Salon Business Plan

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.

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.

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.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.