How to Start a Nail Salon

Part 1 - How to start a Nail Salon business - Background

Many people want their nails to look beautiful and better than they can make them look at home. A nail salon provides manicures, pedicures and other nail treatments to make customers’ nails look great. Customers may come to have their nails done on a regular basis or for a special occasion.

Our guide is in 3 parts:

• Part 1 - How to start a Nail Salon business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a nail salon?

Most nail salons are at least 1,000 square feet, and building out a salon typically costs between $75 and $125 per square foot. This comes to a total build-out cost of $75,000 to $125,000 for a 1,000-square-foot salon.

Business owners who are looking to reduce the startup costs for a nail salon may be able to purchase used equipment from a previous salon owner, or even lease space that has previously housed a salon. Finding a location where a salon closed will greatly reduce buildout costs.

Alternatively, business owners might be able to find a location where a property owner will build to suit. In build-to-suit agreements, property owners usually build a facility to the tenant’s specifications, and the tenants agree to a lease.

What are the ongoing expenses for a nail salon?

The ongoing expenses for a nail salon business include supply costs, employee’s wages (whether salaries or commissions), taxes, rent, maintenance on equipment and insurance. Supply costs are usually between 2 and 8 percent of sales.

Who is the target market?

A nail salon business’ ideal customer is someone who cares about their appearance, appreciates fashion and has some discretionary income. Such a person is likely able and willing to spend money to make their nails look good. Most salons’ customers are primarily women, but salons also serve men.

How does a nail salon make money?

A nail salon makes money by charging customers for manicures, pedicures and similar treatments. Some also sell premium nail care products.

How much can you charge customers?

Nail salon businesses offer a number of different nail services. Manicures typically range between $15 and $25, and pedicures are usually between $25 and $45. Other major treatments include:

• Full gel sets ($45 to $75)

• Full acrylic sets ($30 to $60)

• Silk nails ($10 to $15)

Fillers, polishes and repairs are needed between full sets. These kinds of services range from $3 (for some repairs) to $30 (for gel polishes).

How much profit can a nail salon make?

A single nail salon business might bring the owner between $40,000 and $75,000 each year. The business model is easily scalable, though. Some nail salon owners have lots of locations and are millionaires.

How can you make your business more profitable?

A nail salon business can increase its revenue by upselling customers with additional services and selling premium nail care products. Since salons already use high-end products, it’s easy to sell these to customers who want to take better care of their nails at home.

Day-to-Day and Growth

What happens during a typical day at a nail salon?

A nail salon business owner may spend a portion of their time providing services for customers, which involves:

• Scheduling appointments for customers

• Giving customers manicures, pedicures and other treatments

• Restocking supplies as they’re used

• Cleaning equipment between customers

Most salons, however, employ nail technicians who also perform these tasks. Having technicians gives business owners time to focus on other tasks, such as:

• Forecasting sales and scheduling technicians as appropriate

• Recruiting and training new technicians as needed

• Managing all technicians employed by the salon

• Marketing and growing the business

• Ordering supplies as they’re used

• Overseeing the operations of the nail salon

Even when performing tasks like these, owners still have chances to (and should) connect with customers. Many of these behind-the-scenes activities are still done within the salon, so owners regularly see their salon’s customers. Talking with customers both builds connections with them and helps owners know their salon better.

What are some skills and experiences that will help you build a successful nail salon?

A nail salon business owner should be knowledgeable in nail care and treatments. There are many courses available for nail technicians that cover topics such as infections, infection control, pedicures, manicures and nail art. The New York Institute of Beauty offers one program, but there are schools throughout the country. The Professional Beauty Association also offers courses. How to Start a Nail Salon Business is a useful book for those who don’t want to take a class.

What is the growth potential for a nail salon?

A nail salon business can be as small as a single location, or it can be as large as a national chain. Successful salons sometimes open multiple locations within a single city or geographic region.

How and when to build a team

Most nail salons have several nail technicians on staff when they open. Multiple technicians are needed so salons can be open every day (or almost every day) and throughout most of the day. Technicians typically make between $22,000 and $43,000 annually, with their compensation being largely commission based. Technicians often make between 35 and 60 percent of the value of the treatments they perform.

As a salon grows, it may become expedient to hire the following additional staff:

• Receptionist(s) (with a salary of $17,000 to $29,000 annually)

• Salon manager (with a salary of $21,000 to $47,000 annually)

• Aesthetician (with a salary of $23,000 to $56,000 annually)

• Manicurist (with a salary of $20,000 to $50,000 annually)

Part 2 - Is a Nail Salon business the right fit for you?

Part 3 - Action plan to launch your Nail Salon business in 90 days