- 1 Investment for a Beauty Parlour
- 2 Salaries for Staff
- 3 Beauty Services Rate List
- 4 Beauty Salon License & Service Tax in India
Beauty Parlours and Salons are an evergreen business which can earn you a substantial income. They do require a lot of work and investment if you want to treat it like a small business.
How to Start a Beauty Parlour in India? To start a Beauty parlour you must invest in beauty products, equipment, trained beauticians, a room or shop. If you are investing in high-end equipment and raw materials just the raw materials would cost anywhere between 15 to 30 lakhs.
A barber shop
The total expenses could be under 1 lakh
To this you need to add the cost of wages, utilities, administrative expenses, paying back loans and have working capital on hand.
If you want to start a beauty parlour or salon or a barber shop, you might want to consider starting it small at home as a home business. When you are ready to take it forward, at that point you can invest your earnings and maybe take a government loan.
Many aunties I knew growing up had a beauty parlor at home. They literally started with the hair dryers, scissors, chairs, mirrors they had at home. We never thought much about having our hair cut in their hall with a mirror stuck on the wall.
In India many ladies still work from home and use the front room for their beauty business. They have a board hanging outside mentioning their services and work as per demand.
A beauty Salon mostly in the cities though is expected to have a reception, a room for facials and spa, a room for hair cuts. It is expected that the rooms be air conditioned and have comfortable seating with magazines to read or a television to watch wile you wait for your turn.
A salon, therefore, can charge more for these comforts and the atmosphere is very informal. This also means that you will need your own space and hence more investment.
Investment for a Beauty Parlour
If you are starting from home the investment can be controlled a lot. Usually people starting from home purchase the basic accessories like the scissors, cape, threads, hair caps while they are learning.
They also have products which they must have purchased while at the beauty school.
Once they open their services to others, they use the equipment at home. They might visit homes and cut hair or apply makeup or perform facials and beauty treatments. This s very cost effective for them, as they do not have to rent a place for the parlour, they have no overheads.
Services like UrbanClap allow you to register yourself on their platform. When people ask for a beautician you get leads and business.
If you are now looking at transforming into a small business you will have to incur a lot of expenses. You can end up spending anywhere between 15 lakhs to 30 lakhs as a bare minimum.
What all Costs are there?
- Raw Materials
- Beauty Equipment
- Administration Expenses
- Interest on Loans Taken
- A room with good ventilation and air conditioning with a minimum area of 900 sq feet
- A waiting room which is approximately 250 sq ft
- Electrical Fittings
- Plants and Interior Decoration
- Display Shelves for Products
- Sewage and Waste Disposal
These are the basic raw materials and beauty products you would require for beauty treatments.
- Herbal Creams
- Face Creams
- Face Packs
- Hair Oils
- Massage Oils
- Henna Powder
- Threads for Threading
- Hair Colours
- Nail Polishes
- Styling Cape
- Shower Caps
- Spray Bottle
- Wax Melter
Depending on the Brands you use, and whether they are herbal, ayurvedic, the raw material costs will vary. You can expect to spend at least Rs. 50,000 on such products initially.
This list is just some ideas and is not an exhaustive list. Depending on the services your beauty salon will provide you might require all of these or none of these.
You could just be starting a nail salon or you might be including a spa and a fitness center. The costs and requirements will just add up depending on what services are being offered.
- Vapour Beauty Machine (Hot & Cold Steam)
- Blackhead extractor
- Vibrator face and body massager 2 sets
- Hair Dryer Automatic
- Hair Holding clip
- Hair Scissors
- Hair Dyer/Henna Brush
- Hair Straighter
- Manicure and Pedicure Sets
- Nail polish sets 3 sets
Furniture and Equipment
These are the furniture and equipment for a basic beauty salon. If your salon is only specializing in nails, you will require different equipment and furniture.
Some beauty salons have a fitness center, hence you would require fitness equipment additionally.
- Facial Chairs
- Massage bed
- Leg Massager
- Air conditioning machine
Salaries for Staff
Manpower is essential as your business starts growing. You require people at the front desk to handle calls and customers.
You required skilled beauticians and unskilled staff to assist and help.
Salaries for Beauty Parlour Staff
|Labour Type||Salary ( approximation)|
|Beauticians||Rs. 8000 per staff member|
|Unskilled Staff||Rs. 5000 per person|
Notice I added you to the salary chart above. You must account your hours and pay yourself every month to get a fair estimate of all costs involved.
Most small business owners don’t pay themselves in the first few years of business.
If you do not pay yourself, your accounts will be all wrong. You must charge the customers after taking into account all your expenses ( however trivial they may seem).
Initially you might feel that the service charges are too high. Yes, they might be, but that is the amount you must charge to be able to pay your bills and salaries.
Beauty Services Rate List
Every parlour has its own rate list. Depending on the location, the facilities they have and the type of clients they serve the prices vary a lot.
The rates I have mentioned below are just an estimate and are very low. In metros you will find that a simple hair cut can cost anywhere between Rs. 700 to Rs. 2000 (depends on location,city).
|Facial, Face Cleanup||Rs. 400|
|Hair Cuts||Rs. 250|
|Manicure & Pedicure||Rs. 150|
|Anti Ageing Treatment||Rs. 500|
|Henna in Hair||Rs. 200|
|Bridal Service||Rs. 500|
|Mehendi on Hands||Rs. 250|
How much you charge customers is no longer a fictional amount. Do not price your services based on rate charts from other parlours. Your rate chart should take into account all your expenses.
Have a business consultant prepare all these materials for you. They will take into account your overheads and expenses. They also will consider how many people might take a service.
Example: 2 people will have a facial done per day, so the expected amount per day for facials is Rs. 400 * 2 = Rs. 800
Once they have made their calculations, they figure out how much you MUST charge so that you reach the Break Even Point ( BEP)
Beauty Salon License & Service Tax in India
To run a Beauty Parlour in India you require a license from the State in which you are operating
GST Rules for Beauty Parlours
If your parlour income crosses 20 lakhs per year, you must register for GST. Basically your are exempt from GST till you crossthis income threshold.
Suppose you start providing services to client across the state, it doesn’t matter if that service is for Rs. 1 you will have to register your business under GST. Your exemption is void.
Now you are expected to start charging your clients GST and then deposit that amount with the government.
You can get a ITC or Inward Tax Credit on consumables once you are paying GST. So basically you can deduct the taxes you paid for purchasing consumables such as powders, creams, wax from the GST amount to be paid.
Invoices after GST
You are expected to prepare invoices in duplicate.
First Copy – The words “Original for Recipient” has to be mentioned on the invoice and has to be given to the client.
Second Copy – The words “Duplicate for Suppliers” has to be mentioned on the invoice and the Beauty Parlour shall retain it
Invoice should be issued within 30 days.
Disclaimer: I am not a lawyer. Seek advice from your lawyer for all legalities.
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