Tattoo Parlor Business Plan
Tablature Tattoo opens a small tattoo parlor in suburban Greenwood, NJ, where tattoo newbies and collectors can work with two established artists. The business offers small, introductory tattoos from existing designs, basic tattoos that can be done in one hour, and full half-day sessions with the artists. Extended consultations and custom design work are available as needed. The business also sells clothing items and posters featuring designs by the two artists. The founders, husband and wife Jake and Julie Hunt, seek a $10,000, three-year loan to launch the business.
The business needs only $22,200 to launch due to low capital requirements and the use of low-cost marketing techniques and direct selling to find initial customers. This low startup cost and high margins on tattoo work (around 75%) will lead to positive cash flow within 6 months and the ability to easily repay the loan. Sales will exceed $300,000 by the third year based on the full-time work of these three individuals.
Tablature Tattoo will meet the following objectives in its first three years of operation:
– Reach annual revenues of approximately $330,000 in year three.
– Successfully create 5,446 tattoos over three years.
– Earn net profits for the owners, providing significant total compensation including salaries and dividends.
Tablature Tattoo’s mission is to create safe, impressive tattoo art for customers in Greenwood, NJ. They aim to do this through tattoos and other products featuring art by the shop’s tattoo artists. The business also seeks to provide a full-time livelihood for the owners, Jack and Julie Hunt, while generously sharing revenue with an additional employed artist who will help grow the business.
Keys to success in the tattoo shop business include:
– Encouraging repeat customers who return for full sessions with their favorite artists.
– Prioritizing the health and care of customers and tattoos to ensure safety.
– Working with talented artists and encouraging their expression and freedom.
Tablature Tattoo will be located in Greenwood, New Jersey, within a centrally-located major route strip mall. The business will be founded and run by Jake Hunt, an experienced tattoo artist, and his wife, Julie Hunt, who has retail administrative experience. They will hire a second tattoo artist to expand options for customers and make better use of company resources. The business will provide color tattoos from original designs by the artists and public domain designs. The best original designs will be printed on t-shirts, posters, and other resale items, branded with Tablature Tattoo and artist signatures. Customers will include both newcomers and tattoo collectors, primarily aged 20 to 40.
Company Ownership:
Tablature Tattoo is a limited liability partnership between Jake and Julie Hunt, with Jake holding 51% ownership and Julie holding 49%.
Start-up Summary:
Start-up expenses for Tablature Tattoo are limited. Licenses and permits needed include renovation permits, business licenses, health department permits, occupancy permits, and signage permits. Business cards and flyers will be printed for two years and distributed for the grand opening. Insurance will be secured from Tribal Ink-surance or another tattoo shop insurance provider, providing $500,000 liability coverage and $10,000 property coverage. Rent will cover one month for renovation before opening. The location will feature a reception area, waiting room, two tattoo stations, sterilization room, small office space, and a bathroom. Computer software will include calendar/scheduling, inventory, and basic QuickBooks accounting programs. Website development will create a basic website, and advertisements will be placed in local papers prior to the grand opening. Tattoo supplies will include sterilizers, antiseptics, disinfectants, ointments, soap, paper products, linens, towels, gloves, and skin marking supplies. Assets required include cash flow break-even, start-up inventory of inks and dyes, and a security deposit for the shop location. Long-term assets include exterior signage, reception area items, tattoo station equipment, waiting area furniture, a sound system, a digital camera, office equipment, and sterilization room equipment.
Start-up Requirements
Start-up Expenses
– Licenses and Permits: $2,000
– Business Cards and Flyers: $1,000
– Insurance: $1,200
– Rent: $1,500
– Computer Software: $500
– Website Development: $1,000
– Grand Opening Advertisements: $500
– Tattoo Supplies: $1,000
Total Start-up Expenses: $8,700
Start-up Assets
– Cash Required: $9,800
– Start-up Inventory: $2,000
– Other Current Assets: $1,500
– Long-term Assets: $5,000
Total Assets: $18,300
Total Requirements: $27,000
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