Regulations are killing my business

These small businesses are being squeezed by local regulations requiring specific licenses. All are fighting back with the help of the Institute for Justice, a civil liberties law firm.

Threading (hair removal)

small business regulation eyebrow ashish
  • Business: Threading (hair removal)
  • The rule: Cosmetology license required
  • Rule maker: State of Texas
  • Penalty: $300-1,300 fine

In 2009, Ash Patel started Perfect Browz to perform the ancient art of threading, which uses a taut string to pull out hair.

He signed 13 long-term leases and opened three stores across Texas before he realized the state views threaders as cosmetologists, which means they require cosmetology licenses.

But threaders -- typically women from India or Pakistan who learn at home -- have no need for the 1,500 hours of schooling mandated for a cosmetology license. Most beauty schools don't even teach the art.

Patel pleaded unsuccessfully with regulators for another option, like a state-mandated class on threading and hygiene. He was unsuccessful, and ultimately closed shop instead of risking repeat fines of up to $1,300.

He lost a $100,000 investment, fired six workers and has forgone an estimated $9 million in revenue.

Texas regulation department spokeswoman Susan Stanford said the rules "protect consumers and threading practitioners from cross contamination of contagious conditions and unclean establishments."

Patel doesn't dispute that but says the state has simply driven threaders into hiding.

"Essentially what they're doing is sending this industry underground. Those ladies will work out of their home and find their own clients," Patel said.

  @Jose_Pagliery - Last updated January 30 2013 11:43 AM ET

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