For many people, getting a weekly or bi-weekly manicure is a part of their lifestyle and schedule.
And even despite the effects of the pandemic, beauty and nail industry have continued to grow!
If you’ve ever thought about taking your passion for nails and beauty and turning it into a business…
Then this article is for you.
My name is Ippei, and I’ve been killing it at online business, passive income, and lead generation since 2014.
And I’m going to break down everything you really need to know about how to start a nail business in 2021 with this 9 step quick-start guide.
Including the realistic startup costs for a nail salon or nail technician, and the average profit margins of the nail industry.
So let’s get into how to start a nail business.
How to Start a Nail Business in 2021
Thinking About Starting a Nail Business in 2021? Here's What You Should Know:
Starting a nail business or nail salon can be profitable, but there are steps you will need to take to get there. To get started, you will first need to write out a business plan, obtain your certifications and licensing, price your services, and choose your business model.
Start Up Costs
While this list is not a comprehensive compilation of everything you need to start nail business, it provides a snapshot of what you need to add into your business plan.
Annual Revenue of Established Nail Business
According to My Nail Business, the average annual revenue of this kind of business is: $40,000-$75,000
Profit Margins of Established Nail Business
According to Profitable Venture, the average Profit margin of this kind of business is: 15-50%
Quick Start Checklist:
1. Business Plan and Getting Legal
While taking your passion for nail art from a hobby to a fully fledged business might not seem that complicated…
There are some important steps to take before you can run a legally operated nail business.
Before you start promoting your services to friends and family, you need to take a step back and create a business plan.
Operating as a nail technician takes practice and requires specific licensing, not to mention the requirements for opening your own nail salon!
But we aren’t even close to being at that point yet.
The first step is to map out a business plan so that your nail business goals are clearly defined.
Here is a basic business plan outline to help you get started:
Basic Things to Include in a Business Plan:
Do you want to run a mobile salon?
Perhaps you want to open your own brick and mortar nail studio, or simply work as a technician in someone else’s salon?
These are major factors that will affect the way that you go about starting and running your nail business.
Your business plan will serve and your roadmap, and will help to keep you focused on your long term financial goals and plans.
2. Getting Everything Legal
From here, you need to get your business legally established so that you can prepare for accepting your first clients!
The first step is to form an LLC for your nail business.
A Limited Liability Corporation is your business’s legal entity structure…
And it will protect you as the owner from any legal action being taken against you personally in the case of a lawsuit against your business.
Once you have your LLC, you can register for your EIN number…
Which will enable you to properly file your taxes, hire future employees, and open a business bank account.
Which is actually your next step on your business setup checklist!
You absolutely need a business bank account if you are planning to bring in any money from your nail business (which obviously you are).
Not only will you be taking payments from your clients, but you’ll also be frequently purchasing supplies…
And all of this starts to get really complicated from a tax filing perspective when you mix your personal finances with your business finances and expenses.
You will save yourself and your accountant a major headache if you take care of this before accepting even your first nail client.
Finally, you will want to have a comprehensive insurance policy.
Whether you are working as a nail technician and renting out booth space in another salon, or you own and operate your own nail salon…
Insurance will be a must.
The last you want is for someone’s finger or toe to get infected and the next thing you know your favorite client is suing you!
3. Certifications and Licensing Requirements
Just because you do your own nails, doesn’t mean you can legally go out and market your services to do other people’s nails.
The nail salon industry is regulated, and there are certain requirements and certifications that will be necessary for you to legally operate as a nail technician or a nail salon.
While the specific requirements vary from state to state, you will be required to hold at least one of the following licenses:
Both of these beauty industry licenses will equip you to do nail professionally, but there is a key difference between them.
A nail tech license strictly equips you to care for people’s nails and perform nail studio services for your clients.
The cosmetology license is a more comprehensive program that includes everything from nails to hair to makeup.
If you are simply focused on being able to run your nail business, then you technically only need the nail tech license.
Unfortunately, finding a beauty school program that is specific to nails only can be more challenging.
Depending on your local area, you may only find cosmetology programs that are available to you.
In which case, you will need to complete the full cosmetology program before you can begin working as a nail tech or opening your own nail salon.
Even the time it takes to complete a nail tech or cosmetology license will vary from state to state, but on average it takes between 300-600 hours of training.
Then you will need to pass a state exam that usually includes both a written and practical application sections of the test.
Here are five of the best nail tech programs available today:
Best Nail Tech Programs:
In the nail salon industry, regulations have started to increase as the industry continues to grow.
This is to protect both the nail technicians themselves, and the clients that they serve.
Nail care products often include harsh chemicals, so having enforced safety regulations in place within the nail industry is extremely important!
Typically, your local state cosmetology board will govern and moderate the regulations and requirements for nail technicians and nail salons…
So if you are starting your nail business, always consult your state’s cosmetology board with any legal questions you might have regarding industry regulations.
In addition to your state’s cosmetology board, the FDA and OSHA have helpful information regarding how to safely and legally run a nail business.
4. Practice Makes Perfect
Once you have your nail tech or cosmetology license…
The best thing you can do is to practice, practice, practice.
As you continue to hone your craft, practice on anyone who will let you.
Friends and family are great for this part!
They already know, love, and trust you…
And they will recommend your services and skills to others as well.
Building up your word of mouth reputation and experience in this beginning state of your nail business is key.
Don’t focus on needing the best of the best when it comes to products and tools right now.
Start with what you have, and don’t be discouraged if you can’t afford top of the line, named brand acrylic brushes or gel polishes just yet.
The best quality tools and products in the world cannot make up for a lack of skills or quality, so let that come first.
Before you know it, you’ll be making more than enough to start investing in higher quality polishes and nail tools for your clients.
5. Business Model and Location
When starting your nail business, one of the biggest decisions that you will have to make will be your business structure and business model.
In the beauty and nail industry, there are a variety of different options when it comes to structuring your nail business.
Even if your end goal is to open a nail salon of your own, that doesn’t mean you are prepared to start there.
So before you jump straight into renting a space and opening a nail studio…
Consider these business model options carefully and make the best decision for where you are at right now.
Here are the five basic options that you’ll be looking at when building your nail business:
Which can make this option challenging to pursue for many people.
A mobile salon is convenient for your clients, but what it means for you as the business owner is that you will be able to serve fewer clients due to the time spent driving between clients.
When you work for commission in an existing salon, one of the perks is that the salon will typically provide all of the products and supplies for you.
However, the down side of this is that you will have less control over the products you use and over your profit margins.
Essentially, this option puts you working as a salon employee, rather than running your own nail business.
Renting a booth space in an existing salon is by far the most common option for most nail technicians.
When you opt for booth rent inside of an existing salon, you are essentially running your own mini salon inside of the main salon’s space.
Which means that you will be paying a weekly or monthly booth rent.
Regardless of how much you make, you will be responsible for paying your booth rent like you would be when paying rent for your own physical salon location.
Even if you don’t make enough in sales to cover the cost…
You still have to pay.
Which is why it is important to build up a client base before jumping into renting a booth space.
By far, the most profitable option on this list is to open your own nail salon!
There are so many great perks of running your own nail studio and salon.
For one thing, you have complete control.
You get to design the space and set the atmosphere.
You get to choose who you hire and who to fire.
You get control over the products and techniques used in your salon.
Plus, you are in charge of how much profit you take home at the end of the year.
Whether your business is flying high, or it crashes and burns…
It’s all in your hands.
But the downside is that this option is also the most challenging and expensive option for starting a nail business.
You will be responsible for building out the salon space, passing inspections, hiring skilled nail technicians, and marketing your new salon…
Plus, the overhead for a brick and mortar nail salon is no joke.
Think carefully about building up your client base and experience as a nail tech in another salon, or by renting booth space before renting or purchasing your own nail salon space.
6. Pricing Your Services
As a beginning nail technician or nail salon owner, you may feel hesitant or confused about how to price your services.
Do you price based on the salon down the street?
Or strictly off of your overhead costs?
Do you charge less because you’re just starting out?
Ultimately, the answer to all of these questions will vary.
But one thing to remember is that pricing will be heavily dependent upon your location.
A nail technician working in a prestigious salon in New York City or Los Angeles can charge over $100 for a full set…
Whereas a nail technician in a smaller city in a lower income region of the country might only be able to charge $30-$60 for a full set.
Even if your skills match those of a nail tech working in a fancy LA salon…
You probably won’t be able to get away with those kinds of prices if your local clientele will experience sticker shock when they go to pay!
But just because there is a nail salon nearby charging only $30 for a set, doesn’t mean you are doomed to charge the same or less if you want to remain competitive either.
That salon might use cheaper products, or have a lower quality of service than what you will be offering your clients.
In which case, if you charge $50 for a set, your services are competitive based on value rather than price.
Build your prices around the following factors:
Pricing isn’t a concrete, fixed variable, or exact science.
It’s filled with variability, gray areas, and is truly more of an art than anything else.
The good news is that you can always tweak and change your pricing as you see fit.
Just remember that even if you are new to your craft, your time and skills are still valuable!
Never sell yourself short simply because you are new to the business.
7. Equipment and Supplies
If you’re going to be running a nail salon, or even working as a technician in a rented booth space…
You are going to need to fork over some cash for equipment, supplies, and products.
While you don’t have to take the approach of “go big or go home” when it comes to investing in your supplies…
It is important to invest in quality where you can.
Here is a basic list of nail salon and nail technician supplies and equipment that you will need to start a nail business in 2021:
Nail Equipment and Supplies List:
8. Marketing Your Nail Business
If you are going to run a nail business, then you will face the same key problem that every business owner who has gone before you has faced…
And that is the problem of getting new leads and new business coming in on a consistent basis.
As a business owner, the last thing you want to be stressing over is a lack of business…
Which is why strong marketing campaigns and lead generation strategies for your business are so important!
But sometimes it can be overwhelming or impossible to do it all.
Running your business, balancing your books, serving your clients, and pouring your time and energy into lead generation can be exhausting.
Fortunately, you’re in the right place.
We teach small business owners how to generate new leads for their business sustainably…
So that new business is streaming in constantly, without you expending excessive effort.
And we can do the same thing for your nail business.
If you’re interested to learn how we can help you get started with lead generation for your nail business today, then click here for more information.
In addition to setting up a lead generation strategy for your nail salon business, you will need to create a website.
But creating a website for your nail business doesn’t have to be complicated, and you don’t even have to hire a graphic designer or web designer if it isn’t in the budget for you right now.
Building a website is simpler than it’s ever been thanks to template based website builders.
Some of my top picks for user-friendly website builders are:
From there, you can apply for a Google My Business page, which is a free account that Google offers to business owners.
A GMB listing will help your business to be found more easily in localized search results and in Google Maps listings…
Plus it helps your website rank higher within Google as well!
It’s as simple as filling out your account and business info, and then waiting for your confirmation number postcard to arrive in the mail to confirm your business address.
Another great but simple way to advertise and market your nail business is through social media.
Especially if you utilize the location and hashtag capabilities of platforms like Facebook and Instagram.
You might be surprised at the extra viability and therefore business that you can get from posting photos of your nail art and services on social media!
Finally, don’t minimize the power of a good old fashioned business card.
Send satisfied clients with a handful of cards to pass out to their friends…
Because you know they will be asking when they see how “snatched” your client’s nail set is!
(At least I think that’s what the cool kids are saying nowadays…)
9. Client Experience
As a nail technician and a nail salon owner, one of the best things you can do for your nail business is to provide an incredible client experience.
This starts with maintaining a welcoming and clean environment.
Nail salons that develop a bad reputation for unsanitary stations quickly lose business…
And rack up bad reviews.
If you want your nail business to thrive…
Every square inch of your salon space should be spotless and sparkling, and your tools and equipment should be sanitized regularly to minimize the potential for infection.
Another way to enhance your client experience is by offering amenities like coffee or tea…
And if you want to get fancy with it, maybe even sparkling water or kombucha!
But above all, always strive for excellence in customer service.
Your clients will remember how your salon employees made them feel above anything else…
And poor customer service is one of the first things that will cause someone to leave you a bad review.
Obviously, your client experience isn’t complete without quality of service.
Make sure that you and anyone else that you hire are skilled at what they do.
The last thing you want is to be the salon that charges an arm and a leg for nails that break the next day.
Your nail sets should not only look beautiful, but also last a long time when treated with care.
Combine all of these things…
And you’ve got yourself a recipe for an amazing nail salon experience!
Pros and Cons
of starting a nail business
Pros
For many aspiring entrepreneurs, one of the greatest draws to launching a business is the freedom to set your own schedule. There’s no boss to dictate your day, or look over your shoulder… You are in control of your time. This can be both freeing, and stressful. But for most small business owners, it is one of the most gratifying aspects of being self employed.
Starting a nail business comes with a lot of flexibility. There isn’t just one way to “skin a cat” as the old saying goes, and there definitely isn’t just one way to start a nail business. You will have the freedom to choose the route that works best for you. Whether that is renting out booth space in an existing salon, opening your own nail salon and employing other nail tech’s, or even working as a mobile nail technician. You get to choose!
The beauty industry is ever expanding, and this is going to work heavily in your favor. More now than ever, getting your nails done is a routine event for many women. Whether we like to admit it or not, appearances do matter in today’s modern society, and getting your nails done has become an integral part of maintaining an image for many individuals. In light of this, you can safely assume that your nail business isn’t going to become obsolete anytime soon.
Cons
While becoming a nail technician isn’t quite as intensive as something like becoming a brain surgeon, it does require certifications and education. There is a high risk of infection for your clients if you don’t know how to properly do your job. Plus, there is more skill involved in the job than many people realize! Unfortunately, this means that there is an educational barrier to entry for this business model. Just because you do all your friends’ and family’s nails, doesn’t mean you can start a nail salon of your own. You will need to obtain the required certifications and licensing.
If you have any visions of earning steady passive income from your nail business… I encourage you to lay those aside. Your income as a nail tech will be directly linked to your hours. Even if you’re running your own business. While owning your own salon with multiple nail techs can eventually lead to passive income, you will still spend considerable time doing nails for clients yourself, in addition to the behind-the-scenes operations of your salon.
Without consistent clients coming through your doors, you don’t have a nail business. No matter how skilled you are or how lucrative the beauty industry might be. With this being said, it takes time to build up the client base required to take your nail business from a side hustle to a full time job. It helps to start out with friends and family who can refer those in their circles to you. But even with referrals, you need to be prepared to work hard and market your business aggressively.
Starting a Nail Business Can Work, but Lead Gen is Better... Here's Why:
The cosmetology industry can be very profitable if you are willing to put in the work.
Whether you want to open your own nail salon, or simply work as a technician and rent booth space in someone else's salon…
The potential for a thriving business is there.
But getting there is a long path to success.
And don’t misunderstand me…
There is no such thing as a “get rich quick’ scheme.
But if you want to start a nail business…
You need to be prepared to go through the process of getting your education, developing your skills, and working hard to build up a client base before the money starts coming in.
It’s a long term plan.
There are much better business options out there than opening a nail studio!
Trust me.
I can say this with full confidence, because when I left my 9-5 job over six years ago…
I could barely pay my bills.
I experimented with everything from drop shipping to affiliate marketing, but the business model that changed everything for me was local lead generation.
Online lead generation literally took me from making around 2K per month at my old job, to making well over 50K in relatively passive income in less than five years.
Yes, you read that right.
And the best part?
Anyone can learn the skills of lead generation.
Plus while you’re raking in passive income, you’ll get to help other small business owners grow and thrive by supplying them with a steady stream of new leads for their business!
All thanks to the localization abilities of Google, and strategic SEO.
So if this sounds like it’s more your speed...
Then click here for more information on how we can help you get started with lead generation today.
