Do you want to start a nail salon business? If the answer is yes, you have landed at the right place. Here in this article, we guide you stepwise in starting a nail salon covering aspects like the process, equipment, licenses and permits, and much more.
Is Nail Salon Business Profitable?
Owning a nail salon business can be fun and profitable too. There is arising demand for nail-related beauty care services from men and women across the globe.
The global artificial nail market is estimated to grow at a rate of 4.5% in the coming five years. In 2024, the market is expected to reach $1.2 billion. As per Statista, there were almost 395,600 nail technicians and more than 56,300 individual nail salons in the United States.
Nail Salon Business Plan Checklist for Beginners
Here are the 10 Steps to start a successful nail salon business:
1. Create a Business Plan
Like any other business, it is essential to have a properly documented business plan for your nail salon. It will not only work as a roadmap for future success but also an important document for sourcing funds.
Some of the basic topics to include in your nail salon business plan are the startup and recurring costs, target customers, pricing, hiring plan, pricing, and profit margin.
2. Select the Type of Services
There are a wide array of services that you can offer from a nail salon. You need to select them based on the demand of the target customers. Accordingly, select the specific services that you will be providing to your clients.
Some of the nail salon services you can provide are as follows:
- Nail polish
- Nail repair,
- Hand Conditioning.
3. Find a Suitable Location
After creating the business plan, this must be the first step towards establishing your nail salon business. Choosing the right location is an extremely important aspect of a successful nail salon. A 300 sq ft minimum space is required to establish this type of nail salon business. Having a good location will set you up to expose your business to new customers. Your budget in this regard will play a critical role.
Strip malls and shopping malls are good because they attract large foot traffic. Concentrate on the interior and fixtures that you will need to have.
If you are short of money, consider starting a nail salon business from your home. This will free you from rent cost and startup investment becomes much low.
4. Buy Equipment & Supplies for Nail Salon
The single-most expense in starting a nail salon is equipment and supplies. You must make a list of the tools you need to do as a nail technician. Luckily, we have done exhaustive research for you. Here are the basic tools you need:
- Nail Polish Racks
- Manicure Stations
- Pedicure Chairs
- Sanitation Stations
- Drying Lamps
- Nail File & Buffer
- Table Lamp
- Nail Drill
- Nail Drill Bits
- Acrylic Powder & Monomer
- Hard Gel
- Acrylic & Gel Brushes
- LED Nail Lamp
- Base & Top Coat
- Nail Dip Powder
- Nail Polish Remover & Cotton Balls
- Nail Polish Wall Rack
- Isopropyl Alcohol
- Nail Tips, Glue & Forms
- Cuticle Nipper
- Cuticle Scissor
- Foot Spa Basin
- Foot file
- Manicure Nail Brush
- Manicure Tray
- Mixing bowl
- Nail Buffer
- Pedicure Nail Brush
- Plastic Container for Cotton
5. Create a Price List
There are two ways of fixing the pricing strategy. One is cost-plus and the other is value-based pricing. If similar nail-related services you are offering are also provided by other local nail salon business, it is better to go for cost-plus pricing. It is just adding the profit-margin after calculating the actual cost.
However, if you are providing unique services that other competitors are not offering to customers, you can opt for value-based pricing.
6. Obtain Permits and Licenses
Every country and state has different legal requirements for starting and running a nail salon business. For example, if you are from the United States, you will need a building permit, business license, cosmetology License approved by the concerned state, employer identification number(EIN), to start a legally-compliant nail salon business.
In addition, select a proper business structure under which you are going to run the business. It can be a sole proprietorship, partnership, or Limited Liability Partnership as per the scale of operation. Talk to a local business attorney or government authority if you need further help.
7. Calculate the Cost of Starting a Nail Salon
The biggest component of startup cost for a nail salon is the retail space rent. You need a minimum of 800 sq. ft space to open a nail salon in the United States. If we take an average rent cost of $100 per sq. ft, the total retail space establishment cost stands at $80,000.
In addition, there will be the cost of equipment, furniture, the salary of staff, legal expenses, administrative costs including software, and promotional expenses. So, a minimum investment of $1,00,000 will be required to start a nail salon.
8. Estimate How Much Profit Can You Make as a Nail Salon Owner?
The profit in a nail salon business will depend on the number of customers you are serving and the margin of profit you are making for each customer. Also, it depends on how many nail salons you are running.
A successful single nail salon business owner on average earns between $50,000 and $80,000 in a year in the United States. Most nail salon business owners after the first successful launch opt for multiplying as the format can be scale easily.
9. Setup Accounting & Administrative Processes
It is expected to have a lot many financial transactions with customers in a nail salon business on a daily basis. You must fix proper accounting processes and select accounting software. a point of sale software(POS) is essential as it provides customers an easy option of paying service charges. Ensure proper standing order procedure for scheduling customer appointments and service follow-ups.
10. Have a Promotional Plan to Get Clients
Word of mouth advertisement still works great for beginners into the trade of nail salons. Promote your nail salon business you can go for media coverage by targeting reporters and editors who cover beauty and fashion. You may go for some press releases making your content news by highlighting special events and seasonal offers. You can start advertising with local print, TV, and radio consistently.I
n terms of getting a potential client, you can go for an opportunity of offering service at their doorsteps for those who can’t come to you. Clients can include busy professionals, residents of nursing and retirement house, hotel guests, pre-wedding bridal parties, and just anyone looking for great and comfortable in-house or office manicure and pedicure services.
Go for online promotion by presenting a decent and professional website detailing the services you are offering with an online appointment system. Educate your client by writing some content about the benefits of nail caring.
We hope this nail salon business plan guide will help you in a better understanding of starting and running the business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.