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Oct, 02 2015

​Checklist for a successful salon franchise

Are you new in franchise arena and have several questions regarding initial risks and challenges of this unique business model? Well, here we bring the answers to all our readers' franchising queries via this regular column of expert's advice.

Which region has done exceptionally well in the business of spa and salon? Tell us the factors behind it.

Mayuri Upadhaya, Ranchi

As a brand we are strong in the south and currently our focus is on expanding in non-south areas of India. The salon industry is an exciting place to be in now and we are looking to take full advantage of it. The assumption that salons only work in cities and metros has been totally turned upside down by what we have seen in the market in the past years. Salon opportunities in tier- II and III towns have also done exceedingly well, due to the twin factors of increased disposable time and money available. The world has shrunk today and everyone is well connected with television and internet access. This has led to film stars and crickets players exerting strong influences on the way people in small town think and behave. The smart phone revolution is currently on a boom in India & has also raised levels of aspirations in small town residents. All these elements when put together make small towns extremely interesting and create viable opportunities for the salon industry.

I am running a salon in Mumbai but the attrition rate at my workplace is really high. What should I do to reduce it?

Anuradha Kaul, Bangalore

Attrition in the salon industry is largely due to dissatisfaction on the part of the staff with regard to the movement of their career, the work they are being given in the salon, their pay and last but not the least their relationship with the owner or franchise partner. Ensure your staff is given regular training to keep them updated in terms of technical services, products and the latest trends. Make sure there is transparency in the salon in terms of service allocation and payments. And above all, give them a sense of belonging to the salon, that they are an integral part of its success.

What all it takes to open a spa in a tier- II cities in terms of investment, area and skills?

Priyanka Banerjee, Dwarka

With regard to skill sets of staff or the area used for operations of a salon, there is no difference whether that salon or spa is opening in any city, be it a metro, tier- I, II or III cities. A typical unisex salon will need about 1200 to 1500 square feet of area to accommodate the staff and stations, equipment, etc required for running the salon. Staff needs to be trained in all three major areas of hair, skin and make up. With regard to these two issues there can be no cutting short anywhere. The investment however, will be approximately 15 % less than what is required in a tier- I or metro city. If a unisex salon requires an investment of approximately Rs 50-  55 lakh in a metro, it will be around Rs 42 - 45 lakh in a tier- II town.

As a new franchisee, how many hours are mandatory to invest in the day to day running of the business?

Naman Kansal, Chandigarh

Welcome to the salon business! As a new franchise partner, it is your duty to protect your investment, made with your hard earned money. A lot of matters in a new business will need your personal touch for a while. With fierce competition and with staff retention being a challenge, I recommend your full time participation in the business at least for the first six months by the time your client base would build up and the business would be stabilised to a large extent.

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