With enough guidance and direction, you can set up a nail salon business in the Philippines effortlessly. Today we have a complete rundown of how to start a nail salon business in the Philippines and some extra tips to help you along the way.
At least once every couple of weeks, Filipinas treat themselves to a mani-pedi. Some even go there more often. A Filipina’s checklist is not complete without a beautiful set of nails. Similar to going to a hair salon, Filipinas are particular about their nails. Therefore, the nail salon business in the Philippines is booming.
How To Set Up A Nail Salon Business In The Philippines?
Step 1: Create A Business Plan
This is the first step in making a clear vision for your nail salon business in the Philippines. The costs and equipment needed are essential. However, before you decide on this, your business plan should answer these questions;
- What are your goals and aims for this business?
- How do you plan to utilize the Filipino culture in your business?
- Who is your target market?
- What are your plans for the future of your business?
As you create your plan, you will figure out more specific questions. The clearer your plan is, the better you can manage your nail salon business in the Philippines. If you require a business template, you can download a free business plan from our site below.
Step 2: Raise Business Capital For Your Salon
Business capital is an extension of your business plan. Your capital will be dependent on many factors. Let me give you an example. For a nail salon franchise at Nailaholics, here are the things included with the franchise fee of P500,000:
- Use Of Business Name And Logo
- Ocular Visit And Location Approval
- Training For You And Your Staff
- Marketing And Opening Assistance
- Assistance In Getting Needed Goods And Services
- Operations Manual And Research And Development
These are the other requirements they need:
- *Initial Term: 5 Years
- Required Capital: P2,500,000
- Continuation Fee: P15,000 A Month Or P1,500 For Every Service Station
- Required Space: At Least 30 Sq Meters
*Initial term means the first period of the contract and can be terminated or renewed at the end.
The location, the services, and the size of your salon are a few factors that will impact your specific required capital. It is better to start setting aside money early on. You can ask for a business loan or from your family and friends to supplement your savings. It will also help to have a separate account for your startup capital.
In case you need additional funding sources, you can inquire at the SSS, Special Financing Program, Small & Medium Enterprise Credit, and People’s Credit Finance Corporation, to name a few.
It will also be helpful to talk to a professional business adviser or talk to the owner of the salon you frequently visit. They can give you a better understanding of the expenses of operating a nail salon business in the Philippines. Starting a business like this is not cheap. Nevertheless, you do not need to spend too much on expensive equipment.
Step 3: Legal Documents
Depending on the city where you want to put your nail salon business, the legal requirements vary. Nevertheless, to give you an idea. Some of the permits and licenses you will submit are
- Business Permit
- Business License
- Mayor’s Permit
- Sanitary Permit
- Training Certifications
If you are not sure what is needed in your area, it is best to consult with a local business lawyer. Additionally, You can also go to the city hall where you plan to put your business. For the business name registration, you can contact the Department of Trade and Industry (DTI) and Technical Education and Skills Development Authority for Women Center (TESDA-WC) for the training certifications.
It is also recommended to visit Republic Act No. 3720 for cosmetic law in the Philippines.
Step 4: Location & Equipment
It is essential to give a lot of thought when choosing the location of your nail salon business in the Philippines. This is because this is where most of your target market will come from.
For example, if you plan to focus your market on students, you could have your nail salon near universities. Start to think about your ideal customer and start to see what areas and places would be useful for them. What areas would be accessible for your market?
Inside a mall is one of the best places to put up your nail salon in many situations since many people find this accessible To simplify, choose an area with enough space and traffic (many customers will be walk-in customers.) Furthermore, safety is your priority. Therefore, it is okay to take your time in location hunting. It plays a significant role in the success of your nail salon business’ future.
Aside from a great location, your salon needs to be well-furnished. You could start by getting standing stations or desks for your nail technicians. Then look into other equipment such as manicure tables, supply cars, reclining chairs with footrests, chairs/sofa (for the waiting area), etc.
If you think your funds will not be enough for the latest equipment, you can find good second-hand equipment through places such as Facebook groups.
Step 5: Essential Supplies
Once you have decided on the location and furnishings, it is time to prepare an itemized list of essential nail salon supplies. The list can include; scissors, buffers, moisturizers, nail clippers, finger and toe separators, and files. These are some of the commonly used items in a nail salon in the Philippines.
Once your nail salon is fully operational, you will likely make repeat orders a couple of times each month. Therefore, it is essential to purchasing high-quality nail care products. You can make a contract with one or more supplies to get the best prices.
When business owner buys in bulk, they can often get a discounted price, which is great for new owners. For example, a common supplier where you can purchase stock for your nail salon business in the Philippines is Hortaleza.
Step 6: Hiring People For Your Nail Salon Business
Even if you are very hands-on with setting up your nail salon business, you will need to employ qualified people such as technicians. Apart from doing nail technician work, they will also schedule appointments, make sales, and clean and maintain your salon.
Aside from reviewing their credentials, a wise move would be to talk to the applicants one by one to get a feel of their personalities. This is because the staff is critical to the success of a nail salon business in the Philippines.
Having regular and constant training is also an essential part of the business so that the staff can be updated with the latest nail services, products, and trends. Having trained staff and the newest services will also help you grow your customer base and grow your business.
Because you are in the customer-facing field, your customers will base their experience on you and your employees. Therefore, your staff should understand and support you and your business values. You can make a compelling and clear vision & mission statement to share with your applicants (the foundation in step 1).
Step 7: Promote And Market
Your marketing strategies should focus on reaching your target market and the nearby community. When looking at promoting and marketing, it is essential to look at your return on investment, not just financially but in terms of time.
One of the most effective ways of advertising a nail salon in the Philippines is through referrals. That is why providing excellent service and following proper hygiene protocol are essential. Then, feeling happy with your service, they will mention your salon to their family and friends.
If you have a Facebook page, you can ask them to leave comments or tag their friends. To gain regular customers, you can offer a loyalty card or some in-house promotion.
Tips For Starting A Nail Salon Business In The Philippines
Tip 1: Unique Vision
Setting up a nail salon business in the Philippines is profitable, but the competition can be fierce. Therefore, nail salon owners should stand out. How to do this? Business owners should have a clear vision of what experience or value they want to offer their customers. This experience or value must be unique and not something customers can get anywhere else.
You can think about focusing on one specific service (USP). Then, you can make this service more effective and efficient. Customers will remember your nail salon for this particular service.
Tip 2: Beauty And Comfort
It is a good idea to give importance to your nail salon business’s inside and outside look in the Philippines. Your creativity can get unique and loyal customers’ attention.
You can think of some specific looks or themes you can imagine your nail salon having. You can also hire an interior designer to get an idea of making your nail salon brighter or learn about designing through some online course (there are hundreds of free interior designing courses on Youtube).
If not included in the space, it is essential to have equipment such as fans or air-conditioners, sinks, restrooms, etc. By doing these, the value of a nail salon business in the Philippines is increased.
Tip 3: Work Experience
Many say experience is the best teacher. This can be true when you set up a nail salon in the Philippines. When you become a nail technician, you can better understand the skills needed. Therefore, you can gain an invaluable learning experience as you gather resources for your business.
You can also learn more about the demands of this industry. This expertise can play a significant role in your success as a nail salon business owner. When you work, you can also observe the administrative aspect of the business.
Tip 4: Quality Equipment And Furniture
When you set up a nail salon business in the Philippines, your equipment and furniture selection and quality is some of the most crucial investments.
It is tempting to buy cheap, especially when a business owner is just starting. However, your business may suffer in the long run if you purchase the wrong kind of equipment. However, it was mentioned that you could buy second-hand items for your store. It’s best to stay away from poor quality.
Tip 5: Employee Appreciation And Care
After hiring the best employees, it’s a good idea to reinvest into your staff. This will have many benefits for your nail salon business in the Philippines. When you show appreciation and care to them, they will surely do the same for your customers and you.
One of the main reasons people leave jobs is that they feel there is no progression and opportunities in their current working environment. Hence, it is always a good idea to set up an independent training plan for your staff and business.
Tip 6: Budget and Account
Like any other business, the first few years of operating a nail salon in the Philippines are financially challenging. You might have to wait for a while to see your business making profits. This is why making a budget and account record is extremely important. You can make track of every payment transaction. As a result, you can save yourself from stress later on.
If you are not sure how to handle the finances, you can always ask for assistance from an accountant or business advisor. These professionals can also give you further advice.
Tip 7: Sell Nail Products
Successful owners of a nail salon business in the Philippines do not earn their income from offering alone nail salon services. Instead, they also sell unique products to boost their revenue.
You can try selling nail polishes, moisturizers, and tools. This is especially effective when you have regular customers because they can take home the products they love in your salon. Depending on your area, there may also be several other services or products that you can offer to boost your income and grow your business.
Tip 8: Technology
Time is money, so you can manage your time by installing software to manage and organize the tasks in your salon. For example, online scheduling software can give convenience to your customers, your employees, and yourself. This can also lessen missed appointments. In addition, this kind of software has a reminder alert so that you can call your customers ahead of time.
You can store their information more easily. They can also make appointments online, which is a feature they will enjoy. Just remember to abide by any data protection/privacy acts that may be applicable.
Tip 9: Social Media
When you build your marketing strategies, you cannot miss social because it is so beneficial for a nail salon business in the Philippines. If you have an extra budget, you can start paid advertisements from these platforms. There are a lot of social media influencers in the Philippines. In time, you can work with them to advertise your nail salon.
You may be wondering why social media in the Philippines is so popular. Over the last few years, the Philippines have the number one rank for most activity county to use social media. In some cases, the average is as high as 6,7,8 hours a day!
Tip 10: Competitive Prices
If you feel lost on how to set the prices of your nail salon services, think of yourself as a customer. What is the price you are willing to pay for the services? From here, you can compare the prices. Most salons start with low prices then slowly increase their rates as their salon business gains attention. This is okay, but it depends on the type of business you are planning to run.
If you have more abundant capital, then a more luxurious business might be best. Therefore offering lower prices could damage your brand image. In other words, offering the right prices can differ from business to business.
Should You Start A Nail Salon Business In The Philippines
When looking at how to set up a nail salon business in the Philippines, It’s a good idea to analyze all the options available to you in your current situation. The trend for this service in the Philippines is on the rise, and it does not look like it will slow down anytime soon. Therefore the market is most defiantly available…., but being successful with this market is slightly different.
Setting up any business will always be challenging at times. Still, naturally, a business owner will learn a lot of valuable information about the industry and how to start a nail salon business in the Philippines.
Like how we write our posts, it is essential to break down every idea and stage of your nail salon business because this will help you visualize the strength and threats in the industry.