This article explains the requirements & procedures for setting up a beauty clinic in any major city of Pakistan, as there is an increasing demand for beauty care services. Party and bridal makeup, facial, body treatment and hairdressing are the major service categories. The important aspects that should be taken into account while making investment decisions are efficient marketing, induction of qualified beauticians and provision of quality services at reasonable prices.
The beauty parlor is proposed to be set up in a suitable locality of any of the urban centers of Pakistan such as Lahore, Karachi, Islamabad, Quetta, Multan, Peshawar etc. The clinic will function 8 hours daily and the total capacity of the beauty clinic will be to entertain 8,400 customers annually.
Space Required to Open a Beauty Salon
Approximately 2,000 square feet covered area is required for the proposed beauty saloon. It is recommended to take a 5 Marla double story house on rent to start this project. Starting the beauty clinic in a rented building would significantly reduce the initial capital cost of the project. The estimate rent of a 5 Marla double story house in an upper middle class locality of large cities is assumed at Rs. 45,000 per month. Comparatively, if land is purchased, and a new building is constructed, it would cost approximately 8-10 million rupees. This makes a huge difference in project cost.
Services Offered at Beauty Salon in Pakistan
Following is a list of services that can be offered at a beauty clinic in Pakistan:
- Waxing and Threading
- Bridal Makeup
- Party Makeup
- Body Treatments (Body Scrubs, Body Mask and Massaging)
- Hair Cuts
- Hair Dying
- Hair Styling (Straightening, Rebounding, Curling and etc)
Factors for Success of Beauty Salon in Pakistan
- The entrepreneur should have basic knowledge and experience in the requisite field.
- Efficient sourcing of quality inputs / materials to maintain price and quality relationship.
- Induction of qualified beauticians and support staff and their regular training.
- Effective marketing would be the key element in the initial and subsequent success of the beauty clinic.
- Location of the business addressing accessibility considerations of the target market.
The Owner / Manager shall formulate the policies and take strategic decisions. Whereas rest of the team shall be engaged in order to manage the operational affairs of this project under the supervision of manager. The appropriate experience along with high level of skill set would be required for the key professionals.
The profitability of the project is highly dependent on quality of services and extensive marketing and promotion of the project to attract the clients as per the calculated estimates. In addition to that retention of clients will have a high impact on profitability.
Supplies for Beauty Salon in Pakistan
As mentioned above the proposed venture mainly provides the beauty and hair treatment services to the women clients. A large number of cosmetics and other beauty products are used in a beauty clinic. A brief list of these products is provided below.
Supplies for Bridal & Party Makeup
Foundation, eye shadows, face powders, lipsticks, lip pencils, blushers, hina (black, red), eye lash extensions etc
Supplies for Manicure, Pedicure & Facial Massage
Manicure/pedicure kits, nail paints, nail extensions, nail polish & remover, scrubs, massage creams/oils, polishers/bleach creams, masks, cleansers, etc.
Supplies for hair Treatment
Hair dyes, cutting scissors, combs, brushes, rollers, clips, foil papers, hair caps, hair extensions, etc.
Investment Required for Starting a Beauty Salon in Pakistan
The total project cost is Rs. 2.19 million out of which Rs. 1.74 million is the capital cost and Rs. 0.45 million for working capital. The debt and equity ratio is 90% and 10%. The project NPV is around Rs. 12.64 million, with an IRR of 63%, and payback period of 2.25 years. All the figures in this financial model have been calculated for a target of 28 clients per day (i.e. 8,400 clients per year). However, it is assumed that during the first year of the operations the project will cater for around 2,940 clients (i.e. 35% of overall client service facility) of various service categories. Details of this financial analysis can be studied in the pre-feasibility study of opening a beauty parlor in Pakistan by SMEDA.