How to Begin a Beauty Salon Business

How to Begin a Beauty Salon Business

With the Indian beauty industry booming, it’s no surprise that there are so many new businesses popping up. A report from lifestyle experts has found out about 60% more people visiting salons or getting their hair done in general over five years – which means an abundance of parlours too! The forecasted growth within the next decade will be significant where they expect twice as much speed compared to US/EU markets now (10%).

 The salon business is a great place to get your foot in the door, salon owners who work hard can make enough money for years with just one successful location, so don’t wait too long before you open up shop!

Business Models for Beauty Salons

Whether you want to be a nail tech, hair stylist or offer manicures and pedicures at your salon – there are many ways for people in the beauty industry to get involved.

 For example, if clients come into purchase these services then it could also fall under other categories such as makeup tips & tricks with colors that will match any skin tone! It really depends on what service they need) but no matter how big (or small!) an operation one has going on; being well-informed about all their options helps make business decisions easier.

  • Spa facility

  • Reflexology clinic

  • Barbershop

  • Health and fitness centre

  • Salon or traditional beauty parlour

  • Clinic for hair and skincare

A cosmetology centre, among other things.

Types of Beauty Salon Ownership

The beauty parlour industry includes both small businesses and large chains. As a result, before beginning the beauty parlour business, the entrepreneur must decide on a business model, scale, and ownership structure.

Start a Beauty Salon on Your Own

The most common and widely used type of ownership structure is that of independent beauty parlours or hair salons. In this parlour model, an independent entrepreneur or group of entrepreneurs would open and operate an independent beauty parlour in a well-served neighbourhood which includes adding parlour photos in beauty parlour advertisements.

 Entrepreneurs with prior experience in the beauty industry could use various beauty parlour models to launch a successful beauty parlour. This model has the advantage of requiring tiny investment and operating costs. However, these types of independent beauty salons are now facing stiff competition from Beauty Parlour chains with stronger branding and advertising capabilities. This business model would be best suited to a limited liability partnership (LLP) or a one-person company (OPC).

Beauty Salon Chain Franchisee

The parlour will operate as a franchisee of a large beauty parlour chain under this business model. Because the beauty parlour would be established as a franchisee, the franchisor would provide assistance with the establishment of the beauty parlour, operations, staff training, branding, advertising, and so on.

However, when compared to an independent beauty parlour, this type of model would necessitate a larger investment. Most Franchisors require a franchise fee based on the revenue of the beauty parlour beside the initial setup fee for starting the beauty parlour. The following is a typical franchise fee in the beauty parlour industry:

The royalty for the first 3-6 months, depending on the agreement, is 0%.

Following 3-6 months, 10% to 15% or more, depending on the agreement.

Also, 15% or more once the franchisee begins to profit. 

It is advised that beauty parlour franchisees form a limited liability partnership (LLP) or a private limited company. This ensures that the beauty parlour franchisee, as well as the franchisee rights, lease rental, licences, tax registrations, equipment, and so on, can be transferred to another person if necessary.

Beauty Salon Chain Franchisor

To start a beauty parlour with two or more stores at different locations under the same management, one has to be ready for high levels of planning and investment which includes beauty salon advertising and beauty treatments. This is because setting up successful salons would also allow business owners time as they evolve over their franchises’ lifecycle– evolving into something even better than before!

 For those looking into getting involved in this type of salon chain – there are many things that need attention like trademark registration, which can help protect your brand against imitations (and potential competitors).

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