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Oct, 05 2015

What it takes to open a salon franchise in India

Opening a salon in India sounds troublesome to a few, but, with leading franchise brands offering franchise, opening a salon may become much easier. Here, we tell you a step by step procedure about how to open a salon in India that too without hassles…

Follow these and keep the Salon up and running

Staff: Starting a salon with a receptionist and few good stylists can also work but you will also need beauty experts, barbers, nail technicians and massage therapists.

Equipments: Make sure you do not compromise on quality else your salon will also be amongst the lot mushrooming across every nook and cranny of any city.  To stand out have great styling chairs, basins for wash, dryers, cutting equipments and much more.

Make good contacts with beauty products suppliers: To get hold of the original products and save your salon from second copies, get in touch with good distributors who can also get your great deals apart from original products.

Funding: Funding is an important part of any industry these days. In case you fall short of money you can opt for loans or go for external funding options which are on a rise these days. Brands like Naturals also assist their franchisees in procuring funds from other sources.

Go the deals way: Today every known salon chain is present on the discount and deal providing websites like Groupon, Trideal, Deals2grab etc. Even if your salon chain is doing very well since start, to attract more new customers and give them more services for less money, go to these websites. Remember, everyone loves free stuff!

Customer satisfaction: Keep your patrons always satisfied. Once they step out of your salon satisfied, you will be getting few more new customers via word of mouth publicity. This surely helps in building brand trust value.

Make the best out of resources

Shahnaz Husain, Chairperson and MD, Shahnaz Husain Group of companies says: “Malls can be good locations for beauty salons, since they have become favourite shopping destinations. It would also mean having the salon at a commercial place, where footfalls are actually steadily increasing. It becomes a convenience for women if they can have their beauty treatment and also shop in the same place.Malls attract more customers and clientele. They are also attractive locations, as the surroundings are attractive and well maintained. The same can be said about shopping arcades in five star hotels.”

As far as expertise is concerned, Trends In Vogue that owns brands like Green Trends and Limelite looks for investors who have people management skills, local retail knowledge and passion towards beauty industry. Nabin Banik, Head- Operations, Green Trends says: “Legal implications include trade license from Corporation, Service Tax registration, VAT registration.”

Expertise

  • Professional + Vocational Training
  • Diploma Course in Salon and Business
  • Management, as well as Client servicing.
  • Expertise in management & administration is a plus point.

Location

  • Shopping destinations
  • Commercial locations with good footfalls
  • Average area- 1200-1500 sq. Ft

Budget

Operational + Executional cost

Approx Rs 25- 70 lakh

Floor plan, décor, furniture, equipment, telephone, music system, signboards, advertising.

Cost of operations

Rent, electricity, phone bills, salaries, supplies (creams, shampoos, hair colour, etc), linen and laundry, stationery, insurance, taxes.

Legal implications

  • Is it a proprietorship or partnership?
  • For employees, observe minimum wages and labour laws, the mode of employment and methods of payment.
  • Service taxes are paid on salon services.
  • Many salons sell products. In such cases sales tax etc., is applicable.
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