Funding request: seeking $120,000 to $150,000 to finance the build out of a commercial space and launch nail salon. Expected payback within 18 months with monthly payments and balloon at end of term. The build will take about 4 months, and we aim to open the salon by July 2024.
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Executive Summary
Starfish Nail Bar will be a boutique nail salon serving the local communities in and around Kyle, TX. With an initial focus on the surrounding affluent neighborhoods. Our salon will offer luxurious nail care services in a relaxing and approachable environment. With a focus on exceptional customer experience and offering the latest trends in nail care. We aim to become the premier destination for nail enthusiasts in the area by providing tailored services and creating a network of loyal customers through referrals and a rewards program
Organization and Management
Trang “Jenny” Phan | Owner | Daily operations & Nails service
10 years of experience in the Nails industry as a nail tech, working at 9 different nail salons, across Dallas, Austin, and Connecticut and helping to open 1 salon in Cleburne, TX. Many of these salons were owned by family members. Trang has a wealth of knowledge of the industry and maintains a strong network of nail salon owners that she can call on for consultation.
Tony Davenport | Owner | Business operations
12 years of experience in the Tech industry, with roles spanning Product Management, IT Engineering, Operations analytics, and Go-to-Market. With a previous career in commercial HVAC construction. Tony will maintain full-time (remote) employment while managing the business side, marketing, social media, and website for the nail salon.
There will be two additional family members ready to work full-time at the salon as nail-techs, with plans to expand to 6 total nail techs for the grand opening.
Market Analysis
There are over 8 nail salons in the area where Starfish Nail Bar wants to open their location. Deluxe Nails next to Target near Kyle Centre Dr. has been established for 14 years, and Everly Nails is the newest one, established mid 2023. There is a clear sustained and growing demand for nails in the Kyle area.
However, none of these locations have the close proximity to affluent neighborhoods like 400 Wetzel, which is a competitive advantage. The owners live 5 minutes away in Cypress Forest.
Currently, Kyle has a population of 68,000 and has grown 48% since 2020. The current growth rate is nearly 9% annually. Assuming 50% of the population is women, and estimating that 59% of women get their nails done each month, that brings our total addressable market to roughly 20,000 customers a month. With the average spend per customer around $30 on the low-end, up to $200. The maximum revenue potential for all nail salons in the Kyle area is well above $600,000 a month (and likely closer to $1M).
We believe we can capture 8% of this, which is $50K - $90K a month.
Financial Projections
For a 1500 sqft space and 6 nail-techs, we expect the shop to receive between 20 and 60 customers a day, ranging from 560 to 1680 customers a month, depending on the season.
We estimate 15% of customers will only do one service, and the remaining 85% will do full service (hand and toe) with an average of $30 per service.
We estimate rent and utilities for the space to be $5,000/mo, while paying our nail techs a 60% commission on all services. We will also hold back 5% of revenue each month for unexpected expenses.
We also account for a 2,500/mo expense for loan payback which funded the build out. This should be paid off in less than 2 years, with monthly payments in year 1 and bulk payments in year two from net income.
(In the business plan linked above) is our 1 year projection based on the model described above, and we are expected to net $250,596 at the end of the year..
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