December 1, 2023
The beauty industry has been rapidly growing in India over the last few decades, and now caters to men and women of almost all age groups. Due to rising incomes, rapid urbanisation, increasing working population and technological advancements, the industry offers massive opportunity and great business prospects.

“Beauty salons or beauty parlours are a common sight in India. The beauty salon business is rising at a rate of 35 per cent. India’s beauty business would develop twice as quickly as the US and European markets in the next few years, says Pavan Reddy Appakonda, CEO and founder of Lavish Salons and PRA Lavish Group.

If you are also planning to set up a small salon business and tap this rapidly growing segment here are some tips to keep in mind while starting a salon business.

Prepare a Detailed Business Plan
Detailed planning before the start of every business is important. A good business plan should have every component like funding, marketing, market research, pricing & discounting, products etc. You should include all key points like available funds, monthly rentals, interiors, products, target customers, return on investment and monthly income of the beauty parlour.

To prepare a good business plan for your new beauty salon venture, you should conduct a brief market research and analysis in your area. Analyse the prices and services of your competitors.

Identify the type of salon
After identifying your customer, you should decide the prices and services your salon can offer. These can be of 3 types.

This offers only the basic services and use products from the lower-priced segment.

Business: It offers middle-range prices but also higher quality; has more professional staff that can also offer advice and consultation.

Premium: This offers higher-end services, employs professionals with higher grade certificates and diplomas, uses higher-end products and technologies.

Client loyalty
In some situations, your beauty salon plan may fail. So be prepared for that. “This often happens when the salon operators don’t acknowledge their genuine clientele,” says Pavan Reddy. Always try to identify your regular clients and try to offer better deals and promotion for building client loyalty.

The area where you open a salon also matters a lot as it could be a deciding factor between success and failure. The location should be convenient for people. Your parlour should be located where it is easily visible as well as accessible. Ground floor locations are best, and upper floor locations are considered worst as their visibility is low, and often customers find it difficult to locate.

Also it’s a good idea to study your competitor in the area to understand what works and what doesn’t in the locality.

Pricing and discounts
Customers who want to look good aren’t afraid to spend money. You can exploit this habit to keep people hooked to your salon. Indians also love discounts. Use discount offers smartly to attract new customers and to retain older ones.

You must give great attention to investment on beauty products, equipment, trained beauticians, and shop interiors. “If you invest in high-end equipment and raw materials, just the raw materials would cost around Rs 15 to 30 lakh in India,” says Pavan Reddy.

You need licenses from the local government to run a salon. Depending on the area of business, you may need a trade license from the municipal corporation, GST number, professional tax license. You need a professional tax license for employing salaried staff whose salary is above Rs 10,000.

There are a few other licenses, like fire safety, that may be required for running a salon.


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