How to open a nail salon: we draw up a business plan

 

A business plan is one of your first steps if you decide to open a nail salon. It helps foresee and avoid most of the obstacles only your future business may face.

A good plan helps grow the nail salon and stay on course. So how do you make it yourself? Downloading a ready-made business plan will not work because this is a unique document that provides all the features of a particular salon.

In this article, we decided to figure out why a nail salon business plan is needed, what tasks it solves and what sections it should consist of. We have also compiled guidelines for writing a business plan.

What is a Nail Salon Business Plan?

Many write a business plan simply because it is supposed to. Although this issue needs to be approached differently, you understand why it is needed more accurately. What goals it closes, the more responsibly and accurately you will draw up a business plan.

Let's start with what a business plan is. This is a document that contains basic information about the business. 

It usually contains information about:

• investments,
• products,
• services,
• market analysis,
• competitor analysis,
• marketing strategy,
• sales strategies,
• finance,
• organizational structure.

This document contains the key points of your business. A good business plan solves several problems at once:

1. Allows you to work out the business strategy in detail. A written business plan helps to understand how profitable and viable the idea of ​​​​a future nail salon is. The plan contains information about the pros and cons of the idea, means of implementation, and financial assessment. Thanks to the business plan, you can identify the problems and risks in the business and think in advance about how the salon will cope with them. In addition, a business plan helps structure all the information you have and notice blind spots.
2. Helps to control the progress of the project. After you have worked out and written a plan, you will be able to focus on the key points in the business development process: are you meeting your intermediate goals, have enough finances, and are your forecasts coming true in general?
3. Helps to determine the composition of the future team. When you determine the business's primary tasks and objectives and the product's specifications, you will know what to expect from the team and what resources are necessary to complete the project. You will be able to comprehend how much your budget entails and expand it or alter the concept accordingly.
4. Allows better communication with key employees and investors. A business plan is necessary for finding investors and obtaining loans - this document helps to prove your business's viability and prospects. For internal purposes, it helps to build a unified development strategy for all managers and be on the same wavelength.

As you can see, a business plan is an indispensable document when starting a business. However, for it to perform the main tasks, it must be correctly compiled. So next, we will determine how to do it.

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How to Write a Nail Salon Business Plan

Principally, the business plan determines the amount of the initial investment. So to answer it, you need to consider all the key points and not miss anything. 

To make it easier for you, we have prepared several tips. Firstly, it is better to break the work on the plan into separate points and solve each task sequentially.

• Determine how your nail salon fits into the current market by analyzing it.
• Analyze competitors.
• Choose a concept for a nail salon. To do this, you need to decide on the segment to which it will be long and the types of services.
• Consider what services you will provide. How will you set prices? 
• Make a list of goals and objectives for your business.
• Decide on the form of business registration and the type of taxation.
• Consider the necessary equipment, consumables and supplies for the job and their cost.
• Determine a business promotion strategy. 
• Think over organizational issues - the necessary employees, forms of payment and motivation.

All of these questions should be answered in your business plan. Then, if the working conditions change, you can change them to suit them. 

A business plan is a unique document, so you won't be able to download a ready-made business plan for a nail salon. However, there are main sections that should be in such a document. Further in the article, we have prepared a list of them. 

What sections should contain a business plan for a nail salon

Summary 

This section should summarize the previous sections, so it should be written last. Then, on one or two A4 pages, briefly describe the business concept, associated risks, and expected return.

Tasks and objectives of the nail salon

In this section, you need to identify the business's main tasks. It contains basic information about: 

• The segment to which the nail salon belongs,
• target audience (TA),
• The primary services and products you will market,
• pricing principle,
• Unique features of the business.

Marketing Plan

This section must never be bypassed. It contains information regarding the anticipated income of a nail salon after its opening. It is necessary to determine the service market's competitiveness and business position. You determine the primary promotional strategies as well.

The marketing plan consists of subsections:

Market analysis

You need to analyze the existing market and competitors and describe why opening your nail salon fits the current situation. For example, do customers need a salon with a similar concept? 

Promotion strategy

After you understand the features of the market, it's time to form a marketing strategy. First, you need to think of ways: 

• customer acquisition,
• Customer retention - after all, regular customers bring the main share of revenue to the nail salon,
• identification of key sales channels,
• advertising campaign planning,
• Creating marketing activities.

Organizational plan

You must determine the future business structure and the work organization's key points. These include:

• Form of registration: FLP or LLC. The choice of the form of taxation depends on this. 
• Organizational structure. Consider the primary responsibilities of the team and the employees who will fulfill them. You must consider the hierarchy of subordination and interaction; for instance, which should be the master alert first if he is running late?
• Staff work schedules. Make approximate schedules for work and staff shifts: for example, manicure masters will work 2 by 2, and an accountant: a standard five-day period.
• Employee remuneration system. Plan the primary employee motivation systems based on their position. For instance, masters are typically compensated based on a percentage of services rendered, whereas administrators are paid a flat rate plus a percentage of sales.

Production plan

In this section, you need to describe the premises' requirements and the location's features and think over the list of necessary equipment.

Financial plan

Estimate how much profit you will receive. Estimated based on investment and projected revenue.

Investments

Describe how much money you need to open: purchase furniture, equipment, rent, etc. You also need to think about how much you need to have for monthly fixed costs - your salon may not start to go into profit in the first months of operation. Therefore it is desirable to have such an airbag to start.

Expenses and income

Calculate what income and expenses your nail salon will have every month. Include in the description of expenses: rent of the premises, salary, utilities, materials, taxes, etc.

Payback

Calculate whether the salon will be profitable and in what amount. To determine the planned revenue, calculate how much income each workplace will bring (formula = average check * an average number of customers per day * several workplaces * several working days). Then subtract all expenses. The approximate payback period for a nail salon is usually 1-2 years, but it depends on the size - the larger the salon, the longer it usually pays off and vice versa. 

Risks

Think about the obstacles that might stand in the way of your business. The most common:

• Personnel. You must consider how to manage employee turnover. In addition, how to safeguard the clientele, so they do not leave after the manicure masters. This is facilitated by the system of motivation and development of staff, as well as work on the service so that the client does not seek out a particular master but rather your salon.
• Seasonality. Consider seasonality in the workplace: the holidays, graduations, and the quiet after the new year. During these periods, you may work at zero or even a loss; consider how you will maintain your financial stability.
• Compliance with regulations and laws. If your salon does not comply with the rules and regulations of the SES or fire safety, you could face a hefty fine or even be forced to close. Consequently, carefully manage these moments.
• Change in purchase prices. Include these dangers in your business plan.
• Dumping by competitors. To compete with price-cutting rivals, you must attract customers with distinctive services and a high level of service, not low prices.

We have covered the essential components of a nail salon business plan. If necessary, you can add your own.

Summary

A business plan functions as a compass for business development. However, it is also essential to consider tracking work, adhering to the business plan, and enhancing key performance indicators. Utilize Maven Business Plans, a service for automating and managing a nail salon, to increase the efficiency of a salon's primary processes and simplify work.

The program allows:

• Accumulate and systematize the customer base.
• It is convenient to work with the records and schedule of the spa.
• Count visits by subscription.
• Enter an online appointment for clients.
• Conduct sales of services and products.
• Account for salaries and other expenses.
• Control inventory balances.
• Maintain relationships with suppliers.
• Send automatic reminders and notifications to customers.

Maven Business Plans also helps you track all the key performance indicators of your company, which will help you make the right management decisions and build a systematic and profitable business.