Nail Salon in the New York A. Business Statement For my purpose I C. A. , researching a business idea. I will conduct in-depth business research and complete a feasibility study for a Nail Salon in New York. Nail Salon is almost the cheapest place that can let you enjoy other people’s service in New York. There are approximately 58,330 nail salons in the U. S. , according to the trade publication ”NAILS Magazine. Women especially always want to look nice, they read magazines, and check stores all the time, they share the information of products and which store is nice to their friends and enjoy to try new things which might make them more beautiful. And in New York this big city, women know how to enjoy their life after stress and serious works. They relax in the restaurants, bars, and spa or nail salon. They are willing to spend money for themselves no matter they are rich or not. Nail salon is the very common place that women take care of themselves.
Compare with other places, it’s a cheaper service that most of the women can afford it. And the primate cost for opening a nail salon is cheaper than many other businesses, and it’s more like a feasibility business for people who don’t have a lot of money at the beginning. Instead of the normal nail salon in New York, I want to input the skill from Japan, which is acrylic nail and 3D nail art, because in New York nail salon is everywhere and if you want to compete with other salon, you need to have something different.
I think there is already some stores have this kind of service, but it’s still not too common here. Also I want to input some beauty products from Japan and Taiwan and sell in the nail store. Because a lot of useful and cheap products from Japan and Taiwan you can’t even find here. A lot of products here are cheap and ugly or cute but expensive, that’s the reason why I think there’s needs in this area. People from Asian might interesting in those kind of products, and the New York people will also get the chance to know about those products throw the sellers when they re waiting in the nail salon. That’s the reason why I want to open a nail salon. Next step after successful completion, I will start to make connection with other companies which sells clothes, jewelry, shoes, whatever the product that woman like from the Asian country and show their product by the AD we publish and take the order throw our store, then even our customers don’t understand other languages, they can easily order the oversea products and receive them in the store.
Throw the customer information and survey, I can also get more connection with the customers by understand what the want and holding party or other activities once in a while to make customers get closer. That helps the business, because women like to share their experiences and the information about how they take care themselves, it’s just like a free AD. In this new business, I’m not only going to sell services and products but also make a new social environment for women and give the information about how to take care of themselves is the extra benefit that they can get when they walk into the store.
That’s why I want to open a nail salon. Because this nail salon will be the place sell the service, product and also serve a new social life, and it will cause many possibility in the future. B. Short term goal and Long-term goal Short-term goals 1. Complete an effective feasibility study for my purpose I C. A. , researching a business idea. I will conduct in-depth business research and complete a feasibility study to open a Nail Salon in New York. 2. Make research about the location where is close to public transportation and convenient neighborhood. 3.
Make a feasibility plan about the promotion devices, the employee training and the choice of products. Long-term goals 1. Collect the information of customers; keep those data in the information system and analysis the needs of customers. In according to those information give feedback to the customers by coupon or birthday gift. 2. Open another store that can serve more options to the customers, like SPA. C. Study Analysis 1. Current work setting for work on C. A. Physical setting description -I can work wherever, in my apartment, cafe or parks. …etc.
I always like to collect information when I have Internet, so I can easily find them in my computer even there is no Internet in the place that I work. Working in a cafe always gives me new ideas when I see all kinds of people pass by, because how to satisfy customer is one of the most important parts of business. Strength -I study business since when I was in the university, and now I’m in college for my master’s degree. The class in the college is very helpful, I can learn a lot from the professors and the books. -I am doing my business research now.
By doing this research before I really start my business, I can think more details, read more information and also build my business ideas step by step. -I have experience working in the department store; I know how to satisfy costumers, negotiation to get more benefit, make marketing plan or hole special event for product promotion…etc. -I’ve been to salon or spa since I was in high school and also have connection with people who open the store or work in that area. Weakness -My English is not that good, so I need to take longer time to read the information and look up words in dictionary. I’m not from here, so not as in my country, it’s harder for me to find the information when I do the research. -The market is different here than my country, I can’t use the same thought that I had to do this research. How to go over those weaknesses First, I need to start to read as much as possible to go over the reading problem and also need to remember more vocabularies. Second, try to find the information in English website and also find the information by survey or interview people. 2. Future work setting for business venture The first think to start this business is to accumulate the capital. Saving money before start this business, ask loan from the bank and ask people to invest are all nice ways to accumulate capital. I need to make a complete plan to convince the bank and investors why this business will make money or worth to invest.
For making a complete plan, I need to follow the business research, estimate the possibility of this business idea, do the risk management, and check the budget of starting this plan. D. Situation Analysis 1. Industry analysis ) Economic and financial trends a) Industry size – Nail salons are a booming business. In the last decade alone, the number of nail salons in the U. S. has increased by 66 percent. In the past thirty years, the number of manicurists (called nail technicians in many states) in the U. S. has grown from 35,000 in 1997 to more than 78,000 today. By 2005, nail salons in the U. S. represented a $6. 43 billion a year business. It also appears that the industry is far from its peak, as the economic out- look for the nail industry is one of continued, steady growth. According to the US Department of Labor estimates, the nail salon business is expected to see a 28% rate of growth between 2006 and 2016,” says Dorothy McKinley-Soressi, Vice-President of Industry Reations for Empire Beauty Schools. “There were 78,000 manicurists and pedicurists in 2006, and the Department of Labor expects that number to grow to 100,000 by 2016. Moreover, a December 2007 ‘Job Demand in the Cosmetology Industry’ report by The National Accrediting Com- mission of Cosmetology Arts & Sciences (NACCAS), reported 218,427 full service salons in the US and 59,234 nail salons.
Clearly, the demand for nail services in the U. S. is huge. b) Industry growth – While the faltering economy has slowed the growth of this industry somewhat in recent months, the nail industry has proven through past economic slow- downs to be both resilient and relatively recession-proof. While people tend to cut spending on luxuries such as vacations, dining out and big ticket items such as cars or homes in tough times, taking care of them- selves, which includes grooming services like nail and hair services, is considered a necessity (or at least an affordable luxury). ) Industry profit – While salon owners go into business often for reasons other than just the financial rewards, you can’t ignore the fact that the financial rewards can considerable. For example, PayScale. com lists the average salary for a small business owner in the nail salon industry as $132,000, and earnings of $150,000 and above are possible. One Canadian-based nail salon franchise called the Nail Hut (see section 4. 2. 3 for more about nail salon franchises) states that the potential annual sales (gross revenues) for individual nail franchises range from $85,000-$600,000 a year.
While the amount you will earn depends on many factors such as the size of your salon and the types of services offered, prices charged, and the amount of time you put into your business, the potential earnings as a nail salon owner are excellent. d) Economic issue -The economic situation in U. S. is not that good in recent years. But it doesn’t mean that women stop spending money for themselves. The reasons for this are simple. Many people do not have the skills to do their own nails or keep their nails looking good.
Couple this with the fact that most nail services are very affordable and you’ve got a recipe for a desirable service most people can afford even when times are tough. Another aspect is that for someone hunting for a new job, good grooming can be an essential component in his or her success. That’s means even though there are less people in BCBG store but there will be more people in Forever 21. It could be the same in the salon, nail salon is the place that let you feel comfortable and get nice service without spending a lot of money. 2) Culture A lot of nail salon here are open by foreigner from Korea, China even other country in Asia and also South America, most of them don’t know how to speak English very well and also very shy. But actually when people go to the salon, they want to relax and when they do manicure they can’t move their hands, the only thing they can do is talk. In American nail store, the workers talk with customers, listen to them complain or maybe just gossip, it brings customer better mood and make them really relax, but you can’t find it in foreigner’s nail store. But training employees can fix this difference between the cultures. ) Technology – Now a day technology makes people easy to fine the information, have connection and purchase. And costumers are easy to be taught to use new system by computers. Technology help the store put advertisements or activities easier than before through Facebook, email, or discussion area on Internet, and also gives customers chances to put their suggestion, and the feedback after they use new products. – The technology we need to use in the store is: a. ) Website- We need to set up a website for customer to purchase our product and make reservation online. It will cost around $5,000~$7,000 to make a website.
But it will bring products selling and more customer from other place by spray this website on Facebook, Twitter or E-mail. b. ) Customer information system- Instead of asking someone sets up a customer system for us, I prefer to set up this system by ourselves because of the economic concern. It need to take while to make a data base but it will be easier for us in the future if we want to have activities. 4) Legal concern – As a foreigner here, if I want to open my own business, I need to be legal here. That means that I need to have green card or citizenship. 2. Competitive Analysis ) 2) 3) 4) 3. Customer Analysis 1) Demographics and Psychographics Most people who went to the nail salon 2) Current Purchase Behaviors 3) Timing of Purchases 4) Distribution Patterns 5) Information needs and Requirements E. Needs Analysis We need to accomplish each step that we need to take to be successful. We need to complete feasibility study in effectively and realistic way that makes our business really works. We need to understand more details before we start the business which like location or the equipment, also the situation of nail salon industry at the mean time.
I need to conduct a through industry analysis because it provide the overview of the whole industry and give you more ideas about what to do to go over the weakness and adjust the market environment. I also need to complete a competitive analysis, for learning the good strategies that our competitor used and also think about how to be better. Before you fight with the enemy you always need to know them first, know their weakness and bit them. Costumers are always important for every industry. Customer analysis let me know about what kinds of customer I suppose to target.
And if there are any chances to make the population of my customer rise. I understand what influences people’s purchase and the frequency they come to the store. Care about what customers think, what they need and serve them before they ask will be the only way the make money from them. F. Plan of Action |Goal |Objective |Strategies |Evaluation | |Create a feasibility |A. Create an industry analysis. |A1. Interview business owner to identify |After analysis the whole | |study. B. Create a competitive analysis. |key factors doing profitability in the |situation, I know exactly | | |C. Create a customer analysis. |industry. |how to start this business,| | | |B1. Find the store information on |and how to use my advantage| | | |internet. |to compete with my | | | |B2. Go to the nail salon and check the |competitors. | | |details. | | | | |C1. Find out who is our customer. | | | | |C2. Interview people who go to nail | | | | |salon. | | G. Critical Logs Strategy: Interview a friend who is the customer of nail salon and understand what customer expect when they spend money for the services. TEXT |SUBTEXT | |The girl I interviewed is one of my friends. Her name is Anna;|I met up Anna in Flo cafe that is one of our favorite spot in | |she is Polish and graduated from the university in Poland and |Astoria. I didn’t see Anna for a while even we live in the | |work as a waitress in the restaurant. She is a 25-years-old |same area because both of us are busy. We were very excited to| |blond girl. We met up in a cafe in Astoria and use the |see each other especially at daytime.
Because we always hang | |recorder to record our conversation. |out together on Saturday night but that is really not for | | |talking. | | |We start our conversations with a cup of coffee because both | | |of us decide to finish this interview first than enjoy the | | |food there. |Q: How often do you go to nail salon? |I put the recorder on the table, which make it really like an | |A: I go to nail store once in three to four weeks if there is |interview. Anna was surprised that it’s so serious. But | |no special holiday or date. |actually it’s just going to be easier for us. | |Q: Which nail store you always go and how much you pay? |I asked all the questions I write on the left but delete some | |A: Most of the time I go to “Nail”, it’s close to my house, |complain which are not that important.
And during this | |they are not expensive, I spend $20 for manicure and pedicure |conversation we change some information about cosmetics and | |but not include the tips, I always give $2-3 for tips. |hair salon (women always like that. ) and my complain about the| |Q: How do you like there? |nail salon she went, because I’ve been there few times as | |A: It’s ok, not too expensive the services is so so, they |well. Anna gave me some suggestion about making survey on line| |don’t really talk with you and if the woman is new, she won’t |and checking different nail salon in the city by person than | |do it very well.
But they do massage to you when you dry your |I’ll get more information about this industry. | |nail by the machine. |She said to me that she is very hungry after our interview; I | |Q: Anything you think is special in that store? |bought her a dinner and continue our girls’ talk. | |A: Not really, I just need to do my nails, and they are not | | |expensive. | | |Q: Will you still go there if you move your house?
Why or Why | | |not? | | |A: No, I won’t. Because nail store is everywhere and there’s | | |nothing special there. And I always wear very casual when I go| | |to the nail salon. So it’s better fine something near my | | |house. | |Q: Thanks for the interview. | | |A: You are welcome. | | |Conclusion: | |The location of the nail salon is really important, and how to attract people to do the nail far from their neighborhood is | |not going to be that easy. |People care about price, service and location and compare all of them when they choose the nail salon. | H. Analysis by Dimension 1. Business Research/Design- In this class, I learn the whole process of doing business research and know how to reach the goal if I want to have my own business. I learned how to analysis competitors and costumers and also know about the needs of market might not be what I always think. 2. Business Law and Ethics In this class, I know more about the business law of the U. S. and understand that it’s taking a big risk if people want to open their own businesses without knowledge about the business law. 3. Managerial Principles and Practices In this class, we analyze the strategy that different company used, and discuss about their successful and fail. Learning from the cases and understand the reason about how they made their goal help me to set up the strategy of the business. 4. Management Information System In these years, internet business is very popular in many country and most of the big even medium companies have their own website.
This class gave as some important ideas for how to set up a database and build a website. Even though we won’t be as professional as people who work in this area but unless we have the idea, it will be more clear if we provide our ideas to the website engineer. I. Final Assessment My C. A. plan is to open a nail salon, and it’s able to achieve. After all the research, I realize that even though the nail salon market seems full, if you can find out the needs of customer or insert new idea in the old industry, you can still make money.
But before I get into a business, capital is the most important thing, and also I need to prepare to spend money at the beginning. The hardest part is always at the beginning, but once the store settle down, I can use all kinds of promotions and activities to increase the revenue and have store chain will be the next step in the future. I really learn a lot from this class, and I think my C. A. plan will be very useful in the future. Actually at the beginning, when I think about open my own business I didn’t think about nail salon, I just have an idea that I want to make money from the women.
And also I saw so many products here from Asian country is so expensive but low quality. At the end, I combine both of them and have the idea to open a nail salon. Through the class, I understand that make plan before you start your business is really important, it will make you think more reality about the whole situation and also understand what is for now by analysis the industry and the customers you target. Competitive analysis also let you know more about this industry and think about why you are better than others. I finish my research step by step and will use it in the future.