The Covid-19 pandemic has been brutal on countless outdoor businesses, and the Salon Business is one of them. Many beauty salons had to shut down unexpectedly due to the rapid spread of the pandemic. The beauty industry, which requires the most physical contact, suffered losses and had to undergo various restrictions to continue their business. Even though some cities lifted their curfew restrictions in the later months, salons had mask and crowd protocols in place, further adding to their loss.
However, people began their own skincare routines and beauty hacks to maintain their regime, and the salon business has gotten more creative than ever.
Salon businesses are not restricted to getting a trendy hairstyle done. Instead, wellness centres, cosmetology centres and hair and skin clinics are also considered salons for their healing capabilities. This presents more opportunities for all genders interested in working for a salon. It is not an easy task to set up your business at a stretch, but with required information, you can form an idea to start your own salon business in 2022.
How to Get Started with Your Salon Business
The Indian Beauty and Wellness market is valued beyond INR 2 billion in the current year and will only grow further due to the holistic wellness approach adopted worldwide. These are the necessary requisites to decide before starting a business.
- Business Strategy
Every business needs a blueprint and diligent planning to execute its purpose successfully. So it is necessary to make a plan regarding the salon’s theme, the interior decor, average price per customer and capital amount for investment. Consider the total cost for the entire setup and draft a business plan to propose to an investor.
- Cost Evaluation
Service cost refers to the rough materials required for the job and consists of 30% of the menu, and rent is a significant amount of your business place. So make sure these do not cross more than 10% of the revenue after business setup or a no gain scheme. Include the employee’s salary in this evaluation as it helps strategise for future hikes and cuts.
- Theme and Clients
The theme should sync with the interior as it decides the friendly tone for the place, and services should be decided on employee availability. The founders should decide on the target audience during the planning based on the type of salon, whether a massage centre, hair and makeup or wellness centre. The services must be decided beforehand so that the supplies are available on time and customers are happy with the options.
The location makes all the difference for the business depending on the nearby resources and target population. While choosing the site, conduct thorough research on the competitors, engagement, and business model. While setting up the place, make sure the location is on the lower ground or first floor as clients prefer these and also obtain Non-Objection Certificate (NOC) from two neighbours.
Workforce depends on the strength of the workplace, and if you’re starting on a minor scale, it makes sense to hire the service staff for basic amenities and then go on for Management and housekeeping. Always make sure you hire people with respective backgrounds as the work would be smooth and the retention process easier.
- Vendor Management
Please choose at least three vendors to compare prices for supplies and keep them updated. Inventory stock must be checked every three days as salons have a lot of immediate stores to be used at the spot. Install technological equipment for advanced styling and wellness; this would impress the customers and be satisfied.
Digital Marketing is imperative and helps for a wider reach through social media. Many digital agencies assist with marketing, or you can start your social media handles to promote your business and spread the word through referral marketing. The company can conduct Physical marketing by handing out brochures fliers at apartment complexes and nearby stores.
Funds Needed for Salon Business Startup
The initial Investment plan is necessary to lay the groundwork for finance, and funding can help through that when you have a vision but no monetary deed. First, decide upon the structure of your salon, whether it’s a single ownership business or franchise, this will help determine the capital amount needed to start your plan.
- Angel Investors – We call them angel investors as they provide initial capital to startup debutants when nobody else is ready. Prepare a presentation about your salon, wages, financial requirements, services etc., to offer a confident pitch for the investment.
- Personal Funds – If you have enough savings to self start your funds, it’s a good idea as the entire ownership equity is yours, and you can also form a partnership with a fellow entrepreneur.
- Institutional Loans – Many banks support businesses by providing low-interest loans with enough time for returns. However, there would be a lot of paperwork needed, but if you’re confident about the success of your business, then go for it.
Licence Requirements for Salon Business
- Ownership Registration – This certificate is necessary to prove that you’re the business owner for tax purposes. This certificate also signifies if your business is a private limited company or joint venture.
- MSME Registration – Medium Small Enterprises certificate avails you of the benefits of a startup, including tax exemption and other needs.
- PAN/TIN Registration – The PAN card should be available for the business and not for personal purposes, as all transactions would occur through this identification mode. The taxpayer identification number is a must for business transactions and tax purposes.
- GST Registration – All businesses are enabled with GST tax, which is necessary when the customers ask for proof for GST registration.
- Shop and Establishment Registration– Every business that starts its own business must register their shop or store under the state law, which states that this business setup is legit and you can continue your business there.
- Trademark Registration- There are hundreds of salons in each city, and they all can have Zayn Malik face posters but not the same name when it’s a permanent setup. So make sure you register your logo and business name as your business Trademark Registration.
Once you have the above documents and business plan ready, you can get ready to chop and mop as this is the best plan to launch your business. A salon needs as much nourishment as customers to provide an attractive place for relaxation and grooming, so make sure you understand the client requirements on every salon visit for more expansion and growth.