How to Write a Nail Salon Business Plan
The nail salon industry has been growing quite nicely over the last several years. There is a multitude of reasons why the nail salon industry is so popular.
To illustrate, nail salon technicians have become ever more skilled in designing creative patterns for their clients. These unique patterns and designs all too often result in a loyal following of consumers. This is just one of many reasons why industry experts anticipate healthy industry growth for the foreseeable future.
Unfortunately, as demand for nail salon businesses in technicians increases, more competitors inevitably enter the nail salon industry. To best compete in this industry, our business plan writer strongly recommends a well-written business plan be prepared for operational use and possible future funding. From this, our business plan writer has come up with some thoughts and ideas as well as tips and tricks to help established, and future nail salon business owners write a solid nail salon business plan.
Executive Summary for a Nail Salon Business Plan.
The executive summary section of a nail salon business plan should encompass a summarized version of the total business plan written. Also, the executive summary should be the last part of the plan written. For the nail salon industry, our business plan right or strongly recommends that business owners highlight the niche products or services that your nail salon business and braces, which draws a continuous flow of customers. For example, if your organization offers cutting-edge nail designs, then make sure to discuss this aspect in your executive summary. By following the strategy, nail salon business owners are able to show readers upfront about how they plan on competing in a highly competitive industry.
The location information and company information segment of a nail salon business plan should highlight the importance of location for the business. For most nail salons, location is a critical aspect of their business. Some nail salons choose to set up shop in high foot traffic areas such as malls and strip malls. Other nail salon businesses choose standalone locations that are close to offices and subdivisions. Still, more nail salon owners are able to choose low rent areas due to a loyal customer following. In other words, their location really doesn’t matter. Their clients will come to them for services regardless of where they are. With this said, make sure to identify whether the location is important for your business. If it is, make sure to discuss your business is the location in detail and highlight why location is critical. From this, make sure to then show that your location needs are met at your specific selected spot.
Product Description and Competitive Advantages
Popular services offered by nail salon organizations would include manicures, pedicures, nail enhancement, and the installation or removal of acrylic nails. From this foundation, our business plan writer has found that nail salon owners may then choose to differentiate the organization through various competitive actions. Some nail salon owners will offer complementary products or services like hair care, waxing services, and even massages. By differentiating your nail salon based on consumers' needs, your business is able to become a one-stop-shop for personal care. However, this is not the only competitive strategy embraced by competitors. Another popular strategy is for nail salons to offer only manicures, pedicures, and nail enhancements. By focusing on these core capabilities, the company is able to show a specialized skill set, which is also appealing to specific demographics. Regardless of strategy, make sure to document it in your nail salon business plan.
The target market for the nail salon business may vary depending on the products and services offered. For example, some nail salon businesses will target residents in a geographic area, often a five or 10-mile radius from the business location. In this strategy, nail salon businesses are often generalists. In other words, they offer a wide array of complementary services with their foundation as a nail care specialist. Other business owners will target specific demographics, such as Hispanic or African-American consumers. In doing this, the owner often has a specific skill set in design or other attributes that are in high demand for these demographics. Regardless of your target market, make sure to have alignment. What we mean by the alignment is that if your target market is geographical, then make sure your business is located in a convenient area. In contrast, if your services are in high demand, then make sure to highlight why location is less important. By following the strategy, business owners are able to show that their products and services are in line with their expected target markets.
Industry research for a Nail Salon Business Plan
When conducting industry research for a nail salon, our business plan writer strongly suggests that business owners focus on a national scale first. Specifically, make sure to gather information about nail salon statistics and trends for your business plan. For example, the nail care market is expected to grow at an annual rate of 4.5% for the next five years, reaching over $1 billion in sales. The annual income of a nail salon owner is approximately $60,000 annually. Finally, the average size of a nail salon is about 1000 ft.². In showing these types of statistics, the business owner is able to document their knowledge of the industry as a whole in their business plan. From this foundation, nail salon business owners can then expand their industry research to include a competitor analysis.
The owner and management section of a nail salon business plan should first start with the business owner's personal experiences with nail care. Personal experiences may include educational learnings related to nail care or work experiences at different nail salons. Just make sure that your leadoff batter in the situation is a segment of your experience that has qualified attributes. In other words, if most of your experience is an education, then leadoff the owner and management section of the plan with educational achievements. In contrast, if the real-world work experience is where your expertise lies, then make sure to discuss these experiences at the beginning of this section. By leading off with your strong suits, business owners are able to set a solid foundation to justify why they are qualified to start and grow a nail salon business.
Funding Request for a Nail Salon Business Plan
The funding request section for a nail salon business plan should start off with the exact dollar amount needed to start your organization regardless if you need funding or not. In order to get this dollar amount, the nail salon business owner should follow a specific process. First, identify specific categories that need funding in your perspective nail salon. Popular funding categories may include startup costs, nail salon inventory, advertising, and website development costs. In each category, the next list the items needed within the category and a perspective dollar amount. With this complete, total each category and then obtain a grand total by adding up each category. This grand total is the dollar amount needed to start your nail salon. On a final note, when writing up your funding request, only include the category name and the dollar amount needed. Do not include the specific breakdown within each category. By following this process, nail salon business owners are able to provide a broad overview of their funding needs without going into too many details. If the reader of the document does want more details, then the business owner may easily supply the information based on the process followed.
The financial projection section for a nail salon business plan should first start with revenues on a daily basis and then tie in variable cost and fixed cost. From our business plan writer's experience, the main revenue generator for nail salon business usually includes installation and removal of acrylic nails, nail care, manicures, and pedicures. Once the main revenue generators are identified, then project how many services will be offered on a daily basis. For example, if you expect to provide nail care procedures and pedicures, then this would be your daily sales. Once your daily sales are identified, then estimate your average price for each service and multiply this price by the number of services provided. Once this is complete, you now have your average daily revenues. The next step is to subtract your variable cost, which is the actual cost of nail polish, acrylic nails, and other products from the sales. Once your gross profits are noted, then multiply this number by 30 and then deduct your fixed costs. Finally, you now have your expected net profits for the month. For help with this process, make sure to contact a professional financial projection person for assistance in creating a nail salon financial model.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author