Feasibility analysis for opening a nail salon in the city of Limeira-SP

Leandro da Silva Berion and Edson Pereira da Mota

Revista IPecege, 2015, vol. 1, issue 2

Abstract: Worldwide, and also in Brazil, the personal hygiene, perfumery, and cosmetics industry is one of the fastest growing, and consequently, the service sector related to this area is also growing. This is evidenced by the large number of businesses focused on providing beauty services, where, within the same microregion (such as municipalities or neighborhoods), several service providers can be found in a small area. As a result of the large supply of services, differentiation in customer service and/or product is fundamental, also reflecting the growing demands of clients seeking innovation, well-being, comfort, and exclusive service. This has led to the emergence in Brazil of a new business model specializing in beauty: the nail salon. This work presents an economic feasibility analysis focused on the implementation of a nail salon in the city of Limeira-SP. Surveys were conducted involving all the costs necessary for the implementation of this project, and demand and revenue levels were also estimated, allowing for the projection of the business's potential cash flows. The economic tools used were Net Present Value, Internal Rate of Return, Simple Payback, Discounted Payback, and Return on Investment. It was found that with a monthly revenue above R$ 2,730.00, opening a nail salon in the city of Limeira-SP is viable.

Keywords: Industrial; Organization (search for similar items in EconPapers)
Date: 2015
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