Multiple Clients Create Your Independent Business and Need an Idea for a New Business - Hair and Beauty Salons are Booming Nationwide! Why Because the Baby Boomers are Demanding These Personal Care Services
Released on: March 29, 2008, 12:31 am
Press Release Author: For More Free Resources visit www.oversightsystem.com
Industry: Management
Press Release Summary: Would you rather have one good client paying you five thousand dollars per month or ten smaller clients paying you five hundred dollars each per month? Here are two good reasons for choosing multiple clients over just one client.
Press Release Body: Would you rather have one good client paying you five thousand dollars per month or ten smaller clients paying you five hundred dollars each per month? Here are two good reasons for choosing multiple clients over just one client.
1. Avoid Dependence on One Client
Don\'t put all your eggs in one basket. If you have only one major client and lose them, you have zero income overnight.
Knowing that they are your sole (or main) source of income, some clients will make some unfair, unreasonable demands of you. They can get away with it because they know you are in a very poor bargaining position.
You could also end up losing a good client for reasons beyond your (or even their) control. Bankruptcy, sale or bequest of the business to someone else, or a new manager who has made other arrangements are just a few ways you can lose such a client.
You are much better off to have several clients. If you lose a client that represents ten percent of your income, you still have ninety percent of your income left.
2. Clarify Your Self-Employed Status
Self-employment status has certain tax advantages over being employed. Although there are other factors to consider in making this determination, the more clients you have, the less likely that you will be classified by the tax authorities as being an employee.
For example, if you do all your work for one client at his office, a good case could be made that you are his employee. If you work for two different clients at their offices (or even your own), a case could be made that you have two different part-time jobs.
On the other hand, if you have a hundred different clients you work for, it is unlikely that anyone would argue that you have one hundred part-time jobs.
So, to avoid dependence on any one client and to clarify your self-employed tax status, choose several clients over just one or two clients. For increased success and to be a truly independent business, obtain multiple clients. Need an Idea for a New Business - Hair & Beauty Salons are Booming Nationwide! Why? Because the Baby Boomers are Demanding These Personal Care Services.
Hair care has been around as long as humans have been on the planet. The earliest record of personal hair care dates back 2.5 million years ago, when brushes used to create cave paintings in Spain and France was adapted for use in hair grooming. Interestingly, many of the innovations in hair design that are still used today originated in the late 19th century.
According to 2002 statistics, there were 1.4 million personal care services (http://www.hjventures.com/writing/Beauty-parlors-shops-Business-Plan.html) in the United States, 313,000 of which were beauty and hair salons. The hair salon service industry alone had revenues of $55.9 billion, while salon product sales were $5.5 billion. Coloring alone brought in $10.4 billion for the beauty industry in 2002.
The biggest single customer group is the baby boomer generation, who by the way now constitute the largest population segment in America, and who are more than willing to spend money on a hair care services.
What this means is that the prospects for owners of hair care businesses are solid and strong. The 2003 Job Demand Survey, distributed by the National Accrediting Commission of Cosmetology Arts and Sciences, indicated that average total income (including tips) for salon owners was $53,150 per year.
There are three ways you can enter the hair industry. You can open a franchise hair salon, in which you pay money upfront to use someone else's established name and resources such as advertising campaigns. You can buy an established salon from someone who is retiring from the business or has damaged the business and is forced into bankruptcy. Thirdly, you could establish your own salon.
So what does it take to be a successful salon entrepreneur (http://www.hjventures.com/salon-business-plan.html)? First, it helps to be a risk taker, you have to be willing to try anything to succeed, you have to have determination and an entrepreneurial mind-set to be successful and you need to have a vision and goals for your business long term.
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