Why Not Both? How to Balance Employee and Renter Models in Self-Care

Nail salon star Michelle Saunders shares her model for a better self-care business

Finding the perfect business model probably wasn’t the first thing you thought about when you started your self-care biz, but it’s one of the most important decisions you’ll make.

Will you run an employee shop where you’re the boss, supporting and mentoring employees to build one central brand? Or will you be more of a self-care landlord, renting out booths and rooms to independent contractors who run their own businesses?

In the second episode of our new podcast, Last Client of the Day, celebrity manicurist and NorCal nail salon star Michelle Saunders explains how her latest business moves thread the needle between the two models. To learn more about each approach, including Michelle’s take and why it’s been working out so well for her salons, read on.

The solid start: Employee-based self-care business

For self-care business owners who want to nurture and develop emerging talents, there’s nothing like the classic employee model. On the podcast, Michelle describes how the system works at her employee-based nail salon, Saunders & James, but the same principles can apply across the industry.

Prospective employees begin the process with a phone interview, then an in-person visit and practical test. The test isn’t just to check whether new manicurists have the chops to become a manicurist-in-training. It also lets Michelle see where applicants are strongest and where she and the rest of her staff can help them grow the most. After they’re hired, manicurists-in-training level up to assistants, to juniors, to seniors, and may finally even become leads — AKA Michelle’s second set of eyes on the salon floor.

“Lead is the highest role you can have in the salon, and they do everything. They even look at the books. They can see that this person is running late, and they come in and help their client,” Michelle says. “Even though leads are still with the clientele, they’re constantly listening and helping. Now that one of my team members has flown off [to Duo, Michelle’s new independent contractor salon], we have another lead who is doing that. So I’m seeing this amazing staff structure cycle. It’s actually working. It’s incredible!”

But before we talk contractors and rentals, let’s break down some of the pros and cons of going the employee route.

Benefits

• Tighter control of brand and standards

• Better mentorship and early growth opportunities

• Less trouble from contractors splitting off and taking business with them

Drawbacks

• Less room for mid- and late-career employee growth

• Requires more direct oversight and support from leaders

The mid-career dream: Independent contractor businesses

Before opening Saunders & James, Michelle built a space that rented out to independent manicurists. She saw how that separation from the hustle, bustle, and inevitable distractions of a salon let emerging manicurists focus on building their brand — and she knows that it’s only natural for self-care professionals at that point in their career to want a little more solitude and independence. But the model had its drawbacks, too.

“What I didn’t enjoy about that particular situation was the tearing apart of businesses,” Michelle said. “When you have a manicurist who has been working with you for a long time, they learn skills from mentors or bosses, and they pick up all these things to be successful. They build a clientele, but then there’s like a rip apart. In my experience, the manicurist will leave, and then there will be bad feelings like they took the clientele. There’s drama! There’s gotta be a better way.”

Spoiler alert: Michelle thinks she’s found one. But before we go into that, let’s take a closer look at some of the reasons you may want to go for a contractor model (and why you may not).

Benefits

• Less need for oversight and intervention

• Fewer distractions for contractors

• Allows contractors to develop their own brands

Drawbacks

• Difficulties when contractors want to split off and take clients with them

• New contractors may lack support in building their business and brand

The next step: What if your self-care biz did both?

Emerging talents in the self-care industry need support to flourish. More established professionals want independence and room to grow. Yet the transition between the two can be messy, leaving owners missing out on opportunities and former employees adrift without the guidance they need to get ahead.

That’s why Michelle is making that transition part of her business model. The “beta test” is already underway, as former Saunders & James employees strike out to hang their own shingle at Duo. For their first three to six months as independent contractors, Michelle uses everything she’s built at S&J to help them — and lets them use the same resources to start building their brands. That includes help with managing payments, reaching out to clients, and beyond.

Emerging manicurists receive the consistent support they need to grow their businesses. Michelle gets to keep working with the best new talent in her industry as they come up through her system and go from employees to renters. It’s a win-win.

“I definitely see this as the wave of the future, at least when it comes to nail care,” Michelle says. “Everybody wants to be their own boss, which is wonderful, and I support that 100%. And I want to be my own boss, which is exactly why I opened my own salon many years ago.”

Michelle’s next big dream is to build a nail salon business that is truly all-in-one. New stylists enter the business as trainees, prove their prowess as full-fledged employees at the salon, and graduate to independent contracting, all under one roof. It’s a vision she’s excited to bring to life — and she hopes others in the self-care industry take similar opportunities to broaden their horizons.

“I would say this is the time to either rethink your business plan, or if you’re going to open another business or new salon, definitely make room for all of the staff structure that you think would help your business be successful.”