Becoming self-employed in the nail industry?

Question

I have been asked by a friend if I would like to work self-employed in her salon as a nail technician. I have agreed and she wants a 25% cut of my profits. My question is, if I don't get any clients in when I first start, do I still have to pay her her share? I know if I don't make anything, she can't have 25% anyway, but will she want a fee anyway as she is doing the advertising for me?

Answer 1

Protect yourself and your friendship by drawing up an agreement between you.  It's great having offers like this from friends but when something goes wrong, and it often does, you can lose your friend as well as your business.

Set out the exact terms of how much you pay her and when.  Also be clear in the document what she is doing for you in terms of advertising.

The other thing to consider is whether 25% of your profits is reasonable.  Define in your agreement precisely what is meant by profits.  They're a lot different from sales.

Check the figures in your business plan and factor your friend's cut into your calculations.

You've a brilliant opportunity to grow both your businesses by using joint promotions.

Good luck with your new venture!