A lot of people today would rather have their nails professionally done than make them themselves at home. This is especially true for busy working people.
Nail salons provide manicures, pedicures, and other nail-related treatments to ensure customers’ nails are healthy and looking great. A client may regularly come for the nails or during a special occasion.
This article will guide you through everything you need to know about starting a nail salon business and what you’ll need to succeed.
Towards the end of this article you’ll find answers for some of the most frequently asked questions on how to start a nail salon business…
This is a simple guide for starting a nail salon. Opening one takes more than just registering with the state. These steps will help ensure the business is legally compliant, properly registered, and well-planned.
For entrepreneurs to succeed, a clear business plan is crucial. This will allow for proper mapping of business’ details and uncovering some hidden opportunities. Here are some essential points to remember:
Nail salons typically have a minimum of 1,000 square feet. Building a salon can cost between $75 and $125 per sq. foot. For a 1,000-square foot salon, this would mean a build-out cost between $75,000 and $125,000.
To lower startup costs for a nail salon, there are two options: purchase equipment from an owner who has sold it before or lease space used to house a salon. It is a great way to reduce the build-out cost by finding a location that has had a closed salon.
Business owners may be able to find a site where a property owner would build to their specifications. Property owners build facilities to tenants’ specifications and then lease them.
A nail salon’s ideal customer cares about their appearance, enjoys fashion, and can afford to spend for such a lifestyle. Someone like this is likely to be able and willing to pay a lot to make their nails look great. The majority of salon customers are women, but some salons cater to men.
Nail salon prices differ depending on a lot of factors such as products, location, and services. Manicures generally cost $15-25, while pedicures run between $25-50. The following are other major treatments:
Between complete sets are necessary fillers, polishes, and repairs. These services are priced between $3 (for some repairs) and $30 (for gel nail polish).
Selling premium nail care products and upselling additional services is a way for nail salons to increase revenue. It makes sense since salons already offer high-end products, so these customers who want to take better care of their nails at home can easily find them.
It is both crucial and challenging to choose the right name. Opening a business under a different name other than the owner’s personal name is possible under a sole proprietorship.
When registering a business name, experts recommend that you do thorough research on the following:
The types of business structure that are commonly used are the following:
A legal business entity protects the business against being held personally responsible if the nail salon gets sued.
An LLC can be set up easily by anyone with only minimal state LLC fees. Alternatively, an LLC service provider can do the job for a small, additional fee.
It is necessary to choose a registered agent for the LLC. A free annual registered agent service is often included as part of any LLC formation packages. The owner can act as the representative or opt to avail of the benefits of a registered agent.
Before opening the business, the owner will need to register for various state and federal taxes. To register for taxes, an EIN is required, which is a straightforward process and completely free!
The employee identification number or EIN can be obtained free of charge through the IRS website, fax, or mail.
There are many options available for taxation of the business depending on how it is structured. An example of this is an LLC that could be taxed as an S corporation(S corp).
Below are some guides about small-business taxes that are worth checking out:
It’s important to note that specific state taxes and franchise taxes may apply to the business.
For personal asset protection, it is important to use dedicated business credit accounts and banking accounts.
In the event of a lawsuit, personal and business assets such as the home, car, and other valuables of the business owner, become at risk if they are mixed. Business law calls it “piercing the corporate veil.”
Additionally, building business credit can be a way to obtain credit cards and financing under the business name and better interest rates and credit lines.
To better understand the business’s financial performance, it is essential to keep track of all of the expenses and income. It is also easier to file annual taxes if detailed, accurate records are kept.
Failure to obtain necessary permits and licenses may result in heavy fines or even complete business closure. Below are some points to remember when obtaining a business license and permit for a nail salon.
The operation of a nail salon may require certain state permits and licenses (i.e., cosmetology license). It is quite common today to see a combination of a nail and hair salon. Depending on the services offered, permits vary by state. Consult SBA’s reference to licenses and permits to learn more about state requirements.
Retail businesses, in particular, require a seller’s permit to operate. State sellers’ permits allow states to collect and record state taxes from sales of goods (and sometimes services).
Moreover, certain licensing or regulatory requirements may apply at the local level. Please refer to the following sources for additional information about local permits and licenses:
The local health department regularly inspects nail salons. Inspection standards vary according to their purpose.
Music may not be played in an office setting without the permission of the composer or license holder.
Most businesses can obtain a “blanket” license to play music owned by several artists and record labels.
These kinds of licenses are issued by Performing Rights Organizations like ASCAP and BMI.
A Certificate of Occupancy (CO) is required for businesses that operate from a physical address. A Certificate of Occupancy (CO) confirms compliance with all building codes, zoning laws, and government regulations.
Like licenses and permits for businesses, insurance is necessary to ensure that any business can operate legally and safely. Business insurance protects the company’s financial health in the event of a covered incident.
Many types of insurance policies can be purchased for different types and types of businesses, with various risks.
General Liability Insurance can help determine the potential risks to the business.
This is the most widespread coverage small businesses require, so it’s an excellent place to begin for a nail salon.
Workers’ Compensation Insurance is another crucial insurance policy that businesses will need. The state will likely require nail technicians or any company workers for that matter to have Workers’ Compensation coverage.
The brand is the company’s identity. It is also how the business is perceived in the eyes of the public. A strong brand will make any company stand out from the rest.
Local nail salons are usually located in or near a community, so marketing efforts should target nearby residents and workers. One strategy is to offer discounted services to attract customers initially. However, this approach may only attract one-time customers seeking a deal.
By hosting a little party or hiring a DJ or new caterer, partnering with another local business is another excellent way to attract customers. If guests are offered light refreshments and music during a special event, they may consider paying for treatments.
Growing a nail salon’s business through word-of-mouth advertising is one of the most effective ways to reach more customers. Therefore, providing excellent customer service is necessary for the salon to be recommended. Customers can also leave online reviews to help attract new customers.
To build loyalty, nail salons must provide exceptional customer service and adhere to proper hygiene protocols. A loyalty card that gives customers free treatment after a certain period is a way to keep clients coming back.
The next step after defining the brand and creating a logo is to create a website.
Though creating a website may be essential, others might fear it is too difficult because they lack the necessary experience.
Although this was a legitimate fear in 2015, the web has seen significant advancements over the years that make the lives of small business owners easier.
Studies show that businesses with websites fare much better than those without…
In fact, websites are the biggest marketing factor in today’s market!
Most business owners have no idea where to get started, if you’re looking to learn how to build a website for your nail salon business + a few more related skills to take your biz to the next level…
Setting up a business phone is one of many ways to ensure that private and professional lives are separate.
This isn’t all. It can also help the business become more automated, increase the company’s legitimacy, and make it easier for potential customers and clients to reach the company.
There are many services available for entrepreneurs who want to set-up a business phone system.
It is essential for nail salon business owners to have extensive knowledge of nail treatments and care. Numerous nail technician courses cover infections, infection control, pedicures, manicures, and nail art.
One program is offered by the New York Institute of Beauty, but there are other schools all over the country. There are also courses offered by the Professional Beauty Association. “How to Start a Nail Salon Business” is an excellent resource for those who don’t want to take a class.
There is no doubt that the nail salon industry is one of the fastest-growing and most lucrative ventures in the beauty sector.
A nail salon business can be as big as a national chain or as small as a single location. It is not uncommon for successful salons to open multiple locations within the same city or area.
Fashion and beauty are essential to someone looking to open a nail salon. It is also critical that the nail salon owner be personable and friendly. Providing a comfortable, pleasant environment will assure customers’ return in the future and increase the likelihood of them recommending the salon to others.
Having prior business knowledge and experience or the willingness to educate oneself about business practices is very helpful to aspiring nail salon owners or any entrepreneurs for that matter. Owning a nail salon can be a lucrative undertaking but it also takes a lot of guts, energy, and financial resources to keep it going.
However, it’s understandable that a business idea like this can be overbearing with all these formalities provided.
If you want a business that you can start without the stress of dealing with Karen’s…check out our #1 recommendation!
You’ll find that the profit margins are much higher!
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
With digital real estate, you have the opportunity to completely walk away from your 9-5 job!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
What exactly is the skill?
Well, basically you are acting as a conduit for small business to increase their bottom line.
What we mean is…
You are helping these businesses grow!
All you have to do is build and rank a website and forward certain jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business… ie: tree service, plumbing, towing, etc.
Simple, after you forward the jobs off to a business owner and he makes closes the deal, you simply ask to agree to a WIN-WIN arrangement.
A fair price to charge per lead, depending on the industry is 10-20%… let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $1000 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.
Now, we know you probably have tons of questions…