Opening a nail salon business can be a good idea.
Indeed, if you master nail art and understand the needs of your target audience, then your business as an independent nail technician can easily become profitable.
Before starting the steps to open a nail salon, you must design a solid business plan.
Indeed, while drafting this roadmap, all the strategic aspects of its future nail salon are fixed.
What is the content of a good business plan for a nail salon?
What method to estimate the turnover of your establishment?
How to set the initial budget for your nail salon?
What is the break-even point?
What should the financial forecast for a nail salon contain?
WRITING A BUSINESS PLAN FOR A NAIL SALON
DO I NEED TO WRITE A BUSINESS PLAN FOR MY NAIL SALON?
Certainly, writing a business plan for your business project will allow you to:
– identify recent figures in the nail salon market
– know the trends in manicure and pedicure
– identify the success factors of a nail salon
– understand who your market segments are and what their different needs are
– come up with a compelling value proposition for your nail technician business
– analyze the gaps between competing nail shops
– think about the competitive advantages of your industry sector
– develop a planned development for your nail salon
– define the right marketing strategy for your nail salon
– prove to a financial partner that your business project is viable
WHAT ARE THE ELEMENTS OF A NAIL SALON BUSINESS PLAN?
A business plan contains many studies and analyses. Therefore, it is essential to structure these elements well.
The very first part is the one that refers to the “Market Opportunity.” This section will give elements on the nail market, the latest advances in the sector, and the success factors for a nail salon.
The second part corresponds to the “Presentation of the Company,” which will allow us to explain the ins and outs of your activity as a nail technician. This part also discusses the company’s value proposition. Finally, it ends with your presentation.
Then comes the “Market Study” part will present the market segments and the competing nail shops. This part also includes a SWOT, which is a tool for presenting the strengths and weaknesses of your nail salon while reporting on the opportunities and threats in the competitive environment.
The “Strategy” part will allow us to introduce a long-term strategy containing the actions to be developed to become profitable. It discusses, in particular, the marketing plan that will attract and retain customers.
Finally, the business plan ends with the “Finances” section, which reveals the financial strategy of your nail salon.
HOW TO BUILD THE EXECUTIVE SUMMARY OF A NAIL SALON?
To write a good Executive Summary, you can summarize the important points of the business plan for a nail salon.
Generally, a good Executive Summary should not exceed 2 pages.
It is sometimes difficult to differentiate between “Executive Summary” and “business plan.” However, these two terms are not synonymous.
In reality, these two documents are used together. The Executive Summary makes it possible to present, in a synthetic way, certain points mentioned in the business plan. It should be noted that drawing up an Executive Summary is generally optional. However, it can serve as a good primer for your business plan.
HOW TO DO MARKET RESEARCH FOR A NAIL SALON?
To succeed in your market research, you must interview your potential customers.
In the “Market Study” part of our business plan for a nail salon, we find in particular:
– the key figures of the nail market
– innovations in the nail care and beauty sector
– the market segments of a nail salon
– the SWOT analysis
– the analysis of competing nail salons
– the competitive advantages of a nail salon
These elements are fundamental for establishing the strategy of your nail salon.
THE BASICS OF A NAIL SALON BUSINESS PLAN
WHAT IS THE BUSINESS MODEL OF A NAIL SALON?
The business model of a nail salon is to offer nail care services and products.
Among others, the main services offered by a nail salon include manicure, pedicure, UV gel overlay, and everything related to the beauty of the feet and hands.
WHAT ARE THE NAIL SALON MARKET SEGMENTS?
The definition of your market segments must appear in the business plan of your nail technician activity. For example, the clientele targeted by a nail salon is mainly female, but nothing prevents you from also targeting men with problems concerning their hands or feet.
Note that the research carried out during the market study makes it possible to identify the target audience for your future business.
HOW TO STUDY COMPETING NAIL SHOPS?
As we did in the nail salon business plan, you need to discuss competing nail salons.
You will also need to present their strengths, then compare your nail care offer to theirs.
Competitive advantages will allow your salon to differentiate itself from competitors.
What can be the competitive advantages of a nail salon? To do this, identify the weaknesses of your competitors. This can be a limited choice in the color of the nail polishes, poor quality of the products used, or even employees who do not master the layering of UV gel, which is in great demand now.
These weaknesses mean that part of the market remains unsatisfied. So it’s up to you to offer better products from recognized brands, well-trained employees in all manicure and pedicure techniques, or even a bright and friendly salon. These are examples of competitive advantages for your nail salon.
Finally, list both opportunities and possible threats in your SWOT analysis. This tool allows you to summarize the strengths and weaknesses of your nail technician activity.
HOW TO SUCCEED IN THE MARKETING STRATEGY OF YOUR NAIL SALON?
Your nail salon’s business plan must also contain a precise and detailed action plan for the next three years.
What will you do to prevent the income from your nail technician activity from stagnating?
How will you impose yourself on your competitive environment?
How are you going to attract more customers?
To do this, draw up a strategy to capture market share. Here are some examples to include in your action plan:
– Search for partners, such as hairdressing and beauty salons, to gain visibility
– a creation of an e-commerce store to sell varnishes and beauty products, beauty
– use of Google Ads to be more visible than your competitors to search engine users
– constant management of an account on social networks, maintaining a close link with your community
– development of a franchise by opening new structures
HOW TO ESTIMATE THE INCOME OF HIS NAIL SALON?
To calculate the income of a nail salon, you must begin by identifying the average basket of expenses.
In the case of a nail salon, it should be around 15-25 euros. But, of course, this amount will depend on the type of treatment performed and the service chosen (nail polish, UV gel, etc.).
Also, you will have to ask yourself how many customers you can receive per day.
In this financial plan, you only have to select assumptions. The turnover, the result, and other financial indicators are calculated automatically. Likewise, the model automatically indicates the corrections to be made.
HOW TO SUCCEED IN THE PROFITABILITY STUDY OF A NAIL SALON?
THE STUDY OF THE BREAK-EVEN POINT OF YOUR ACTIVITY AS A NAIL TECHNICIAN
The break-even point represents your nail salon’s revenue to make a profit.
HOW TO INCREASE THE TURNOVER OF A NAIL SALON?
Long-term revenue growth will be directly derived from the effectiveness of your nail technician business marketing strategy.
The marketing strategy is the set of studies, reflections, and initiatives to help your establishment develop over the long term. Some of these points are discussed in the previous section.
HOW DO YOU OPTIMIZE THE EXPENSES OF A NAIL SALON?
The profitability equation for a nail salon involves another variable: expenses.
If you want to improve the margins of your nail technician business, you will have to look at reducing the number of expenses.
Watch out, though. Being thrifty with the starting budget for your nail salon is not always a good idea.
For example, a substantial budget for nail products (polish, solvents, etc.) is recommended.
On the other hand, it is necessary to monitor recurring expenses (those paid every month), which weigh on the profitability of your activity as a nail technician.
For example, most salons allocate too much of a budget to decoration.
As for personnel, salary costs should not exceed 60% of turnover.
Also, you should not spend more than 10% of turnover on advertising and communication.
If your taxes weigh too heavily on the forecast result of your nail salon, plan a strategy to minimize them.
WHAT ARE THE ELEMENTS OF THE FINANCIAL FORECAST FOR A NAIL SALON?
The financial part of the business plan for your nail technician activity, to be complete, must include these elements:
– income forecasts
– an income statement
– a forecast balance sheet
– a cash budget
– performance indicators (interim balances management)
– an analysis of the WCR (Working Capital Requirement)
– the financing plan
– the initial expenses
– financial ratios, as well as graphs
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