Tattoo Shop Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Tattoo Shop Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Tattoo Shop business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Tattoos have become a way of life for most people. The stigma associated with someone having a tattoo has long faded, and as such these services are in demand at all times. This is especially true among younger people that want to have a number of tattoos. One of the best parts to operating a tattoo shop is that their revenues are generally immune from negative changes in the invite any economy. This is due the fact that many people view tattoos as a form of expression, and as such, they will continue to have worked on regardless of the overall economic climate. The barriers to entry for a new tattoo shop are very low. Generally, it is imperative for tattoo artist to develop an expansive portfolio before they open their own shop. The startup costs are also considered moderately low with most tattoo shops costing anywhere from $15,000-$100,000 to launch operations.
As with any other type of capital raising document, a tattoo shop business plan should feature a three-year to five-year financial model that includes a balance sheet, profit and loss statement, cash flow analysis, breakeven analysis, and business ratios page. Generally speaking, most banks and financial institutions are a little bit weary of providing loans to a new tattoo shop. However, many private investors are willing to provide this capital given the high gross margins generated from services. Additionally, these businesses can easily expand and as such the opportunities for growth allow us to be a promising investment with a strong ROI.
A tattoo shop marketing plan should include both a discussion regarding traditional print advertisements as well as a massive online campaign. Many tattoo artists, on their websites, showcase work they have previous previously done for other clients. In order to develop a strong brand-name reputation is important that the tattoo artist employed by the tattoo shop showcase their work to the general public. This is one of the quickest ways to build trust with potential customers don’t come into the location in order to get a tattoo.
Additionally, a tattoo shop SWOT analysis is often completed in conjunction with both the marketing plan and the business plan. This analysis takes a look at the tattoo shop’s strengths, weaknesses, opportunities, and threats. Relating to strengths, these businesses again, develop very high margin revenues for their operations. Additionally, providing a tattoo to someone or something only a highly trained artist can do. For weaknesses, there are a number of liabilities that come from owning and operating a tattoo shop. Most importantly, areas need to be kept sterile and large liability insurance policies need to be kept in place in the event of a mishap. For opportunities, many tattoo shops will hire associate artists that can render services at the facility as well. This can substantially increase the billings of the business. Also, many tattoo shops offer ancillary services such as body piercing. For threats, there’s nothing that is really going to change about this industry over the long-term. This is a highly established and mature industry, and as such – there’s nothing really that needs to be expected that would impact the way that these companies do business.
In closing, very qualified artist can make an extremely lucrative career by owning and operating a tattoo shop. Although many considerations need to be taken into account when developing effective businesses, they can be extremely profitable if they are operated correctly. Additionally, the strong economic nature of these businesses make for a strong return on investment.
Tattoo Shop Business Plan
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a tattoo and body piercing shop while showcasing the expected financials and operations over the next three years. The Tattoo Shop, Inc. (“the Company”) is a New York based corporation that will provide tattoo and body piercing services to customers in its targeted market. The Company was founded by John Doe.
1.1 The Operations
As stated above, the primary revenue source for the business will come from tattoo and body piercing services. At the onset of operations, the Company intends to hire three full time tattoo artists and body piercing specialists that will be able to render the services to the Company’s clients. At all times, the Company will remain within the letter of the law regarding the sale of these services while concurrently maintaining a clean and hygienic facility.
The Company will also generate revenues from the sale of jewelry (studs and earrings) used on conjunction with the Tattoo Shop’s piercing services.
The third section of the business plan will further describe the services offered by the Tattoo Shop.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 5% fixed interest rate. The financing will be used for the following:
- Development of the Company’s Tattoo Shop location.
- Financing for the first six months of operation.
- Capital to purchase equipment for tattoo and body piercing procedures
Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
The Tattoo Shop’s mission is to become the recognized leader in its targeted market for tattoo and body piercing services.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as a tattoo artist. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Tattoo Shop, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Tattoo Shop, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Tattoo Shop. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
Below is a description of the tattoo and body piercing services offered by the Tattoo Shop.
3.1 Tattoo and Body Piercing Services
The primary source of revenue for the business will be the tattoo and body piercing services offered to customers within the target market. The business will generate extremely high gross margins from this revenue stream as there are very few costs associated with providing this service. In lieu of hiring independent contractors, the Company will employ full time tattoo artists and body piercing specialists.
At all times, the Tattoo Shop will comply with all laws regarding tattoo and body piercing services. Additionally, cleanliness and safety are the top priority of the business.
3.2 Sales of Jewelry
The secondary streams of revenue for the business will come from the sale of jewelry associated with the aforementioned body piercing services. Mr. Doe intends to maintain a moderate sized inventory of studs and earnings for customers. Furthermore, the Company will earn gross revenues of approximately 70% on the jewelry items sold to customers.
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the tattoo and body piercing industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
However, people consider tattoos to be an important part of their identity. The moderate costs associated with getting a tattoo will ensure the economic stability of the business moving forward.
4.2 Industry Analysis
Tattoo and piercing parlors annually generate more than $3 billion dollars of sales per year, and employ more than 34,000 artists and body service providers. The growth rate of this industry has remained solid with the increasing sociological acceptance of tattoos and body piercing.
The industry is expected to continually grow as more people are getting tattoos. There is now mainstream acceptance of people that have tattoos.
4.3 Customer Profile
The Tattoo Shop’s average client will be a middle class man or woman living in the Company’s target market. Common traits among clients will include:
- Annual household income exceeding $30,000
- Lives or works no more than 15 miles from the Company’s location.
- Will spend $100 to $500 for each tattoo
- Will spend $50 to $150 for each body piercing
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Tattoo Shop intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Tattoo Shop.
5.1 Marketing Objectives
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
- Use search engine optimization and social media marketing in order to further increase awareness of the Company’s location and tattoo artists.
- Frequently attend expositions that focus on tattoos and body art.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
5.2 Marketing Strategies
Management intends on using a number of marketing strategies that will promote visibility for the Tattoo Shop as well as artists that provide their work at the location. Foremost, the Company intends to maintain an expansive presence on the internet. The Company will have a state-of-the-art and highly interactive website developed that showcases prior work completed by the Company’s artists (with client permission). This website will be mobile friendly and search engine optimized for the target market area.
Moving forward, the Company intends to have a number of professionally produced videos developed that showcase the location, the Company’s tattoo artist, as well as other pertinent information about the business. These videos will also showcase testimonials from prior clients.
The Company will also maintain an immense presence on major social media platforms including Facebook, Instagram, and Twitter. Of special importance for social media marketing is the usage of Facebook and Instagram. Over time, clients will leave a substantial number of positive reviews for the business.
Management will also frequently attend trade shows and events that are geared towards the tattoo artist community. This will further increase the brand name visibility of the Tattoo Shop.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- The Tattoo Shop will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 5% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Tattoos and body piercing services are non-essential services, and as such, an economic recession may result in a decline in top line income. However, the business will operate a lean operation, and the high margin revenues generated by the business will ensure the Company’s continued profitability during deleterious economic conditions.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
Additional content is provided in the downloadable version of the plan.