How to Start a Profitable Beauty Parlor Business

A beauty salon or beauty parlor provides products and services that enhance the client’s physical appearance and mental relaxation. This is one of the most trending beauty business ideas in the retail segment. Find here a free business plan guide and a step-by-step guide on starting a beauty parlor business.

Selecting the right location, efficient manpower, and proper sales promotional activity is required in starting this business.

Opening a beauty parlor is a lucrative but also competitive business. It comes with high startup costs and a large number of competitors. It is important to have specific knowledge about hair, beauty, and personal care.

You can start a beauty parlor business in two ways. One is by purchasing a franchisee of a reputed brand or establishing your own business.

Here are the 6 Steps to Follow to Start a Beauty Parlor Business

1. Write a Beauty Parlor Business Plan

In starting this type of cash-intensive business, crafting a business plan is a must. You will need to determine what are the services you will offer. How much floor space you want? What will be your target demographic? What is your business objective? Accordingly calculate your startup cost investment with rent, equipment, manpower, beauty products, and other utilities.

In the case of buying a franchise, the parent company generally provides operating software. While you are opening your own you must purchase the software of your own. Crafting a marketing plan is also a must. Following these steps will definitely help you in running the business smoothly and getting the confidence of investors also.

2. Register your Beauty Parlor

Different states and Government authorities issue different licenses and permission for different specific services. Check it out with a local lawyer.

If you want to run a legally compliant beauty parlor, registering the business is a must. In addition to this, craft a stylish easy-to-spell ‘name’ for your salon. Protect the name by registering Trade Mark.

3. Licenses Required to Open a Beauty Parlor

You need to obtain some specific licenses and permits to start snd run a legally compliant beauty parlor business. One must talk to local competent authorities to know more about the license requirements. Here we list down some of the basic licenses you must procure to run a beauty parlor:

  • PAN & TAN
  • Fire NOC
  • Registration under Shops and Establishments Act
  • GST Registration
  • Professional Tax Registration
  • ESI registration for less than 10 employees
  • EPF registration for more than 20 employees
  • Acknowledgment from Pollution Control Board
  • License for playing music or videos

4. Select the Services

Different types of salon services are there. You need to choose according to the style trends and your own expertise. You can broadly find four categories such as hair, nails, skincare, and makeup. Selecting the services typically depends on the store size. However, you must offer basic services.

Hair: Haircut, relaxers, perms, colors, shampoo, conditioning, curling, reconstructing, weaving, eyebrows, treatment, hair spa, hair removal, etc.

Nails: Manicure, pedicure, polish, nail sculpture, Acrylic nail application, etc.

Skincare: Facial, waxing, massage, tan removing, spa, paraffin treatments, Hydrotherapy Treatments, body piercing, exfoliation, etc.

Makeup: Bridal makeup, party makeover, etc.

5. Setting up your Beauty Parlor 

The most important factor in getting success in the salon business is choosing a suitable retail location. Location with numbers of footfall, wide storefront, and available parking is a great option. Never compromise in choosing the best location. Your entire emphasis and investment will stand on only this. Carefully check the rental agreement before signing.

Pay attention to the interior and exterior too. It is advisable to consult with an interior expert. You must design the store attractive, comfortable and well arranged. Drawing a floor plan prior is a must.  Measure the length and width of the space and keep those dimensions in mind when coming up with your design.

Place the waiting lounge and cash register toward the front, and put mirrors, salon chairs, and hair drying and shampoo equipment in other parts of the salon.  Separate treatment rooms are needed for wet and dry services. Group similar equipment together. Pick a color and theme and use it carefully in interior designing.

Purchase salon furniture that fits your interior theme, color structure, and layout. Your clients need to feel comfortable, relaxed, and clean when they visit your salon or spa, and the furniture and spa equipment you choose will set the mood. Each service in a beauty parlor will require a specific piece of equipment.

Once you finalize the kind of services your salon would be catering to, you can think of washbasins, the latest hair styling equipment for perming and hair straightening, hairdryers, supply trolleys, etc. Salon equipment is generally expensive, and hence, it is best to purchase directly from distributors. Check the warranty period before placing the order.

You will need to purchase a Point of Sale software for daily basis operations, tracking records, and data analysis.

6. Fix Pricing

Fix pricing carefully. Your direct, Indirect, and labor costs are variable costs and will increase as sales increase, but fixed costs stay fixed regardless of the sales you make. Check the tariff of your competitors also.

7. Hiring Professionals

Proper manpower planning is one of the most challenging issues in starting a beauty parlor. In fact, employees are the front-line representatives of the business. Their skill and talent, as well as their attitudes and work ethic, will influence every aspect of the business, from client retention rate to the bottom line. The main key responsibility areas are salon manager, hairstylist, cosmetologist, receptionist, manicurist, massage therapist, salon assistant, etc.

8. Promote Your Beauty Parlor

Brand promotion is extremely important in the beauty salon business. The success of any growing salon depends on generating a core group of regular clients and treating them with the respect they deserve. Place advertisements on the local directories like Yellowpages. Do some outdoor media advertisements. Concentrate on in-store branding.

You may offer special discounts for higher purchases. You may launch a customer loyalty card concept. Clients who sign up can enjoy more discounts and offers on the services. Pay attention to online promotion also. Creating your own website and social media activity will definitely help you in online lead generation.

List your business on popular web directories. Your business website, web directories, your Facebook page, handouts, flyers, and even your local newspaper – any place you feature your business should include a call-to-action.

A call-to-action can be anything from “Call for a free consultation!” to a cut-out coupon or even a small discount on one’s next visit. You can also offer and promote ‘daily deals’. This discount will need to be higher than other smaller incentives.

Foot Note:

Starting a beauty parlor business isn’t easy. It requires investments in time, money, and the opportunity cost of working elsewhere. Having true passion, risk-taking ability, and business operational skills any individual can initiate a beauty parlor business even then also when he/she doesn’t have professional beauty or health care skills.

Hope this beauty parlor business plan guide will be useful in starting your own beauty parlor.

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