Jul 2, 2015

Spa rkling beauty business

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


What kind of funding options are available for senior citizens (females) planning to make a move in the beauty and wellness industry?

Rekha Rao, Hyderabad

At Naturals, we have encouraged women entrepreneurship at all levels and age has never been a constraint in this endeavour. We have tie ups with financial institutions like Indian Overseas Bank and Bharat Mahila Bank, which ease the process of transaction for women from home-maker to entrepreneur. Women can safely focus on other aspects of starting a salon and relegate the worries of sourcing finance to the back of their minds.

I want to convert the ground floor of my house into a salon. Guide me on what kind of license and city administration approvals are required?

Sudeep Kulhali, Gurgaon

At the launch of a salon, the following licenses and documents are required:

  •  Franchise firm constitution and PAN card
  •  TAN Number and TIN Number
  •  VAT Registration and Service Tax Registration
  •  Register under the Shops and Establishment Act License
  •  Health License
  •  Corporation / Municipality License
  •  Register for Professional Tax
  •  General insurance for the salon (Fire ,theft, burglary and accidental damages)
  •  PPL license (Permission to play music in a public space)
  •  Spa license (Permission for massage services in a salon)

Other than these, since a residential space is being converted to commercial, the usual process regarding property tax and electricity tariff will apply.

I want to sell of my existing salon. Who all are the potential buyers?

Priyanka Rai, Mumbai

Finding a buyer is not a difficult task as most salons are running well and doing good business. Potential buyers usually fall into three categories, those who are running a salon of their own and wish to expand, those who are looking for an entry into the industry and finally those who are looking for an option to invest. The best sort of buyer is usually one who has money to invest and passion for the service industry.

Is running a beauty salon and spa together a really good business option? What hours of work does it demand from the investor?

Lakshmi Krishnamurthy, Calicut

The services offered by beauty salons and spas are quite different from each other. Though some services may overlap, the experiences in a spa and a salon are quite distinct from point of view of the customer. A client will come prepared to spend the whole day at a spa, whereas in a salon, he will come for one or two services only. Prices too will be higher in a spa than a salon, even though the service remains the same. With different clientele and different ambiances to maintain, an investor needs to understand both client bases and work accordingly. Running both spa and salon together would be advantageous to the client who can avail of services from the beauty and wellness industry under one roof, but will require intensive inputs from the team and investor.

For any queries mail at askveena@franchiseindia.net

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