Why Nail Salons Fail
Why are there so many nail salons around? Is
there really that much demand for them? And why are so many Asians running them and working
there? Well there must be a demand for these types of services otherwise people wouldn’t open
them up in the first place, or would they? If there is such demand then why are so many going
out of business? I have seen a lot of vacant nail
salons as I travel around and can only assume that they weren’t good at what they did or
didn’t know how to run a business since it seems the demand is there.
I think the latter is probably true in most
cases. Not everybody is cut out to run a business no matter how easy they think it will be.
Most nail techs I’ve run across and talked with only want to do their job i.e. manicures and
pedicures. Most have no interest in actually running the business side. They just want to come
to work do some manicures and pedicures, get paid and go home. Sounds simple enough, but
that’s not how to stay in business long term and create something viable that you can sell
when you decide you want out. Most nail techs are reluctant business owners and their business
suffers because of it.
Running nail salons or any business for that matter requires a
commitment. If this is your full time income then your entire financial security rests on you
being able to consistently bring in clients. It takes time to build a client base and if you
need money now, you may not make it. If you are good at what you do, personable, and treat
your clients well, then they will return the favor and become loyal, repetitive clients. Once
you’ve built your client base large enough you can either stop advertising or expand your
business. But as I said, that takes time. If you view your clients as just a way to make some
money, they’ll feel that and you’ll lose them forever!
Building up that client base is the key. So how
do nail salons get customers in the door in the first place? Ideally
you’d love to have a great location that you can get drive by business. If you are next to a
major store or facility that draws a constant flow of traffic, that is ideal. Unless of course
you’re next to Wal-Mart! Since they have there own nail salons inside. The problem with
getting a good location is the cost. The building owner knows they have prime real estate in
most cases and the rent is priced accordingly. You have to run the numbers and decide if that
works for you based on your expected volume of clients and the price you charge in order to be
competitive. Don’t forget ancillary expense such as supplies, electricity, water
This is part of being a successful business
owner. I think most nail salons just pick a good
location, get a small loan to start, and hope for the best. That is why they fail. You must
have a business plan BEFORE you open a business.
If the plan isn’t viable then the business isn’t viable. Would you put your money in a bank if
they told you that based on their business plan you would have no money left in 3 months? Hell
no! So then why would you not do your due diligence before you started a business? Hoping for
the best is not a business plan!
Do you really have so much money that you just
can’t wait to throw it away?! If you do I’ll send you my address and you can send it to me! I
hope this has given you a little insight as to why many nail salons fail before they even open