how to start a beauty parlor business

How to Start a Beauty Parlour Business in India – Complete Guide

Do you want to start a beauty parlour business in India? If yes, you are in the right place. Here in this article, we have covered all the steps you need to follow to start a beauty salon business with costs, licenses, equipment, and much more.

The beauty parlour business in India has seen huge growth in the last few years. The growth is mainly due to a rise in income level, fast urbanization, and better awareness of looking good. As per Statista, the total revenue in the beauty and personal care market in India amounts to US$27.23bn in 2023. Experts suggest the market is expected to grow annually by 3.38% CAGR from 2023 to 2027.

You can start a beauty parlour business in two ways. One is by purchasing a franchisee of a reputed beauty parlour brand or establishing your own business. Here in this article, we will deal with the process of starting a beauty parlour from scratch.

10 Steps to Start a Beauty Parlour in India

1. Write a Business Plan

If you are looking forward to running a successful beauty parlour, crafting a business plan is a must. You will need to determine what services you will offer. How much floor space do 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.

Some of the important topics that you must address in your plan document are the following:

  • Mission and Vision
  • Market Information
  • Products and Services Offered
  • USPs of Your Upcoming Beauty Parlour
  • Operational Plan
  • Organizational Structure
  • Pricing Strategy
  • Marketing Plan
  • Financial Projections

2. Register your Business

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

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

3. Licenses Required to Open a Beauty Parlour

You need to obtain some specific licenses and permits to start and run a legally compliant beauty parlour business in India. 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 parlour:

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

4. Select the Services

Broadly three types of beauty parlours operate in the market. They are economy class, business class, and premium class. Based on the local market demand, styles, trends, and resources, decide your niche.

Product-wise, broadly there are four categories of services offered in beauty parlours. They are hair, nails, skincare, and makeup.

  • Hair: Haircut, relaxers, perms, colours, 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 removal, spa, paraffin treatments, Hydrotherapy Treatments, body piercing, exfoliation, etc.
  • Makeup: Bridal makeup, party makeover, etc.

You need to choose the type of services to be offered based on the store size and local demand.

5. Select a Location

The most important factor in achieving success in the salon business is choosing a suitable retail location. Location with the number of footfalls, 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.

6. Setting up your Beauty Parlour 

The first thing while setting up a beauty parlour is to pay due attention to the interior and exterior design. It is advised 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 colour and theme and use it carefully in designing the interior of your salon.

7. Equipment and Tools

Purchase salon furniture that fits your interior theme, colour 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 parlour 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.

8. Fix Pricing

Fix pricing carefully. Your direct, Indirect, and labour 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.

9. Hiring Professionals

Proper manpower planning is one of the most challenging issues in starting a beauty parlour. 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.

Read: Best Beauty Business Ideas

10. Promote Your Beauty Parlour Business

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 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 website and social media activity will help you in online lead generation.

List your business on popular web directories. Your business website, web directories, 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.

Frequently Asked Questions(FAQs):

How much does it cost to start a beauty parlour?

The cost will depend on the size of the store, its location, and the types of services offered. On average, the cost of starting a beauty parlour business in India excluding space rent will be in the range of Rs. 10 Lacs to 15 Lacs, depending on the types of equipment and makeup supplies.

How much can we earn from a beauty parlour business?

The earnings from a beauty parlour business will majorly depend on the type of services, quality of supplies, and location. Beauty parlour owners in a good location in a city earn around Rs. 1 Lac to 3 Lacs in a month.