center, Miami Beach, Florida 1-800-471-0229
www.LNEONLINE.com
PP
9-10: Peel’s Spring Show, Council Bluffs, IA www.peels.com
PP
10: American Board of Certified Haircolorist Exam, Denver, CO
www.haircolorist.com
PP
10-11: Cosmoprof’s 64th Annual Spring Style Show, San Jose,
CA www.springstyleshow.net
PP
17-18: BSG Cosmoprof Beauty presents Seattle Fashion Focus,
Seattle, WA www.fashion-focus.net
PP
24: Sorme Treatment Cosmetics Makeup Workshop at the
Holiday Inn: Soho, New York City, NY www.sormeworkshops.com
PP
29-5/2: Electrologists’ Association of California State Symposium
aboard the Carnival Paradise Cruise Ship 860-678-1972
Email: donna.crump@snet.net
MAY 2011
PP
8-9: Beauty School Forum, Barristar Productions, Anaheim, CA
www.barristar.com 800 SHOW-432
PP
15-16: Galveston Fashion Focus Show, Galveston, TX www.
armstrongmccall.com
PP
15-16: The Makeup Show NYC, www.themakeupshow.com
PP
22: Beauty School Forum, Barristar Productions, Minneapolis, MN
www.barristar.com 800 SHOW-432
PP
22: Sorme Treatment Cosmetics Makeup Workshop at the
Riverwalk Plaza, San Antonio, TX www.sormeworkshops.com
JUNE 2011
PP
5-6: Premiere Orlando International Beauty Event & Premiere
DAYSPA conference, Orlando, FL www.premiereshows.com
PP
12-13: The Makeup Show Chicago www.themakeupshow.com
PP
16-18: BeautyEurasia by Cosmoprof Worldwide, Istanbul, Turkey,
www.beautyeurasia.com
PP
18-20: International Esthetics, Cosmetics and Spa Conference
IECSC Las Vegas, NV www.iecsc.com
PP
18-20: IBS Las Vegas, Las Vegas, NV www.ibslasvegas.com
JULY 2011
PP
10-11: Image Expo 2011, Houston Reliant Center, Houston, TX
www.theimageexpo.com
PP
24: North American Hairstyling Awards, Las Vegas, NV www.
probeauty.org/naha
PP
24: American Board of Certified Haircolorist Exam, Los Angeles,
CA www.haircolorist.com
PP
31-8/2: Cosmoprof North America 2011, Las Vegas, NV
800.557.3356 cosmoprofnorthamerica.com
AUGUST 2011
PP
14: American Board of Certified Haircolorist Exam, Boston, MA
www.haircolorist.com
PP
28-29: SW Fashion Focus, Glendale, AZ www.armstrongmccall.com
SEPTEMBER 2011
PP
11-12: The International Congress of Esthetics and Spa Long
Beach Convention Center, Long Beach, CA 1-800-471-0229 www.
LNEONLINE.com
PP
11-12: Worlds Fair Show, Austin, TX www.armstrongmccall.com
PP
17-18: The Makeup Show Europe, Berlin, Germany,
www.themakeupshow.com
PP
24-25: Peel’s Fall Show, Council Bluffs, IA www.peels.com
OCTOBER 2011
PP
1-2: Peel’s Fall Show, Denver, CO www.peels.com
PP
2: Beauty School Forum, Barristar Productions, Indianapolis, IN
www.barristar.com 800 SHOW-432
PP
16-17: Beauty School Forum, Barristar Productions, Burbank, CA
www.barristar.com 800 SHOW-432
PP
23-24: The International Congress of Esthetics and Spa,
Philadelphia Convention Center, Philadelphia, PA 1-800-471-0229
www.LNEONLINE.com
Educational events are listed free as space allows. To have your event listed, please email
to lisa@stylistnewspapers.com or mail to Stylist Newspapers, 1750 SW Skyline Blvd. #24,
Portland, OR 97221. For more information call (503) 297-7010 x204.
We’re Coming to Texas!
The American Board of Certified
Haircolorists will be holding an
examination in Austin in September.
Order your
Study Materials at...
Plenty of Time
to Prepare
www.haircolorist.com