A nail salon provides pedicures, manicures, and other treatments (to repair broken or damaged nails) to make customers’ nails look great. Opening a nail salon is the perfect business idea if planned well from the very beginning. But how will a salon owner know that his or her business will be financially viable and work in the competitive market? There is more to successfully running a business than just investing and registering it with the state. And the most important step is to have a detailed nail salon business plan.
Learn why having a salon business plan is essential for an entrepreneur.
What is a Business Plan?
A nail salon business plan clarifies thoughts and ideas related to setting up and running a business. It can spot potential financial problems, mitigate their risks and act as a benchmark to track progress. Moreover, it helps a person to step back and look at what’s working wrong business and what should be done to improve it.
A clear plan is essential for the success of the business. It maps out the specifics of the business and discovers some unknowns. It considers:
- What are the startup and running costs?
- How long it will take to break even?
- Who is the target market?
What are the costs involved?
Most nail salons are at least 1,000 sq ft, and building it out typically costs between $75- $125 per sq ft. This makes a total build-out cost of $75,000 -$125,000 for a 1,000 sq ft salon.
Also, business owners can reduce the startup costs by purchasing used equipment from a previous salon owner if good in condition.
What are the ongoing expenses?
The ongoing expenses for a nail salon include rent, employee’s wages (whether salaries or commissions), supply costs (usually between 2% and 8% of sales), taxes, insurance, and maintenance on equipment.
Who is the target market?
These days not only women but men also take good care of their nails. So, a nail salon business’ ideal customers are those who appreciate fashion, take care of their appearance and have some discretionary income. A fashion-conscious person is likely willing to spend money on their nails.
How does a nail salon make money?
There are a lot of different kinds of manicure, pedicure, nail art, and other treatments available at a salon, so a nail salon owner makes money by charging customers for these services. Some owners also sell premium nail care products.
In addition to preparing a nail salon business plan, a person also has to deal with the other relevant factors as follows:
Choose the Right Name
Choosing the right business name is a critical job. It must be related to the nail or something related to that. Also, we recommend checking if that name is available as a web domain and if not; secure it early so others can take it.
The Right Location
Picking an ideal location takes a lot of time. A person can do a little bit of research on his own or can also contact the estate agent to find the best place to set up a nail salon.
Always look around at the competitor’s location and try setting up far from their salon. Judge if there is a large demand for nail services in that area.
Don’t Buy Cheap Equipment
Invest in high-quality equipment. Set up a certain budget for chairs, nail equipment, and other things. Low-quality equipment or uncomfortable chairs is going to be annoying for the employees to work as well as for the customers also and they aren’t going to be happy. Remember, if a customer has a bad experience due to any reason, it’ll be hard to get them back.
Communication is the Key
The staff training required for a nail salon job is inexpensive and small; the work does not require a professional level of qualification so far as the person is able to communicate effectively.
Set the Right Atmosphere
Customers visit nail salons to relax after a hard week. So, a salon owner must make sure that clients are comfortable in every way. Have dim lighting with soft music creates the right atmosphere. Furthermore, it is essential to invest in a good ventilation system to get rid of those harsh chemicals smell used during the nail treatments.
Take Care of Cleanliness
A clean salon is a happy salon. Nail equipment builds bacteria after every use, and if it is not clean, customers can get fungal infections. To this end, it is vital to set up a daily cleaning routine; give cleaning duties to the staff at the end of their shift. Moreover, make sure all of the equipment needs to be sanitized on a daily basis or after every use––invest in the medical-grade stuff.
Be Polite & Friendly
It’s not easy to handle customers. If a customer is being hard, don’t yell, talk to them with kindness instead. Also, train the salon staff to be courteous all the time. One of the best ways to create this friendly and welcoming atmosphere is to hire dedicated receptionists. The job of the receptionists is to greet customers when they walk in through the door, show them nail packages, process transactions, and answer the phone.
A business plan isn’t a document the business owner can create once and store in a cupboard. But it’s a living guide to run a business successfully. Make a plan and try to be realistic about the next three to five years. However, a person must update the business plan when circumstances change in the future.
We advise you to hire an experienced nail salon business plan consultant. The job of the consultant is not just limited to compute the business start-up or running cost or bringing in unplanned expenses. Besides, they provide financial forecasting (aka financial feasibility) to estimate the future of your business; its profitability forecasts, the need to take a loan, and much more.
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