How to Start a Nail Salon as Profitable Venture
Do you have intentions of starting your nail salon?
Starting a nail salon business can be quite demanding and grueling. Nevertheless, it doesn’t necessarily apply to everyone, so it doesn’t have to go that way for you. There are many ways of managing and running a nail salon, and some methods have proven to be very effective as they prevent stress and save time.
As an upcoming entrepreneur, you may be uncertain of the tactics to apply as the business grows, and customer demand rises.
However, there is no need to panic as we have outlined ten useful tips you would find very helpful.
By applying these tips carefully, you can be sure that your nail salon will run as smoothly as your finest coat nail polish.
Open your nail salon by employing these tips:
- Have a distinctive vision
The intense competition in the nail salon business is factual and widely known. Even though the nail salon business is remarkably profitable – to the tune of $8.51 billion in 2015 ; If you intend to stand out and maintain your nail salon as a long-standing rival, you must understand the unique benefit or service you’ll be offering to your clients. A quality that would be impossible to get anywhere else.
If you still find everything confusing at this point, consider putting your focus on a specific service area. This may include providing an accelerated (but diligent) service, a luxury setting, or an innovative marketing strategy, like membership plans.
- Keep Aesthetics in mind.
Another key to ensuring that your nail salon draws the attention of an exclusive, massive, and loyal customer is simply to be innovative about how your company appears indoor and outdoor.
By having a picture of the specific look or environment of how you want your nail salon to be – and employing thoughtful and professional interior designers your nail salon can sparkle as bright as your client’s nails.
Aesthetics make a huge difference by making your client’s experience in your salon worthwhile and unforgettable. However, many nail salons make the same mistake of being simple and poorly furnished.
However, having a clear direction of where you’re heading to, and some conceptual design will tremendously increase your salon’s value, eventually attracting more customers than ever before.
Read Also: How to Start Baby Clothing Business
- Choose an ideal location.
The rate at which people would storm your nail salon depends greatly on accessibility and convenience.
It doesn’t matter if you offer the best service. At an affordable price, if your salon is situated at an inconvenient and out-of-the-way location, we can pretty much guarantee you that potential clients would prefer to go somewhere else.
Make great investments in your business by being patient during the location-hunting process. It’s a crucial decision that will inevitably impact the performance and success of your business.
If you’re not certain of which area would work perfectly, keep your demographic goal in mind or try discussing the situation with a professional.
- Don’t compromise with the quality of your appliances or furniture.
The best way of making investments that would last for a long time in your nail salon is by acquiring quality equipment and furniture. The endeavor to provide the best possible experience for both your employees and customers should start. You may find out that it is gratifying going with cheaper options, particularly because you’re just getting things started. We would advise you don’t, but you should rather invest in top-notch products or gradually see your business struggle. Keep your employees and customers satisfied by buying cozy furnishings and durable, high-quality equipment.
- Hire the way to the top
As a business based on rendering services, your customer’s satisfaction with you and your employees determines the growth of your business.
Ensure that you hire workers who understand and strive to maintain the standards of you and your business. You can do that by developing a simple, effective mission and vision statement to convey to your interviewees.
If you believe they agree with the vision, or that their principles are compatible with yours, you might have an exemplary new worker in your hands!
It doesn’t stop here, and you should know that the relationship with the workers is a two-way street, leading us to the next tip.
- Demonstrate a caring attitude to your workers
Sadly, this is a rampant mistake many owners of nail salons make.
Although offering excellent customer service is essential – you can’t possibly hope to have a profitable business in your hands when you don’t treat your workers properly!
Research to ensure that the workers are reasonably paid for their work and effort.
Make sure you create an atmosphere and relationship where they can be very frank with you and share their opinions or complaints.
Miniluxe, the nail salon chain in Boston, has explained the reason for their generosity and the excellent handling of their workers by providing paid holidays and medical insurance.
Go above and beyond for your workers, and you can be rest assured that they will do the same for you and your clients!
- Power Up Your Business With Nail Salon Software
As an entrepreneur, in the long run, you will eventually understand that money is time– and one of the easiest ways of saving time is by using software to coordinate and handle some of your salon’s tasks.
For instance, the main use of a digital appointment strategy would create a whole new comfort for you, your workers, and your clients.
When the software has been set and runs efficiently, you can expect to see a substantial decrease in no-shows with automatic instant messages.
You will also be capable of storing customer details quickly, for references later – including favorite nail styles, used colors, birthdays, scheduled holidays, and much more.
Using the software, you’ll even be capable of giving clients an easy way of booking their appointments online –this is something they’ll certainly enjoy and embrace.
- Advertise & Advertise through Social Media
It has been repeated almost a hundred times so far, so you can agree that social media is a very efficient way of publicizing your nail salon.
With the demographics once more insight, let your focus be on prominent social media platforms like Facebook, Instagram, and Twitter.
Create an account for your business on these platforms and get yourself to work on creating an online presence.
Besides paying ads on these platforms, you will be shocked by how powerful online advertising can be – which includes working with “marketers” (or those with a huge presence on social media) to advertise your services.
Read Also: How to Increase Sales Without Extra Marketing Costs
- Budget Yourself and Stay Accountable
Like every new entrepreneur, the first few years in any kind of business can be a financial challenge.
It would require some time before the business grows to be very successful.
This is why it is extremely important to create a budget and keep your spending under control.
Please ensure you record every cost to decrease the possibility of being frustrated later in the process.
If you’re extremely nervous about handling your financial affairs or need additional advice, you can always seek the assistance of a qualified accountant or business counselor.
- Work out Funding & Financing Details
Sad to say, establishing a nail salon business is not usually a cheap affair!
You can be certain that you’ll be working very hard to make sure your initial funding is already in-check as you strive to set up your business.
If you intend to seek a conventional business loan, collaborate with investors, or collaborate with close friends and family or business associates, it’s prudent to make sure all is provided on-time before venturing into your amazing business.
Besides the ten points mentioned above, there are other essential steps you mustn’t skip. I don’t want to assume that you already know them. These steps include the following:
Register Your Business
You should register your nail salon in order to give it a legal status. You need to determine the legal structure of your nail salon. It can be a sole proprietorship, partnership or a limited liability company. Each of these legal structure options has its pros and cons. For instance, if you register the business as a sole proprietorship, you will have the full control of the business. Most nail salon owners go for sole proprietorship. It is the easiest and cheapest way of structuring a business. However, at the same time, you will bear the whole risk of the business. If you don’t want to do it alone, you might consider partnership. Partners in a partnership are collectively responsible for all business debts and profits, and also have full control of the business. For a limited liability company, the company is seen as an artificial body that is separated from the owners; it can sue and can be sued. Unlike sole proprietorship and partnership, owners are not personally responsible for business debts and liabilities of the limited liability company.
Also, it is important that you register your nail salon with relevant tax authorities both at state and federal levels. As an entity, there are certain taxes your business should pay. Also, if you hire staff working for you, you need to deduct tax from their salary which you are expected to remit to the state tax authority. Doing otherwise will be seen as tax evasion. Of course, this has its own legal implications.
You also need to open a bank account for your nail salon. It doesn’t matter if you have a personal bank account, you still need to open a separate account for your nail salon. This account is where you can lodge all the revenues and pay all the bills relating to the business. In this way, you will be more accountable. At the same time, this can make it easy for you to source loans from the bank when needed. Furthermore, having a bank account makes it easy for your accountant to prepare the financial statements of your nail salon.
What supplies do you need for a nail salon?
As they say, you’re as good as tools, so why don’t you do yourself a favor by using the best ones.
Here is a list of what you’ll need
- Quality Nail File Kit
- Nail Cleanser
- Reusable Nail Forms
- Pedicure Foot File
- Diamond Nail File
- Sable Brush
- Toe Separators
- Towelettes
- Cuticle Oil
- Cuticle Exfoliator
How much do nail salon owners make in a year?
Nail salon owners can make between $40,000 to $75,000 depending on how successful the business operates.
How much does it cost to open a nail salon?
The costs vary, but it’s between $50,000 and $100,000. However, the cost can reduce, if you plan to start from home or a small kiosk.
Ten mistakes to avoid when starting your own nail salon business
The fear of failing or being rejected might discourage you from starting your own nail salon business. You can be rest assured, knowing that every successful salon owner made mistakes on their journey to victory.
- Overpaying Technicians
Most people believe that without offering high commissions, they would not be able to employ professional technicians. But this doesn’t apply to all cases as there are still chances of getting qualified technicians at just 50percent.
Paying technicians about 70 percent knowing that you just started this business is a very wrong decision. Avoid overpaying technicians, especially as a new salon owner, because paying too high at the beginning only be brings problems along the way.
In the long run, you might be unable to keep up with the payment and end up letting them go making you resent the decision you made earlier.
Nevertheless, to avoid this, you should simply come to terms with the price you can afford for the long term.
Make the technician aware of your business strategy by convincing him/her how amazing and exciting your salon is. Afterward, if he/she finds your plan convincing and believe that your salon will turn out to be successful, they’ll want to be a part of this success.
- Inadequately screening prospective technicians.
Don’t always be in haste to hire new technicians just because you want to keep your salon busy straight away. You should spend time examining their training, work history, education, and try knowing if they possess the skills of a potential employee.
Many owners go through lots of problems when they believe their employees’ right from the start, trusting that is trustworthy and would do a great job without watching them closely.
Due to the reviews from other salon owners, you might get completely fooled after paying them since some might show up late or never, and you might just end up doing everything yourself.
- The hiring of over-experienced technicians
There are downsides to employing technicians that are considered too knowledgeable and experienced. Hiring technicians with only one year’s experience and no clientele of their own is more preferable. When an individual works in a salon for a very long time, they tend to imbibe the culture and style of the salon, which includes all the bad behavior that was tolerated there, and this might be a different case in the new salon. A technician can be “too perfect” to be fascinated by her innovation at the detriment of the salon. These artistic individuals think they’re the most important figure, while the clients should be seen as the most important figure. Customers go to a salon because they like how their nails are being styled and not because they have the most artistic employees working there.
Frank Burge Sr., who runs the Day Spa Boutique Salon with his son, Frank Burge Jr., has had salons since the 1950s, and according to him, the experience isn’t what matters the most, it’s how much the individual requires that job at that moment. Your main objective should be employing someone with a reasonable amount of training and in dire need of a job. People might want the job as part-time because they haven’t been able to decide if they wish to the situation and before you know it they’ve started searching for another job right away. It is advised that you employ an individual who needs a full-time job and can work for more than 40 hours for a week.
- Hiring Technicians without Trying Them Out
Giving prospective technicians a hands-on trial is a brilliant idea, and we would recommend you implement it. The good references aren’t enough as they don’t meet your requirements if a test isn’t conducted. Don’t let your anxiety of filling a spot drive you into making this mistake.
You can have them practice and show you what they’ve got with a hired model. This is a better way of avoiding disastrous occurrences, such as a situation where your client is being injured. You wouldn’t want that happening cause you might end up being sued, and if things worsen, your salon might get shut down.
The best solution is for you to hire them and place them on probation or a trial basis for a couple of weeks.
- Choosing a location that demotes your salon
In a hurry to start their salon, many salon owners use any location available. Choosing the right place for your salon is extremely important for the success of your salon. This is because availability and fame determine the number of customers you’ll be getting.
Some shop owners are situated at shopping centers where they are very accessible and visible.
Prosperous salons make their layout and their signboards clear that they specialize in offering nail services.
Don’t forget your location can either demote or promote your business. It all depends on the choice you make.
- Failing to take care of the business
In this case, it is more beneficial than you build and utilize your business sense.
The moment you become the owner of a salon, you can no longer depend on your creative abilities to sustain your business and keep it moving. The biggest mistake you can ever make working as a salon owner is managing the salon as a creative venture instead of a business venture.
Being conscious of your reputation and how the public views your salon is a part of taking care of your business. Several salons testified and emphasized that word-of-mouth is the first and sure conduit for new customers.
It has been tested and confirmed that out of every advertisement and promotional strategies, just two works perfectly: yellow pages and word-of-mouth.
- Not placing a yellow page ad.
Appearing in the yellow pages is a must. Just like a certain salon owner said, even though you don’t get any new clients from the yellow pages, existing clients might sometimes need to try looking up your address and phone number.
Is placing a large ad necessary? Many salon owners did not consider the size of the ad as relevant to where it shows up.
Whenever the roll call comes, is your salon going to appear last?
A nice way of pushing it to the front and making it appear before others on the yellow page is by adding an A to your salon’s name.
By doing this, you have stepped up your game, and you can expect a significant improvement in your salon.
Regardless of where you choose to be registered under, it could be Manicures, Fingernails, Pedicures, Beauty Salons, or all of them just get registered.
Placing your salon in more than one book wouldn’t hurt at all. It might be costly, but advertising in at least two books is deemed necessary.
- Advertising ineffectively
Have you been advertising the salon properly?
Even though being near a supermarket can provide you with many walk-in customers, it doesn’t necessarily imply that advertising at the back of the supermarket receipts would bring you, customers.
This would make you spend unnecessarily as you might only get a few or no response at all.
Advertising the service of your salon in the church bulletin is another good idea as it brings lots of customers.
Bridal advertising is an even better way of advertising, and it still works. You can advertise your services on local wedding magazines every year.
Brides always want to put together special contracts and packages, and they don’t say no to highly-priced services.
Using promotional signs for walk-bys to stop by is also helpful.
Read Also: How to Start a Floral Shop Business
- Being Computer-Phobic
Be mindful of the power of the computer. Initially, large weekly ads used to appear in very costly papers. But, it’s no longer necessary in this modern age. We make use of the database. Now, you can get notified when you have new clients. You can also do your mailings online. It is advised that every salon owner becomes computerized.
- Turning a Deaf Ear on Employees
Your employees are really important. You possibly worked very hard to get them, so take measures to keep them. Ensure you solve any crisis as soon as they come up. When you overlook a minor problem, it might escalate into a major problem. Cetta Mastronardi, the owner of Cetta Boutique Ltd. in Port Jefferson, N.Y., points out that maintaining a positive relationship between staff and management makes things much smoother in the salon. At the start, she didn’t state nor clarify the rules and regulations, which created tension.
Be mindful of little things like who does the cleaning after work. You must ensure that your employees are comfortable, though you might be paying the rent and the advertisement costs, the technician would always feel like they’re doing all the work. If they decide to leave, they’ll take the entire client’s along. Making your employees happy pays off in various ways. Encourage and accept creative inputs from them. Make sure everyone is unified and working towards achieving a common goal.
Finally, we hope this article was very helpful! We sincerely wish you success as you enter the world of being a salon owner.