How much does it cost to open this staffed nail salon?
Illustrative case · Leased employee-operated nail salon; no booth rentals · New York State outside NYC, Long Island and Westchester; no particular city/site
Explore this business · Startup costs
This retained-premises case requires $218,453 before opening: $101,892 in installed assets, $16,561 in pre-opening expense, $6,500 refundable deposit, $3,500 stock and $90,000 cash reserve. Only identified equipment list prices are observed; trades, lease, insurance and cash buffer remain case assumptions.
Illustrative New York State case outside New York City, Long Island and Westchester; no particular city or property. Four licensed employee technicians, four manicure and four pedicure stations, leased retained-salon premises, paid owner-manager. No booth rental, retail, acrylic extensions or intricate nail art. Assumed opening January 2027; figures are USD.
Define the retained-site scope before comparing budgets
The case assumes an existing salon shell with usable restroom and general HVAC, no structural alteration, abatement or complete HVAC replacement. It still funds four spa connections, a utility-sink work package, dedicated power, washable surfaces and new source-capture ductwork. A landlord must permit roof/wall penetrations and salon use. Unknown repair work is a quote gap, not a zero-cost promise.
DOS salon-owner guidance recommends site evaluation and a detailed written ventilation scope. Its older station-cost examples are not current installed quotations. Obtain the landlord consent, trade bids, electrical/plumbing survey and local approvals before signing an unconditional lease.
Reconcile all opening uses
| Use | Base USD | Scope and basis |
|---|---|---|
| Equipment | $32,888 | Specified purchases; two main supplier SKUs |
| Equipment tax, freight and offload | $3,947 | 12.0% of equipment; combined provisional allowance |
| Retained-site fit-out | $31,140 | Quantity × assumed trade rate schedule below |
| Installed ventilation scope | $23,000 | Quantity × assumed trade rate; design not certified |
| Contingency | $10,917 | 12.0% of equipment + logistics + works |
| Total depreciable opening CAPEX | $101,892 | Subtotal of the five rows above |
| Pre-opening operating expense | $16,561 | Paid onboarding + launch + professional + loan fee |
| Refundable lease deposit | $6,500 | 2 months of assumed rent |
| Opening stock | $3,500 | Consumables, expensed as used |
| Opening cash reserve | $90,000 | Cash available after all other uses |
| TOTAL FUNDING USES | $218,453 | CAPEX + expense + deposit + inventory + reserve |
| Item | Qty | Unit price | Subtotal | Support |
|---|---|---|---|---|
| Tables | 4 | $2,142 | $8,568 | Listed base/option |
| Pedicure chairs | 4 | $2,995 | $11,980 | Listed base/option |
| Pedicure vent kits | 4 | $125 | $500 | Listed base/option |
| Pedicure drain pumps | 4 | $250 | $1,000 | Listed base/option |
| Manicure client chairs | 4 | $150 | $600 | Case allowance |
| Manicure tech stools | 4 | $180 | $720 | Case allowance |
| Curing lamps | 4 | $220 | $880 | Case allowance |
| E files | 4 | $160 | $640 | Case allowance |
| Instrument sets | 20 | $45 | $900 | Case allowance |
| Laundry set | 1 | $1,800 | $1,800 | Case allowance |
| Clean storage sink | 1 | $2,500 | $2,500 | Case allowance |
| Reception furniture | 1 | $2,000 | $2,000 | Case allowance |
| Pos hardware | 1 | $800 | $800 | Case allowance |
Collins 2265-48 ducted table is listed at $2,142 each with a plenum and task light. J&A Cleo GX spa is listed at $2,995 with a matching stool; the case adds a $125 vent kit and $250 drain pump per chair. Pedicure stools and table task lights are not purchased twice; curing lamps perform a separate function. Prices checked October 4, 2026 exclude tax, freight, plumbing, electrical and commissioning. The supplier states a 10–11 week table lead time; validate delivery before scheduling opening.
| Scope item | Quantity / unit | Allowance per unit | Subtotal |
|---|---|---|---|
| Pedicure plumb labor | 16 labor hours | $120 | $1,920 |
| Pedicure plumb material | 4 chair connections | $450 | $1,800 |
| Utility sink labor | 6 labor hours | $120 | $720 |
| Utility sink material | 2 sink connections | $600 | $1,200 |
| Power labor | 20 labor hours | $110 | $2,200 |
| Power material | 1 circuits/outlets package | $1,800 | $1,800 |
| Surfaces | 1,000 sq ft patch/paint/floor finishes | $16 | $16,000 |
| Fixed storage | 18 linear ft installed storage | $250 | $4,500 |
| Signage | 1 signage package | $1,000 | $1,000 |
| Scope item | Quantity / unit | Allowance per unit | Subtotal |
|---|---|---|---|
| Design | 1 engineering package | $1,800 | $1,800 |
| Source branches | 8 station branches excluding purchased adapters | $650 | $5,200 |
| Balanced air assembly | 1 outdoor supply/exhaust equipment package | $6,000 | $6,000 |
| Main duct roof | 1 main duct/roof protection package | $5,000 | $5,000 |
| Vent electrical labor | 24 labor hours | $125 | $3,000 |
| Balance cert | 1 test/balance/certification package | $2,000 | $2,000 |
Eight stations × 50 cfm gives a 400 cfm source-station component. This is not the required complete system flow: the applicable general-space/current-code requirement can be greater. Design, balanced outdoor supply, exhaust discharge location, branches, permits, testing and certification must be priced together. The purchased plenums/adapters are excluded from branch allowances to avoid double counting. DOS regulation; technical guidance, 2016 edition; current code adoption.
A reserve is cash left over after opening spending
The $90,000 reserve is not a profit or a cost spread across months. It funds the opening ramp after payroll, overhead, stock timing, payment settlement and debt. Base cash bottoms at $17,510 in month 10. Two days of modeled net card receivables and 15 days of materials payables alter cash without altering revenue.
A diagnostic changes card settlement from two to twelve days: the lowest base cash falls to $8,630, while first-month EBITDA is unchanged. Adding reserve improves the cash balance only. The downside needs $573,317 beyond its opening sources if its full five-year losses continue; this is a liquidity failure, not a recommended larger loan.
The three largest cash commitments have different evidence
| Driver | Base amount | Evidence / uncertainty | What changes it |
|---|---|---|---|
| Cash reserve | $90,000 | Executed monthly cash path; opening demand unverified | Slower ramp, cancellations, longer service time |
| Retained fit-out + ventilation | $54,140 | Physical quantity schedules; no installed bid | Existing services, duct route, outdoor-air design, consent |
| Equipment + logistics | $36,835 | Identified table/spa SKUs plus assumed ancillary/logistics budget | Options, tax, freight, access and delivery |
Downside installed works increase by a factor of 1.2; startup uses become $233,860 with the same $130,000 loan. The owner must provide the difference at opening. These figures describe a scoped hypothetical retained site, not the cost to convert any vacant retail unit.
Close the opening gaps before treating this as a funded budget
- Confirm lease base rent, taxes/CAM, deposits, free rent, utility capacity, accessibility, occupancy and any historic contamination.
- Obtain ventilation design under current applicable codes, landlord approval, priced penetrations and certification; air cleaners alone do not establish compliance.
- Quote liability cover, wage-security premium, workers compensation and unemployment rates. The required wage-security face amount of $25,000 for the modeled nail-worker band is not an extra $25,000 cash premium. DOS wage-security bands.
- Verify recruitment, onboarding, paid-time coverage and licenses. Preopening pay is $4,961; it is separate from regular operating payroll.
- Replace provisional freight/tax with invoice quotes. NY tax guidance exempts these service sales outside NYC but taxes consumed supplies, equipment and utilities; the combined logistics allowance is not a statutory tax rate.
- Income tax, tips and employer tip taxes, replacement CAPEX and owner distributions are not funded by a separate modeled allowance. Confirm entity and tax treatment.
Validate the case inputs
Download the input and evidence register (CSV). This case export separates observed context from assumptions and leaves quotation fields blank for your project. It is an educational register, separate from the planned personalized model.
Sources and scope
- Declared nail-salon planning assumptions · Checked 2026-10-04 · Fictional planning choices documented in FINANCIAL_ASSUMPTIONS.md and inputs.json; no premises quote, customer bookings or lender offer.
- Buy-Rite: Collins 2265-48 ducted manicure table · Checked 2026-10-04 · One base listed table, drawers, plenum, LED task light and armrest; no exterior duct/fan system, tax, freight or installation.
- Buy-Rite: J&A Cleo GX pedicure spa · Checked 2026-10-04 · JA-CLEOGX, base spa with glass bowl and matching stool; chosen options priced separately. Pipeless whirlpool still requires plumbing.
- New York: appearance enhancement business · Checked 2026-10-04 · Business licensing, liability cover and wage-security requirement; bond face amount is not its premium.
- New York appearance enhancement law and regulations · Checked 2026-10-04 · DOS-hosted compilation inspected, §§160.16–160.20: nail ventilation and sanitation. Not a site approval or complete 2025 building-code design.
- New York ventilation: contractor guidance · Checked 2026-10-04 · 22-page technical guidance dated 2016-09-23; explains each manicure/pedicure station, outdoor exhaust, air balancing and site evaluation; current stricter codes still apply.
- New York salon-owner ventilation guide · Checked 2026-10-04 · 9-page Rev.07/21 guide: retained-site inspection, detailed written scope, landlord and compliance certificate; historical range is not a 2026 quote.
- New York 2025 Uniform and Energy Code adoption · Checked 2026-10-04 · 2025 code books and amendments apply to permit applications from 2025-12-31; July 2026 notice update reviewed.
- New York Tax Bulletin ST-551: manicures and pedicures · Checked 2026-10-04 · Issued 2014-11-26, page updated 2026-02-23 and inspected 2026-10-04; service versus retail/supply tax treatment for selected non-NYC case.
- Square US payment pricing · Checked 2026-10-04 · Free-plan in-person domestic tap/dip/swipe reference; no keyed/online/foreign card fee included.