How to Start a Small Salon Business in India?

Opening a haircut salon is a profitable business in India. It targets men and women of all age groups from almost all economic classes. So, if you want to open a small hair salon, we will walk you through the stepwise process to set up and succeed in the business.

What is the Salon Business?

A salon specialises in offering beauty services to clients, such as haircuts, nail care, facials, etc. It can be a small, independent, or franchise business of a larger chain. A hair salon's primary objective is to offer personalised beauty services to its clients, helping them look their best and promoting well-being.

Research and Planning for Salon Business

Like any other business, the beauty salon business requires diligent research and planning. To ensure long-term success, you must have a business plan in place and the required investment. When making a business plan, take your rentals, business funds, target customers, ROI, etc. into consideration. Next, finalise your salon services and themes.

Selecting a Location for Salon Business

The location of your beauty salon franchise or business largely impacts your success. Thoroughly research your competitors to determine their engagement and profitability. Besides, look for a place that is easily accessible without any hindrances. Ideally, prefer salons on the ground floor and the main road.

Legal and Regulatory Requirements

You will require a valid license from your local governing body. Some necessary licenses, permits, and regulations regarding small hair salon businesses include the following:

• GSTIN: Register your salon under GST and obtain a GSTIN number.
• Trade License: Obtain a trade license from your municipal corporation and get it renewed every year.
• EIN: Apply for an Employer Identification Number for tax filing purposes.
• Building Permit: You will require this permit to comply with the safety standards and local building codes.
• Cosmetology License: This license certifies that you have acquired the required training to provide beauty services.

Create a Design Salon Menu with Pricing

The range of services you offer in the salon significantly impacts your success and growth potential. You should select a range and price them according to the salon's location and your target clients. Then, set up the salon and order supplies and equipment adequately.

Building a Skilled Team

You will need trained staff to offer quality services to your clients. They should be motivated to give your customers a remarkable experience, helping your salon build a reputation and attract referral business. You may also consider setting up a home service beauty parlour, where your team members will visit customers' houses to offer the desired beauty services.

Procuring Equipment and Supplies

The quality of beauty services you offer to the customers depends on the equipment and supplies you use. Research, compare, and finalise vendors offering high-quality supplies at the best rates. Check and refill the inventory regularly to offer unhindered services to your clients.

How Can a Business Loan Fund Your Salon Business Expansion?

Here is how a Business Loan can fund the expansion of your small hair salon business:

• Provides adequate funds of up to Rs 40 Lakh
• Finances inventory management on time
• Lets you hire skilled employees and team members
• Helps build working capital for slow days
• Makes repayment manageable with competitive Business Loan interest rate
• Distributes the loan cost into EMIs with tenures of up to 60 months

How to Apply for a Business Loan for Your Salon Business?

Here is how to apply for a Business Loan from Hero FinCorp:

• Visit the Hero FinCorp website and reach the Business Loan application page.
• Fill in an application form and upload the required documents.
• Enter the Business Loan amount and select repayment tenure.
• If you fulfil the eligibility criteria, you will receive a reference number.
• A representative will contact you for further details.

Upon verification, you will receive a personalised loan offer with the loan amount and interest rate. Once accepted, the loan amount will be disbursed to your bank account.

Conclusion

Opening a haircut salon or beauty parlour requires a strategic approach. Whether you're opening a small hair salon or a beauty salon franchise, once established, you can fund its expansion with a Business Loan from Hero FinCorp and create a reputation in the beauty industry.

Frequently Asked Questions

1. How much does it cost to open a salon in India?

Opening a salon in India can cost anywhere from Rs 3 to 10 Lakh, depending on the size and extent of the business. The required costs include rent, interiors, licenses, equipment, supplies, staff, etc.

2. How profitable is the salon business in India?

A salon provides a profit margin of around 20-30% in India.

3. What is a unisex salon?

A unisex salon is a type of salon that caters to both male and female clients. It provides specialised services for both genders under one roof.

4. What is the most popular service in the salon?

Haircuts are the most popular service in the salon, followed by facials, waxing, etc.