Every owner within the beauty industry regardless of the services one provides or calls themselves has choices of how they set up their business. Weather one chooses all employees or rent out space/room’s there is a correct way to go about protecting ones’ financial investment. Far too often owners of spas, salons, wellness centers or medical establishments spend a tremendous amount of income to create the right environment to attract the right type of clients and overlook the importance from a cost factor of building a solid foundation to withstand the test of time. Most owners have ignored, or are unaware of the importance of having the correct legal documents in place to support, protect and guide their staff regardless of what you call them. No longer can an owner, not have a management structure in place in today’s business world. It costs an owner clearly every time one looses a worker regardless of their, again, whatever title you have bestowed on them.
Far too often owners don’t even have a partnership agreement, an employee agreement, a booth rental agreement or even worse call or using individuals as I/C (Independent Contractors). In this 4-part blog series we will explore what each one of these legal documents should contain to make sure each owner is protected with the IRS, their State or how a judge would look at the beauty industry. The importance of having the right wording in a legal document is what creates the validity to support your company. These documents should also incorporate all the profitable issues and provide most of the management structure. On the employee side of your business we will also explore the importance of having a Policy and Procedure Manual in place to protect your business. We will also explain how costly it can be for any owner with employees not having one in place, to meet the challenges from the IRS and your State when it comes to the business world challenges.
In Our Next Blog, we will cover the key elements of an Employee Agreements. And why it cost employers dearly when they either don’t have one or have an inadequate one that will support the business.
Ken Cassidy, Owner
Kassidy’s Management Consultant
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