Beauty Salon Feasibility Study in the Manchester-Nashua, NH Metro Area

Beauty salons around Manchester and Nashua

Beauty salons stand fifth of 39 among the classes in the Manchester-Nashua, NH area, and nationally the area is 59 of 546. Totals of 26 loans and $3.0 million across FY2017 to FY2026 are small, as one would expect for small businesses. The location quotient of 1.22x says salons are a somewhat larger slice of Manchester-Nashua lending than of lending in the country, and the median loan of $95,000 is 0.95x the class's national figure, a little under it. Neither ratio departs far from the national picture, so what this page offers is a picture of how salons are financed in the area, not a claim that the area is exceptional.

Small loans and one holder

From $30,625 to $169,825 runs the middle half of loans, which fits chair-and-fixture packages and light fit-outs. Hillsborough County, NH holds all 26. Among 7(a) holders only TD Bank, National Association prints, with 8 loans and $370,000 in all. Nothing on the franchise share or the program mix is printed.

FY2019 reads 6 loans and $550,000. FY2023 reads 0 loans and $0, and so does FY2026, a full fiscal year, so no salon loan was approved in either. The other years are too thin to list. Manchester-Nashua salon loans number too few for rates on cancellations or charge-offs, which Loan Analytics issues only from a base of 30 loans or more.

How a Manchester-Nashua salon plan is tested

With a median loan near $95,000, a salon is a small business whose income follows its stylists. A study should therefore measure the clientele that a realistic trade area can supply, the number of stations the space holds, whether stylists are employees or rent chairs, and what happens to the client list if a key stylist walks out. The plan must price the fit-out and the equipment against that median, count licensing and insurance, and prove the debt payment is still met in a quiet first year after the owner has been paid. The owner's following in the trade and the lease terms are what a lender will read closely. Manchester-Nashua is a set of counties named on the July 2023 list.