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written by | October 11, 2021

Beauty Parlor Business in India

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If you're looking to start a new business or are an aspiring entrepreneur, opening a beauty parlor business may be the perfect option. The Indian economy is growing rapidly, and there is no better time to invest in such a business venture. Also, there is an increasing demand for beauty salons. This demand can be attributed to the increase in disposable incomes and the changing lifestyles of Indian women. There are different types of beauty salons that cater to different demographic groups. For example, some will only focus on hairstyling and makeup, while others serve the grooming needs of both men and women. Beauty salons are typically easier and less expensive to start than other ventures. 

Starting a beauty parlor business in India can be quite challenging but not impossible. If you have the right skills, startup capital, and an understanding of the market, it's not as difficult a process as it may seem.

Did you know?

The beauty industry in India is worth ₹100 crores and this industry has been growing at an annual rate of 20%.

Key Considerations in Starting a Beauty Parlor Business

Before a beauty parlor is set up in India, there are many considerations to consider before a beauty parlour. 

We will take a look at the following aspects:

Also Read: Successful Shortcuts To Start A Salon

Business Model

There are many types of beauty parlor business models that you can choose from. The most common is the franchise model, in which an individual is granted the right to operate a beauty parlour per the franchiser's guidelines and policies. This model is popular because it comes with many benefits like well-defined business processes, low investment, and training programs.

The other type of beauty parlor setup model is the independent parlour model, where individuals start their beauty parlor without any help from anyone else. It might sound like a great idea but it comes with challenges like high investment, lack of support, and no guarantee for success.

Business Type

Beauty parlours can be salons or spas too. A beauty parlour is an establishment that offers a variety of beauty treatments, such as hair styling, cutting and colouring, manicures, pedicures, and waxing.

The salon is the most popular type of beauty parlor business and it offers a wide range of services for both men and women. It's also the most common term to refer to a place where people go to get their hair done professionally.

How to Start a Beauty Parlor Business in India?

Investment Required

It is an important question that every entrepreneur should ask themselves before starting their business. The beauty parlor setup cost in India will depend on how much inventory you need to start with, what equipment you need, and what your initial marketing budget is going to be. There are many funding sources one can choose from:

  • Personal Funds: You can use your funds as an initial investment. You can also collaborate with someone. Investments can be made in this manner, but responsibilities can also be shared. 
  • Investors: You can seek seed funding from investors. For investors to invest in your business, you must demonstrate your business model, its potential for expansion, and the quality of its products.
  • Loans: You can also get a loan from a bank or an NBFC to start your business.

Determine Your Operational Budget

For a successful parlor setup, it is essential to budget for the associated costs carefully. Starting a salon requires a significant investment of time and money.

Cost of Services: This includes the cost of raw materials, beauty products and equipment required 

Overhead Costs: All the expenses other than products and labour such as rent, interiors, licenses, POS and marketing.           

Decide on the Location

The location of your parlour is extremely important, as it must be easily accessible to your clients and customers. 

Also, when deciding where to open a salon, it's a good idea to check out your competition in the area and see how they've been doing. As part of assessing the competition, it is important to consider not only their services but also their guest experience. Analysing the competition will give you a better idea of the type of customers you'll serve, their spending power, how often they visit, and their tastes. 

Legal Compliances

If you want to open a beauty parlor business in India, you'll need some permits and licenses from the regulatory bodies. The price may differ from one location to the next. The mandatory registrations are:

  • Ownership registration (LLP, Partnership, Private Limited Company, etc.)
  • PAN registration
  • Shops and Establishment License
  • Trade license from the Municipal Corporation
  • GST registration
  • Professional tax license
  • Trademark registration to ensure that your salon’s name is not used by anyone else. This registration is not mandatory but advisable.

Design the Menu of Services and Pricing

Designing a menu of the services is the next step in parlor setup. The menu should include various services that can be tailored to your customers' needs. By providing services that use similar products, you can cut your overall product consumption costs and waste generation scope. In addition, customers should be enticed to spend more money on the menu's design.

It is critical to select a pricing strategy for your services. Define your financial goals and accordingly set your prices for each beauty service. Avoiding under or overcharging is an important aspect of pricing. Incorrectly set prices can jeopardise your parlor business’s success by resulting in revenue loss or customer dissatisfaction.

Arrange the Product Suppliers

Beauty treatments at beauty salons necessitate a wide range of raw materials and equipment. Look for suppliers who offer low-cost, high-quality products. Selling beauty products to clients can benefit your beauty parlor business. Purchase products with diverse needs and preferences.

A good working relationship with your supplier and vendor is essential for the smooth operation of your salon. You should have at least two to three vendors for each product category. Signing long-term contracts with your vendor have many advantages, such as ensuring that your products or consumables are always consistent. 

Also Read: Successful Small Business Ideas for Indian Entrepreneurs

Create a Strategy for Marketing, Advertising and Branding

Your marketing efforts greatly influence your customers, which can influence whether or not they book the first appointment or set up recurring appointments. When you first open your salon, marketing should be a top priority. However, your work doesn't end when the doors open or business starts to boom. A successful salon relies on constant, innovative marketing, and it must be practised day in and day out. 

Marketing Strategy at the Time of Beauty Parlor Setup

  • A unique salon name
  • A website for online presence
  • Social media accounts for promoting your services, advertising, and blogging.
  • Hosting of local events at the time of opening to create a buzz

Ongoing Marketing Strategies to Retain and Attract Clients

  • Email marketing
  • Personalised letters
  • Offering discounts and add-on services
  • Loyalty programs
  • Client feedback opportunities
  • Gift cards

Hiring the Trained Staff

One of the most difficult aspects of running a beauty parlor business in India is finding and retaining the best employees. A new salon owner has a few options for finding employees, including working with an academy, referrals, social media posts, etc. The kind of staff required at a beauty parlour –

  • Service staff like beautician, hairstylist, makeup artist, therapist
  • Management staff like receptionist, salon manager
  • Housekeeping staff like cleaner 

Conclusion

Opening a beauty parlor in India is an excellent business idea. You can open a parlour in India regardless of your skills, expertise, or budget. It requires forethought and persistence. Starting a parlor business can be very profitable in the long run if you use the right planning techniques and have a good understanding of your target market. When your company achieves a certain level of success, you can expand it. You can do this by forming a franchise with giants in the beauty industry. We hope to have familiarised you with starting a beauty parlor in India with this article.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: How much would a beauty parlor setup at home cost?

Ans:

You can start a beauty parlour from your home with an initial investment of ₹40,000 to ₹50,000.

Q: What are the steps to opening a beauty parlor setup at home?

Ans:

 Before starting a home-based beauty salon, here are some essentials.

  • A separate room/space 
  • Separate access to the salon from the rest of the home.
  • A separate toilet and lavatory from the rest of the house;
  • Compliance with the rest of the salon's minimum requirements.
  • Additional staff if required.

Q: What is the average profit margin of a beauty parlor business in India?

Ans:

Effective salon management can result in a 2–17% profit margin.

Q: Is a beauty parlour a profitable business in India?

Ans:

Beauty salons and spa businesses are among the most successful and profitable in today's world. According to an industry survey, cosmetics sales have increased by nearly 60% in the last five years alone.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.