Starting your own business can seem like a scary proposition. After all, you won’t be getting an hourly wage or monthly benefits, so if things go badly, you could be in for some serious financial hardship. On the other hand, running your own business has a lot of potential as well. You’ll have the freedom to set your own hours, pick and choose your clients based on your personal standards and values, and, more importantly, have the potential to turn a profit. Whether you’re just taking the idea of starting your own business casually or you’ve been checking out nail salon franchise costs, launching your own salon from home is one of the most accessible businesses you can start. In this article, we’ll cover everything you need to know before investing in a nail salon.
How Much Do You Need to Invest in a Nail Salon?
The cost of starting your own nail salon will depend on whether you are buying an existing business, leasing a space, or working from home. If you are looking to buy an existing business, you can expect to pay anywhere from $40,000 to $200,000. You may need $100,000 to $500,000 to build out a nail salon from the ground up. Working from home will be the most cost-effective option, as you will only need to cover the cost of your equipment and supplies.
Breaking Down the Cost of Starting Your Own Nail Salon
Now that we’ve answered the question, “How much does it cost to start a nail salon?” let’s take a look at the specific costs you can expect to incur:
Certification-Before you even open your doors, you will need to obtain a cosmetology license in the state where you plan on doing business. The cost of tuition, books, and other materials needed to pass the cosmetology exam can range from $5000 to $15,000.
Business Registration-In order to operate your business legally, you will need to register it with the state. The cost of business registration varies from state to state but is typically below $300.
Physical location-If you are leasing a space for your salon; you can expect to pay anywhere from $800 to $2000 per month in rent. If you are buying a salon, the cost will be much higher, as it will include the cost of the building itself as well as any necessary renovations. This will be your biggest start-up cost, so be sure to factor it into your budget.
Equipment and supplies-You cannot call yourself a nail salon without the proper equipment and supplies. A basic set-up will cost around $5000, but if you want to offer more services such as gel nails or pedicures, you will need to invest in additional equipment, which can cost upwards of $10,000.
Inventory-You will also need to stock your salon with nail polish, acrylics, gels, etc. The cost of inventory will depend on the brands you carry and the quantity you purchase, but you can expect to spend a few thousand dollars per month.
Marketing-You will need to let people know that your salon exists. The cost of marketing can vary depending on the type of marketing you do, but you should budget a few hundred dollars per month for marketing expenses.
Legal and consulting fees-You will need to factor in the cost of legal and consulting fees when starting your business. These costs can range from a few hundred dollars to a few thousand, depending on the complexity of your business.
Insurance-This is a legal necessity for any business, and the cost will depend on the type of insurance you need as well as the size of your salon. You can expect to pay a few hundred dollars per month for business insurance.
What Are the Recurring Costs of Owning a Nail Salon?
In addition to the start-up costs, you will also need to factor in the recurring costs of running your business. These costs include:
Rent or mortgage payments– if you are leasing a space for your salon, you will need to pay rent every month. If you own your salon, you will need to make mortgage payments.
Utilities-You will need to pay for utilities such as electricity, water, and gas. The cost of utilities will vary depending on the size of your salon and the services you offer.
Inventory-You will need to replenish your inventory on a regular basis. The cost of inventory will depend on the brands you carry and the quantity you purchase.
Employee salaries-If you have employees, you will need to pay their salaries. The cost of employee salaries will depend on the number of employees you have and the services they provide.
Marketing-You will need to continue marketing your salon on a regular basis to bring in new business. The cost of marketing will vary depending on the type of marketing you do.
In conclusion, the cost of starting and running a nail salon can be significant. However, if you are prepared for the upfront costs and the recurring costs, you can be successful in this business.