Booth & suite life

The Mentor Chair · Booth & suite life

Everyone says I should get a suite. Should I?

The situation

The advice is coming from every direction and you want to see what it means for your numbers.

From the mentor chair

Before worrying about how much commission you're giving away, ask: how much business can you realistically bring with you?

Don't just count clients. Look at what they book, how often they return and the revenue that clientele realistically produces.

Then calculate the expenses you'll take on independently: rent, products, supplies, software, processing, insurance, marketing and other overhead.

Don't assume every client will follow. Run a conservative scenario.

Then ask another important question: do you actually want to run a business?

Independence gives you control, but it also gives you responsibility.

There's nothing wrong with choosing commission. Suite ownership isn't automatically the next stage of success.

Mentor principle

A suite isn't a promotion. It's a different business model.

Behind-the-chair tip

Don't ask where you keep the highest percentage. Ask which setup works best for your clientele, expenses, goals and the way you want to work.

Look at your numbers

Run this situation through the tools you already have.

What I'd do next

Estimate the clientele you realistically expect to follow, calculate the service revenue they generate without relying on tips, estimate your independent overhead, and compare those numbers before signing a lease.