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Business Loan for Hair Salon & Spas

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Gone are the days when the Salon business was tough and unattractive. Nowadays the Salon and Spa business is flourishing in our country and internationally. If you need to start a business and want to get good profit and all through the year then Salon and Spa business would be a lucrative option. In this page we would let you know how to open a Salon and Spa business in India. Also, we would elaborate on Hair Salon Financing.

Hair Salons and Spa Industry in India

The revenue generated by the Hair and Beauty industry would cross around $5 billion the end of the 2019 -2020 financial year. This industry is one of the fastest-growing industries in the world. The factors contributing to the growth of Hair and Beauty industry are large urban population, increase in working population, having enough money in hand due to rising salaries, tendency to look good among the people and advancement in scientific research and technology.

Investment requirement and revenue generation in the Hair & Beauty Industry 

The cost of establishing a Hair and Beauty Salon depends on its Size. But if you want to start a Beauty Salon at home with a low budget then it will cost you anywhere from Rupees 50,000 to Rupees 60,000. If you do not have space and if you want to rent or purchase a space then that cost will be extra.

 

Find below the low-cost budget beauty salon requirement and its cost.

Cost in INR Items 
4000-6000 Costume 
1000-2000 Mirror
500-1500 Makeup Materials
1000-3000 Makeup Kit
500-1500 Trimmer
500-1500 Straightener
500-1500 Dryer
1000-3000 Grooming Kit 
9000-15000 Furniture
15000-30000 Chair

You need to have some knowledge about the makeup and Hair trimming techniques, either you can learn yourself or hire a Makeup specialist for the same. We suggest you to start your business at small scale and show us your success for we will support you with financing to firmly expand your business. 

If you have at least 5 to 6 customers coming on a daily basis, you can earn a minimum and maximum of Rupees 300 and Rupees 6000 every day. It also depends on the locality and market.

For special bridal makeup, you can earn around Rupees 3,000 to Rupees 4,000 and can be lucrative business during the marriage season.

You can also take Franchise of some large enterprise brand then your investment will be high and so also your profit.

Loans for Beauty Salons 

  • Interior Design and Remodeling- You need to know what interior design and remodeling is required for your shop. You can go for a loan for this also.
  • Refurnishing the salon equipment – With the business loans for Hair Salon financing you can upgrade to the latest trends in the industry for your Salon assets. This ensures that you have the latest and cutting edge Salon and Spa in that location.
  • Working Capital- You can get a low budget loan for your working capital in Hair Salon and Beauty Spa such as for Electricity bill, Shampoos, Dyes, etc  
  • Covering cash flow gaps- during the low peak period, you can go for the cash or credit advance from the lender to meet your expenses
  • Expansion or moving to a good location- You can take loans if you have to start the Salons at more than one place or you need to move your salon to a good location.  
  • Marketing- If you want to do marketing of your Salon the Merchant Cash Advances, Term loans, and lines of credit will help you to meet this expenditure.
  • Organic Spa- Instead of buying the harsh chemicals for the use in your Salon you can go for Organic and Herbal products to draw more customers and also lessen your bill.
  • Digitizing and Online website- If you want to go for a mobile app and online website for your Salon to draw more young customers and then you can meet the expenses by term loan.

Requirements for the Hair Salons & Spa Service Industry Loans

The requirements for the Business Loans for Beauty Salons are simple and are mentioned below-

Documents Required                  

  1. Personal KYC – PAN Card
  2. Residential Address Proof (Any One)

– Driving License

– Passport

– Ration Card

– Rent Agreement

– Voter ID

  1. Current Account Bank Statement for the last 6 months in Net Banking PDF format

  1. Business KYC (Any One)

– Shops and Establishment Certificate

– GST Registration Certificate

Loan Eligibility Criteria             

  1.     You must have actively run the salon business for at least 1 year from the date of inception.
  2.     You must have crossed at least 21 years of age.
  3.     Your annual revenue must be at least Rupees 2, 00,000

5 ways to succeed in Salon Business in 2019

Find 5 tips to grow your Salon business.

  1. Be Unique- You can sell your services to the customers if you are unique and have variety.
  2. Go natural, go organic- Do your little bit of homework on the products that you use for the Salon and Beauty services. Do not go for attractive chemicals which can cause damage to the customers, go for Organic and natural products or Herbal products.
  3. Know your Customer- Instead of doing the same services to the entire customer, know the requirement of a variety of customers and be unique to them. Build rapport with each and every customer.
  4. Treat Men and Women and Child as Equal- Do not ignore anyone based on gender or age. Treat them with care and they will loyally follow you as a customer.
  5. Being Digital and technology Savvy- Have apps for booking an appointment and attract younger population. Have cashless facilities such as Card reader or PhonePe for paying for products and services digitally.

Conclusion

Do not worry about finances if you want to start a Hair and Beauty Salon. We at FlexiLoans will provide you with the Hair Salons & Spa Service Industry Loans and you can peacefully start your own lucrative Salon and Spa business that you always had a dream of. So start your entrepreneurial journey on the Hair Salon and Beauty shop and become a proud owner to the business. We together will make it happen!! 


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