Thanks to the COVID-19 pandemic and resulting social media boom, the last year and a half has witnessed a growth in the popularity of influencers. As such, the beauty industry in the UK is growing at a phenomenal pace. According to Finder, the beauty industry in the UK is the 7th largest cosmetics market in the world worth £27 billion in 2020.
With social media platforms like TikTok and Instagram having a significant impact on the beauty industry, the salon industry has witnessed a steady growth. One industry, in particular, that has been booming is the nail industry, as influencers look for unique manicures to show off and treat themselves.
Therefore, for anyone planning to start in the beauty business, this is the right time and the nail business is a lucrative option. Here are the basics of starting a nail business in the UK.
1. Undertake a Credible Nail Course
Before you even think of starting a nail business, you need to understand the trade and craft of the business. What better way to do this than enrolling for nail courses online? Look for Associated Beauty Therapists (ABT)-accredited courses. ABT is the UK’s most trusted accrediting body when it comes to the beauty industry.
You’ll find everything from complete nail technician courses to Mani/Pedi courses online these days, which will add credibility to your business. A complete nail course will involve all essentials like hygiene, health, correctly applying nail enhancements, and client care. It could take up to a year to complete a level 2 certificate in nail technology.
In the UK, there’s no requirement to have a specific qualification to start a nail business. However, to register the business and obtain insurance, you’ll be required to show proof of qualification for credibility. This brings us to the next step.
2. Get Your Business Registered
The very first step towards starting a nail business is to get it registered. You’ll need to set yourself as a sole trader first to declare that you are self-employed and responsible for business finances. The UK government requires a minimum earning of £1,000 from self-employment before registering a business.
Therefore, you need to keep track of your business finances, declare them for tax, and pay taxes. Once you cross the £1,000 threshold, you can then go ahead and apply for business registration with the government.
Additionally, to set up the nail business, you’ll also require various licenses depending on the services you plan to offer. The UK government has a handy license finder tool, which you can use to find the appropriate license for your business. Note that you need a license for everything from playing music to serving food to clients.
3. Get an Appropriate Business Insurance
In the UK, it’s a mandate for any self-employed business to be covered by insurance, which also stands true for the nail business. Some types of insurance to consider are public liability insurance, employers liability insurance, property insurance, and personal accident/sickness insurance.
The most important insurance to consider when starting a new nail business is public liability insurance. This covers any accident that might occur during the service, like client injuries or sickness due to the service provided. Employers liability insurance is required only if you’re starting with the staff.
Similarly, the property insurance is for those planning to have a dedicated shop or mobile van for the business. Lastly, personal accident insurance is to cover losses due to sickness or injury.
4. Lay Down a Business and Marketing Plan
Remember, all successful businesses were born out of sound planning. If you’re planning to raise funding, a well-thought-out and concise business plan will only increase your chances of landing the funding.
Make it a priority to lay down your vision for the business, when do you anticipate it to break even, and how to get there. Additionally, set a financial plan also while you’re at it. Map a realistic budget outlining your expenditures and the profit you want to achieve.
Apart from the business plan, you’ll also need to have a solid marketing plan in place to get the word out about your new business. First, decide who your target audience is and what it will take to reach them efficiently.
Use tools like influencer outreach with relevant influencers to reach their audience. Since nail business is very visual, set up an Instagram and Pinterest page with all your business details and showcase your work on it. With the right tools and a good marketing strategy, you can quickly generate interest in your audience towards your brand.
5. Work Out a Price Slab for Your Nail Business
To be profitable, you’ll need to ensure that you’re charging the right amount for your nail services. Do a little due diligence to find out the going rate in the market to get an idea of what’s acceptable. After you get the idea of how much the customers are willing to pay, you can outline your own price slab.
The first step is to decide how much profit you need to make to break even and earn a livelihood. This means to earn enough to support not only the business but also yourself. While deciding the cost of a single nail service, consider yearly factors like fixed costs, one-off purchases, regular supplies, disposable supplies, miscellaneous items, and your time.
Once you have zeroed in on the cost of each nail treatment that you plan to provide after factoring in everything over the financial year, you need to think about taxes. The cost of National Insurance contributions, taxes, and/or loan payments. After considering everything, decide how much extra you must charge to sustain a livelihood and finalize the price.
There you go! These were the basics to start a nail business, which would ensure your business starts without a hitch. However, to be successful, you need to stand out from the motley of nail bars and technicians already out there and set up a unique brand identity, which is a topic for another day.
