How to start your own nail business in 10 steps

How to start your own nail business in 10 steps

How could one open a nail salon following just 10 steps, you may ask - that sounds unbelievable at best and kinda tacky at worst. And you are right - starting a business is a complex process that requires a lot of hard work, self-confidence and flexibility. There is no one-fit-all solution that will guarantee immediate success, however, you can still make good use out of a dedicated guideline that will lead you through twisty meanders of required processes. Without any further ado, let’s discuss how to start a nail business - what to consider beforehand, how to prepare a business plan, distribute the budget, reach your first customers and more. If you are wondering how to start a mobile nail salon, this guide will be perfect for you as well.

Think the idea through

Before you begin getting involved and start investing, it's wise to make sure you know what you're getting yourself into. According to the statistics presented by The Telegraph, at the break of 2019, 60% of newly established businesses close within three years, and 20% go-under within just the first twelve months of operation. Nail salons rarely bring huge profit margins, at least not instantly. Their profitability depends majorly on the efficiency of their employees and the harsh truth is - many clients aren’t willing to pay what nail salons need to charge in order to be profitable. Like any business in the beauty industry, they are strongly affected by economic downturns - and currently, they have to compete with the rise of DIY culture that delivers everyday people a chance to get a service done at low cost. Does it mean you shouldn’t open your own nail business? No! If you have confidence in your business concept and are in a position to take the risk, it’s most definitely worth taking into consideration. However, you have to be conscious of the risk and don’t make the decision hastily. You should also focus more on the issue of how to build a nail business that delivers value customers are actually willing to pay for.

Establish your business legally

Wondering how to start a nail business legally? Most probably you will register as a “sole trader”, which means that only you own the business and can either work alone or employ other people. Of course, you can also register as a limited company or a business partnership - you can read more about the differences between these models of operation on the GOV.UK website.

Registration

To become a sole trader you have to:

• Have a National Insurance (NI) number
• Register for self-assessment with HM Revenue and Customs (HMRC)
• Trade under your own name or choose a business name

GOV.UK provides great guidelines for business owners-to-be - check out their guide to setting up as a sole trader to get to know more.

Obtaining needed licenses

It’s crucial to check out what licenses you are obligated to get if you are to perform certain services. Most probably, you will need the Massage and special treatment premises licensing, but you may also require several other licenses depending on the scope of services you plan to offer. Remember, that you need licenses for additional things (such as playing music) as well - fortunately, the GOV.UK website comes to the rescue once again. There you can find a helpful license finder thanks to which you’ll be able to establish what you need to start operating.

Getting insured

To start a nail salon you need:

• Public liability insurance
• Treatment liability insurance
• Employer’s liability insurance (a legal requirement if you hire staff)

Additionally, it’s good to get:

• Business buildings insurance
• Business equipment insurance
• Stock insurance

Setting up business accountancy

You need a business banking account and a merchant account (a must for accepting credit/debit cards). Moreover, you have to take care of your bookkeeping, cash flow and inventory - thankfully, nowadays the more advanced nail salon management softwares, such as Booksy, provide you with advanced financial statistics and cash reports, as well as tools to manage inventory. Find out more about its functionalities and test-drive it for two weeks for free with no commitment.

Write a business plan

It can be a very powerful tool and if you are opening a salon, you should write one as soon as possible. A business plan is a phenomenal guideline allowing you to always keep all your goals, methods and principles in check - moreover, when writing it, you are forced to thoroughly rethink your business decisions and do in-depth research concerning both your target market and competition. If you want to know how to write your beauty business plan in detail, check this article - today we will touch upon only the most important aspects of it.

Summary of your business

The first part of the business plan should be dedicated to describing your basic objectives (mission and vision), company formation information, location and current status.

Your services

The second part should include the description of your core services, list of current pricing (so it’s the moment to settle on your prices) and information on product lines you are going to use.

Marketing plan (+ analysis of your competition and target market)

Now it’s time to do the SWOT analysis (again - for the detailed description, check our dedicated article on creating a business plan), do the research regarding your target market and analyse your competitors, especially the local ones. You should also think about marketing channels you are going to use and plan a budget you want to spend on marketing activities.

Operational plan

This part is basically planning the future of your business. You describe your expansion plans - what facilities, equipment or technology you’ll need. You should also include legal and accounting needs.

Financial plan

Lastly, the part dedicated to planning your budget. In the beginning, it will be mostly a financial forecast. You have to plan a budget for the initial opening (building or renovation of the premise, buying the equipment and products, and so on) and then the outgoing expenses. Standard outgoing expenses for a nail salon include:

• Supply cost
• Employee wages
• Taxes
• Rent
• Maintenance on equipment
• Insurance

Find the right location and premise (salons only)

If you are planning to start a mobile nail business, you don’t have to worry about this one. The right location for a nail salon is one that finds a healthy balance between delivering privacy and being commercially convenient. Other vital factors are the size of the premise, the cost of the rent, parking availability and the location of your direct competitors in the area.

Invest in the necessary equipment

Your main expenses will be manicure desks and/or pedicure chairs, but that’s not all. We’ve already created a list of nail furniture and equipment needed if you are to start a nail business, so make sure to check it out. If you are to start a mobile nail business instead of a salon, the list is also relevant - there is a section dedicated to mobile nail techs as well.

Buy supplies and other needed products

Stock up on the essentials. You will definitely need a nail file kit, cuticle exfoliators, reusable nail forms, nail files, sable brushes, towelettes, toe separators, cuticle oils and nail cleansers. Don’t forget about cleaning supplies and groceries as well!

Design your salon interior (salons only)

Next step is to make your interior both convenient and good-looking - of course, this part is relevant only if you are planning to start a nail salon, mobile businesses don't require it. We’ve written a piece on creating a breathtaking nail salon interior even if you don’t have too much space to work with, you should definitely give it a good read.

Acquire the management software

Managing your nail business by using pen and paper is no longer sustainable. If you want your nail salon to make money, you need to invest in marketing activities - and I’m not talking about social media only, but also more efficient, better-targeted SMS or email campaigns. Nowadays, there’s much more being expected from beauty salons than just providing excellent services. In reality, if you want to keep track of it all (running detailed customer records, managing appointments, sending appointment reminders, doing inventory control, checking financial reports, and so on) you need a digital management system. Not to even mention - using so much paper is extremely wasteful! When you are ready to start operating, check out Booksy and its functionalities - you can start a free two-week trial to find out if it suits your needs.

Set up your social media fan pages

When you were writing your business plan to start your nail salon, you had to research your target market. The knowledge you acquired will be helpful now. Focus on the social media platforms your clients are actually on - two of the most commonly used are Facebook and Instagram and it’s a good idea to have a business page on both, though it may happen that most of your potential customers use only one of them. It’s better to post consistently on 1-2 platforms than to spread yourself too thin trying to keep up with all of them (unless, of course, social media is your thing and you get the kick out of running multiple accounts). Check out our take on how to master Facebook algorithms to achieve marketing success and how to run an outstanding Instagram business page.

Hire the specialists (salons only)

What are the qualities you should look for in your employees, besides their skills? Most definitely the capability to cooperate with others, being respectful towards you, clients and co-workers, willingness to learn and open-mindedness. It’s wise to offer employees a paid test run before hiring them for a full-time position. Sometimes all the qualities are in place but the chemistry is just not there, and that’s okay! Check out our article on hiring staff for hair and beauty salons to find more useful tips. Opening a nail salon or starting a mobile nail business is not a piece of cake. It takes a lot of determination and persistence to bring the idea to life. They say that failing to plan is planning to fail, so make sure to pay attention to details from the very beginning. Avoid getting buried by your responsibilities with the right software that will help you manage your tasks by automating them and allow you to focus on things that require your undivided attention!