A nail salon can be a lucrative business and you need very little education to start one. It is a fun business where you get to meet a lot of people. To open a nail salon you need garner the financing you need from a bank, your credit cards or investors. Some new operators buy a building but it might be better to rent a space cheaply until you find out how well the business does in the end. On the other hand buying a building does help you raise some equity to borrow against. Still it is probably not a good idea to use your own home as collateral in case the business completely and utterly fails.
Raising capital for a nail salon is not as hard as other businesses because it is recognized as a needed service. Banks may not be your best for financing as there has been a decade long recession affecting fluid cash flow all over the world. Your best bet for a financier or partner is a local salon or tattoo parlor that might benefit from joint sales and services and opportunities for cross promotion with your nail salon.
If your credit is bad you may have to raise money by borrowing from friends or family. Be aware that you often risk the relationship if you cannot pay the money back. Consider making the relative or friend a silent partner so they can share in the profits with you.
You might also consider approaching venture capitalists or angel investors for the money but usually they want proof that your business will grow rapidly and in a short time. If you have a hot new way of doing nails then you might attract the interest of a venture capitalist. If you are the only nail salon in an area that is populated and can prove a need in the market you might also attract angel investor or venture capitalist financing.
It seems obvious to approach a bank for the money but most banks give loans that are just about two percent above prime. Yu cannot get this type of loan unless you have perfect credit and the bank will also expect you to have a third of the money that you need to open in place.
There is no one way to raise this type of financing but you do need to make sure that you have a solid business plan written so that your benefactors have no doubt at all about how you may be planning to make money in the future.
