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Nail salon business plan for starting your own business
In today’s time, visits to nail salons have become quite frequent, and having a business in this industry can prove very profitable. If you plan to have a nail salon business, you can start with a minimal set of resources.
To make it a success, you would need a comprehensive business plan for a nail salon. To learn how to write a business plan for a nail salon, you can take help from this sample. You can also look at a detailed business plan template for gum studio. In addition, Glamor Studio offers a wide range of business planning services. Hence this nail salons business plan is well-suited for your guidance.
Executive Summary
2.1 The Business
Glamor Studio will be a nail salon business owned by Vanessa Abraham. The company will aim to provide beauty services across Atlanta. A wide range of services will be offered, from makeup packages to mani-pedis and much more. Hence, Vanessa will be using a diverse nail salon business model for Glamor Studio.
2.2 Management of Nail Salon
To ensure that all aspects of the business are coherent, you must prepare a unique fitness marketing plan for the services you offer. In your nail salon business plan executive summary, you should evaluate the technical, financial, and human resources you have at your disposal. And then construct a way to utilize and manage these resources in the best way possible.
We are providing an indoor sports complex business plan acquired by Glamor Studio to help you devise a plan for your startup. This can be very useful for your venture as this sample business plan for nail salon is written in detail and can answer most of your questions regarding the procedure of setting up a business.
2.3 Customers of Nail Salon
Although the primary focus is on the female population, our customer base includes everyone particular about their skin and beauty. In this nail salon business plan example, potential and recurring customer groups are identified as:
- College students
- Homemakers
- Working Professionals
- Teenagers
2.4 Business Target
Our target is to become the leading salon in the market, with the most loyal customer base. In addition, we aim to encourage a healthy lifestyle in the community by offering a wide range of services such as health and beauty services such as nail repairs, UV gel overlays, and nail designs.
It is important that you have sound nail salons business plan to satisfy business plan experts and keep the venture financially stable. Our financial targets to meet for the first three years of our launch are demonstrated below:
Note
It is important that you have sound nail salon business plans to satisfy business plan experts and keep the venture financially stable.
Company Summary
3.1 Company Owner
Vanessa Abraham will be the owner of Glamor Studio. Venessa completed her Bachelor’s in Business Administration from the University of Atlanta in 2015. After graduating, she worked with different fitness clubs as a trainer or a manager. After gaining some experience, Vanessa decided to have her own startup.
This business plan template for nail salon will help you out if you are thinking of opening up a nail salon like Vanessa.
3.2 Why the nail salon business is being started
Vanessa noticed that people have started to shift towards healthier lifestyles over time. Considering the potential of the growing health & beauty industry, Vanessa decided to start a nail salon business of her own. Glamor Studio promises to provide its customers an exclusive experience and an atmosphere that any other salon isn’t offering in the business. Here is a sample business plan for a nail salon relevant for Glamor Studio that will address all of your questions regarding how to start your own nail salon.
3.3 How the nail salon business will be started
Step1: Plan Everything
The first step before starting a business is to develop a nail salons business plan. To help you create a nail salons business plan, we’re providing a nail salon business plan pdf. Venessa decided to offer a wide range of services such as yoga, dance, and healthier beauty tips. Hence, you can understand how a business plan works for various services.
Step2: Define the Brand
The next step is to be recognized by defining your business’s services and values. During this time, you will have to develop and brand your policies so that your customers can identify your unique selling point and choose you over your competitors. Finally, you can define and position your brand in the market through various marketing strategies.
Step3: Establish Your Corporate Office
Venessa decided to establish Glamor Studio’s corporate office above her salon’s building in Atlanta so that the management is aware of day-to-day operations.
Step4: Establish a Web Presence
Since digitalization and online marketing are integral to a business’s success, your nail salon must have a web presence. So as Venessa decided to expand her services and thought of opening a dance studio business plan, she ensured that she would have a website for Glamor Studio.
Step5: Promote and Market
The last step is to develop and execute a marketing plan to promote your services. Efficient marketing and promotion can help you position your business in the marketplace in a successful manner. This business plan template for a nail salon will guide you on starting your own venture.
| Start-up Expenses | |
| Legal | $100,500 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $30,600 |
| Research and Development | $10,000 |
| Expensed Equipment | $56,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $223,500 |
| Start-up Assets | $288,400 |
| Cash Required | $209,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $200,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $1,023,400 |
| Total Requirements | $1,246,900 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $223,500 |
| Start-up Assets to Fund | $1,023,400 |
| TOTAL FUNDING REQUIRED | $1,246,900 |
| Assets | |
| Non-cash Assets from Start-up | $1,350,800 |
| Cash Requirements from Start-up | $102,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,537,800 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $50,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $68,000 |
| Capital | |
| Planned Investment | $1,246,900 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,246,900 |
| Loss at Start-up (Start-up Expenses) | $222,900 |
| TOTAL CAPITAL | $1,469,800 |
| TOTAL CAPITAL AND LIABILITIES | $1,537,800 |
| Total Funding | $1,246,900 |
Services
Before starting a nail salon business plan, you must be clear on what services you want to provide your customers.
Considering various nail salon business plan examples, a business plan for beauty services such as nail overlays would be different than a starting a yoga center business plan.
Since Vanessa decided to offer a wide range of services, Glamor Studio’s sample nail salon business plan can help you with your startup’s planning, regardless of what services you will be offering.
Following are the services that Glamor Studio will offer according to the business plan for nail salon pdf:
- Nail UV Overlays
UV Hard Gel is a mixture applied either on top of a nail extension or directly onto the natural nail bed to strengthen the nail. This service is quite popular amongst Atlanta’s female population, particularly the homemakers who are our target market.
- Manicures
A manicure is a beauty treatment of the hands. Your nails will be cut, filed, and shaped. You will then have your cuticles pushed back and tidied, and then enjoy a hand massage. The final step will be the painting of the nails with a color of your choice
- Pedicures
A pedicure is a therapeutic treatment for your feet that removes dead skin, softens hard skin, shapes and treats your toenails. Think of it as a manicure for the feet!
- Nail Art
Nail art is a creative way to paint, decorate, enhance, and embellish nails. It is a type of artwork that can be done on fingernails and toenails, usually after manicures or pedicures.
The costs for setting up a nail salon are similar to that of an indoor trampoline park startup cost. Hence it is not very high and has promising returns.
If you plan to offer services like those provided by Glamor Studio, this sample will answer all your questions regarding how to write a business plan for a nail salon.
Marketing Analysis of Online Store Business
You must have an in-depth knowledge of your target market before starting up a nail salon. The ideal way of knowing your customers and competitors is to do a market analysis in your nail salons business plan. This example of business plan for nail salon includes an in-depth market analysis of the previous, existing, and forecasted market trends.
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If you don’t know the components of detailed marketing analysis, you can take help from this free sample business plan for nail salon.
5.1 Market Trends
As per market research, the average gross revenue of nail salons in the U.S total up to $287,000 with a profit margin of 17%. The nail salon business is quite promising in financial returns, especially if it is opened as a franchise.
5.2 Marketing Segmentation
As per the nail salon business plan template, Glamor Studio will have the following groups of potential customers:
Business Plan for Investors
5.2.1 College Students
According to this nail salon business plan sample pdf, college students will be one of the most recurring customers of customers of Glamor Studio. They are expected to visit us for different services before farewells and parties.
5.2.2 Homemakers
Homemakers are our primary focus at Glamor Studio. UV nail overlayers are the most profitable service in our business, and hence, are most sought after by homemakers in Atlanta.
5.2.3 Working professionals
Employees in different sectors of the economy have demanding work schedules, and they barely get time for self-care. As a result, Glamor Studio offers personalized packages to such customers to avail of our services as per their timetable and budget.
5.2.4 Teenagers
Teenagers are fascinated by colorful, funky nail arts and visit the studio to get them done.
If you are confused about how to open a nail salon business and are thinking about questions such as what do I need to open a nail salon, you should start by analyzing the customer groups stated above and see if any of them can be a potential target market for your salon.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| College Students | 28% | 21,000 | 25,200 | 30,240 | 36,288 | 43,546 | 10.00% |
| Homemakers | 25% | 19,800 | 23,760 | 28,512 | 34,214 | 41,057 | 10.00% |
| Working Professionals | 27% | 20,400 | 24,480 | 29,376 | 35,251 | 42,301 | 10.00% |
| Teenagers | 20% | 18,750 | 22,500 | 27,000 | 32,400 | 38,880 | 11.00% |
| Total | 100% | 79,950 | 95,940 | 115,128 | 138,154 | 165,784 | 10% |
5.3 Business Target
- Have a market share of 20% in Atlanta within the first three years of operations
- Expand our services in East Point and Gresham Park
- Increase profit margins by 20% in the second fiscal year
- To achieve and maintain a CSAT score above 91%
5.4 Product Pricing
Our prices are similar to what our competitors offer. However, as a newly established business, our primary focus will be to establish a loyal clientele.
Marketing Strategy
To become prominent amidst a huge competition, you need to develop a unique selling point. Moreover, you also need to develop a strong marketing strategy so that more and more people recognize you.
In this business plan nail salon, we’re providing a well-thought-out marketing strategy for Glamor Studio. You can learn a lot from this nail salon marketing plan.
When marketing nail salon, Glamor Studio will use the strategies mentioned below.
6.1 Competitive Analysis
- We have excellent customer care service. We will record customers’ feedback to provide them improved services every time they hire us.
- Through our website, our customers will be able to book their appointments online.
- Eco-friendly technology for UV Acrylics introduced by Glamor Studio
- Discounts will be offered to new customers, which will help acquire a greater market share.
6.2 Sales Strategy
- We will advertise our services through Google Local ads service and social media.
- We will make our salon visible on Google Maps
- We will use SMS Marketing for our nail salon
- Introductory packages and incentives will be provided to new customers
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan
The online store business depends heavily on efficiency, technological expertise, and time management. Vanessa knew the importance of hiring skilled employees. Therefore, she created a list of required employees and selection criteria as she developed the nail salons business plan.
7.1 Company Staff
As per this nails salon business plan, Glamor Studio will employ for the positions:
- 1 General Manager
- 1 Receptionist
- 7 Beauticians
- 1 Accountant
- 4 Fitness trainers
- 1 Technical assistant
This nail salon business plan pdf promotes internal recruitment and has a promising rewards & recognition system. Before recruitment, you may use this business plan template for nail salon as a reference point.
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $35,000 | $38,500 | $42,350 |
| Receptionist | $20,400 | $22,440 | $24,684 |
| Beauticians | $223,000 | $245,300 | $269,830 |
| Accountant | $23,600 | $25,960 | $28,556 |
| Fitness Trainers | $85,400 | $93,940 | $103,334 |
| Technical Assistant | $21,600 | $23,760 | $26,136 |
| Total Salaries | $409,000 | $449,900 | $494,890 |
Financial Plan
A sole focus on increasing sales does not ensure that your business will become successful and yield profits. If the thought “is opening a nail salon profitable” crosses your mind more than once, you need to understand that to earn profits; it is essential to manage your operations timely and efficiently. To ensure that your business is not going into a loss, you must account for the cost to start nail salon, which can vary with your ideal scale of operations.
In your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. This will help you answer the question of how much does it cost to build a nail salon.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,560,000 | $1,918,176 | $2,358,589 |
| Direct Cost of Sales | $560,000 | $652,960 | $726,744 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $560,000 | $652,960 | $726,744 |
| Gross Margin | $1,000,000 | $1,265,216 | $1,631,845 |
| Gross Margin % | 64.10% | 65.96% | 69.19% |
| Expenses | |||
| Payroll | $409,000 | $449,900 | $494,890 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $588,200 | $633,350 | $688,790 |
| Profit Before Interest and Taxes | $411,800 | $631,866 | $943,055 |
| EBITDA | $411,800 | $631,866 | $943,055 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $82,360 | $126,373 | $188,611 |
| Net Profit | $329,440 | $505,493 | $754,444 |
| Net Profit/Sales | 21.12% | 26.35% | 31.99% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
1. How much money can you make owning a nail salon?
The amount of money you can earn through a nail salon depends on your nail salon business plan checklist.
2. Is a nail salon a good business to start?
A nail salon is a very profitable business, as shown by this nail salon business plan sample.
3. How much do you need to invest in a nail salon?
When learning how to start a nail salon business plan, you will also learn about the costs involved.
4. What is the startup cost for a nail salon?
The startup cost of the business will be clear through nail salons business plan.
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