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Cost of Starting A Beauty Parlour, Income, License

Introduction to Cost of Starting A Beauty Parlour: On the basis of a survey conducted in India, by different lifestyle professionals, it is evidenced that the cosmetics industry has grown enormous i.e., around 60% in the past five years in India. Along with, there has been an extensive increase in the salon or parlour industry too by 35%. A report from leading lifestyle periodical projections that in the future the beauty industry will raise twice as fast as the US and European marketplaces in India. Beauty industry shields beauty products, the creation of beauty salons, parlours, wellness centre etc. Parlours or salons are certainly a brilliant business with abundant opportunities in India, especially for Women Industrialists who perform a chief role in this Business. Let us find out now the cost of starting a beauty parlour business in India along with income from beauty parlour business, licence required to open a beauty parlour business and loans, schemes available for starting a beauty parlour business in India.

A guide to cost of starting a beauty parlour, income, license, permission, loan, and schemes

In this post, we look at beauty parlours business models and the procedure for opening a beauty salon in India.

Business models of a beauty parlour

A beauty salon can be characterised into different commercial types depending on what feature of this trade you would want to take up – a share of the service or the whole compendium. It all depends on the type of service you would offer to the clients. Depending on the service you are going to deliver you and classify your beauty parlour kind. The general idea about beauty salon is that “it is an abode where you could avail facilities like –manicures, haircuts, pedicures etc. However, there are different facilities that donate to business types that are related to the beauty business but are precise to one or more facilities as follows:

  • Spa centre
  • Reflexology centre
  • Barbershop
  • Wellness centre
  • Traditional beauty parlour or salon
  • Hair and skin clinic
  • Cosmetology centre and more

Steps involved in starting a beauty parlour in India

Considering this as a massive opportunity as the Indian Beauty industry holds for both future andfor the existing beauty parlour businesses, that rather quickly. Following these steps below it acts as a guidance that wouldhelp you out to start the business. These include

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Starting a Beauty Parlour in india.
Starting a Beauty Parlour in india.
  • Design the concept of your beauty parlour
  • Plan for getting the investment fund to start the business
  • Evaluate and analyse the setup costs involved to start the beauty parlour
  • Choose the perfect location for your business
  • Get all the licenses required to start the beauty parlour
  • Get the efficient workforce for your business
  • Design a attractive menu for beauty parlour at reasonable prices
  • Maintain proper connection with the vendors and suppliers for your beauty parlour
  • Install the right equipments and technology required at your beauty parlour

Now, once you have gained the knowledge about very steps that are important for you would start a beauty parlour business in India that might dive deeper and know what would exactly needto do that might help you to set up a successful beauty parlour in India.

Choosing a right location to set up the parlour

Choosing a correct location is the most crucial one to make it a successful one. You need to consider the following factors as below-

  • Choose the location near the high-traffic area which includesbusy streets, malls or spaces next to locations people visit regularly such as grocery stores would be ideal to set-up beauty parlour.
  • It is better to have easy access for parking is a hassle and the traffic is heavy on the way to your salon, people might not consider it worth for the effort.
  • Just check the nearby beauty parlours to stay away from the competition. Don’t ever try to situate your beauty parlourdirectly next to another one as you might cancel each other out. Instead, try to search out a place so that you can be able to clear out the problems.

Permissions and licensing required starting a beauty parlour

You need to acquire licenses from the local government organisation to run a parlour in India. The cost of gaining these licenses differs from place to place. It is sensible to apply for the permits timely to avoid any problem later after the inaugural of your parlour operations. Here is the list of important licenses needed to open a salon in India:

Trade license from the municipal corporation- The cost for licensing varies as per the salon size. The licenses will be renewed in March every year and issued for a year.

GST Registration- Salon are needed to get registered under GST and must get their GSTIN Number. GST registration is specific to state, so if your salon has centres in different states that is the reason you need to have a separate registration for each state.

Professional Tax license- You require a professional tax license for employing staff salary. This is payable on a monthly basis for all staff with above Rs 10,000 as salary.

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Permission Required to Start a Beauty Parlour.
Permission Required to Start a Beauty Parlour.

Business Registration- You require to register your trade as a proprietor, partnership firm or a Pvt Ltd firm. One must file annual returns, audit the finances etc. Hire an accounting expert or CA to aid you with the finances of your business.

There are some other licenses needed as well such as certificate, fire safety, music license etc.

Machinery and equipment required to start a beauty parlour

The list of the machinery and equipments required are listed below. These include-

  • Facial hair
  • Hair cutting machine
  • Facial bed
  • Hair drier
  • Body massager
  • Head steamer
  • Facial steamer
  • Steriliser
  • Galvanic machine
  • High frequency machine
  • Shampoo wash unit
  • Equipment trolley
  • Foot spa
  • Ultrasonic machine
  • Hair strengthening machine
  • Electrolysis
  • Skin analyser
  • Dressing table
  • Rotating chairs
  • Mirror (big)
  • Fridge
  • Furniture and fittings

Mostly, the above items are one time investment or fixed cost of starting a beauty parlour business.

Equipment Required for Beauty Saloon.
Equipment Required for Beauty Saloon.

List of raw materials required per month includes the following-

  • Hair shampoo
  • Hair dye
  • Face cream and lotion
  • Hydrogen peroxide
  • Acetone
  • Hair removing wax
  • Hair spray
  • Hair gel
  • perming lotion
  • Sponge cotton
  • Towels assorted
  • Surgical gloves

Cost of starting and setting up a beauty parlour per annum

  • Costs involved in purchasing raw material is Rs. 27,000 per annum
  • Costs involved in purchasing utilities is Rs. 72,000 per annum
  • Salaries and wages Rs. 2,40,000 per annum
  • Costs involved intransportation and freight is Rs. 3,000 per annum
  • Rent in advance is Rs. 30,000 per annum
  • Costs involved in conveyance and travelling is Rs. 2,500 per annum
  • Costs involved in postage and stationery is Rs. 3,000 per annum
  • Costs involved in advertisement is Rs. 5,500 per annum
  • Costs involved for repairs and maintenance is Rs. 2,000 per annum
  • Electricity charges is Rs. 1,000 per annum
  • Telephone charges is Rs. 750 per annum
  • Other unforeseen expenses includes Rs. 1,000 per annum
  • Water charges includes Rs. 250 per annum

Income generated per annum from beauty parlour business

  • Revenue generated for Eye brow is Rs. 36,000 per annum
  • Revenue generated for Manicure is Rs. 24,000 per annum
  • Revenue generated for Pedicure is Rs. 13,200 per annum
  • Revenue generated for Head massage is Rs. 19,800 per annum
  • Revenue generated for Hair bleaching is Rs. 39,600 per annum
  • Revenue generated for Arm bleaching is Rs. 46,200 per annum
  • Revenue generated for Face bleaching is Rs. 52,800 per annum
  • Revenue generated for Waxing is Rs. 33,600 per annum
  • Revenue generated for Facial is Rs. 86,400 per annum
  • Revenue generated for Hair style is Rs. 60,000 per annum
  • Revenue generated for Hair cutting is Rs. 60,000 per annum
  • Revenue generated for Synthetic Dye is Rs. 38,400 per annum
  • Revenue generated for Bridal make up is Rs. 96,000 per annum
  • Revenue generated for Puffing of hair is Rs. 24,000 per annum
  • Revenue generated for Make-up is Rs. 18,000 per annum
  • Revenue generated for Removing of hair is Rs. 47,500 per annum
  • Revenue generated for Hair dying is Rs. 48,750 per annum
  • Revenue generated for Cleaning is Rs. 5,750 per annum

Types of loans available for starting a beauty parlour business in India

A beauty parlour falls under small scale and medium scale enterprise or a micro unit enterprise. Both of these categories includethe few attractive financial options. The below are the type of loans offered under two categories includes-

  • Term loan for beauty parlour business

These financing optionscould be used for owning the premises which would help you to buy tools and equipments required to set-up the beauty parlour business. Term loans can be found in the form of short-term loans or sanctioned in the line of credit.

  • Working capital loan for beauty parlour business

This option of financing could help you out in meeting the financial expenses for running the business smoothly without any hurdles.

The applicant has to submit a clear budget sheet before applying for these loans. Specifying the below reasons and to find the needs for the loan that speeds up the loan processing procedures. This helpsto avoid the over-borrowing from others.

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Eligibility for applying the loan for beauty parlour business

The applicant should take enough time to understand the eligibility criteria based on the list that are mentioned in the various schemes that are available in the specific banks. These kind of SME loans are mainly designed to meet the specific needs as mentioned.

  1. Generally the age eligibility lies between 18-60 years.
  2. The eligibility required for the beauty parlour is the current experience in the business which has importance that the longer you are in the business this is the better that would help to get the prospects of obtaining the loan.
  3. Check your credit history which would have a healthy credit history is understanding themain factor for your loan eligibility.
  4. Revenue generation sheet should be provided in a substantial revenue generation acknowledgement that would assure you for the lender that can help your repayment capability.

Schemes offering loans for beauty parlours

There are various loan schemes availableto offer and help the entrepreneurs to start their beauty parlour business solely. A few banks that would offer the exclusive beauty parlour loans includes the following-

Bharathiya Mahila Bank namely Shringaar

This loan is especially allocated for women preparation to establish her own Beauty Parlour. This loan was devised in partnership with leading Salon brands like Cavin Kare, Naturals, Lakme Ltd. This loan is delivered either as a Term Loan or a Working Capital Loan. The loan can be used for purchase/building of the salon premises and for buying of equipment and tolls for the business. Under the CGTMSE loan facility of the Government of India, this loan does not need any collateral property for loans up to Rs. 1 crore. The current rate of interest which is being offered is between 10.15% – 13.65%. A discount of 0.25% on the interest rate is obtainable to women applicants. The repayment tenure is for 7 years for Shringaar loans.

Orient Mahila Vikas Yojana Scheme for Women

This scheme is initiated by Oriental Bank of Commerce to help the women entrepreneurs. It would help the women which would provide the initial capital to set up a small business. The applicant should hold at least 51% of the ownership in the business for which the loan is applied for. A loan amount of Rs.10 lac can be availed for the beauty parlour business without any security or collateral for women. This loan has maximum repayment tenure is 7 years which provides a concession of 2% that would be offered on the interest rate.

MUDRA Yojana Scheme for Women

The Pradhan Mantri Mudra Yojana simply called PMMY, has developed various schemes and products to encourage the entrepreneurs which aimed at supporting the funding and developments that would needthe micro unit or the entrepreneur beneficiaries as for. It has the following segments that would signify the stage of growth and mainly the development for the funding needs of the units  as well. These include

  • Shishu that would help to cover the loans up to Rs. 50,000/-
  • Kishor loan that would cover the loans from Rs. 50,000/- and up to Rs. 5 lakhs
  • Tarun which covers the loans up to a value of Rs. 5 lakhs to Rs. 10 lakhs
  • Women entrepreneurs have an excellent opportunity to avail loans for their business that would come under these schemes. Under the following MUDRA scheme, the women business owners can actually avail a concession on the particular interest rates based on the type of business.

All the above schemes are specially designed for women entrepreneurs and applicants as well, whereas the other applicants can avail a loan by applying to other small and medium scale business and other financing options mentioned.

That’s all folks about the cost ofd starting a beauty parlour business in India. You might be interested in Low-cost Agriculture Business Ideas.


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