How to Start Beauty Parlour?

Overview 

Beauty industry is one such sector that focuses on highlighting lifestyles, one’s physical appearance and personal hygiene. One such business falls under this industry which is known as beauty parlors. Beauty parlor is a place where women come to cleanse their physical appearance to look confident. According to the latest report released by Statista, the Beauty & Personal Care market in India is projected to generate a revenue of US$31.56bn in 2024. Moreover, This market is expected to witness an annual growth rate of 2.76% (CAGR 2024-2029). Therefore, we can witness substantial growth in running the beauty care business in India with the suitable strategy that can earn a profitable business. This blog has discussed how to start a beauty parlor in India and the registration required to start the business.

Top 10 Best Beauty Parlour Brands in India

Here’s the list of top 10 best beauty parlor brands in India:

1. Looks Salon
2. Truefitt & Hill 
3. Lakme Salon
4. Green Trends 
5. Shahnaz Husain
6. Naturals Salon
7. Monsoon Salons 
8. Jawed Habib Hair and Beauty 
9. Neel David’s International Salon 
10. Matrix Salon

These brands that fall among top 10 brands, nonetheless play the best marketing strategy to beautify women's beauty. Beauty parlors provide critical treatment to increase women's beauty and thus it is important to monitor the brand strategy to stay outperformed in the competitive market. The way the parlor adopted strategy to run their business should initially focus on microlevel strategy to attract the local customers and later on focus on macro level once the business catches their efficiency.

Registration Required for Opening Beauty Parlour in India

Here’s the registration required for opening beauty parlor in India: 

• Registration required for ownership: Registration for business structure is important to know to what extent your business shares liability to owners. Business registration such as limited liability partnerships, limited liability company, partnership registration and one person company.

• Registration for small enterprises or startups–MSME registration: As you are beginning your business from home, your photography business would fall under the category of Micro, Small, and Medium Enterprises. For getting government incentives without heavy investment in your business for inventory stocks, etc. you are required to get Udyam Registration/ MSME registration.

1. Trademark Registration Online: The trademark registration protects the rights and identity of your brand and logos. 
2. Shop and Establishment Act Registration: Even for online business, the registration for Shop and Establishment Act Registration is also essential.
3. Requirement of GST Registration: In case your threshold limit exceeds a certain turnover amount in the photography business, a person is taxable to pay taxes by registering under GST registration. 

• A fire Safety Certificate: Safety of the business premises is the first priority. In case of fire or any hazards events, this fire safety certificate equips with necessary safety measures to reduce the risk of injury. 

For getting multiple benefits from legal and financial regulations, you are required to get assistance from experienced CA and CS experts for easing your application. We at Bizfoc team will dedicatedly serve your needs to make your business comply to meet legal and financial regulations. 

How to Start Beauty Parlour in India?

Here’s the step-by-step procedures to start the beauty parlor in India:

Step 1: Make a Business Plan:

Setting the business plan means establishing the base to start the business. Opening the beauty parlor requires some prior knowledge about the existing beauty products that helps to increase the beauty of the customers. You must go through the extensive analysis of the beauty industry and about the basic details such as price model of the services, target market and audience, terms and conditions that suit the legal standard and regulations. 

Step 2: Select Types of Services 

There are many services that fall under the category of beauty parlor business. So, it is important to recognize what type of services you want to deliver to the ultimate customers. Services such as 

• Spa center
• Barbershop 
• Hair skin clinic 
• Wellness center 
• Cosmetology center and more 

Depending on what combination of services you want to offer to the customers, initial investment is also needed to purchase the equipment for business. 

Step 3: Set the Ideal Beauty Set Up 

Apart from deciding what type of business you’re going to provide, it is important to select the beauty setup that is appropriate to your interests. There are two most common types of beauty set up in India - Franchise parlors and independent parlors. 

Franchisee parlors 

Franchise parlors are those businesses that run by the franchise and support the ecosystem for parlor operations, advertising, branding, servicing, etc. these type of beauty parlor requires higher investments than normal beauty normal. 

Independent Parlors

On the other hand, independent beauty parlors require preferred business structure such as One Person Company Registration and Sole proprietorship. Such parlors is independent and are only named to owner 

Step 4: Get the Beauty Products 

Offering a wide range of raw materials for improving the beauty of women should be considered first before proceeding to offer services to the customers. You can also sell those beauty products that are most liked by the customers in the market that generates profit. Products such as mascara, lip care products, foundations, eye-liners, serums, etc. do help to glorify the skin. 

You can also market your products through your Ecommerce website and offer online shopping to increase business. You can also offer door step delivery of your brand to the customers such as dropshipping. 

Step 5: Market your Product and Service through Website

You should start to launch the brand website with the perfect display of products through videos with best photography. In this way the website increases the visibility of your niche of brand online easily. Other than that you can also launch the ads campaign through websites about the latest offers and incentives will help to boost your brand fast. 

Challenges to Start Beauty Parlour in India

Here’s the list of various challenges to start beauty parlor in India, which are as follows:

• High employee resignation

Once the employees feels that they can deliver best experience to their client, they leave the business if they don’t receive any motivations in return. Therefore, motivate the employees by offering an environment in the workplace to find their growth and motivations in return. 

• High Startups Cost

For starting the parlor at suitable locations or at the center of the marketplace, you may cost higher to start the business. The initial investment might be higher at first unless the business operations don't pick any profit from the business. 

• Difficult to please customers 

Most customers expect to receive relaxing service which corresponds to the cost they charge for the service. If the first impression on the customers may fail to show effort for the service, then you may likely reduce the chance for repeating sales. 

• Challenging in maintaining consistent income:

Income in the beauty parlor is not consistent and hence causes seasonal loss for the business. 

Conclusions 

Beauty parlors fall under the essentials of the humans for the maintenance of their beauty and hence it is important to offer services that please the customers. For registering the beauty parlor under a certain license, you would need business registration, MSME registration, GST registration and Shop and Establishment Act Registrations. These licenses are essential to maintain some legal standards and regulations. 

Frequently Asked Questions 

1) Can anyone open a beauty parlor without experience or certification?

No, you can’t run the beauty parlor without prior experience on products and raw materials that are used to improve the physical appearance. 

2) Do beauty parlors need to be insured?

Yes, safety is the first priority and this priority can only be fulfilled by insurance. Risks such as fire in the premises, injuries, etc. is recoverable through insurance. 

3) Do I need a license to open a beauty parlor?

Yes, you will need to get the license to open a beauty parlor such as business registration, trademark registration, shop act registration, MSME registration, etc. 

4) How do I price beauty services for profit?

For pricing your product at a competitive range, you should first consider how much price you should fix so that it will cover both fixed and variable costs. Measuring the price against the competitive range of the market, will help to get you profit. At the initial level, you should offer some discounts to customers so that the sales would repeat continuously.