Salon Business Plan

A Complete Guide on How to Start a Salon Business in India

Check your Business Loan Offer

✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now! Apply Now

Many beauticians, after gathering sufficient expertise and experience in their field, wish to open their personal salon. Here is a step-by-step salon business plan that can provide a sufficient idea about setting up a parlour in a few hassle-free steps.

A Step-by-Step Guide to Starting a Salon Business

Below is a detailed guide on starting a salon business:

Preparing a Business Plan for Salon

Strategic planning is the first step in starting a salon business. This includes deciding the services to provide, estimating the investment amount, finalising the location of your parlour and so on. Accordingly, you can pitch a profitable business idea to the clients that would ensure maximum returns.

This helps you in convincing them to invest a sumptuous amount in your business. You can use these funds to make your parlour attractive and captivate maximum clients from that locality.

Selecting the Types of Services You Will Provide

Deciding the type of service to offer your customers is essential to classify your salon’s style. There are a plethora of services available in the beauty industry that you can choose from. Furthermore, you can design your parlour in the form of a spa, wellness centre, skin and hair clinic, cosmetology centre, reflexology centre, barber shop and so on. You can also check the availability of services nearby and choose the less common ones to attract more customers.

Deciding the Required Investment

At times you might need to invest a huge amount depending on the locality, size and services when setting up your beauty parlour. Nonetheless, it is important to stay away from investing more than the required amount when your business is still in its nascent stage. To arrange for the money, you can talk to investors and pitch your salon business proposal.

Apart from this, you can also use your personal savings to invest in the parlour set-up. This ensures that you will not have to depend on other fund sources. Also, you can also go for small business loans to set up the salon. However, you should note that you will have to repay the funds and hence ensure their judicious usage.

Finalising the Location

Selecting the appropriate location for your parlour is the primary task that can be highly challenging. For this, the first thing that you will have to consider is the number of salons situated in that area. Study their mode of operation and the engagement that they are receiving from that locality.

This will help you immensely to decide the perfect location to set it up and attract maximum customers. Furthermore, there are several other factors that you can consider before finalising the location. These include analysing the neighbourhood, checking the rent and if the place is well connected to other localities.

Purchasing the Beauty Products

Selecting the highest quality makeup at affordable rates is one of the most important tasks. This ensures that there are no allergic reactions on your client's skin and at the same, you do not have to spend more than your budget. Also, you can stock some extra units of them such that they do not run out at the hour of need.

Some of the most important products that you will need to stock are foundations, anti-aging products, makeup palettes, eyeliners, lip gloss, styling creams and gels, hair shampoo and conditioner, eye shadow palettes, body lotions, cleansers and moisturisers for the face. You can take a business loan for salon to purchase the required products.

Deciding the Service Menu

After deciding the services to provide, you will also have to decide the cost of these services. Accordingly, you will have to prepare the service menu. Ensure that the costs that you are finalising are affordable and justify the services. Furthermore, check if the menu card is easily readable and in no way confuses the customers.

Hiring the Beauticians

The number of staff that you are planning to hire should be at par with the services that you are providing and the amount of space available. Hiring extra staff will lead to overspending which can reduce your returns from the business. Also, try to find the staff who specialise in different areas. This ensures that you will get the best assistance while serving your client, which makes them choose you every time to get ready for special occasions.

Gathering All the Required Licences

While setting up your salon business ensure that you have all the required licences. This saves you from legal complexities in the future. Some of the important permits required to open a salon in India include registration for business, GST registration, and a licence for trade from the municipal authority.

Physical & Digital Marketing

Physical marketing is one of the old-school ways that you can use to let people know about the opening of your parlour. For this, you can print pamphlets and circulate them, plan for a grand opening and introduce some attractive discounts. Furthermore, you can increase the reach of your parlour by promoting it online. In recent times it is extremely important to have an appealing website. Also, you can promote your parlour on social media to attract more customers.

Performing Competitor Analysis

Analysing your competitors is highly essential to ensure that you take some steps to stay ahead of them. For this, you will have to study their method of working, the price rates that they have set and the offers and discounts that they provide their customers. This ensures that you can offer better deals and make more business than them.

Why Do You Need a Business Plan for a Salon?

A business plan is essential owing to the following reasons:

Provides different goals for your business such that you can take crucial steps to achieve those.
You can identify the loopholes and mend them to maximise your profits.
You can present the plan to investors to convince them to put more funds into your business so that you can easily expand it.

Comparison of Business Loan Interest Rates Offered by Top Banks/NBFCs

Here is a quick comparison of the different interest rates on business loans offered by Bajaj Markets partners:

Our Partners	Interest Rate Range	Max Loan Amount/ Tenure	Avail Loan
Ambit Finvest	20% onwards	36 months	Apply Now
AYE Finance	28% onwards	36 months	Apply Now
FlexiLoans	12% onwards	36 months	Apply Now
IIFL Finance	18% onwards	60 months	Apply Now
InCred	20% onwards	48 months	Apply Now
Indifi	16% onwards	36 months	Apply Now
KreditBee	15% onwards	9 months	Apply Now
Lendingkart Finance Limited	15% onwards	36 months	Apply Now
Protium Finance Limited	1.25% p.m. onwards	72 months	Apply Now

**Disclaimer: Interest rates are subject to change. So, please contact the financial institution before proceeding.

Eligibility Criteria for Getting a Business Loan to Start a Salon

There are certain criteria that you will need to fulfil to apply for a business loan. These are as follows:

You must be a self-employed professional.
Your age must be between 25 years and 65 years.

Documents Required for a Business Loan to Start a Salon

You will need to upload a scanned copy of the following documents while applying for a business loan:

Address proof documents like an passport, Aadhaar card, utility bills, lease agreement
Identity proof documents like passport, PAN card, Voter’s ID, driving licence
Authenticated copy of Partnership Deed or Sole Proprietorship Declaration
ITR form
Certified copy of Articles of Association
Last six month’s bank statement
Certified copy of Memorandum
Certified copies containing details like balance sheet, income computation, and last 2 years’ Profit and Loss (P&L) statement

How to Apply for a Business Loan at Bajaj Markets

You can follow the steps below to apply for a business loan on Bajaj Markets:

Step 1: Click on the ‘Apply Now’ button on the business loan page.
Step 2: Enter your personal details and business details accurately as required.
Step 3: From the list of available partners, select one of your choices.
Step 4: Select the credit amount and the repayment tenure.

After the verification of your application, the lender will transfer the money to your bank account.

Now that you have a clear salon business plan, you can start at the earliest to fulfil your dreams. However, remember to make a robust business plan to ensure that it is convincing enough for your investors and at the same time gives a direction for business expansion.

Business Loan Articles

Quick Links

Business Loan by City

In India, the cost of setting up a beauty parlour usually ranges between Rs. 40,000 and Rs. 50,000. However, it can extend up to Rs. 1 Lakh at times in case you are thinking of offering a variety of services to your customers.

The approximate profit that a salon a business generates in India ranges from Rs. 80,000 to Rs. 1 Lakh. However, it can vary depending on the services that you are offering, the size of your salon and where it is located.

Finding investors for your salon business can prove to be challenging. This is so because people hesitate in investing in a salon as they are unsure of the returns. So, you can turn to microloans, SBA loans, personal loans, and so on, to arrange funds for financing your business.

Yes, you can start a salon business from your home itself when it is still in its initial stages. However, as your business expands, you can shift it to a larger area to provide a plethora of quality services to the customers.

Yes, salon businesses are liable for GST. So, you will have to register yourself under the regime and file for GST returns for your salon business.

Yes, with the changes in trend, men’s grooming has also become quite popular. Hence, opening a salon business completely dedicated to men is a viable business option.