Investing in a Nail Salon the Right Decision?

1st Jan 2020 Posted by SO Gel Nails invest, nail salon, business,

Investing in a Nail Salon the Right Decision?

Is the nail salon business a lucrative investment? What are the key challenges and benefits which owners face daily? Well, these are questions which an investor who is considering investing in nail salon would ask. However, something important every investor should note is that any business comes with some benefits and at the same time challenges. 

If you are ready to take the leap into nail salon ownership, then this article is for you to enhance your skills and competence in the business.

Today, we shall consider the following aspects:

  • What it takes to start a nail salon
  • What are the benefits of owning a nail salon
  • What are the issues with owning a nail salon


To get started you need a good understanding of the benefits and the challenges of owning a nail salon. It's good first to consider what it takes for you to establish this business and what day to day operations will look like.

There is a cost which is related to establishing a designated nail saloon where you would need to get a building. We are not talking about a home salon, but a true brick and mortar store which could start at 1, 000 square feet. On average your square foot lease could be between $75 to $120, which would equate to $75,000 to $120,000 to secure a spacious nail salon. Building leases rates differ depending on location. To have a successful nail salon, please take note of the following:

  • Make sure your staff is properly licensed
  • Pick an ideal location
  • Install the salon with quality equipment
  • Use SO Gel Nails products
  • Invest in proper advertising for your building
  • Ensure the business is clean
  • Hire friendly and professional staff
  • Use industry standard software


Once you have the business in place, it will come with some benefits which are unique to that business only.

Less Legal Requirements

As a nail salon owner you do not need to follow some lengthy legal procedure for the business to get started. For instance, one needs to obtain a proper business entity, insurance and then secure a business license, and the business would begin running. It is a great benefit to owners since there are other businesses where people spend a lot of time buried in paperwork.

Highly Profitable

The nail salon business can be a very profitable business if they rent out space to the nail technicians and can make some good profits each month. For instance, the average profits which the nail business would make in a year are $40,000, which is a great investment. If the business continues to make a steady amount of money they would have a high chance of expanding, which would increase their profits.

Close Contact With Customers

Unlike other business, the nail salon develops close connections with their customers, which ensure the business has some reliable and loyal customers. Most of the owners are the one operating the business which ensures they have that professional engagement with the customer, which is essential. Don't forget, if you hire a strong front desk customer relationship builder, your chance of growing due to customer loyalty is even higher.

Limited Staff, Supplies And Equipment

Nail salons need limited staff, especially if the business is not busy. For instance, as the owner, you will only need one or two employees to operate fully, which reduce the labour cost for the business. Or consider renting out space to new nail technicians. It also requires only a few supplies for the business which reduce the operational cost.


As much as the business looks promising and profitable, it also has a downside which include the following:

Stiff Competition

When it comes to the nail business, there is stiff competition due to the high rate of individuals who are ready and willing to set up nail shops in their home or open locations in your area. Many people are eager to open and run their salon because of less capital required which over saturate the market. For instance, in big cities, you are likely to see nail salons, which offer similar services established adjacent to each other.

Retaining Old Clients

Nail salon owners have significant challenges in maintaining old clients once a nail tech leaves or from poor marketing strategies. Most of the businesses have adopted new tactics which would help get new clients, but they forget to offer incentives to reliable clients who have been there all along. These are just two of the challenging situation when it comes to owning a nail salon.

Salon Maintenance

Another big challenge is the maintenance of the salon to ensure it meets all the required needs. Nothing turns a client away faster than a dirty salon while getting their nails serviced. The owner needs to make sure they have quality equipment and has the best nail products for their clients. That is why we suggest SO Gel Nails products.

Cost of Training Staff

Salon owners have to ensure that they train all their staff, especially if they are new to the industry, or are renting a space. What the nail technician does will reflect on the overall nail salon. If the business grows, it will need more staff, and in most cases, the owners want to hire nail techs that already have a good book of business. If the salon owners decide to hire a new nail tech, it will get busy over time, but then owners usually fail to allocate time to train. This can cause a substantial negative impact on the business as the new nail tech will not deliver the same quality of service to clients which should be the standard of the salon.

Being a nail salon owner can be a lucrative business which you can establish in today's market and earn you a considerable profit. It does not require high initial capital to start, which makes it easy for the owner to establish the business. In additions to that, if the owner would maintain good customer relationships, it would lead to the business expanding, which is a significant factor. 

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