Sapna is a content writer at Sprintlaw. She has completed a Bachelor of Laws with a Bachelor of Arts. Since graduating, she has worked primarily in the field of legal research and writing, and now helps Sprintlaw assist small businesses.
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A good beauty specialist is often well sought out, booked and busy. As the beauty industry continues to grow, it looks like the demand for beauty services isn’t going anywhere anytime soon. If you have the passion, skills and the desire to start your own beauty business, offering beauty services from home is something you might like to consider.
Running a beauty business from home can be a resourceful and convenient way to manage your business, however there’s a couple of legal factors that need to be addressed first.
Can You Run A Beauty Business From Home?
Yes, in most cases you will be able to run a beauty business from home. However, this will depend on where you live and the zoning laws in your residential area as well as any other requirements imposed by your local council. You can usually look all of these up online and find out if there are any regulations that will apply to your beauty business. In some cases, you may need to apply for approval to run a beauty business from home, so make sure you get that sorted out before conducting any business.
Another factor that will determine whether or not your beauty business can be a home business is the type of beauty business you plan on setting up. There’s a lot of aspects to the beauty industry. Which sector of the beauty industry will your salon be part of? Perhaps you’ll offer facials, nail services, hairdressing or makeup. Maybe it will be a combination of services.The type of services you offer will also determine the kind of regulations you need to follow, permits you need to attain or qualifications you need to have. Keep in mind, you might not be able to run all types of beauty businesses from home. Therefore, it’s important to understand any limitations that might apply and plan out your business accordingly.
Do I Need A Business Plan To Start A Beauty Salon From Home?
Speaking of planning out your business, It’s important to document all your information and keep it in one (preferably organised) document. This is where a business plan is useful. A business plan contains all your ideas, important information and research so you can always refer back to it. In business, things don’t always go to plan but it’s still important to have something that can help keep you on track. There’s no hard and fast rule for making a business plan but they generally include the following:
- Executive summary
- Description of your services
- Financial planning
- Marketing
- Management and operations
- Legal matter
- Business goals
- Competition and risk management
It’s important to take your time to carefully think about everything that will be relevant to your business and have it written down in your business plan. If you don’t have all the answers just yet then don’t worry! It’s perfectly normal and it helps to talk things through with an expert. Our small business lawyers are always happy to answer any questions you may have.
How To Start A Beauty Salon From Home
Once you’ve determined any local regulations that might apply to your business and made a solid business plan, then you need to register your business. Your business registration will depend on what kind of legal structure your business will have.
Some business owners like to register their business as a sole trader and become personally responsible for the business. However, others prefer to register a company, which is a legal entity on its own. A few others decide to go into business with another person and form a partnership. These are the most common and basic business structures but you can always explore other types of business set ups, like a Dual Company Structure. If you’re feeling lost on what structure is best for your business, we recommend getting in touch with a legal expert that can help you make the right decision for your business.
IRD Number or NZBN?
If you register your business as a sole trader, then you will require an Inland Revenue Department (IRD) Number. Getting an IRD number is relatively simple. You can apply for it online by answering a few questions and paying the fee. When your application has been approved, you will be emailed your IRD number.
If you’re registering a company, then you will need to attain a New Zealand Business Number (NZBN). Setting up a company requires more thought and planning, as well as adhering to a few more regulations. Getting the help of a legal expert is wise as they can make sure everything is done right.
Business Name Registration
If you're registering a business, then you will also need to register your business name (unless you are using your personal name). Before committing to a name, we recommend checking the register of names to see if the one you want is available to avoid disappointment. Once you have selected a suitable name for your business, you can apply to have it registered online.
Registering your business name doesn’t mean you own it, nor does it prevent other businesses from using that name. If you want your business name to be exclusive, then you can always consider registering it as a trade mark with IP New Zealand.
What Legal Agreements Do I Need To Offer Beauty Services From Home?
The legal agreement you need will depend specifically on your salon and the types of services you offer. Legal agreements serve the purpose of protecting your business. It’s a good idea to assess the potential risks your business might be exposed to (for example, liabilities) and see how they can best be mitigated. Understandably, it can be difficult to know what risks are out there so consulting a legal expert is always a good step.
Some legal documents that can help protect your home beauty business includes:
- Business Terms and Conditions
- Service Agreement
- Employment Agreement
- Contractor Agreement
- Rent-a-Chair Agreement
- Workplace Policy
- Privacy Policy
What Else Do I Need To Consider?
As a business owner, you will be providing a service to consumers. This means that you will need to make sure all your practices are compliant with New Zealand Consumer Laws. Generally speaking, this means not engaging in conduct that is misleading or deceptive, ensuring your contracts terms are fair, providing warranties and refunds where possible and overall, running your business with consumer rights in mind. It’s important that you're clear on your duties and obligations as a business owner towards all your customers. If you have any questions, one of our experts in consumer law would be happy to address them for you.
How To Start A Mobile Beauty Salon Business
Instead of your clients coming to you, you could go to them! In order to do this, you’ll need to start a mobile beauty salon business. The same rules and regulations will apply for a mobile beauty salon as the ones we listed above for a home beauty business, plus a few additional legal considerations.
Firstly, you’ll likely be moving from area to area, so you need to make sure it’s okay for your mobile beauty service to function in all those locations. Do you research and apply for approval where needed.
Secondly, it’s also important to look into any regulations concerning your transportation. You might have a specific van, vehicle or require adjustments to your transport in order to ensure you can carry everything with you- it’s crucial that everything is done within legal boundaries. Moreover, make sure your insurance coverage is updated to reflect business activities- it’s necessary to be covered in case something goes wrong.
Next Steps
No matter what kind of beauty business you plan on starting from home, it’s important to carefully take care of each legal component so your business can have the best start possible. To summarise what we’ve discussed:
- Before you start planning your home beauty business, check local council regulations and zoning laws
- The type of beauty business you run will also impact any regulations you need to follow or qualifications that need to be attained
- It’s wise to create a business plan so you can have all you research and ideas in one place
- Think about what legal structure would be best for your business, then get it registered
- Make sure you have all the right legal agreements drafted so your business can be protected
- It’s crucial to understand your business’s obligations under the New Zealand Consumer Laws and follow them
- You could also consider running a mobile beauty business- there are likely to be some additional legal considerations for this
If you would like a consultation on offering beauty services from home, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
Sapna Goundancontent writer
