Nail Salon Business Plan

Thinking about starting or expanding your nail salon? Explore this step-by-step guide and an investment-ready template that helps you with all the key details needed for your business planning.

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Nail salon business plan
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Finding success in the nail salon business isn’t as easy as it looks. Rising rent, growing competition, and the challenge of keeping loyal clients can make it tough to stay profitable. On top of that, figuring out how much to invest, what services to offer, and how to market them can feel overwhelming.

That’s where a solid business plan comes in. It helps you manage your costs, set clear goals, and figure out ways to bring in and keep clients.

Here, you’ll see a real-life nail salon business plan sample that you can refer to while creating your own plan. It gives you a clear structure and practical insights to turn your idea into a successful salon.

Nail Salon Business Plan Sample

Check out the real-life business plan example of Gloss & Glow Nail Lounge. It shows a clear structure and approach to help you create your own nail salon plan with confidence.

1. Executive Summary

Uptown Dallas residents and office workers want upscale self-care, but premium, non-toxic nail salons are scarce. That’s where Gloss & Glow Nail Lounge, LLC comes in. Founded to meet the growing demand for high-quality nail care in Uptown Dallas, the salon will be located at 2910 McKinney Avenue, Suite 105, with strong visibility to residential, office, and nightlife traffic.

Uptown Dallas has approximately 20,214 residents with an average household income of $105,902, and many local salons focus either on discount services or spa-only experiences, leaving a gap for clients seeking a modern, premium, non-toxic nail care experience. Gloss & Glow will differentiate with:

  • Non-toxic product line from OPI, DND Gel, Cuccio
  • Upscale lounge experience with complimentary beverages
  • Membership model ($75/month = 2 services + 10% retail discount)
  • Bilingual staff and online booking

The salon will offer classic and gel manicures, pedicures, dip powder, nail art, men’s grooming, and group packages for bridal or corporate events. It will also sell retail products like polish, gels, lotions, and cuticle oils.

Gloss & Glow is fully owned by Sophia Tran, a licensed nail technician with 12 years of experience in Dallas salons and a former manager at Bellacures. She speaks English and Vietnamese and brings strong skills, management experience, and a loyal client base, ensuring great service and steady revenue growth.

Financial projections are based on staffed chair capacity, realistic service throughput, and average ticket prices:

Year Revenue EBITDA Notes
Year 1 $470,000 –$58,000 Ramp year; expected opening loss
Year 2 $646,000 +$48,000 Break-even mid-year; growing membership
Year 3 $744,000 +$116,000 Stable profitability; optimized operations

Nail salon business plan financial projections

Break-even requires approximately 988 visits per month, or 36 visits per day, projected by mid-2027, with an average realized service ticket including retail of $50.

Gloss & Glow is seeking a $280,000, 7-year fixed loan at 9.25% from Frost Bank, complemented by the owner’s $75,000 cash equity. Collateral pledged includes leasehold improvements, salon equipment, and the owner’s Dallas condominium (appraised at $315,000).

This funding will enable Gloss & Glow to launch efficiently, build clientele, and achieve profitability while delivering a premium, non-toxic nail care experience in Uptown Dallas.

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2. Company Overview

Gloss & Glow Nail Lounge, LLC is a Texas limited liability company formed in January 2026. The LLC setup gives the salon liability protection, clear reporting for lenders, and tax flexibility as it grows. The business has already applied for a Cosmetology Salon License with the Texas Department of Licensing and Regulation and will also secure a sanitation permit from the Dallas Health Department before opening.

Location

The salon will open at 2910 McKinney Avenue, Suite 105, Dallas, TX 75204—a ground-floor retail space in the middle of Uptown Dallas. The spot was picked for three main reasons:

  • Right customers: Uptown has about 20,214 people, which fits our premium nail service audience.
  • Lots of visitors: The area has apartments, shops, and restaurants, bringing office workers in the day and visitors in the evenings and weekends.
  • Easy to find and reach: Big windows, clear signs, and nearby parking make it easy for clients to come.

The 2,000-square-foot unit will be designed into a 10-station nail lounge with six manicure chairs, four pedicure thrones, a beverage bar, and a sanitization room to meet all health standards.

Mission Statement

Our mission is to provide safe, stylish, and high-quality nail services in a calm lounge setting, while offering excellent customer service that makes clients feel valued and cared for.

Vision Statement

Our vision is to be Uptown Dallas’ most trusted nail lounge, known for non-toxic products, skilled staff, and a modern client experience that feels personal and premium.

Ownership

Gloss & Glow is fully owned and run by Sophia Tran. She is a licensed nail technician with 12 years of experience in Dallas and spent six years managing Bellacures, where she led over 15 staff, made schedules, and ensured great service.

Sophia brings a loyal client base from Uptown and strong ties to Dallas’ Vietnamese technician community. She speaks English and Vietnamese, which helps her work well with staff and serve a mix of clients. As owner and manager, she will handle hiring, training, vendor deals, schedules, and overall quality.

Brand Identity

The name “Gloss & Glow” reflects the salon’s promise.

  • Gloss → Style, polish, and detail.
  • Glow → Wellness, non-toxic products, and a modern lounge feel.

This brand positions Gloss & Glow as a premium, healthy, and stylish option in Uptown Dallas, setting it apart from lower-priced salons.

Long-Term Goals

Gloss & Glow is not just focused on opening its first location but also on building a strong future. Over the next few years, the salon plans to grow in a steady and sustainable way by:

  • Expanding locations – Open a second salon in Dallas within five years, followed by more in high-demand areas.
  • Building a strong brand – Become a trusted name for safe, stylish, and non-toxic nail care in the Dallas market.
  • Adding new services – Introduce more wellness-focused options like hand and foot treatments that match the lounge style.
  • Training technicians – Create a program to train and mentor nail technicians, building a skilled and loyal team.
  • Growing revenue – Steadily increasing sales each year by keeping loyal clients and attracting new ones through premium service.

Milestones & Timeline

Gloss & Glow has a clear plan to move from idea to launch and growth. Each milestone is designed to keep the business on track and ready for long-term success:

Nail salon business plan milestones

3. Market Research

Market Outlook

The nail salon industry is growing fast, and the numbers show why it’s a great time to open a new salon. According to GMInsights, the global market was valued at $8.8 billion in 2024 and is expected to reach around $13.7 billion by 2034. People are spending more on self-care and looking for safe, high-quality services that feel luxurious.

Nail salon market size by service type 2021 2034

The U.S. is leading this growth. In 2023, the U.S. market was $2.66 billion and is expected to reach $4.88 billion by 2033. Customers want more than nails—they want a full experience with comfort and style. This is a great time to open a salon with premium, non-toxic care in a friendly, modern space.

Uptown Dallas Market

Gloss & Glow will open in Uptown Dallas, a busy and wealthy area with many opportunities. Uptown has 20,214 residents with an average income of $105,902, plus thousands of office workers nearby. This mix makes high-quality nail services in demand. People in Uptown spend more than the Dallas average, making it a perfect spot for a salon focused on style, safety, and comfort.

Market Trends

The nail salon industry is changing, and new trends are shaping what people want. Gloss & Glow will use these trends to stand out in Uptown Dallas:

  • Clients want custom nails and designs just for them.
  • Online booking and mobile payments make visiting easy.
  • People prefer safe, non-toxic products.
  • Trendy nails, like press-ons and 3D or shiny designs, are popular.
  • Memberships and rewards encourage repeat visits.

By following these trends, Gloss & Glow is ready to offer a premium, safe, and fun nail experience that Uptown Dallas clients will love.

4. Customer Analysis

The nail salon industry is mostly driven by women, who made up 72.1% of the market in 2024, and this share is expected to grow through 2034.

Nail salon business plan customer analysis

(Source)

Women continue to lead the nail salon market, not just in numbers but also in spending habits, showing a consistent demand for premium and personalized services.

Men are also spending more on grooming. A survey shows the average American spends $897 per year on appearance, with women spending $1,064 and men $728.

Average speed

(Source)

This shows there is a great opportunity to serve both women and men who care about looking and feeling their best.

Gloss & Glow is designed to serve clients who want premium, safe, and enjoyable nail services.

Our main target groups include:

Women 25–45: Young professionals and affluent women in Uptown Dallas are looking for premium nail care and creative nail art that fits their lifestyle. They want services that feel personal, stylish, and relaxing.

Men 28–50: The male grooming market is growing fast but often overlooked. Gloss & Glow will offer professional manicures and hand care made for men who want to look polished without fuss.

Bridal & group clients: From bridal parties to corporate wellness events, groups are looking for an upscale, fun experience. Gloss & Glow’s lounge-style environment and beverage service make it a perfect choice.

Professionals & residents: Uptown’s mix of busy office workers and nearby residents creates steady demand, both on weekdays and weekends, for quick, high-quality nail services.

By focusing on women, men, and special group events, Gloss & Glow is ready to tap into a wide, profitable customer base. Our goal is to deliver safe, stylish, and memorable nail experiences that keep clients coming back again and again.

5. Competitor Analysis

Gloss & Glow will open in Uptown Dallas, where many people want high-quality nail services. Even though some salons are nearby, there’s still room for a lounge that uses safe, non-toxic products, looks modern, and gives personal care. Here’s a look at the main direct competitors:

Direct Competitors

Name Address Strength Weakness
The Nail Bar Uptown 2404 McKinney Ave Stylish interior, good location Often busy, long waits, no loyalty program
Bellacures 3636 McKinney Ave Popular premium brand Part of a chain, less personal service, and few non-toxic options
Spa Habitat 3699 McKinney Ave Eco-friendly, attracts health-focused clients Nails are not the main focus; spa services take attention away from nails

Indirect Competitors

Other competitors include small discount salons in Uptown and Oak Lawn. They are cheap and easy to visit, but usually have poor cleanliness, outdated interiors, and no focus on premium or non-toxic care. Big spas and beauty centers also offer nail services, but nails are not their main focus.

Competitive Advantages

Gloss & Glow sets itself apart from other salons by combining safety, style, and personalized service to create a one-of-a-kind nail experience for every client.

  • Non-toxic products: Focus on safe, high-quality nail care.
  • Upscale lounge experience: Stylish interiors, comfortable seating, and complimentary beverages.
  • Membership program: $75/month package with 2 services and a 10% retail discount to encourage loyalty.
  • Bilingual staff: English and Vietnamese-speaking technicians to connect with diverse clients.
  • Personalized service: Small team ensures attention to detail and quality, standing out from corporate or discount salons.

6. Services Offered

At Gloss & Glow, we offer a full range of nail services designed to combine style, wellness, and comfort. Our goal is to make every visit feel premium, relaxing, and personalized.

Service Category Service Name Price Description
Manicure Classic Manicure $28 Basic nail shaping, cuticle care, and polish.
Gel Manicure $45 Longer-lasting polish with UV/LED curing for durability.
Dip Powder $55 Durable powder application for a polished finish.
Add-on Nail Art $15–$40 Hand-painted or decal designs customized for each client.
Pedicure Standard Pedicure $40 Classic soak, nail shaping, and polish.
Deluxe Pedicure $65 Includes exfoliation, hot towel wrap, extended massage, and non-toxic polish.
Gel Pedicure $55 Gel polish for long-lasting durability on toes.
Men's Grooming Men's Hand or Foot Grooming $30 Buff, shape, cuticle care, and optional natural polish for a polished look.
Group Packages & Events Small Group (5–8) $350–$600 Perfect for bridal parties or corporate events; includes lounge experience and beverages.
Medium Group (9–15) $700–$1,000 Upscale group service for larger events; fun and high-quality experience.
Large Event (16+) $1,200+ Premium package for big celebrations with full lounge access and beverage service.

Retail Sales

We also offer retail products for clients to maintain their nails at home:

  • Polishes & gels: OPI Natural, DND, Cuccio lines
  • Lotions & oils: Branded cuticle oils, Cuccio lotions
  • Gloss & Glow kits: For easy at-home care

We expect retail sales to account for 15–20% of service clients, raising the average ticket and enhancing the overall experience.

Membership Model

To create loyal clients and stable revenue, we offer memberships:

  • Standard membership — $75/month: Includes 2 services + 10% retail discount
  • Premium membership — $120/month: Includes 4 services + 15% retail discount

Our goal is to convert over 30% of clients into members by Year 2, ensuring predictable revenue while rewarding loyal customers.

Suppliers

Gloss & Glow works with good suppliers to give clients the best experience. We use top nail brands like OPI (direct), DND Gel, and Nail Superstore to make sure nails are safe, strong, and look great. For drinks, we get coffee, tea, and craft beverages from Oak Cliff Coffee Roasters and Deep Ellum Brewing, so clients can relax while they enjoy their nails. Good suppliers keep our quality high and make clients want to come back.

Revenue Metrics

  • Average Service Ticket: Each service visit brings in about $46 on average. This is based on the mix of manicures, pedicures, and add-ons that clients usually choose.
  • Retail Attach Rate: About 8% of service revenue comes from products like polishes, lotions, and home kits. With retail included, the average total ticket rises to around $50 per client.

Retail products help clients enjoy their nails at home and also increase overall revenue per visit, making each client more valuable.

7. Operations & Staffing Plan

Gloss & Glow will run with a smooth schedule and a well-trained team to make sure clients always get the best experience.

Hours of Operation

Day Hours of Operation
Monday–Thursday 12:00 PM – 10:00 PM
Friday 12:00 PM – 12:00 AM (midnight)
Saturday 10:00 AM – 12:00 AM (midnight)
Sunday 10:00 AM – 9:00 PM

Facilities

Our 2,000 sq. ft. studio at 2910 McKinney Avenue is built to be both stylish and practical. It will have 6 manicure stations and 4 pedicure spa chairs with built-in plumbing. Clients can also enjoy a beverage bar and lounge area for relaxation. To keep everything clean and safe, we’ll have a sanitation room with sterilizers, storage for single-use tools, and laundry appliances. The reception area will include a booking kiosk, payment system, and retail shelves to display products.

Staffing Plan

Role Number of Staff Pay Rate
Owner/Manager (Sophia) 1 $65,000/year
Senior Nail Technicians 4 $20/hour + tips (~$55,000 each)
Junior Nail Technicians 3 $16/hour + tips (~$42,000 each)
Receptionist/Front Desk 2 $16/hour
Cleaning/Support Staff (PT) 1 $15/hour

Shift Structure

On weekdays, 6 nail technicians will work in two shifts to cover the full day. On weekends, when demand is highest, the full team will be scheduled to make sure every client is served without long waits.

Training & Quality Control

We believe excellent service starts with training. New staff will go through a two-week onboarding program that covers service standards, customer care, and upselling. To keep skills fresh, we’ll hold quarterly workshops on nail art trends, new non-toxic products, and sanitation practices. We’ll also hire bilingual staff (English/Vietnamese) to better connect with both the local salon community and clients.

Vendor Contracts

Gloss & Glow will rely on trusted vendors to keep daily operations running smoothly:

  • Laundry service through Wash Dry Fold Dallas ($220/month)
  • Waste & sanitation managed by Republic Services ($160/month)

Compliance & Licensing

Gloss & Glow will follow all required rules and safety standards. This includes:

  • Texas Cosmetology Salon License through the Texas Department of Licensing and Regulation (TDLR)
  • Dallas Health Department Sanitation Permit
  • Alcohol Permit (if wine or beer is served)
  • Insurance: $2M general liability coverage plus workers’ compensation for staff

Daily Workflow

Our daily routine is designed to keep things running smoothly. The day begins at 9:30 AM with sanitation checks, station setup, and appointment confirmations. Throughout the day, services are delivered across 10 stations, with each appointment lasting about 45–60 minutes. At checkout, the receptionist highlights memberships and retail products to add value for clients. In the evening, the team closes with inventory counts, sanitation logs, and cash reconciliation to prepare for the next day.

8. Marketing & Sales Strategy

Gloss & Glow will use smart marketing to reach new clients, build loyalty, and keep steady growth. Our plan focuses on digital ads, strong local presence, and simple promotions that get people talking. With a monthly spend of $2,500, we’re targeting the channels that matter most to Uptown Dallas clients.

Channel Share of Budget Purpose
Google Local + Maps 40% ($1,000) Capture people searching for "nail salon near me" and ready to book.
Instagram & TikTok Ads 40% ($1,000) Share nail art, style trends, and client stories to attract new clients.
Yelp & StyleSeat Listings 15% ($375) Boost online reviews, salon rank, and client trust.
Micro-Influencers 5% ($125) Local bloggers showcase services to their followers.

Nail salon business plan use of funds

Promotions

To grab attention and encourage repeat visits, we’ll use these offers:

  • Grand Opening: 25% off all services for the first 30 days.
  • Membership Boost: Join in the first 60 days and get a free add-on (like nail art or hand massage).
  • Referral Program: Bring a friend and both get $10 off your next visit.
  • Birthday Special: Members enjoy a free polish change or 15% off in their birthday month.

Customer Growth Goals

  • Year 1: Reach 450 recurring monthly clients.
  • Year 2: Grow to 700+ active clients through memberships and loyalty programs.

Sales Process

Our sales process is simple and friendly, built to turn first-time visitors into regulars:

  • Find & Book: Customers discover us through Google, Instagram, or Yelp and book online.
  • Salon Visit: During service, staff suggest upgrades like nail art or gel finishes.
  • Checkout: Receptionist explains memberships and retail products to encourage repeat visits.
  • Stay Connected: After the visit, clients get reminders and offers to book again.

9. Financial Plan

Gloss & Glow Nail Lounge’s financial plan is structured around a capacity-driven revenue model, realistic operating costs, and a staged path to profitability. The plan reflects conservative utilization assumptions in Year 1, a clear break-even target by Year 2, and steady cash flows in Year 3.

Startup Costs

Startup expenses will be covered through owner equity ($75,000) and a Frost Bank loan ($280,000).

Category Amount($) Notes
Leasehold Improvements 120,000 Buildout, plumbing, flooring, Americans with Disabilities Act (ADA) restroom, beverage bar, design
Equipment & Furnishings 65,000 6 manicure stations, 4 pedicure thrones, sterilizers, point of sale (POS) system, washer/dryer, furniture
Inventory & Supplies 20,000 Non-toxic gels, lotions, beverages, disposables
Marketing Launch 15,000 Pre-opening campaign, grand opening, influencers
Working Capital Reserve 60,000 3 months payroll, utilities, rent
Professional Fees, Licenses, Insurance 25,000 Legal, TDLR licensing, permits, liability coverage
Contingency Buffer 50,000 Buildout or operating overruns
Total 355,000 $280,000 loan + $75,000 equity

Important Assumptions

  • 10 stations: 6 manicures + 4 pedicures.
  • Average realized service ticket: $46, with 8% retail attached → ~$50 effective ticket.
  • Throughput: Ramp from 4 services/tech/day to 5.5 by Year 1 end.
  • Variable costs (COGS): 13% of total revenue (consumables, beverages, merchant fees).
  • Payroll: Fully loaded cost ≈ $33,400/month steady-state (7 techs).
  • Occupancy + marketing + ops fixed costs ≈ $9,000–10,000/month.
  • Loan terms: $280,000 at 9.25%, 7 years fixed.

Revenue Forecasts

Year Revenue COGS (13%) Gross Profit Operating Expenses EBITDA
Year 1 $470,000 $61,100 $408,900 $466,800 -$57,900
Year 2 $646,000 $84,000 $562,000 $514,000 +$48,000
Year 3 $744,000 $97,000 $647,000 $531,000 +$116,000

Nail salon business plan revenue forecasts

Monthly Projections (Year 1)

Month Service Revenue Retail Revenue Total Revenue
January $20,889 $1,671 $22,560
February $22,194 $1,776 $23,970
March $23,935 $1,915 $25,850
April $34,815 $2,785 $37,600
May $36,991 $2,959 $39,950
June $36,759 $2,941 $39,700
July $34,815 $2,785 $37,600
August $35,741 $2,859 $38,600
September $43,519 $3,481 $47,000
October $45,139 $3,611 $48,750
November $49,074 $3,926 $53,000
December $51,852 $4,148 $56,000
Total $430,723 $39,776 $470,000

Nail salon business plan monthly projections

Projected Profit & Loss (3-Year)

Item Year 1 Year 2 Year 3
Revenue $470,000 $646,000 $744,000
COGS (13%) $61,100 $84,000 $97,000
Gross Profit $408,900 $562,000 $647,000
Operating Expenses
Payroll – Technicians $258,000 $293,000 $307,000
Payroll – Owner Salary $65,000 $65,000 $65,000
Payroll – Front Desk + Support $26,400 $26,400 $26,400
Payroll Taxes & Benefits $24,100 $27,500 $29,600
Total Personnel $373,500 $411,900 $428,000
Rent & Occupancy $61,200 $61,200 $61,200
Marketing $30,000 $30,000 $30,000
Laundry/Waste $4,600 $4,600 $4,600
Software/POS $3,000 $3,000 $3,000
Insurance & Licenses $19,500 $19,500 $19,800
Total OpEx (non-payroll) $118,300 $118,300 $118,600
Total Operating Expenses $491,800 $230,200 $546,600
EBITDA -$57,000 +$48,000 +$116,000
EBITDA Margin -12% 7% 16%
Net Income (pre-tax) -$57,000 +$48,000 +$116,000

Projected Balance Sheet (End of Year Snapshot)

Item Year 1 Year 2 Year 3
Assets
Cash & Reserves $25,000 $52,000 $110,000
Accounts Receivable $3,000 $4,000 $5,000
Inventory $8,000 $10,000 $11,000
Prepaid Expenses & Other Current Assets $2,000 $3,000 $3,000
Total Current Assets $38,000 $69,000 $129,000
Leasehold Improvements (net) $110,000 $95,000 $80,000
Equipment & Furnishings (net) $70,000 $65,000 $60,000
Total Fixed Assets $180,000 $160,000 $140,000
Total Assets $218,000 $229,000 $269,000
Liabilities & Equity
Accounts Payable $8,000 $9,000 $10,000
Accrued Expenses $5,000 $5,000 $6,000
Current Portion of Loan $40,000 $40,000 $45,000
Total Current Liabilities $53,000 $54,000 $61,000
Long-Term Loan Balance $210,000 $170,000 $120,000
Total Liabilities $263,000 $224,000 $181,000
Owner Equity (Initial Investment) $75,000 $75,000 $75,000
Retained Earnings -$120,000 $70,000 $13,000
Total Equity -$45,000 $5,000 $88,000
Total Liabilities & Equity $218,000 $229,000 $269,000

Projected Cash Flow (3 Years)

Item Year 1 Year 2 Year 3
Operating Cash Flow
Net Income (EBITDA proxy) $57,000 $48,000 $116,000
+ Depreciation & Amortization $15,000 $15,000 $15,000
+/- Change in Working Capital $8,000 $5,000 $1,000
Net Cash from Operations $50,000 $58,000 $130,000
Investing Activities
Leasehold Improvements $120,000 -$5,000 $5,000
Equipment & Furnishings $65,000 $0 $0
Other CapEx / Contingency $85,200 -$0 $0
Net Cash from Investing $270,200 -$5,000 $5,000
Financing Activities
Loan Proceeds (Frost Bank) $280,000
Owner Equity Injection $75,000
Loan Principal Repayment $35,000 -$40,000 $45,000
Interest Paid $20,000 $18,000 $15,000
Net Cash from Financing $300,000 -$58,000 $60,000
Net Change in Cash $20,200 -$5,000 $65,000
Beginning Cash $45,200 $25,000 $20,000
Ending Cash $25,000 $20,000 $85,000

Break-Even Analysis

Component Value Basis
Average Service Ticket (incl. retail) $50 $46 services + ~8% retail attach
Variable Cost % of Revenue 13% Consumables, beverages, merchant fees
Contribution Margin % 87% 1 - 0.13
Average Contribution per Visit $43.50 $50 $\times$ 87%
Fixed Monthly Costs $43,000 Payroll, rent, marketing, insurance, utilities, ops
Monthly Break-even Revenue $49,400 $43,000 $\div$ 0.87
Monthly Visits Required ~988 $49,400 $\div$ $50
Timeline to Break-even Mid-2027 When utilization stabilizes at ~7-8 techs

Break even curve gloss glow nail lounge

Business Ratios

Ratio Year 1 Year 2 Year 3
Gross Margin 87% 87% 87%
EBITDA Margin -12% 7% 16%
Current Ratio 1.1 1.2 1.4
Debt-to-Equity 2.7 2.3 1.9
DSCR <1.0 1.9x 3.2x

10. Funding Request

Gloss & Glow Nail Lounge, LLC is requesting a term loan of $280,000 from Frost Bank’s Uptown Dallas Branch. The loan will fund the buildout of the salon, equipment purchases, initial inventory, marketing, and working capital to support the business through its ramp-up phase. The loan will be structured as a 7-year note at 9.25% fixed interest, with a monthly debt service of about $4,400.

Owner Sophia Tran will also contribute $75,000 in personal equity, representing a 21% share of the total startup budget. This personal commitment demonstrates her stake in the business and provides added security for the bank.

Collateral Offered

The loan will be backed by both business and personal assets to give Frost Bank strong protection. All leasehold improvements and equipment bought with the loan—such as the salon buildout, manicure and pedicure stations, and furnishings—will serve as collateral. The business will also pledge its inventory and any receivables, giving the bank a claim on day-to-day operating assets.

To further strengthen the package, the owner will offer her Dallas condominium, which has an appraised value of $315,000, as additional collateral. This mix of business property and personal real estate ensures the bank has more than one layer of security for the loan.

Repayment & Coverage

Annual debt service will be approximately $52,800. Based on projections:

  • In Year 1, the business will operate at a loss, but reserves are in place to cover the shortfall.
  • By Year 2, EBITDA is projected at $48,000, giving a Debt Service Coverage Ratio (DSCR) of 1.9x.
  • In Year 3, EBITDA is projected to grow to $116,000, raising DSCR to 3.2x.

This progression demonstrates a clear path to repayment strength.

11. Risk & Mitigation

Every business faces challenges, and Gloss & Glow is preparing ahead of time to handle them. By planning carefully, we can reduce risks and keep our salon running smoothly.

Risk Impact Mitigation
Staff Turnover Nail techs may leave for other salons or to work alone, which can affect service. Offer profit-sharing and training support to keep staff happy and loyal.
Competition from Budget Salons Cheaper salons may attract clients who only look at price. Focus on being a luxury lounge with safe products, modern space, and free drinks.
Seasonal Slowdowns Some months, like early in the year, may bring fewer clients. Use memberships to keep a steady income and reward repeat customers.
Rising Costs Prices for supplies and rent can go up, lowering profit. Build strong supplier deals, buy in bulk, and adjust prices slowly if needed.
Customer Experience Risks Bad reviews or poor service could hurt the reputation. Train staff often, keep high service standards, and fix problems quickly.

Download a Free Nail Salon Business Plan Template

Ready to start crafting your own nail salon business plan, but need some extra help? Not to worry; here's our free nail salon business plan template PDF to help you get started.

This investor-friendly template provides you with easy-to-follow instructions and examples that allow you to create a comprehensive business plan without any hassle. You can even modify it according to your specific needs.

Conclusion

Now that you have a clear understanding of what to include in a nail salon business plan, you can start drafting your very own nail salon business plan.

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Vinay Kevadiya
Vinay Kevadiya

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.