WEB EXCLUSIVE!
Home Sweet… Business?
By Tracy Morin
With so many women juggling a multitude of responsibilities, working from home is more popular than ever. Should you make the switch?
Small business is now big business in the United States: According to “Home-Based Business and Government Regulation” by Henry B. R. Beale, a report released in February 2004 by the Small Business Administration, home-based businesses make up roughly half of all U.S. businesses. (And most of those are sole proprietorships, with the owner as the only employee.) Nowadays, modern women are expected to juggle family, career and finance along with personal development, so it’s no surprise that nail techs are increasingly leaving the traditional salon to work at home, a move that offers its own set of responsibilities and benefits. In this article, home-based nail techs from across North America help outline the basics that you’ll need to know if you’re thinking about this option--and share the many upsides to this complicated process.
Licensing and Taxes
If you want to open up a home salon, check your local laws regarding home-based businesses; in your city and/or county you may have to follow certain regulations and requirements before welcoming clients into your home. Refer to your state’s cosmetology board for its regulations on home salons. (You can find contact information for state boards at beautytech.com/st_boards.htm.)
Important federal regulations mainly deal with taxes and IRS concerns; file business income tax returns and keep track of deductions, depreciation, etc. As a general rule, count on spending about one hour per week on recordkeeping and accounting-related duties. Most likely you’ll start out with yourself as the only employee, but if your home business grows to a certain point, you’ll need to withhold taxes from their paychecks and fill out additional employee forms and may want to hire a tax preparer for a fee. Excellent records streamline the process come tax time.
Before you get started, check out building codes (these apply to new or renovated structures or areas within a building), fire codes and health codes (these apply only if you’re serving food). These codes are mandated at the state level and may restrict your home-based business. They can be found through the appropriate local governing bodies. The codes are largely based on the physical aspects of the building, traffic flow and “nuisance impacts” such as noise. They’re enforced across your local jurisdiction.
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Home-based nail tech Chelly Eric, owner of Salon Nirvana in Winthrop Harbor, IL, had to secure various approvals for her home salon: “I had to go in front of the village board and the planning and zoning board, and send out certified letters to all of my neighbors. I still have to get inspected by the fire department every year.”
However, requirements vary from region to region. “I only needed to have my nail specialty license and a business license to work from home,” says Darcy Olin from Tips to Toes in Richland, NY. “We had to have the usual permits we need to work on our home—we were adding a dedicated outside entrance and a bathroom, and doing electrical work.”
Of course, the rules don’t end at the door of the salon; you’ll need to uphold the same sanitation standards and licensing requirements as would any other tech. This information can also be found through your state board.
Interior
The look and feel you choose for your home business’ interior will mainly depend on your personal preferences, the atmosphere you want to create and your available space. Assess the amount of space you can dedicate to your work area. “I designated the entire lower level of my house for my business--approximately 1,000 square feet,” LaJourdie says. “I use more comfortable furniture and lounge-style accessories, which really creates a relaxing atmosphere for the client.”
Next, delineate the purpose of each area in the space. “I have a room with a hair station and a pedicure throne, and I also have an airbrush station in that room,” says Smith. “My bathroom is decorated in an outhouse theme—way cute!”
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