ShearShare Business

Attention, Salon Suites Owners and Independent Beauty + Barbering Pros!

Wonder why you missed out on the CARES Act PPP and EIDL? Painful, we know. Listen to 30+ year industry veteran Dr. Tye Caldwell answer questions he’s been asked by fellow cosmetologists and barbers. He also breaks down how NOT to miss out should this ever happen again.

If you’d rather read the video transcript, here is the full transcript below:

0:00hey guys dr. taco were here want to just

0:04share some information with sweet owners

0:07long sweet owner Barbara sweet owners

0:09just people who are doing business as

0:11their own entity inside of a suite and

0:14they’re totally separate from the open

0:16concept known as what it’s normal for

0:19the beauty industry but now that sweets

0:21are really being in the beauty industry

0:24in the barbering industry I really want

0:26to share some information to the

0:28contract suite owners and helping them

0:32understand how and why they could have

0:34applied for plot and benefited from the

0:36PPP loan that the government was given

0:39through the stimulus package and just

0:42understand just business as as a whole I

0:45think that doing this whole pandemic and

0:48even with this money that Trump has

0:50allowed us we have ran out of money guys

0:52and I think that you know the beauty

0:55industry suffered the hardest especially

0:57independent contractors and and and and

1:01some business owners who didn’t have the

1:03proper paperwork and documents to give

1:05to the banks but for sweet owners people

1:08that are renting a suite people that are

1:11our own lease and they’re calling rent

1:15it’s essentially the same thing but if

1:17you’re in a suite and you’re renting

1:19that how you could have benefited from

1:22this kovat 19 pandemic getting some

1:27money through the stimulus package this

1:29information that I’m going to share with

1:30you guys it’s vital to going back into

1:36this new normal of business and there

1:38may be some things that you need to

1:39change and if so if you’re doing these

1:41if you’re doing these things then

1:43congratulations to you

1:45thumbs up but if you’re not is just

1:46something to keep in mind and to take

1:49with you as some knowledge and some

1:51wisdom that I want to share and trust me

1:54guys these are things that I wish I

1:56would have learned early but a lot of

1:58the things that I’ve learned has been

2:00through my own mistakes and failures and

2:04I wrote my book you see it behind me man

2:06talk about failure I actually worked

2:08were I was actually mentored through my

2:11own failures but

2:12it made me become smarter and wiser

2:14about how I do business and how I look

2:16at the industry and I just want to share

2:17that with you guys so why am i sharing

2:21this with sweet owners is because I

2:23think it’s understanding of us to be

2:28relevant to this industry in this new

2:31phase of where we’re at and how we’re

2:35understanding business but the PPP line

2:38that was money that you could have

2:40utilized for your business and I think

2:43sometimes we as sweet owners are we

2:47don’t understand the business from

2:49someone who may own a storefront or who

2:51made on their own real estate as

2:53business but you’re still a business

2:55owner and there are certain measures and

2:57certain things that you have to keep in

2:59mind that can kind of help you when

3:01something like this happens again so

3:03it’s not gonna be long I want to share

3:05these things and I want to be able to

3:07get it to you in a way where you know

3:09you can you can take it in and also take

3:12notes and and understand that this is

3:16something that I mold over over and over

3:18and I want to be able to share it first

3:20thing I want to share with you is become

3:24a sole proprietor even though you rent a

3:26suite you are business owner as a suite

3:29owner you are limited in the grand

3:31scheme of things trust me you’re limited

3:33in the grand scheme of things in only

3:35certain ways but you are still a

3:37business owner and that’s what this info

3:39is about essentially that’s what this

3:40info is about and I want to be able to

3:42share this because if you have a suite

3:44and you’ve called it ABC doing business

3:48as with the bank account go to your

3:52courthouse and and and and and file out

3:55and file your your documents doing

3:58businesses but also when you’re when

4:02you’re putting your your paperwork in go

4:05under sole proprietor then gives you the

4:08opportunity as a business owner small

4:10business owner even though you’re

4:12leasing through a salon sweet Suites

4:15business you steal your own business so

4:17you can actually go in as a sole

4:19proprietor how could you have qualified

4:22as a business is probably what which you

4:24may be

4:25him being an established business

4:27showing a business license and bowing

4:30your taxes properly as a sole proprietor

4:33you essentially need those things let me

4:36say it again being an established

4:37business showing a business license and

4:40bound your taxes properly as a sole

4:43proprietor is what could have helped you

4:45get the PPP long number three what is

4:49needed in a PPP ones most people didn’t

4:51even understand what it’s needed these

4:53are things that you know even when they

4:56brought the information for then I spoke

4:59with the banks they had to have that you

5:01have to provide payroll proof of lease

5:04payments show utilities need to operate

5:08and we’ll talk about that so let’s break

5:10this down provide payroll and your

5:14policy well how can I provide payroll if

5:16I’m paying booth rent salon suite owners

5:18barbers license viewing professionals

5:20pay to yourself don’t take your the

5:23money that you made that whole week and

5:26say ok I’m a gobble all this up this is

5:28my money

5:29I learned 16 almost 20 years ago that I

5:33was gonna pay myself out of the money I

5:36made and now I’m home payroll for my own

5:40business and so you know I think when I

5:43first started I was paying myself $500 a

5:45week I could have made let’s say I could

5:50have made anywhere upwards from a

5:51thousands of 2,000 her on in a week but

5:54I paid myself

5:55500 so that I could now as a sole

5:58proprietor could commute a payroll for

6:00myself and and and just for tax purposes

6:02when situations come up through my taxes

6:06and they want to know what are your

6:08Atilla teas are you paying and how are

6:11you paying yourself and and you don’t

6:13have other people working for you well

6:14I’m working as a business but I’m on my

6:17I’m paying myself so I’m on payroll and

6:19just think you pay yourself $500 a week

6:22and for weeks sometimes five weeks out

6:25of a month depending you paying your

6:28seven anywhere from 2,000 to 2,500 a

6:30month now you could have given that

6:32information to the banks as payroll you

6:35could’ve given them the information so

6:36that’s one number two

6:39proof of lease payments if you’re paying

6:42both rent if you’re paying lease rent to

6:45the to the to the to the salon Suites

6:47business being that’s release and so you

6:51could be paying anywhere from 250 up to

6:53you know 500 week so now you have that

6:57you have now your your payroll

7:00you have your lease payments this is

7:02where it gets a little little tricky and

7:04I think that this is where the

7:05limitations come for suite owners is

7:07that you do not have essentially the

7:10same utilities as a storefront or

7:12someone who owns their own freestanding

7:14salon and barbershop respond you don’t

7:16have things unfortunately like like like

7:21gas electric what else we thinking about

7:27we think about gas electric and that’s

7:36pretty much that’s pretty much it water

7:38water water gas electric and water these

7:42are the utilities when you think about

7:44business that people that they consider

7:51utilities things like cable phone

7:56merchant account Wi-Fi none of that is

7:59utilities and they don’t they choose not

8:01to even want to take that in but you can

8:05as a suite owner as long as you qualify

8:08on the sofa partnership as a business

8:09owner you can show payroll and you can

8:12show lease you cannot show because the

8:16salon suite owners pay the electric pay

8:18the water pay the gas and that just that

8:20that comes with the package of Pena

8:22lease and it’s probably already

8:23established in there and so deaf there

8:25responsibility for you now if you’ve got

8:26a merchant account you got cable and all

8:29that stuff even they cover the wife I’m

8:31sure these days but none of that stuff

8:33is a part of the utilities that the the

8:37government stimulus package is asking

8:39for so as a suite owner let’s run back

8:41through this you bear as a sweet pony

8:44you don’t bear the burden of electricity

8:46gas and water and these are utilities

8:49that business owners provide

8:51provide the sweets and they bear the

8:53responsibility for that but as a sweet

8:55unearth you bear the responsibility of

8:57your rent and your cable you only a

8:59merchant account essentially if you’re

9:01not a sole proprietor the only thing

9:04that you are that’s the utility is your

9:07rent if you’re so proprietor and you’re

9:09paying yourself out of the money that

9:12you make

9:12man you have created payroll and you’ve

9:14created rent so that could have been two

9:16things that you could have built our

9:18application for under PPP under PPP loan

9:22the key going forward guys is to pay

9:25yourself the title is to is to pay

9:29yourself and go under the business of

9:32sole proprietor proprietorship and now

9:35you’re considered part of a payroll for

9:37your business which means that if you

9:40pay yourself you know I think that you

9:43give yourself an opportunity to now be

9:46taken seriously from the banks to be

9:47taken seriously by the government and to

9:49learn the business so you always need to

9:52make sure if you want to own your own

9:54business one day that if you’re going to

9:57start smaller than a salon suite the

9:58responsibility that it’s gonna take to

10:00own up your own freestanding salon or a

10:03storefront the responsibilities are more

10:06and you’re gonna have to bear that

10:08responsibility and it’s not just that

10:10booth rent I know forget you know when I

10:12left the shop years ago and I was

10:14working at a salon I was making all this

10:17money I said well if I go get a shop and

10:19the rent is X X dollars amount I can

10:23cover that if as long as it stays with

10:25under this amount up to this amount I

10:28wasn’t even thinking about all the

10:30utilities all other responsibilities

10:32anything that I was going to do to

10:33upgrade my business provide for my

10:35clients I was just thinking about that

10:36one set booth rent and then maybe

10:39opening up a shop at the end and then

10:40being able to to run the business and

10:43not thinking about anyone else that they

10:45if I’m gonna charge Commission or booth

10:47rent to those people I’m just thinking

10:49about just being ignorant just not

10:51knowing as a young person that I can

10:53handle this myself just do my booth rent

10:55now realizing that I still have to live

10:57my life up no

10:58I have to know have a life I have a

11:00lifestyle for myself I want to be able

11:02to do the things to enjoy life I was

11:04gonna push all that money into a

11:05business and trust me when I did that

11:08and I didn’t know any better I almost

11:11lost my business I had to really learn

11:12quick and I had to really learn fast the

11:15understanding business from a

11:16perspective that I didn’t even realize

11:18before another thing I want to share

11:21with you guys it’s gonna be imperative

11:22that you come out of this pandemic and

11:25really begin to think differently about

11:26how you’re gonna run your businesses for

11:30whatever and whatever perspective

11:32category you’re in if your salon suite

11:35only think about it some of you won’t

11:38always stand asleep and I just mentioned

11:40that and some of you are gonna graduate

11:42to a storefront and some of you come by

11:45land and you’re gonna just have your own

11:46freestanding business and maybe own the

11:48franchise who knows you know I think

11:51these are things that you need to think

11:52think about correctly and so that you

11:54can benefit in the long run from it I’m

11:57coming down to the wire

11:59the behavior that you create now we most

12:02likely set the tone on how successful

12:03unsuccessful you are and I think that

12:05you know as I look at some of the notes

12:07that I that I put it in place the heaven

12:10you create will stick and the habits

12:12like they always like they always say

12:14bad habits are hard to break

12:16it’s best now guys to create good habits

12:18and you can only go up from there I

12:21think that your success is based on the

12:23things you’re doing so I have some some

12:25things that I want to share on what will

12:28allow you to be successful going forward

12:31and I think about this going into the

12:33next phase after this pandemic has given

12:36us the opportunity to go back to work

12:37and we have this new normalcy I want you

12:39to first think about opening a business

12:40account if you haven’t opened up a

12:42business account establish yourself as a

12:44sole proprietor think about paying

12:47yourself first and putting yourself on

12:50payroll the rest goes to the business do

12:54your taxes pay quarterly taxes and

12:56that’s one of the things I will say you

12:57know for the first few years I mean

12:59penny recorded the taxes is vital to the

13:03government and IRS seeing that you’re

13:05putting back money to make sure that the

13:08responsibility of you paying your taxes

13:10is already there

13:11you get to the end of the year they

13:13already see okay they’ve paid their

13:14quarterly taxes it makes sense for us in

13:17the beauty industry as independent

13:18contractors as business owners to pay

13:20our quarterly taxes we have to do that

13:23we don’t have the corporate things

13:25structures in place where we could do

13:28any difference so our best bet is to do

13:30quality taxes another thing I would tell

13:34people is put your earned cash in the

13:36bank and when I say your earned cash you

13:38know a lot of shops a lot of barbers

13:39they don’t have merchant accounts and

13:42they don’t have systems where they can

13:43take the money in the other way if

13:45you’re getting cash put them on your

13:46side whether they’re being like a cash

13:48box cash bag whatever you’re putting it

13:51in and take that money to the bank and

13:52deposit in your business account that

13:54way you’re showing the bank that you’re

13:56making money you’re constantly putting

13:57money in and you’re using your debit

13:59card or you you’re withdrawing it a

14:01little bit so that you can take care of

14:03your business have a little extra money

14:04yourself for whatever you need it for

14:06but to put all that money in the bank

14:08don’t go take a little bit out of your

14:09stash and buy a soda buy lunch do these

14:12things go shopping don’t do that I

14:13learned a long time ago you have to make

14:16sure that you’ve been responsible

14:18accountable and you’re also making sure

14:20that you’re putting the monies that need

14:23to be seen from the bank so they can

14:25take you seriously in a place where they

14:27can understand man this did this this

14:30business this long barber shop business

14:31is doing well and I respect that

14:33gentleman or that lady for what they’re

14:35doing and they’re and they’re showing

14:37that they’re able to to get a lot of

14:40products from us whether they be able

14:42whether it be a lot of credit whether it

14:43be another bank account whether it be a

14:44credit card those things will help you

14:46and have been a benefit of putting that

14:48money forth so the banks can see the

14:50legitimacy of you properly putting your

14:54money in the right places I definitely

14:56will also say don’t spend that money

14:58previously but just to get back on track

15:01save three six months of retained


15:03I think that’s vital anytime you’re in

15:05situations like this you’re still a

15:07little bit ahead of the curve

15:09buy your products and all business items

15:11on your debit or credit card it’s easier

15:14to track and I say that

15:16seriously guys a lot of times we go spin

15:19we go buy things and we get a receipt

15:21but if you pay purchase things off of a

15:23debit card or a credit card

15:25you can go back twelve months and just

15:27start no writing things off and you know

15:30exactly how much you spent and you also

15:32want to keep those receipts no as well

15:34so that you can actually see okay when

15:37you go to your accountant they can see

15:39okay what these are these are receipts

15:41that that are mentioned what they put on

15:43the paperwork and what they’re claiming

15:49get a lot of credit against your money

15:51if you have a great bank account you’re

15:53putting your money there and let’s just

15:55say you you have upwards of anywhere

15:58from five to thirty thousand dollars in

16:01a bank that’s liquid cash you know the

16:04bank is always willing based on your

16:05credit score based on the the proper

16:10information that they need you can get a

16:12lot of credit against your money and

16:13when I mean you can get anywhere from

16:16two thousand to fifteen thousand on a

16:18credit that is liquid cash you can go in

16:20there and get it just like you have a

16:22bank account that money helps you in

16:24times of need helps with payroll it

16:26helps you if you want to build out a

16:28salon if you want to do any type of

16:31anything that you need to do that money

16:33is there you have to and you more than

16:35likely they’re gonna get a great

16:36percentage for that if you qualify it’s

16:40hard to get them but if you can qualify

16:42to get one it’s always good to get a lot

16:44of credit against your own money I think

16:46that is vital for us to know and I think

16:48that we need to take advantage of that

16:49if we if we have the necessary amount of

16:52money that will give us opportunity to

16:54get a lot of credit last but not least

17:02all of the financial strategies I think

17:04you know if I look at my notes all the

17:06financial strategies I just talked about

17:07are really imperative to going forward

17:10and preparing yourself for this

17:12transition I think is necessary and most

17:14importantly the banking establishment

17:16would take you seriously I want you guys

17:18to trust me on that

17:19I work with banks for the longest and I

17:22and I work with three to four banks even

17:24now I think that if you build great

17:27relationships with banks you don’t just

17:28use a bank as a ATM

17:30you don’t just use the bank you know as

17:32somewhere that you

17:33give a credit card and you just don’t

17:35have no relationships get a bank develop

17:38a relationship with the banker don’t be

17:40going to all the different banks over

17:41the over the city find you one that’s

17:43gonna be a home based bank when you need

17:45something you can call that banker the

17:48Stephan’s relationship get their number

17:49if you can get close enough to get their

17:51cell number when times get tough you can

17:53reach out to them and they can help you

17:55in times of need and then when you

17:57travel and you have a bank I’m not gonna

18:00say anything

18:01name XYZ bank you can always say okay

18:04we’ll call your banker back in your home

18:06state and say okay I’m in this town this

18:07is what I need they can always

18:09coordinate things to make things easier

18:11for you when you’re in a situation where

18:14you can’t be at your bank and you can

18:17maybe do a wire go into another bank and

18:20let them talk to your banker and

18:21establish a relationship do that

18:23relationship with another bank if you’re

18:25in dire need or if that Bank doesn’t

18:27exist in that city or that town it’s

18:29always good to have relationships God

18:30relationships matter I know I have been

18:33linked in this I didn’t want to be as

18:35lengthy as I am but I want to just share

18:37these notes and give you guys an

18:39opportunity to understand how you could

18:41have benefited from the PPP loan and I

18:43think that if you continue to go forward

18:46reestablish your name if you’re small

18:48sweet and become a sole proprietorship

18:50so when something like this happens

18:51being a pandemic you will be ready you

18:54will be prepared but at the end of the

18:56day this is a people thing and and I

19:00know that of certain salons barber shops

19:04licensed beauty professionals are

19:05essential to this economy and we are

19:08really what helps people feel good look

19:11good and be at their best and just know

19:13guys that everything is gonna get better

19:15soon keep God first pray meditate get

19:18you some get you some vitamin D and

19:20enjoy life while waiting is downtime

19:22everything’s gonna be all good peace out

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