Start a Salon in India: Step-by-Step Business Plan for Success

Learn how to start a salon business in India and get a view of the types, steps, and the marketing strategy.
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4 min
08 July 2025

Thinking of starting your own salon? A salon business goes beyond offering haircuts and facials, it opens the door to a rewarding career in the growing beauty and wellness industry. This guide covers all you need to successfully launch and scale a salon business in India. From defining your salon’s purpose and estimating startup costs to handling documentation and building a strong business plan, each step is designed to help you make informed decisions. Whether you’re a new entrepreneur or planning to grow your existing services, you’ll learn the benefits of this industry, essential setup processes, and how to establish a competitive, sustainable salon.

What is a salon business?

A salon business provides personalised beauty services focusing on hair, skin, and body care. This type of business typically operates in a physical location where clients receive treatments such as haircuts, styling, colouring, facial, nail care, and various aesthetic enhancements. Salons can range from small, independent businesses to part of larger chains or franchises. They play a crucial role in the beauty industry, continually adapting to evolving fashion trends and customer preferences. By offering a combination of services, expert advice, and a relaxing environment, salons not only help individuals look their best but also boost confidence and promote well-being, making them integral to personal grooming and self-care markets. Explore how to structure your salon with a business continuity plan for long-term success.

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Importance of salon business 

The salon business plays a vital role in both the economy and society for several key reasons:

  • Personal well-being and confidence: Salons provide services that enhance physical appearance, which can significantly boost self-esteem and personal confidence. Looking good often translates to feeling good, which is essential for mental and emotional well-being.
  • Employment opportunities: As a prevalent sector in the beauty industry, salons create numerous jobs, from hairdressers and nail technicians to beauty therapists and administrative roles. This makes it a critical industry for local job markets.
  • Economic impact: The salon industry contributes significantly to the economy through various channels, including local business revenue, taxes, and product sales. It is a robust sector with consistent client demand.
  • Innovation and trends: Salons are at the forefront of introducing and implementing new beauty trends and products. They are pivotal in shaping beauty standards and consumer behaviours within the fashion industry.
  • Community hub: Salons often serve as community centres where clients interact and socialise, fostering a sense of community and belonging. This aspect can be particularly pronounced in smaller towns and neighbourhoods.

By delivering both aesthetic and therapeutic services, salon businesses not only support economic development but also enhance individual and community well-being. For tailored strategies, refer to our laundry business plan, which offers insights into scaling service-oriented businesses.

Requirements to start your salon business

Here’s what you need to start your salon business:

  • Register your salon: Complete legal registration of your salon under the appropriate business structure.
  • Apply for GST: Obtain a GST number to ensure compliance with taxation laws.
  • Get business PAN: Secure a business PAN card for financial and tax-related transactions.
  • Obtain local permits: Collect necessary trade and health licences from your local municipal body.
  • Choose your location: Finalise a strategic site and complete lease or rental agreements.
  • Buy salon equipment: Purchase essential tools such as chairs, mirrors, dryers, and skincare machines.
  • Hire trained staff: Recruit qualified hairdressers, beauticians, and support staff for smooth operations.
  • Start marketing efforts: Use simple promotional tactics like flyers, social media, or referral discounts to attract clients.

Cost of starting a salon business

Starting a salon requires both initial investment and regular operating expenses. Major upfront costs include renting or leasing a location, buying essential salon equipment, obtaining necessary licences, and recruiting trained professionals. The overall cost will depend on factors such as your city, salon size, and service range. On average, starting a salon may require anywhere from Rs. 5 lakh to Rs. 50 lakh.

In addition to these, there are often overlooked expenses such as utility enhancements, routine maintenance, and digital software subscriptions. Budgeting for these hidden costs is crucial to ensure smooth operations and financial stability from the start.

 

How to start a salon business in India

Starting a salon business in India involves several strategic steps to ensure success:

  1. Market research: Analyse local market conditions, understand customer preferences, and study competitors.
  2. Business model: Decide whether to start a new salon, buy a franchise, or acquire an existing business.
  3. Location: Choose a location that is accessible and visible, preferably in areas with high foot traffic.
  4. Business plan: Develop a comprehensive business plan detailing your services, pricing strategy, marketing plan, and financial projections. Use this cold storage business plan as a guide for structuring operational efficiency.
  5. Funding: Estimate start-up costs and operational expenses. Consider applying for a business loan if additional funding is needed.
  6. Licensing and registration: Obtain all necessary permits and registrations required by local laws and regulations.
  7. Interior design: Design a welcoming and functional space that enhances the customer experience.
  8. Staffing: Hire experienced and professional stylists, beauticians, and support staff.
  9. Equipment and supplies: Invest in high-quality salon equipment and beauty products.
  10. Marketing and promotion: Implement marketing strategies to attract and retain customers, such as social media advertising, discounts, and loyalty programs.

Documents required for starting a salon business

Several critical documents are needed to start a salon business legally and efficiently:

  1. Business registration: Register your salon as a legal entity (e.g., sole proprietorship, partnership, or private limited company).
  2. GST registration: Obtain a GST number for billing and tax purposes.
  3. Trade licence: Acquire a trade license from the local municipal authority.
  4. Professional licences: Ensure all employed professionals hold valid licences (for example, cosmetology licences).
  5. Fire safety certificate: This is mandatory for businesses where customers visit the premises.
  6. Health and sanitation permits: Obtain from local health departments to ensure compliance with hygiene standards.
  7. Insurance: Secure business insurance to cover liability and property damage.
  8. Lease agreement: If renting, a lease agreement is necessary for the location.
  9. Employee agreements and identification documents: Maintain proper records for all employees.
  10. Utility bills: Keep a record of utility bill setups under the business name.

Plan your documentation efficiently, similar to the streamlined steps outlined in this catering business plan.

Conclusion

Starting and running a salon business offers a rewarding opportunity to delve into the creative and lucrative world of beauty and personal care. With thorough planning, adherence to regulatory requirements, and effective management, a salon can become a thriving hub for beauty services. For aspiring salon owners who require financial support to launch or expand, a  can provide the necessary capital to cover startup costs, purchase equipment, or finance expansion efforts, paving the way for business growth and success. While applying for funding, it’s important to consider the business loan interest rate to ensure manageable repayment terms.  Learn from the agarbatti making business plan to develop a sustainable growth model.

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Frequently asked questions

What are the costs involved in opening a salon business?
The costs involved in opening a salon business include leasing a space, purchasing equipment and furniture, obtaining licences and insurance, and marketing. Costs can vary widely depending on location, size, and service scope, starting from a few lakh rupees to much higher figures.
How do I create a salon business plan?
To create a salon business plan, outline your business goals, services, target market, and competitive analysis. Include detailed financial projections, marketing strategies, and operational plans.
How to run a successful salon business?
To run a successful salon business, focus on delivering excellent customer service, maintaining a skilled and motivated team, and keeping up with industry trends. Regularly update your service offerings and create a welcoming atmosphere to enhance client retention and referrals.
What are the appropriate marketing techniques to be employed in a salon business?
Appropriate marketing techniques for a salon business include leveraging social media platforms for engagement and promotions, offering loyalty programs, partnering with local businesses, and using targeted advertising to attract your ideal customer demographic. Hosting events and workshops can also increase visibility and attract new clients.
Is the salon business profitable?

Yes, a salon business can be profitable with the right location, skilled staff, and a loyal customer base. Profitability also depends on controlling operational costs and offering in-demand services such as hair treatments, skincare, and grooming. With consistent footfall and good customer retention, salons in metro cities can break even within 12 to 24 months.

What is the budget for starting a salon?

The initial investment for a salon typically ranges between Rs. 5 lakh to Rs. 50 lakh. This includes expenses for rent, licences, interiors, equipment, staff salaries, and marketing. The actual budget will vary based on the scale of operations, city, and the type of services you plan to offer.

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