The Indian Beauty, Spa and Wellness industry was valued at Rs 11,000 crore (USD 120 million) at the end of 2017, and it has a growth potential of 31 percent annually. This is one of the factors that makes this industry irresistible for entrepreneurs who want a successful business.
If you are also an entrepreneur and you want to invest in a salon or spa, then you need to read the 6 success tips to run a beauty business in India mentioned right here.
1. Layout a great business plan for salon and spa, then stick to it
The first step to ensuring success as a salon or spa owner is never to underestimate the value of a business plan.
Most entrepreneurs, especially Indian entrepreneurs see the business plan as a formality which is not the right approach.
You should spend some time in putting together a business plan that can guide you towards the business goals to run a beauty business successfully. The plan must not be too large, it can be short and sweet too.
Diligence and business acumen have helped CA Sanjay Goyal to start with one Lakme Salon a few years back and having 9 of them in a short period. You can be the next Sanjay Goyal if you know what you want and pursue it.
2. Get Funding for your Beauty Business [restrict]
The next thing you need to worry about when you want to run a beauty business successfully is where to get funding for your beauty business.
The options vary from seeking a loan from the local bank to approaching angel investors. No matter which of the endless options you choose, make sure that you don’t end up offering too much of the equity. It is also suggested that you approach different investors at once to gain a hefty sum.
Indian e-commerce beauty destination Purplle has raised $2.57 Mn (INR 17.5 Cr) from a clutch of investors by using this strategy. If you are approaching different lenders and not getting success, don’t be disheartened.
Instead, remember that the owner of Naturals, C.K. Kumaravel was turned down by 53 banks before the 54th gave him a chance. Strange, but true!
3. Location Matters
Location matters a lot when you are opening a salon or spa because you want the customers to walk up to you. It is suggested that you do thorough market research before opening a salon if you want to run a beauty business successfully.
Make sure that the products or services you are offering are unique or better than the rest in the vicinity. Take your cue from Enrich Salon that was the first unisex salon in the suburbs and didn’t look back when it comes to success.
4. Do a Competitor Analysis
Competitor analysis needs to be done thoroughly before initiating any business and the same is essential if you want to run a beauty business successfully. It allows you to know what the customers like and what they want but doesn’t have.
Some of the key competitors in the Indian salon industry are:
Again, do some market research on your own or hire a professional if you want your beauty business to succeed
5. Branding is Vital
Brand power matters a lot no matter whether you open a spa or salon. You should initiate online and offline branding from day one if you want to run a beauty business successfully. Also, make sure that you promote what makes your salon so unique. For instance, Nomadic salon for elderly promoted that they helped seniors to be beautiful. If you come up with something across those lines that makes you unique, you will attain success.
Also, make sure that you earn your reputation via word of mouth. It’s a tool that helped Shahnaz Husain earn a solid reputation when terms like branding were mainly restricted to the books only.
6. Don’t Forget About Marketing!
Attaining business success is almost impossible unless you have a strong marketing strategy. With regard to salon business, you need to market your business to customers so that they feel that the business exists to serve them. This customisation strategy has worked well for the popular Jawed Habib brand. It marketed its business to women entrepreneurs, existing salon owners and business owners seeking diversification.
The brand also focused on marketing its services in such a manner that they looked culturally appropriate and filled local needs. The business was worth USD 30 million in 2015-2016. So, you better take some inspiration from Jawed Habib regarding marketing if you wish to run a beauty business successfully.
Running a beauty business successfully is a challenge every day because constant customer satisfaction is a hard target to achieve. You can attain success if you plan things right and are willing to change with time.
There is no shortage of success stories when it comes to learning to operate in the Indian environment. Refer to real examples to get inspired and make your beauty business a success.
When you are eager to run a beauty business successfully in India, make sure that you are dedicated.
If you are committed, every challenge will satisfy you, and when you are not, you will give up easily. Learn as much as possible and be & stay unique if you want to stay in business for long.