Table of Content

    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.

    Start your Business Plan Now

    Start My Business Plan

    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.

    Start your Business Plan Now

    Start My Business Plan

    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.

    Nail Salon - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    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.

    Nail Salon - Startup Cost

    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

    Any questions? Get in Touch!

    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.

    Valentin Marinov
    TrustPilot

    excellent work

    excellent work, competent advice.
    Alex is very friendly, great communication.
    100% I recommend CGS capital.
    Thank you so much for your hard work!

    ∙ Valentin Marinov

    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:

    Nail Salon - Marketing Segmentation

    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

    Nail Salon - Sales Monthly

    6.4 Sales Yearly

    Nail Salon - Sales Yearly

    6.5 Sales Forecast

    Nail Salon - Unit Sales

    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.

    Any questions? Get in Touch

    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

    Nail Salon - 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%
    Any questions? Get in Touch

    8.3.1 Profit Monthly

    Nail Salon - Profit Monthly

    8.3.2 Profit Yearly

    Nail Salon - Profit Yearly

    8.3.3 Gross Margin Monthly

    Nail Salon - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Nail Salon - Gross Margin Yearly

    8.4 Projected Cash Flow

    Nail Salon - 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.

    Download Nail Salon Business Plan Sample in pdf