Beauty parlor is a business that can be easily set up. It will cost about 5 lakh rupees, in which 2 lakhs will be expensed on machinery, and hand tools, and the rest on raw materials, which will be for sale and service of the customer. Out of this 5 lakh, 95% means 4. 75 lakhs will be received as a bank loan and 0.25 lakhs will own contribution. Beauty Parlour business will have a profit of about 0.95 lakhs each year.
In this scheme, 35% will be subsidized by the government i.e. 1.75 lakh will be forgiven.
This scheme is really going to give big benefits. Both ladies and gents can do this business. Subsidy and bank finance depend on caste, which is as follows: –
General Cast – Own contribution will be 10% and subsidy will be 15% for the urban areas and 25% for the rural areas, and a bank loan will be 90% only.
For OBC, S/C, S/T, Minority, Handicapped, Ex-Service Man, and anycast woman there will be own Contribution will be 5%, Bank loan will be 95% and Subsidy will get 35% for the rural areas and 25% for the urban areas. Today beauty parlor has become very prominent all over the world. In western culture, beauty salon has created almost iconic images. It is a place where people go to purchase beauty treatments and beauty products. Women often visit beauty salons to trim their hair and brighten their faces. Today people are more aware in the field of fitness, beauty, and fashion, which turns the beauty industry into a promising state. With the rise in living standards, the need for services like beauty salons is increasing. Apart from this, the condition of women in society is improving and their lifestyle is changing. Economic independence makes them resort to this type of service. It is in this possibility that the development of aesthetic care assumes significant importance. New challenges and new opportunities have arisen for investment in this sector.
The importance of beauty care and fitness services has been increasing in recent years. The concept of beauty care is emerging to provide beauty treatments in various services for the improvement of the overall condition and maintenance of good health. Some of the services offered by beauty salons are skincare special services, beauty care specialty services, hair care specialized services, and hand and foot special services. Apart from these, modern beauty salons are also included in fitness services.
Although many small and medium-sized beauty parlors are filled in both local or branded big cities. Beauty salons of world standards have a tremendous market in growing cities in North-East India. With an average growth rate of 12 percent, this industry is bound to generate a higher employment potential, along with the need for related services in the coming years. Currently, most women, members of the business community, as well as service professionals, become beauty and health-conscious, and these communities now lean towards many different services in leading beauty based salons. With the modernization from oversize, beauty salons are also finding their way into the Indian market. At every location of cities and towns, even today in the rural area also beauty salons are available. This shows our living standard going up especially for women who are either in the also professions, Govt. or private jobs. The specialty unit must provide consistent quality, competitive prices, and a differentiated salon experience through professionally trained beauty specialists.
It has been assumed that the unit will run for at least 300 days in a year.
All calculations are based on running the unit 10 hours.
It has been assumed that the unit will achieve its goal in the first three years as 70% 1st.yr., 75% 2nd.yr and 80% 3rd.yr. and so on.
This report is only detailed in the techno-economic-feasibility aspects.
The gestation period maybe around 6 to 8 months in the implementation of the project. In this period entrepreneur has to make arrangements and to complete all the official and local formalities ie; market survey, financial arrangements, purchasing of machinery, recruitment of skilled labor.
The interest rate for both fixed and working capital is 12.5% P.A. has taken.
Period of payment of Term Loan to financial institutions can be made in 5/7 years as the case may be. The working capital loan may however be in the shape of limit based capital.
Taxes, freight, installation, and electrification costs are charged at 15% of the cost of machinery and equipment.
Non-refundable deposits, project report costs, test production, security deposits with Electricity Board are charged under pre-operating expenses.
Depreciation is considered:
(A) Building @ 5%
(B) @ 10% on plant and machinery
(C) Office furniture and fixtures @ 10%
(d) @ 10% on other fixed assets.
Costs in relation to plant and machinery, raw materials, and finished products are taken at the time of preparation of this project report and may vary depending on various factors.