3 Business Tips For Salon Studio Owners

Business: 3 Tips For Salon Studio Owners

So you’re feeling ready, and you finally did it…you’re opening a salon studio! This is probably one of the most exciting—and most intimidating—moments of your life. On top of crushing the creative side, now you’re responsible for the business side of things—think tax write-offs, bookkeeping and business entities. Gulp. 😳 Put yourself at ease by checking out what business advice four successful, entrepreneurial Sola Salon Studios owners had to share!

Business Entity

For @the_blondologist, a Sola Salon Studio owner in Richmond, Va., the most difficult part of opening her studio was determining which business structure was best for her. “Do you need incorporation, sole proprietor, something else?” she said. “I would recommend speaking with a business lawyer to discuss your options.” 

Why even form a business entity? There are a lot of benefits, such as protecting yourself from liability. If you aren’t operating as a business and a client takes legal action against you, your own assets could be at risk—no thanks. Plus, forming a business entity minimizes tax liability and makes you appear more credible, according to attorney and barber Christopher Matthew, a Sola Salon Studio owner in Garden City, N.Y. Bottom line—talk to a business lawyer!

Organization

We know, we know….you didn’t become a hairdresser to worry about bookkeeping! But it IS part of being a business owner, and keeping organized through the year will pay off during tax season, when you can hand it all over to an accountant or tax preparer and let them work it out 😉. Using an app like SolaGenius (GlossGenius x Sola), which is provided to all Sola business owners, makes the money-tracking side easier. Here’s how:

• If you generate more than $20k in transactions and do at least 200 separate transactions per year with the app, you’ll automatically get a 1099-K in the mail.

• The app automatically calculates retail and sales tax, then you can pull a report for any date range.

• It’s easy to pull customized reports for your accountant—from gratuity to credit card fees, you can filter out the data you need and email it directly to the person who prepares your taxes.

• It also has 24/7 online booking, notification and reminder capabilities, point-of-sale and credit card processing and analytics/reporting.

Note: Don’t forget about the small things! You will need many things like a business name, business credit card and a website, says @asil, a Sola Studio owner in New York.

Watch the video below for a peek at how SolaGenius works!

Write-Offs

“In your own studio, you do have more tax write-offs and things to keep track of,” said @fullmetaljaxon, a Sola Studio owner in Denver. Here’s the thing about write-offs: they mean MONEY. Maximize your write-off potential by claiming every business tax deduction possible. 

What are some things you can write off? According to the Sola Salon Studios blog: Any equipment costing up to $500,000 required for running your salon may be treated as a business expense for the year it was bought. So this means if you buy a sofa for your studio where guests can wait, you can write the sofa off that year. 

Other write-offs? Business phone service and internet service, business travel under some circumstances, vehicle use (hello on-site bridal stylists!) and continuing education. Talk to a small business accountant or CPA to maximize the money you save with tax write-offs.

Bottom line? You got into the hair industry to create beautiful hair and make your own career path. When that includes owning your own business, there are plenty of resources to help you—and Sola Salon Studios are one of them.

Click here for three more salon studio business tips from Robert Cromeans!