Nail services such as manicures and pedicures rank amongst the top five beauty services availed. So high is the popularity of these services that nail salon industry gets billions of USD in revenue each year. Thus, it is hardly surprising that one will come often come across an entrepreneur, who is actively thinking about starting a nail salon. It is for such entrepreneurs, who wonder how do I start a nail salon business do we suggest that the first and foremost step is to create a successful nail salon business plan. Read along to know the steps to create a fool proof business plan.
1. Executive Summary
This is a synopsis for your business, and provide with the right amount of information such that reader would desire to peruse the details of your plan. It should maintain the fine balance whilst indicating your unique business model, strengths, and financial metrics of your business. This write up has the potential to make or break the interest of the reader in your plan. It is easier to write the executive summary once you have framed up the other components of your business plan.
2. Business Description
This second section has to talk about the details of your business. Here you can talk about your key strengths, and business model. Elaborate your business plan. Would you run the store with your team to deliver top notch services or rent work stations to freelance nail artist. Both business styles have different income methods and come with their own set of advantages and disadvantages. In the former model you’re in-charge of your business and will be able to controlthe quality of service being delivered whereas in the latter, you may have limited say and it can impact your brand name. The description should also mention your troubleshooting plan with each model. Other important details such as whether the salon will be a proprietorship, or LLP, brand name, mission statement, target market demographics etc. can all be mentioned here.
3. Organization Structure
With the business model in place, investors and financers would like to know who’s running the show. Therefore, in this section you can highlight about you and your teams skills, and certifications. If any of you have received recognition in the industry, it must be highlighted here. Anyone who is putting in money would like to see a clear hierarchy such that they can ascertain who is at the helm and who can they hold accountable.
Which services will the nail salon offer? Are these regular manicure, pedicure treatments or are there any specialized services such as nail extension, gel nails, reconstruction of damaged nail etc. How are your services establishing your uniqueness and which demand supply gap will your business address? Details of additional services, if any (such as a massage after pedicure), along with the variations and the pricing must all be mentioned here. If you’re also offering a combo service package or special packages such as bridal package, or group booking packages etc. should also find mention. If you chose to deploy a nail salon management software such that your customers have a seamless modern experience, it is the right place to mention details.
5. Market Analysis
Demonstrate your expertise with insights of your research on the market by mentioning the services that are sought, pricing and what competition you are likely to face. Talk about the untapped opportunities and what is the potential gain from such untapped sources.
6. Marketing Strategy
How do you plan to create awareness about your brand and its services? What is your marketing strategy? Are you leveraging technology to assist you in your marketing game? These are some common questions which shall be addressed in this section. You can mention details about your digital and physical marketing strategy. If you do rely on technology to assist you in digital marketing, how are you doing so?
7. Financial Analysis
Lastly, let’s talk numbers. This is where you show how you will recover the one time investment and monthly operations cost, and make a handsome profit. Your revenue, operations cost, and P&L statement will all be a part of this section. We recommend working with a killed accountant and having realistic sales goals to create a projected revenue, estimated cash flow, income statement to compute the metrics such as ROI and IRR.
If you keep the above points in mind, you can take the first of the steps to starting a nail salon. Nowadays, many nail salon management software companies have the expertise to help you translate your ideas into a successful business plan. One such company is Zenoti, which has successfully led business transformation at nail salon chains such as Prose, MiniLuxe and London Grace.