Posted: August 6, 2010

Hair stylist Galiana Lindsey operates Galiana's Hair Studio out of Salon Plaza, a suite rental provider in Virgina Beach for stylists seeking their own space.

By Danielle Walker

danielle.walker@insidebiz.com

Five years ago, Galiana Lindsey subleased a work space after a fire at her Chesapeake salon. She told her former boss there that if she ever left, she'd only work for herself.

Now, the 48-year-old stylist has her own space at 774-A Hilltop North Shopping Center in Virginia Beach.

Galiana's Hair Studio is just one of 26 salons in her building.

Lindsey works inside Salon Plaza - a suite rental provider for stylists seeking their own space.

Salon Plaza is a brand of Ratner Cos., a Vienna, Va.-based salon chain founded by Dennis and Ann Ratner. The company also owns salon brands including Hair Cuttery, BUBBLES, Salon Cielo and Spa, and ColorWorks salons.

The family-owned company has several hundred salons throughout the country.

Walking into the Hilltop Salon Plaza, a visitor encounters a maze of office-like salon suites, with signs and numbered plates guiding them to the right chair. The average Salon Plaza mini-salon is about 110 square feet.

"I rode by and saw the building and decided to take a peek," Lindsey said about her arrival in 2005. "I liked the concept."

So much so, that she's now the salon coordinator for the Virginia Beach Salon Plaza location - a liaison for Ratner Co., which runs the building.

Salon Plaza offered a way for Lindsey to have a business of her own. She likes the affordability as well as the interaction she has with other professionals without losing control and autonomy over her own business.

The first Salon Plaza opened in 1997 in Largo, Md. Currently, there are 12 locations throughout Maryland and Virginia, with a 13th planned for an October opening in Waldorf, Md.

There are two Salon Plaza locations in Hampton Roads - the Hilltop location in Virginia Beach, and another in Norfolk at 1201 North Military Hwy. Ninety percent of Salon Plaza tenants are hair stylists; a small segment specializes in nail and skincare.

Gary Ratner, a member of the Ratner family who handles new business developments for the company, is the business unit leader for Salon Plaza.

Ratner said that the benefits of working with Salon Plaza include the security of being with a well-established company, combined with the independence offered to salon professionals.

"The benefit with [Ratner Co.] is we're company-owned," Ratner said. "We've been in the hair business since 1936. We have a strong balance sheet - we're not going to go out of business."

Ratner said the concept was designed to eliminate the need for stylists to seek loans to open their own salons. Stylists bring their own supplies and tools to the salon, while furniture, fixtures and other equipment are provided for them.

Ratner said that the average Salon Plaza stylist has at least two to three years of experience in the industry, and brings in $800 to $1,000 per week in clientele revenue. Eighty-five to 90 percent of Salon Plaza tenants are female, which is representative of the industry, according to Ratner.

Although the brand encourages stylists to seek first-time ownership, Salon Plaza describes itself as a place more suited to stylists who have built a sound client base prior to renting a space.

Julie Badura, the sales and leasing consultant for the Virginia Beach and Norfolk Salon Plaza locations, said the opportunity is ideal for a specific kind of stylist.

"They are ready to branch out on their own. They are ready for the next step - to be their own boss," she said.

"This is their first step in doing that - salon ownership. Most people coming out of beauty school want to own their own salon, so this is their avenue."

The option appeals to a range of stylists, from those who've had their own larger salons and want to downsize, to those who come from more traditional commission salons.

"They realize with the economy, they can't afford to give their commissions away. They need to pocket them," Badura said.

The Salon Plaza brand is not a venture for the faint of heart, Ratner said.

"It's about mobility - it's about freedom and flexibility," Ratner said. "The ones willing to take some risks are suited to a Salon Plaza type of business. Those who want a little more security are probably better suited for one of our other brands."

About 50 percent of its stylists have been with the company five years or longer. Salon Plaza currently has more than 400 independent salon professionals.

Lindsey, who has worked as a stylist in her home state of New Jersey; in Germany, where her ex-husband was stationed in the military; and now, in Virginia, has been a stylist for 27 years. She started in a single suite, which she said runs about $185 to $195 for rent at Hilltop, and now works in a double suite, which averages around $370 at her location.

Lindsey said that she was happy in her suite, and had no plans of branching off or leaving her business in Salon Plaza.

Out of 26 salons in the building, Lindsey said there were only two vacancies, which she said was "excellent."

Among the advantages of being with the larger company, according to Lindsey, is that maintenance, electricity, water and liability insurance are all covered by her rent. Then there's the opportunity to start her own business - within a business.

"It can happen all in one day if you have the money," said Lindsey about the move-in process. It took her about four days to graduate from a seasoned stylist to a salon owner, a move that solidified her promise to a former boss. nib