Module 1: Business Planning and Expansion
Lesson 3: Choosing a Better Location and Setup
A beauty parlour’s growth depends a lot on its location. Even the best service may not succeed if the place is hidden, too costly, or poorly chosen. This lesson explains how to select the right area, study competition and supporting shops, compare rent and purchase, check legal papers, and judge local demand and visibility.
Key Concepts
• Selecting area with right footfall
• Nearby competition and complementary shops
• Rent vs purchase
• Legal papers and permission checks
• Local demand and visibility
1. Selecting Area with Right Footfall
Footfall means the number of people passing by a place daily. High footfall often brings higher walk-in clients. But not every crowd is useful—what matters is the “right footfall.”
» Select Area
• Visit the area at different times – Morning, afternoon, evening, weekends.
Example: A corner shop near a college has high evening footfall but is quiet in the mornings.
• Count average people in 30 minutes – Take three samples in a day and note.
Example: Near a market gate, you find 150 people in 30 minutes, but most are men.
• Check the type of people passing – Are they your target? Women, college students, office staff, or homemakers?
Example: Near a garment shop, mostly young women pass by, which suits a parlour.
• Observe purpose of visit – Shoppers, commuters, or visitors?
Example: At a railway crossing, many pass but do not stop. At a shopping lane, people stop and look at shops.
• Note peak days and hours – Weekly markets, festivals, or evening rush.
Example: A residential colony may have less weekday traffic but high weekend visits.
• Match with service need – If you plan bridal or premium services, areas near garment showrooms, jewellery stores, and banquet halls will work better.
» Footfall Evaluation Table
| Step | What to Check | Example | Usefulness |
|---|---|---|---|
| Time of visit | Different hours | Morning slow, evening busy | Evening-heavy business possible |
| People count | Number in 30 min | 120 women, 40 men | Good base |
| Customer type | Profile | 18–35 women, college girls | Parlour-friendly |
| Purpose | Passing/ shopping | Coming to shops | High potential |
| Peak hours | Rush time | 5–8 pm | Service slot planning |
| Service match | Demand fit | Near garment stores | Bridal customers |
2. Nearby Competition and Complementary Shops
The shops and services near your parlour impact your success. Some compete, while others support your business.
» Conditions to Check
• Direct Competition: Same beauty services at lower or higher price.
Example: Two parlours within 50 meters may confuse clients.
• Indirect Competition: Gyms offering grooming or spas.
Example: A fitness centre with in-house spa competes with facials.
• Complementary Shops: Garment stores, jewellery shops, gift stores, bridal boutiques, tailoring shops.
Example: Customers buying wedding dresses may also need bridal makeup nearby.
• Food and Convenience Stores: Bakeries, juice centres, or tea stalls help customers wait comfortably.
Example: If waiting, clients may go to the juice shop and return.
• Medical or Health Shops: Nearby chemists can create both positive (safety, trust) and negative (not luxury-feel) impacts.
• Overcrowded Market Condition: Too many similar shops can reduce value.
Example: Four parlours in one lane lower chances for new entrants.
• Balance Point: Choose a place with 1–2 established parlours (competition proof of demand) and enough space for you to stand out with services or pricing.
3. Rent vs Purchase
Choosing between renting a shop and buying depends on money, growth plans, and risk comfort.
» Comparison
| Factor | Rent | Purchase |
|---|---|---|
| Initial Cost | Low deposit (2–6 months rent) | High down payment |
| Flexibility | Easy to shift if area fails | Stuck if location poor |
| Monthly Burden | Fixed rent every month | Loan EMI or no EMI if full paid |
| Control | Limited changes (owner’s rules) | Full control of design |
| Long-Term Value | No asset created | Property becomes asset |
| Risk | Less risky, small cash blocked | High risk if sales fail |
| Best For | New parlours, testing demand | Established parlours, secure savings |
» Examples:
• Rent case: Neha rents a shop in a market for ₹12,000 per month. If sales do not grow, she can shift after a year.
• Purchase case: Sunita buys a shop for ₹15 lakh. Her EMI is ₹18,000 monthly. She is safe only if her parlour sales stay above ₹60,000.
4. Legal Papers and Permission Checks
Running without proper papers can cause fines or shutdown. Always check required documents.
» Suggestive List of Legal Papers
| Document | Why Needed | Example |
|---|---|---|
| Rent Agreement / Sale Deed | Proof of shop rights | Owner cannot remove suddenly |
| Trade License (Municipality) | Legal right to run business | Local body issues license |
| GST Registration (if turnover crosses limit) | For billing and tax | Needed if turnover > ₹20 lakh |
| Health & Safety NOC | For hygiene and safety compliance | Needed for salons using chemicals |
| Fire Safety (if large parlour) | Client safety proof | Compulsory in malls/ big markets |
| Electricity and Water Connection Papers | Utility safety | No illegal supply |
| Name Board Permission | Local permission for display | Signboard license from municipality |
5. Local Demand and Visibility
Even with good footfall, demand must match your services. Visibility ensures customers notice you.
» Suggestive Ways to Check Local Demand
• Ask local women, “Where do you go for beauty services?”
• Check competitor’s client load—crowded or empty.
• Look at bridal shops, hostels, gyms—shows demand for grooming.
Example 1: Near a college, demand is high for haircuts, nail art, and quick facials.
Example 2: In a residential colony, demand may be for regular facials, waxing, and home visits.
Example 3: Near banquet halls, demand is higher for bridal and party makeup.
» Visibility Conditions
• Shop should face main road, not inside a narrow lane.
• Glass front or bright signboard makes it noticeable.
• Lighted entrance helps during evenings.
Example: A ground-floor corner shop with a glass front attracts more walk-ins than a first-floor shop hidden behind stairs.
Application
Learners should do a 3-day survey of two possible locations. For each place:
• Count footfall in 30 minutes (3 times daily).
• Note nearby competition and supportive shops.
• Compare rent vs purchase option.
• Collect information about legal needs from municipality office.
• Talk to 10 locals to understand demand.
• Check visibility factors like road-facing entry and signboard space.
Prepare a table of results for both locations and then select the better one.
Example
Meena runs a home parlour but wants to shift outside. She checked two shops. One was in a colony lane with rent ₹7,000. Footfall was low, only 40 per 30 minutes, mostly men. The other was near a garment store with rent ₹12,000. Footfall was 130, mainly women, with one jewellery shop nearby. She chose the second location. Within two months, bridal makeup bookings increased by 30%.
Short Assignment
Visit two possible shop locations in your area. Count footfall three different times in a day. List nearby competition and complementary shops. Now, compare rent vs purchase in a table. Also collect a checklist of required legal papers for your area.
Common Mistakes
• Selecting a shop only because rent is cheap.
• Ignoring legal papers and permissions.
• Choosing a location hidden inside lanes with no visibility.
• Underestimating competition nearby.
• Buying property too early without testing demand.
Summary
Choosing a better location and setup needs clear steps. You learned how to measure right footfall, study nearby competition and complementary shops, compare rent and purchase, check legal papers, and match with local demand and visibility. A strong location can bring daily customers, improve trust, and secure long-term growth.
» Takeaways
• Right footfall matters more than high footfall.
• Balance competition with nearby supportive shops.
• Rent gives flexibility, purchase gives asset security.
• Always keep legal papers ready.
• Match services with local demand and keep shop visible.
FAQs
How do I know if footfall is good for parlour?
Count people for 30 minutes at different times. If most are women or youth, the footfall is useful.
Is renting better than buying for beginners?
Yes. Renting reduces risk and allows shifting if the area fails.
What legal papers are compulsory?
At minimum: rent/sale agreement, trade license, and utility papers.
Can a shop on the first floor work?
It may work if it has high visibility, lift access, or is inside a busy mall.
Should I open next to another parlour?
Yes, if you can offer different or better services. But avoid streets with many parlours already.