How to open a hair and nail salon: 7 steps to quickly open a profitable beauty salon

In recent years, the demand for beauty services in Vietnam has increased sharply, especially hair and nail services. According to statistics from the personal services retail industry, small hair and nail salon models can break even after only 6-12 months if the right location is chosen and operations are professional. Therefore, many people are looking for ways to open a hair and nail salon that has low risk, moderate capital, but stable income.

If you are planning to open your own salon to be your own boss, increase your income, and have a sustainable job, this article will help you understand the 7 most important steps to successfully open a hair and nail salon – from preparing capital, choosing a location, to developing services that suit the tastes of Vietnamese customers. The content focuses on practical experience, easy to apply, especially suitable for beginners or those who want to open a small to medium-sized salon.

Part 1: Preparing to open a hair and nail salon: Capital, location, licenses

Step 1: Choose a suitable location for your hair and nail salon

Prioritize high-traffic areas

• Choose busy streets, bustling residential areas, or shopping centers.

• The salon should be located near markets, supermarkets, convenience stores, or schools – places customers frequent.

• High foot traffic helps the salon gain visibility and attract natural walk-in customers.

Ensure convenient access for customers

• The premises should allow for easy stopping, parking, or have wide sidewalks.

• The road should not be too congested, and customers shouldn't have to make multiple U-turns.

• Customers often prefer hair and nail salons that are easy to access over beautiful but hard-to-reach ones.

Avoid direct competition with other salons

• Do not open a salon right next to a well-established hair or nail salon.

• Locating too close to a competitor will fragment your customer base and make differentiation difficult.

• It's best to choose an area without a salon or with only a few within a few hundred meters radius.

Step 2: Complete licensing when opening a hair and nail salon

Business registration

• All business models must have a license according to legal regulations.

• Depending on the scale, you can register as a sole proprietorship or a business.

• A business license helps the salon operate legally and facilitates work with banks and suppliers.

Ensure personal practice certificates

• Individuals directly cutting hair, doing nails, dyeing hair, or providing beauty care need appropriate professional certificates.

• Certificates help customers trust the quality of service more.

• Some localities may check qualifications during licensing or periodic inspections.

Prepare to meet hygiene and safety requirements

• The salon space must be clean, well-ventilated, with separate areas for tools and chemicals.

• Hair cutting and nail tools need to be properly cleaned and sterilized.

• Water systems, waste disposal, and restrooms must meet basic health standards.

Check local regulations

• Each province and city has its own regulations regarding the conditions for opening a hair and nail salon.

• You should directly contact the local management agency or economic department for accurate guidance.

• Proactive research helps you save time and avoid mistakes from the beginning.

Step 3: Recruit and manage hair and nail salon staff

Only hire skilled and well-trained technicians

• Prioritize technicians with hair cutting, nail art certifications, or related professional training.

• Avoid using untrained personnel as this can easily lead to irritation, infection, or customer complaints.

• Good craftsmanship helps the salon build trust from the very first experience.

The salon owner is responsible for service quality

• The salon owner needs to ensure all staff understand each service being provided.

• Do not assign tasks if technicians are unclear about the process or have not been fully instructed.

• Periodically check skills to maintain consistent quality.

Experience does not replace training

• Technicians with many years of experience may not fully understand the pros and cons of each technique.

• Training helps technicians stay updated on new trends, use safe chemicals, and handle unexpected situations.

• Combining practical experience with formal training will reduce risks for both customers and the salon.

Standardize processes and contracts from the outset

• Prepare a concise and easy-to-understand hair and nail salon procedure handbook.

• Each service should have clear steps for technicians to follow consistently.

• Sign employment contracts with each employee upon starting work.

• Procedure templates and contracts can be found online and adjusted to the salon's reality.

Step 4: Calculate capital when opening a hair and nail salon

Ensure personal expenses during the initial phase

• Clearly calculate your and your family's monthly living expenses.

• Determine your current savings and how long you can sustain yourself if the salon isn't profitable yet.

• Know the minimum income needed each month to avoid cash flow problems.

Establish a monthly operating budget

• Fixed costs include:

  • Premises rent

  • License fees, legal procedures

  • Employee salaries

  • Training, recruitment costs

  • Tools, chemicals, supplies for hair and nails

  • Contingency fund for incidents or low customer months

• A clear budget helps you control spending and avoid deficits.

Determine service prices to break even and make a profit

• Based on operating costs, calculate the monthly break-even point.

• Estimate the number of customers per week: haircuts, coloring, perms, nail services, manicures/pedicures.

• From there, determine the necessary service prices to achieve profitability.

• Breaking even is not enough if you want the salon to grow long-term.

Set reasonable prices for customers and the salon

• Prices that are too low will make it difficult for the salon to survive; prices that are too high will lose customers.

• The goal is a price point where:

  • Customers feel it's worth it

  • The salon has sustainable profits

• Prices should be adjusted according to the area and target customer group.

Survey prices of surrounding salons

• Research the service prices of hair and nail salons in the same segment.

• Your prices should be within a similar range, potentially higher or lower if there's a clear reason.

• This helps customers easily accept and compare.

Consider business loans if needed

• If you lack capital, you can explore bank loans or small business support programs.

• Prepare a concise business plan explaining:

  • Why the salon has profit potential

  • What differentiates it from other salons

  • Market demand in your chosen area

Prepare for tax issues in advance

• Tax obligations for businesses are different from those for individuals working for an employer.

• You should research the types of taxes you need to pay beforehand to avoid mistakes.

• Consider hiring an accountant or professional service from the start to save time and costs later on.

Part 2: Guide to choosing a location and equipment for a beauty salon

Step 1: Create a clean and safe environment for the salon

Prioritize cleanliness and safety

• The salon should always be neat, airy, and create a relaxing atmosphere.

• Customers often judge the quality of a hair and nail salon from the first impression.

• A clean environment makes customers feel comfortable using the service and more likely to recommend it to others.

Maintain absolute hygiene for towels and equipment

• Washing towels, wraps, and foot baths must be cleaned, deodorized, and replaced frequently.

• Tools used for each customer should be sanitized separately and not reused without proper cleaning.

• Unpleasant odors or a feeling of dampness and dirt are reasons customers don't return.

Use quality tools and products

• Scissors, razors, and nail clippers need to be sharp and regularly maintained.

• Only use products with clear origins, ensuring safety for skin and nails.

• Avoid any risk of infection, as even a minor incident can significantly impact the salon's reputation.

Create a relaxing atmosphere for clients

• Play soft music at a moderate volume

• Use soft, not overly bright, lighting

• Limit loud conversations among staff to avoid disturbing clients

Step 2: Expand services in your hair and nail salon

Offer multiple services in one salon

• Combine services such as hair cutting, nail care, facials, and relaxing hair washing.

• Customers tend to prefer complete beauty services in one place rather than having to visit multiple salons.

• Convenience helps clients stay longer and spend more per visit.

Increase customer retention

• When customers are familiar with multiple services at your salon, they have less reason to look elsewhere.

• A client who gets their hair done might return for nail care or a facial on subsequent visits.

• This helps increase revenue from the same customer base, without needing to acquire new clients.

Specialize in one main area but don't miss opportunities

• You can still focus strongly on a core service such as hair cutting or nail care.

• The other services act as complementary offerings, making your salon a "one-stop beauty shop."

• This model helps your salon stand out from those offering only a single service.

Step 3: Keep customers satisfied and coming back regularly

Create the best experience for customers every visit

• Serve on time, work professionally, and maintain a friendly attitude.

• Listen to the client's actual needs before performing the service.

• Proactively show interest, ask questions, and make clients feel appreciated.

Build trust for long-term customer retention

• Hair and nail services are recurring maintenance needs.

• When satisfied, clients won't want to switch salons due to trust.

• Reputation is built on consistent quality, not advertising.

Leverage word-of-mouth to attract new customers

• Satisfied customers will recommend your salon to friends, family, and colleagues.

• A good experience spreads faster than any paid advertising.

• A genuine compliment from an old customer is worth many times more than a promotion.

Collect and manage customer information

• Ask for clients' email addresses or phone numbers from their first service.

• Use a storage system to:

  • Remind of appointments

  • Introduce new services

  • Send offers or loyalty programs

• Staying in touch helps clients remember the salon more often.

Utilize customer management tools

• Use software for appointment scheduling and customer information management.

• Save notes on each client's preferences, hairstyle, and nail color.

• Try various tools to choose the solution that best fits your salon's scale.

Build a sustainable team and salon operations

Regular staff training

• Organize short training sessions monthly or quarterly.

• Update knowledge on new products, techniques, and beauty trends.

• Help stylists understand the pros and cons of each service to advise clients correctly.

Motivate through competition and rewards

• Organize internal competitions monthly or annually.

• Rewards could be free products, paid days off, or larger annual awards.

• Healthy competition helps employees have goals and enthusiasm for work.

Utilize grand openings or small events

• Can organize salon openings, mini-events, or special discount days.

• Helps the salon gain initial attention and create a professional impression with clients.

• Doesn't need to be expensive; the atmosphere and experience are what matter.

Standardize staff appearance and conduct

• Clearly define appearance standards, personal hygiene, and dress code in the procedural handbook.

• Beauty industry staff need to be neat and meticulous as clients judge quality by appearance.

• The salon owner should set an example for staff to follow.

Create a positive work environment even with limited budget

• Be flexible in arranging days off and overtime during peak seasons.

• Organize team-building activities every 2-3 months to foster team cohesion.

• Implement commission based on revenue or client numbers to encourage service sales.

• Pay salaries, bonuses, and leave on time and transparently so employees can work with peace of mind.

Invest in good equipment and recruit suitable personnel

• Quality equipment helps stylists work more efficiently and safely.

• Capable staff reduce technical errors and customer complaints.

• Combining the right people and the right tools will significantly enhance service quality.

Develop private label products if conditions allow

• Can start with simple hair care or nail products.

• Private label products help increase revenue and build the salon's brand.

• Should proceed step-by-step, with strict quality control.

Complete paperwork and comply with labor laws

• Have a clear procedural handbook, employment contracts, and salary policies.

• Ensure compliance with current regulations to avoid disputes.

• Complete documentation helps you resolve issues quickly and legally when they arise.

Proactively manage risks and insurance

• The hair and nail industry carries risks such as skin irritation, hair damage, and minor accidents.

• Consult with an insurance provider to choose a suitable plan.

• Insurance helps protect the salon from unexpected claims and legal risks.

References

1. https://www.entrepreneur.com/starting-a-business/
   choose-the-best-location-for-your-hair-salon-and-day-spa/236746
2. https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
3. https://www.entrepreneur.com/encyclopedia/licensing
4. http://www.nccosmeticarts.com/uploads/forms/salonchecklist4-12.pdf
5. https://www.entrepreneur.com/article/297899
6. https://www.infoentrepreneurs.org/en/guides/budgeting-and-business-planning/
7. https://www.nerdwallet.com/blog/small-business/
   how-to-get-a-small-business-loan/
8. https://www.entrepreneur.com/growing-a-business/
   6-ways-to-keep-clients-happy/236005
9. https://www.entrepreneur.com/growing-a-business/
   10-ways-to-keep-making-your-clients-happier-and-happier/242603
10. https://www.forbes.com/sites/kimberlywhitler/2014/07/17/
    why-word-of-mouth-marketing-is-the-most-important-social-media/

Translation by: Rowan Hudson Le.