How To Set Up A Mobile Spa – The First Steps

HOW TO SET UP A MOBILE SPA – THE FIRST STEPS

Now that you’re a part of an upcoming brand – here are the basic steps to setting up your company. We always want you to know that ‘your success is our priority’!

1. FORM AN LLC

Companies that can help you with the setting up:

http:// www.legalfilings.com http://www.bizforward.net

When choosing company names – you can three options: a. LLC as mobileSPA (your location) – for example – mobileSPA Atlanta b. Atlanta mobileSPA – (add your own text) for example – Atlanta mobileSPA – Spa to Go! OR Atlanta mobileSPA – Day spa to go! (Or any other text that you may desire to add. c. Incorporate as any name that you want or like but indicate DBA – ‘Doing business as’ – mobileSPA Atlanta

2. Get an EIN

EIN – is Employer Identification Number. This is obtained by filling out the form SS4.

Click here to download an SS4 - http://www.irs.gov/pub/irs- fill/fss4.pdf

To obtain an EIN – there are several ways to go about it. a. You can request the company who is forming the LLC to take get you the EIN number b. You can fill in the information and fax it to IRS and they will get in touch with you with your EIN within 5 business days. c. You can call the IRS and get it over the phone for FREE (you’ll be on the phone for about 10 mins). d. You can use any of the websites below to obtain the EIN

http://www.easytaxid.com/ - only for $4.95 http://www.theformsplace.com/ http://www.ss-4.com/

3. Set up a business bank account You will have to wait till the first two steps are complete before you go to establish a business account.

Two things to keep in mind when choosing the bank a. Do they have Bill Pay? (with bill pay you can pay anyone from your bank account) b. Do they handle 1099 payroll services? Note that you will not need this immediately but it is very important to keep this handy as when you start paying people the Quarterly business tax and employee 1099 services are handled by the account. Hence you do not have to hire an accountant.

4. Obtain Business Insurance

This is a very important factor in your business. Use the company www. insurtecinc.com .

Go online and fill in the information they request. When signing up for insurance send the following forms to them: mobileSPA Personal Injury Waiver Massage therapy informed consent

Obtaining Insurance for your estheticians and massage therapists

The following website are invaluable for insurances for Estheticians and Massage therapists: 1 ABMP liability insurance: http://www.abmp.com 2. IMAGROUP insurance: http://www.imagroup.com/esthetician.html

The next most important factor in your business is securing your team of experts. The next section deals with the hiring process.

Hiring your independent contractors

1. Establishing a great mobileSPA team

It is imperative to have the big picture in mind. Don’t think that the person will only be a massage therapist, or an esthetician for you. He or she will have direct contact with your client. They will serve as the best business development people in your team. Keeping this in mind, it is very important to establish a good relationship with your employees. Paying them well is only one aspect. The others are having a fun relationship with them – this will let them go the extra mile for you, letting them know that you are always looking out for them and the more you are busy they are too. "Coming together is a beginning, staying together is progress, and working together is success." By Henry Ford

2. Pay structure of Employees

Conduct research on the pay rate of the Independent contractors in three categories: Nail technicians Estheticians Massage Therapists

Determine appropriate rate for the above. It is very important to have not only a competitive rate but also a lucrative rate for the employees. For example, if the going rate is $8 – your pay rate for the employees is recommended $12. Please note that this is just an example. It is always recommended to stay above the market rate.

MobileSPA charges a travel fee from their clients, which is given in its entirety to the spa technicians. This fee usually ranges from $20 - $50 depending on the travel.

3. Process of hiring

Advertise job opportunities 1. Post classified ads on relevant websites. Examples of such sites include: Salonchannel, Beautytech, Salonmag, Craigslist, etc.

2. Call local Massage therapy schools, Esthetics schools and Nail schools and post a job opportunity on their job boards for graduating students. Leave your contact number and website address.

Evaluate the quality of the candidate by scanning the resume.

Call the candidate first before meeting face to face. 1. This is the phone screening phase. 2. Look for two things: Enthusiasm and Attitude.

Set up the face to face in a coffee shop – always go for informal settings. 1. To get a good coverage ask them what they are looking for. What are you looking for. 2. Key aspects to look for: Team spirit and customer service skills. Spa and Salon industry is the service industry – does he or she have that attitude – ‘to serve people’? "Alone we can do so little; together we can do so much." Helen Keller

Check references

If hired, call and have them sign the paperwork – that includes the following : 1. Exhibit A – Independent contractor agreement 2. W-9

After they have signed the paperwork, hand them a copy of the employee manual. (Enclosure – mobileSPA Hiring Kit)

"Many of us are more capable than some of us . . . but none of us is as capable as all of us!!" Now that your hiring is in the process, the next most important thing is organization of the employee records.

Organizing workers’ records

Maintaining a file on each Independent contractor - Each file should have the following: 1. Signed Independent contractor agreement 2. Esthetician / Nail technician / Massage therapy license 3. All Contact Information of the Independent contractor 4. Person to notify in case of emergency 5. Give us name address and phone contact 6. Relevant information on employee – SS#, Copy of Driver’s license. 7. Performance evaluation of the contractor – every 90 days. 8. Any ideas submitted by the contractor as part of the Employee Quality Improvement program 9. W-9 10. Any direct deposit instructions

Each of the independent contractor’s should receive a copy of the employee manual.

PAYING YOUR INDEPENDENT CONTRACTORS

This is for 1099 independent contractors

1. Open a business account with Bill Pay (all banks come with Bill Pay now) 2. Add Payees to Bill Pay 3. Select the account from which you will pay the employee 4. Add a memo with the hours and the travel fee 5. Schedule a day of the week to run your weekly payment or do it bi-weekly 6. Schedule the payment on the day and the banks send the check out directly

The other option is to enquire in the bank if they process 1099 payroll and pay them a monthly fee to handle it. (This is a great option as this also ensures that your taxes are paid on time.)

For W-2 employees use Paycycle (www.paycycle.com)

Note. At launch 100% of the people working should be as independent contractors.

CREDIT CARD INFRASTRUCTURE – ACCEPTING CREDIT CARDS

We use two companies for our credit card processing:

1. PROPAY (www.propay.com)

2. 2CHECKOUT.COM (www.2checkout.com) mobileSPA headquarters will sign you up for either Propay or 2checkout. However, Propay requires a credit check.

Salon Software training mobileSPA headquarters will schedule a training with you for Salonmaster – an internet based Point of Sale system.

The company we use is www.salonmaster.com

Proactive Business Development

Before you go to the next section of ‘Marketing mobileSPA’, it is highly important to get a headstart on business development.

1. Get a list of local bridal shows 2. Get a list of women owned businesses 3. Get a list of Women’s Networking organizations 4. Get a list of wedding directory websites (example. www.maweddings.com) 5. Make a list of ‘Contacts’ you have in different corporations 6. Make a list of ‘Contacts’ you have in health clubs 7. Make a list of ‘Contacts’ you have in Churches 8. Obtain a list of local churches 9. Obtain a list of local health clubs 10. Obtain a list of hotels