BEAUTY PARLOUR

A beauty parlour is a haven for individuals seeking to enhance their appearance,

boost their confidence, and indulge in self-care. As a service-oriented business,
beauty parlours offer a variety of treatments tailored to meet the diverse
grooming and beauty needs of their customers. These establishments cater to a
wide spectrum of clients, from those looking for routine maintenance to
individuals preparing for special occasions. Services typically include haircare,
skincare, nail care, and makeup, with many parlours also offering spa and
relaxation treatments.

The evolution of beauty parlours reflects the growing importance of self-

presentation and wellness in contemporary society. From small neighbourhood
salons to opulent spas, beauty parlours vary widely in scale and specialization.
The industry has witnessed significant advancements in technology and trends,
enabling the introduction of innovative treatments such as laser hair removal,
microdermabrasion, and organic skincare solutions. Beauty parlours have
adapted to these changes by diversifying their offerings and embracing
sustainable practices, positioning themselves as essential players in the thriving
beauty and wellness industry.
Market Potential

The market for beauty parlours is expanding rapidly due to:

1. Increasing Demand for Grooming Services:

o Rising disposable incomes and urbanization have led to a greater

emphasis on personal grooming.

o Special occasions such as weddings, parties, and corporate events

drive demand for professional beauty services.

2. Changing Lifestyle Trends:

o The growing focus on self-care and wellness has boosted the

popularity of beauty treatments.

o An increase in working professionals, especially women, has

contributed to the growth of this sector.

3. Diverse Customer Base:

o Services cater to a wide demographic, including teenagers, adults,

and senior citizens.

o The inclusion of male grooming services has expanded the

potential customer base.

Projections:

• The beauty and wellness industry is projected to grow consistently,

driven by evolving consumer preferences and increased spending on
grooming services.
• Small-scale beauty parlours can thrive by offering personalized services
and building loyal customer relationships.
Services Offered by Beauty Parlours

1. Hair care:

• Haircuts: Stylists consult with clients to determine the most

flattering cuts based on their face shape, hair texture, and lifestyle.

• Styling: From sleek blowouts to glamorous updos, stylists use their

expertise to create polished hairstyles for various occasions.

• Coloring: Whether clients seek subtle highlights or bold

transformations, colorists employ a range of techniques to achieve
desired hues.

• Treatments: Hair treatments such as deep conditioning, keratin

smoothing, and protein treatments help nourish and strengthen hair.

• Extensions: Offering length and volume, hair extensions are a

popular choice for clients desiring fuller locks.

2. Skincare:

• Facials: Skincare specialists analyse clients' skin and tailor facials

to address concerns such as acne, dryness, aging, or
hyperpigmentation.

• Peels: Chemical peels exfoliate the skin, revealing smoother, more

radiant complexion and addressing issues like fine lines and
uneven tone.

• Anti-Aging Treatments: Advanced treatments like

microdermabrasion, micro-needling, and LED therapy target signs
of aging for youthful-looking skin.
 • Facial Massages: Relaxing facial massages stimulate circulation,
promote lymphatic drainage, and enhance product absorption for
glowing skin.

3. Nail care:

• Manicures and Pedicures: Nail technicians pamper clients' hands

and feet with nail shaping, cuticle care, exfoliation, massage, and
polish application.

• Nail Art: Creative nail art designs allow clients to express their
personality and style, ranging from intricate patterns to minimalist
chic.

• Gel Polish: Long-lasting gel polish provides chip-resistant color

and high-gloss shine for extended wear.

4. Body Treatments:

• Massages: Skilled therapists offer a variety of massage techniques,

including Swedish, deep tissue, hot stone, and aromatherapy
massages to relieve tension and promote relaxation.
 • Body Wraps: Detoxifying body wraps help eliminate toxins,
hydrate the skin, and reduce the appearance of cellulite.

• Hair Removal: Waxing, threading, sugaring, and laser hair removal

services cater to clients seeking smooth, hair-free skin.

5. Makeup:

• Makeup Application: Makeup artists use professional techniques

and high-quality products to create flawless looks for special
events, photo shoots, or every day wear.

• Bridal Makeup: Bridal makeup services ensure brides look radiant

and picture-perfect on their wedding day, with options for
traditional, natural, or glamorous bridal looks.

• Makeup Lessons: Personalized makeup lessons teach clients

techniques for enhancing their features and creating custom looks
at home.

Capital Assets

Hair Styling Tools

Facial Equipment

Other Misc Assets

 PROJECT AT A GLANCE - TOP SHEET

1 Name of the Beneficiary XXXXXX

2 Constitution(Legal Status) Individual

3 Father/Spouse Name XXXXXXX

4 Unit Address XXXXXX

Taluk/Block: XXXXXX
District : XXXXXX
Pin: XXXXXX State: XXXXXX
E-Mail : XXXXXX
Mobile XXXXXX

5 Cost of Project : Rs. 5.61 in Lakhs

(i) Capital Asset 4.00 in Lakhs
(ii) Furniture & Fixtures 0.50 in Lakhs
(iii) Working Capital Required 1.11 in Lakhs

6 Means of Finance : Rs.

(i) Term Loan 4.05 in Lakhs
(ii) Working Capital 1.00 in Lakhs
(iii) Own Capital 0.56 in Lakhs
5.61 in Lakhs

7 Debt Service Coverage Ratio : 3.78

8 Break Even Point : 29.31%

9 Plant & Machinery : Hair styling tools, facial equipment, UV lamps

10 Employment : 5

11 Power Requirement : 4.00

12 Name of the project / business activity : Beauty Parlour

PROJECTED CASH FLOW STATEMENT

PARTICULARS YEAR-I YEAR-II YEAR-III YEAR-IV

SOURCES OF FUND

Capital 0.56 - - -
Reserve & Surplus 2.89 3.62 4.50 5.42
Depriciation & Exp. W/off 0.65 0.56 0.47 0.40
Increase in Cash Credit 1.00 - - -
Increase In Term Loan 4.05 - - -
Increase in Creditors 0.20 0.03 0.03 0.04
Increase in Provisions 0.50 0.03 0.03 0.03

TOTAL : 9.85 4.23 5.03 5.89

APPLICATION OF FUND

Increase in Fixed Assets 4.50 - - -

Increase in Debtors 0.98 0.15 0.16 0.18
Repayment of Term Loan 0.81 1.08 1.08 1.08

Drawings 2.00 2.50 3.00 4.50

TOTAL : 8.29 3.73 4.24 5.76

Opening Cash & Bank Balance - 1.56 2.06 2.85

Add : Surplus 1.56 0.50 0.79 0.13

Closing Cash & Bank Balance 1.56 2.06 2.85 2.98

PROJECTED BALANCE SHEET

PARTICULARS YEAR-I YEAR-II YEAR-III YEAR-IV

SOURCES OF FUND

Capital Account - 1.45 2.57 4.07

Add: Addition 0.56
Add : Net Profit 2.89 3.62 4.50 5.42
3.45 5.07 7.07 9.49
Less : Drawings 2.00 2.50 3.00 4.50
NET OWN FUNDS 1.45 2.57 4.07 4.99

Term Loan 3.24 2.16 1.08 -

Cash Credit 1.00 1.00 1.00 1.00
Sundry Creditors 0.20 0.23 0.26 0.29
Provisions & Other Liab 0.50 0.53 0.55 0.58

TOTAL : 6.39 6.48 6.96 6.86

APPLICATION OF FUND

Fixed Assets 4.50 4.50 4.50 4.50

Less : Depreciation 0.65 1.21 1.68 2.08
Net Fixed Assets 3.85 3.30 2.82 2.42

Current Assets
Sundry Debtors 0.98 1.13 1.29 1.47
Cash and Bank 1.56 2.06 2.85 2.98

TOTAL : 6.39 6.48 6.96 6.86

PROJECTED PROFITABILITY STATEMENT

PARTICULARS YEAR-I YEAR-II YEAR-III YEAR-IV

Probability % 50% 55% 60% 65%

SALES

Gross Receipts/Sale 14.63 16.89 19.35 22.01

Total 14.63 16.89 19.35 22.01

COST OF SALES

Consumables 5.85 6.76 7.74 8.80

Power & Fuel Expenses 1.46 1.69 1.93 2.20
Salary to Staff 2.19 2.53 2.90 3.30
Selling & Adm Expenses Exp. 1.02 1.27 1.45 1.65
Depreciation 0.65 0.56 0.47 0.40
Interest on Term Loan 0.45 0.36 0.24 0.12
Interest on Working Capital 0.11 0.11 0.11 0.11

TOTAL (D+G) 11.74 13.27 14.85 16.59

NET PROFIT 2.89 3.62 4.50 5.42
19.76% 21.45% 23.25% 24.62%
CASH ACCRUALS 3.54 4.18 4.97 5.82
REVENUE REALIZATION
Beauty Parlour

Average Expected Client per Day 15 Clients

No. of Working Hour 10
No of Working Days per month 25
No. of Months 12
Expected Clients per Annum 4,500 Clients

Year Probability Clients

YEAR-I 50% 2,250

YEAR-II 55% 2,475
YEAR-III 60% 2,700
YEAR-IV 65% 2,925

COMPUTATION OF REVENUE

Particulars YEAR-I YEAR-II YEAR-III YEAR-IV

No of Clients served
Beauty Parlour 2,250 2,475 2,700 2,925

Avg Revenue per Client 650.00 682.50 716.63 752.46

Gross Receipts (in lacs) 14.63 16.89 19.35 22.01

COMPUTATION OF AVERAGE SERVICE CHARGES Amount in ₹ Lacs
Services No of Clients per annum Service Charges Total
Make Up Essentials-
Bridal Package 40 7,500.00 3,00,000.00
Party Package 70 1,500.00 1,05,000.00
Engagement Package 50 3,000.00 1,50,000.00
Hair Service-
Haircut 500 400.00 2,00,000.00
Hair Wash & Blow Dry 250 500.00 1,25,000.00
Hair Coloring 100 1,000.00 1,00,000.00
Hair Spa 80 1,200.00 96,000.00
Straightening/Smoothening 60 3,000.00 1,80,000.00
Body Essentials-
Threading- Eyebrows/ upper lip 1,200 50.00 60,000.00
Waxing 900 800.00 7,20,000.00
Facial 400 850.00 3,40,000.00
Basic & Spa Manicure 300 500.00 1,50,000.00
Basic & Spa Pedicure 300 500.00 1,50,000.00
Body Scrub 100 1,000.00 1,00,000.00
Massages:-
Aromatherapy Massage 50 1,000.00 50,000.00
Swedish Massage 60 800.00 48,000.00
Deep Tissue Massage 40 1,200.00 48,000.00
Total 4,500 24,800.00 29,22,000.00
Weighted Average Service Charges 650.00

Note- Average price has been calculated due to wide range of services.
COMPUTATION OF DEPRECIATION

Plant/Machinery Furniture TOTAL

Description
Equipments

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -
Addition 4.00 0.50 4.50
4.00 0.50 4.50
Less : Depreciation 0.60 0.05 0.65
WDV at end of Year-1 3.40 0.45 3.85
Additions During The Year - - -
3.40 0.45 3.85
Less : Depreciation 0.51 0.05 0.56
WDV at end of Year II 2.89 0.41 3.30
Additions During The Year - - -
2.89 0.41 3.30
Less : Depreciation 0.43 0.04 0.47
WDV at end of Year III 2.46 0.36 2.82
Additions During The Year - - -
2.46 0.36 2.82
Less : Depreciation 0.37 0.04 0.40
WDV at end of Year IV 2.09 0.33 2.42

TERM LOAN

Repayment Closing Interest @

Year Opening Balance
Balance 11%
1st 4.05 0.81 3.24 0.45
2nd 3.24 1.08 2.16 0.36
3rd 2.16 1.08 1.08 0.24
4th 1.08 1.08 0.00 0.12
BREAK EVEN POINT & RATIO ANALYSIS
Particulars 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 3.52 3.98 4.45 4.98
Variable Cost 8.21 9.29 10.39 11.61
Total Cost 11.74 13.27 14.85 16.59

Sales 14.63 16.89 19.35 22.01

Contribution (Sales-VC) 6.41 7.60 8.95 10.40

Probability 50% 55% 60% 65%

B.E.P in % 27% 29% 30% 31%

Break Even Sales in Rs. 4.02 4.86 5.78 6.85

Net Profit Ratio 19.76% 21.45% 23.25% 24.62%

CALCULATION OF D.S.C.R
PARTICULARS YEAR-I YEAR-II YEAR-III YEAR-IV

CASH ACCRUALS 3.54 4.18 4.97 5.82

Interest on Term Loan 0.45 0.36 0.24 0.12

Total 3.99 4.54 5.21 5.94

REPAYMENT
Instalment of Term Loan 0.81 1.08 1.08 1.08
Interest on Term Loan 0.45 0.36 0.24 0.12

Total 1.26 1.44 1.32 1.20

DEBT SERVICE COVERAGE RATIO 3.17 3.16 3.95 4.96

AVERAGE D.S.C.R. 3.78