Go to http://www.score.org/template_gallery.ht鈥?/a> and download the Excel template for estimating start up costs.How much money you have to spend in opening a nail salon?
This question can vary greatly depending on location, the size of your business, number of employees, the type of services offered, etc... So, I'm not going to give you a number, just some things to consider. A spreadsheet, like Microsoft Excel, would be very useful here.
You need to make a list of every supply, chair, tool, etc... that your business will require. Be conservative with your estimates. It is much better to estimate high than to find out you don't have enouh at a critical stage in your business. Items probably overlooked are cash registers, computers, cleaning supplies, shelving, uniforms, letterhead, coupons, the list goes on...
You need to determine whether you will buy or lease the location. If you buy, you will have higher upfront costs. If you lease, it is probably lower risk and there is a low upfront cost. However, leasing costs more per month for the same space usually. Determine your needs and costs for this.
How many employees will you have, if any. You will need plenty of cash on hand to pay them untill the operations of your business can support their services. I would say at least 6 months if not more. If you can't pay people they will leave.
You need to have a means of attracting customers. Often location is not enough. You need to give people a reason to switch from their current salon to yours. Advertising can be done cheaply with flyers, and opening day specials etc... Nevertheless, dont underestimate the importance of good advertising and market research.
Lastly, you will need to have cash available to cover miscelaneous expenses, future expansion, and utilities.
Most entrepreneuers start their business with around 50k or less. Bear in mind, however, that many entrepreneurs fail. Personally, I suggest having at least 100k if not more in start up cash. Use credit and loans as often as you can safely. Cash flow is more important than profit in the early stages of a business.
It would be nice if every entrepreneur had access to the ideal amount of funds, but that is rare... Funding is one of the biggest challenges an entrepreneur faces. Starting a business is tough and will require a huge time commitment and significant risk. Read The Art of The Start by Guy Kawasaki, he has some great ideas.
This is by no means a comprehensive list, as there are so many variables to account for. I would be glad to help you with any more questions you have regarding this subject. As an accountant and entrepreneur, I have a strong understanding of this subject.
6 Months space lease
6 Months electric bills
6 Months heating bills
6 Months Water bills
The above is so that you can keep operating for 6 months while you are developing a clientele.
I am assuming the space would be empty, so look up a Nail Salon Equipment Supplier. Google can help you do that. Determine the the standard nail station equipment and furniture. Multiple by number of stations you intend to have.
Add in the cost of a reception desk and some waiting room chairs and some display shelving. Don't forget an employees lounge table and chairs, as well as a coffee pot, mini fridge, and microwave, unless you want your techs leaving the premises for their lunch, which can leave you short handed if you get a bunch of walk ins.
Now - supplies.
You need to determine what supplies each station will need, from polish remover, hand lotions, selections of nail colors, nail attachments, filers, scissors, etc etc. You know what you need. Take that list and multiply it by the number of stations you will have. Don't forget all the pedicure equipment and supplies, Robes if necessary, plenty of towels and such.
Once you have all that together, add in all your licensing costs as a business, and then look at advertising.
The best forms for you would be Yellow Page advertising - don't bother with the internet upgrades. Just get a 1/4 or 1/2 page add with two color to make it stand out.
Then there is Val Pak. Create a nice 1/3 page horizontal add with coupon, and have it directly mailed into the homes of 20K-40K homeowners that earn $35-75K a year, perfect target for you salon. Get a quote for the cost on this.
I would also contact you local radio station that target you client base, and run about 30 days of ads, run during the 3 high traffic periods, 7 am to 10 am, 12 noon to 3 pm, and 5 pm 7 pm. See what an upgrade to do a Grand Opening live remote with the station will cost.
Be sure to have someone write up a press release about your new salon opening with some background story on yourself. Send that out to all of the TV stations and Newspapers in the area. Never know - they may do a small article on you in the business section or do a community interest piece on you.
Now - after you get all these costs together - you will know what you need to start your salon.
Good luck.
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