Galerie de Beaute can be described as a shopping center for beauty professionals. Galerie de Beaute offers fully equipped units for state-licensed professionals in the beauty industry.

When starting a business, owners of salons have many obstacles. It can be difficult to find a suitable location and equipment in high-traffic areas with affordable rent. Although 40% of beauty professionals own their own business, 60% are employed in a privately-owned shop.

Workers in traditional salons receive 50% commission. These employees are often responsible for purchasing supplies and using products. These issues sometimes lead to high turnover in the industry. Salon owners have had to resort in some cases to renting booths in legal states. Booth rentals are appealing to many but they have some disadvantages. Signed leases are required in order to be considered booth renter, and not employee by the IRS and state. If an audit is performed and there is no signed lease, this could involve significant liability, including back taxes, interest and penalty.

As an owner investor, we will seek a long-term investment or a loan. This will help Galerie de Beaute make the required leasehold improvements to the selected site. Leasehold improvements include installation of equipment, electrical, plumbing and carpentry required to construct 24 suites.

Estimated first-year profit at $17,000 rising to $37.500 in year 3.

1.1 Mission

• Establish Ourstate’s first salon mall
• High-quality suites
• Maintain long-term financial stability
• Offer access to a wide range of beauty- and personal-care professionals
• Keep professional ethics at the highest possible levels
• Foster a progressive environment, which attracts talented entrepreneurs
• Remain true to your community involvement

1.2 Objectives

• Galerie de Beaute offers an alternative to salon owners who are salon professionals.

• Galerie de Beaute will provide hairstylists, nail technicians and massage therapists the opportunity to operate a mini-salon with minimal start-up capital expenditures.

1.3 Keys for Success

• Galerie de Beaute lies on the heavily used corridor of route 13 and 40. Average daily traffic exceeds 20,000 vehicles.

• Salon professionals find Galerie de Beaute attractive because they pay a fixed monthly fee. Salon professionals are no longer required to work for a commission.

• Galerie de Beaute is a salon rental company that offers fully-equipped units. The locked unit, utilities, as well as insurance are included in the rent. Each salon professional will determine his/her own hours, set pricing, schedule appointments, and purchase supplies.

• The owners of traditional salons often face difficulties when starting a business. It is sometimes difficult to find equipment or a place in a high-traffic location that rents well. Although 40% of beauty professionals own their own business, 60% are employed in a privately-owned shop.

• In a traditional salon environment employees are paid 50% commission. In addition these employees are often charged for supplies and products utilized. This leads to high turnover in this industry. Salon owners have had to resort to booth rental in states where it is legal.

• While booth rentals can be very attractive, there are some drawbacks. To be considered an employee or a booth renter by the IRS, you must sign a lease. If there is no signed lease and an audit is conducted, you could be subject to serious liability. This includes back taxes, interest, and penalties.

• In many other states (e.g., California, Ohio, Nevada), salon malls are also available. Maryland, Virginia Virginia Ohio and Nevada have established salon malls. Ourstate, and those immediately adjacent do not, as yet, have any salon malls.