Opening a Nail Salon: A Checklist

So, you’re thinking of opening up a nail salon? Great! Let us help you out with our quick checklist to get your business started.

1. Competitor Analysis and Business Plan!

Planning is key to any successful salon. Before any money is exchanged, any leases signed, etc., you need to be sure that you have a solid business plan that identifies your key competitors, how much money you should expect to make, and outlines your own competitive strategy.

For your local competitors, don’t just consider nail bars. While other nail salons in the vicinity are a threat, and you need to ask yourself if you really want to open so close to another one, it is worth considering other beauty and hair businesses in the area as competitors that may branch out into nail treatments in the future.

Similarly, setting up a nail salon near an already existing beauty salon will make it harder for you to expand your business into other treatments.

What should a business plan for a nail salon include?

Your business plan should include:

I. The Executive Summary – this will completely summarise all the sections of your business plan, and should be able to stand alone from the rest of the document. Try completing it while writing each section of your plan.

II. Business Overview/Company Description – this will go into depth about your intended business activities, the business structure, competitive strategy and advantages, intended customer base and more.
Explain what problems your business is going to solve. In the case of your nail salon, who is your salon going to serve? Is your strategy to be the cost leader in your area, if so how are you going to achieve that? or are you going to offer high-end luxury treatments?

III. Market Analysis – before you open your nail salon business, you need to do some market analysis. This will include who else is operating in the area? Has a salon operated in the location you are planning to set up in before and, if so, why is it no longer operating?

IV. Operations Plan & Management – who is going to be running your salon? Who will fulfil the key responsibilities?
Will it be a solo operation? Will you hire employees? Will you have partners? or will third-party nail technicians rent spaces in your salon? If you are renting spaces, what will be the technicians’ financial obligations to your salon?

V. Marketing Plan – how will you promote your business? Flyers? Social Media? Paid advertising? Outline this here.

VI. Funding – Where are you getting the funding for your business? Loans? Personal savings? Private investor?

VII. Financial Projections – these projections should cover the next year along with projections for the next five years. What will be the cost of running your business for each year? How much money do you expect to make? Will you be able to pay back any business loans while paying staff on time?

VIII. Appendix – you can also include any relevant documentation to support your plan in the appendix.

2. Secure Funding

Setting up a business is not free, as you will well know. Will you be funding the set-up with a business loan or your own savings?

3. Choose & Register Your Business Name

One of the most important parts of branding your business will be the name. However, it’s very important to make sure that you:

a) don’t have the same name as another nail salon in your area.

b) don’t have the same brand as another nail salon in the area.

If you happen to find a salon with a similar name to you on the other side of the country, it’s important to make sure that your brands are completely differentiated as this may confuse customers when they search for you on Facebook or Google.

When choosing your nail salon name, it is also worth considering how easy it is to spell or pronounce. If you’re relying on word of mouth or memory, your clients need to be able to go to Google and quickly recall your name to find you.

4. Premises Location

Once you have decided to open a nail salon, it is time to identify your ideal location. You probably already know the general area you’re planning on setting up but there is one key question you must answer.

Are you going to open your nail salon in town, on the high street, on a small parade in the middle of a residential area, or in your own home?

More expensive commercial spots in the centre of town benefit from heavy foot traffic and have a higher chance of drop-in clients. Meanwhile, more out-the-way, commercial spots on a smaller parade of shops, a mobile nail business or even a set-up in your own home will require a strong social media presence and a great reputation.

5. Equipment

You should factor in the cost of equipment and insuring your equipment when you draw up the costs of setting up your nail salon.

6. Social Media Presence

What social media profiles do you need as a nail salon? Facebook and Instagram are good start, but also consider a Yelp profile, Tripadvisor, and Salonspy as your customers will likely look to outside sources and reviews for advice.

Your Facebook and Instagram profiles should have your business name and “nail salon” or “nail bar” etc. to help your clients find you.

Your branding should also be strong and consistent across your profiles and posts. Make sure to post regular examples of your best work. Having one or two images might indicate that good work or customers are a rarity.

In your business, vanity metrics(likes, shares, comments etc.) indicate to customers that you are a quality, trustworthy service–provided that they are positive!

7. Qualified Nail Technicians

The success of your business largely hinges on the people you keep around you and the quality of the work they do. As a small independent nail salon, it can be hard to get started and guarantee profit.

Keeping operations small at the start can minimise risk, especially if you are opening your first nail salon.

If you are renting out spaces in your nail bar, make sure the terms are clear before you start.

8. Nail Salon Insurance

For any business, a Business Insurance Policy comes highly recommended to protect you against property damage, theft, liability claims and business interruption for insured losses.

While the equipment, fixtures and fittings you own will be your responsibility to insure, check with your commercial landlord, who is responsible for the building’s insurance.

If you have employees working in your salon, you will likely be legally required to take out Employers’ Liability. At Insync, we have extensive experience working with Salon Owners.