Start-up Funding | |
Start-up Expenses to Fund | $29,267 |
Start-up Assets to Fund | $56,583 |
Total Funding Required | $85,850 |
Assets | |
Non-cash Assets from Start-up | $27,250 |
Cash Requirements from Start-up | $29,333 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $29,333 |
Total Assets | $56,583 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $0 |
Long-term Liabilities | $20,000 |
Accounts Payable (Outstanding Bills) | $850 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $20,850 |
Capital | |
Planned Investment | |
Keith Harwood | $40,000 |
Shelly Harwood | $25,000 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $65,000 |
Loss at Start-up (Start-up Expenses) | ($29,267) |
Total Capital | $35,733 |
Total Capital and Liabilities | $56,583 |
Total Funding | $85,850 |
Tropical Tan will provide the service of tanning booth rentals to individuals. The company relies on seven SunQuest Pro brand tanning beds. Each bed includes 24 Wolff tanning lamps. Sessions range from 20-30 minutes each. Session costs are listed in the sales forecast summary.
Tropical Tan will also retail a line of tanning lotions, bathing suits/swimwear, and sunglasses.
The main priorities of Tropical upon start up are the following:
By keeping these priorities in mind throughout the start-up process, the implementation team (management team) will maintain a course of action that will lead to solid results.
Tropical Tan’s competitive edge lies with the way in which customers are pampered. We will provide extra perks that our competition doesn’t such as bottled water after their session, free lattes and other perks described below:
Twice yearly client fashion show – The salon will close for several hours on a weekend and the fashion show will introduce a new line of swimwear. Tropical Tan clients will be encouraged to participate as the models for the new swimwear. The top male and female models will receive a year’s worth of tanning each.
Weekly drawings – Giveaways of everything from tanning products to free monthly passes to area restaurant giveaways.
Auto-payment for individual sessions – Clients who prefer individual sessions to package plans will be able to roll their sessions over into packages if they reach the allotted session amount/month.
Those customers who sign up for an initial tanning session (ITS) will receive special discounts on future tans and tanning programs. All returning customers will have access to special tanning plans specifically designed for their needs.
The tanning salon industry recommends that clients tan no more often than every other day. State and Federal regulations recommend no more than once every 24 hours. Tropical Tan recommends to clients that they discontinue tanning temporarily if skin is inappropriately tanned. The company will offer vouchers to clients that agree to discontinue under such circumstances, and reserves the right to refuse service to any client in cases where tanning abuse becomes a problem.
The following table and charts give a run down on forecasted sales. This projection is based on six quick tan tanning beds, $10.00 per tanning session, and approximately 200 clients per day. Half of those clients paying on a monthly basis therefore bringing their session cost down to $2.00 ($50.00 per month). Also sales increase in the late spring and early summer and begin to taper off in September.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Tanning Session | $387,072 | $406,426 | $426,747 |
Lotions/swimwear/sunglasses/etc. | $7,272 | $7,635 | $8,017 |
Total Sales | $394,344 | $414,061 | $434,764 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Lotions/swimwear/sunglasses/etc. | $3,100 | $3,500 | $3,800 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $3,100 | $3,500 | $3,800 |
The initial management team will consist of Keith & Shelly Harwood (owners). As we grow an additional management member will be added. Keith and Shelly have owned and sold several businesses in the last 15 years including a small convenience store, a plumbing contractor business, and a doggie day care business. They are experienced entrepreneurs with years of small business accounting, finance, marketing, and management experience.
The personnel plan calls for 2 part-time employees while one or both owners will be there full time. During the busier months, May, June, and July an additional part-time employee will be added.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Part-time Help | $7,740 | $7,740 | $7,740 |
Part-time Help | $7,740 | $7,740 | $7,740 |
Part-time Help | $1,935 | $1,935 | $1,935 |
Owners | $48,000 | $60,000 | $72,000 |
Total People | 3 | 0 | 0 |
Total Payroll | $65,415 | $77,415 | $89,415 |
Tropical Tan expects a profit margin of over 40% starting with year one. By year two, that number should slowly increase as the law of diminishing costs takes hold and the day-to-day activities of the business become less expensive.
Sales are expected to grow 15% per year. Total owner financing of $65,000 will become a return on equity paid in the form of dividends to the owners.
After researching the tanning industry in and around Chino Hills, the following assumptions have been made:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The following chart and table summarize our break-even analysis. With fixed costs of $10,332 per month at the outset (a bare minimum), we need to sell 1,041 monthly tanning sessions at $10.00 to break even to cover our costs.
Break-even Analysis | |
Monthly Revenue Break-even | $10,414 |
Assumptions: | |
Average Percent Variable Cost | 1% |
Estimated Monthly Fixed Cost | $10,332 |
Our projected profit and loss is shown on the following table and charts. From our research of the tanning industry our annual projections are quite realistic. The detailed monthly projections are included in the appendix.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $394,344 | $414,061 | $434,764 |
Direct Cost of Sales | $3,100 | $3,500 | $3,800 |
Other Costs of Sales | $27,996 | $0 | $0 |
Total Cost of Sales | $31,096 | $3,500 | $3,800 |
Gross Margin | $363,248 | $410,561 | $430,964 |
Gross Margin % | 92.11% | 99.15% | 99.13% |
Expenses | |||
Payroll | $65,415 | $77,415 | $89,415 |
Sales and Marketing and Other Expenses | $600 | $600 | $600 |
Depreciation | $0 | $0 | $0 |
Rent | $21,804 | $21,804 | $21,804 |
Utilities | $4,200 | $4,200 | $4,200 |
Insurance | $1,200 | $1,200 | $1,200 |
Payroll Taxes | $9,812 | $11,612 | $13,412 |
Loan Repayment | $11,952 | $11,952 | $11,952 |
Janitorial Service | $3,000 | $3,000 | $3,000 |
Other | $6,000 | $6,000 | $6,000 |
Total Operating Expenses | $123,983 | $137,783 | $151,583 |
Profit Before Interest and Taxes | $239,265 | $272,778 | $279,381 |
EBITDA | $239,265 | $272,778 | $279,381 |
Interest Expense | $1,626 | $965 | $310 |
Taxes Incurred | $71,291 | $81,544 | $83,721 |
Net Profit | $166,347 | $190,269 | $195,350 |
Net Profit/Sales | 42.18% | 45.95% | 44.93% |
The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the detailed monthly numbers are included in the appendix.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $394,344 | $414,061 | $434,764 |
Subtotal Cash from Operations | $394,344 | $414,061 | $434,764 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $394,344 | $414,061 | $434,764 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $65,415 | $77,415 | $89,415 |
Bill Payments | $152,361 | $146,453 | $149,816 |
Subtotal Spent on Operations | $217,776 | $223,868 | $239,231 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $6,900 | $6,900 | $6,200 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $224,676 | $230,768 | $245,431 |
Net Cash Flow | $169,668 | $183,293 | $189,333 |
Cash Balance | $199,001 | $382,294 | $571,626 |
The balance sheet table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $199,001 | $382,294 | $571,626 |
Inventory | $1,150 | $1,298 | $1,410 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $200,151 | $383,592 | $573,036 |
Long-term Assets | |||
Long-term Assets | $27,000 | $27,000 | $27,000 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $27,000 | $27,000 | $27,000 |
Total Assets | $227,151 | $410,592 | $600,036 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $11,971 | $12,043 | $12,338 |
Current Borrowing | ($6,900) | ($13,800) | ($20,000) |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $5,071 | ($1,757) | ($7,662) |
Long-term Liabilities | $20,000 | $20,000 | $20,000 |
Total Liabilities | $25,071 | $18,243 | $12,338 |
Paid-in Capital | $65,000 | $65,000 | $65,000 |
Retained Earnings | ($29,267) | $137,080 | $327,349 |
Earnings | $166,347 | $190,269 | $195,350 |
Total Capital | $202,080 | $392,349 | $587,698 |
Total Liabilities and Capital | $227,151 | $410,592 | $600,036 |
Net Worth | $202,080 | $392,349 | $587,698 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7299.0105, Tanning salon, are shown for comparison. We expect to maintain healthy ratios for profitability, risk, and return.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 5.00% | 5.00% | 8.15% |
Percent of Total Assets | ||||
Inventory | 0.51% | 0.32% | 0.23% | 4.93% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 35.03% |
Total Current Assets | 88.11% | 93.42% | 95.50% | 55.79% |
Long-term Assets | 11.89% | 6.58% | 4.50% | 44.21% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 2.23% | -0.43% | -1.28% | 25.11% |
Long-term Liabilities | 8.80% | 4.87% | 3.33% | 22.00% |
Total Liabilities | 11.04% | 4.44% | 2.06% | 47.11% |
Net Worth | 88.96% | 95.56% | 97.94% | 52.89% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 92.11% | 99.15% | 99.13% | 100.00% |
Selling, General & Administrative Expenses | 48.03% | 51.39% | 52.54% | 77.99% |
Advertising Expenses | 2.00% | 0.00% | 0.00% | 1.85% |
Profit Before Interest and Taxes | 60.67% | 65.88% | 64.26% | 3.35% |
Main Ratios | ||||
Current | 39.47 | -218.35 | -74.79 | 1.73 |
Quick | 39.24 | -217.61 | -74.60 | 1.30 |
Total Debt to Total Assets | 11.04% | 4.44% | 2.06% | 6.16% |
Pre-tax Return on Net Worth | 117.60% | 69.28% | 47.49% | 59.92% |
Pre-tax Return on Assets | 104.62% | 66.20% | 46.51% | 15.38% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 42.18% | 45.95% | 44.93% | n.a |
Return on Equity | 82.32% | 48.49% | 33.24% | n.a |
Activity Ratios | ||||
Inventory Turnover | 3.90 | 2.86 | 2.81 | n.a |
Accounts Payable Turnover | 13.66 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 30 | 30 | n.a |
Total Asset Turnover | 1.74 | 1.01 | 0.72 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.12 | 0.05 | 0.02 | n.a |
Current Liab. to Liab. | 0.20 | -0.10 | -0.62 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $195,080 | $385,349 | $580,698 | n.a |
Interest Coverage | 147.13 | 282.67 | 901.23 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.58 | 0.99 | 1.38 | n.a |
Current Debt/Total Assets | 2% | 0% | -1% | n.a |
Acid Test | 39.24 | 0.00 | 0.00 | n.a |
Sales/Net Worth | 1.95 | 1.06 | 0.74 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Tanning Session | 0% | $32,400 | $34,224 | $38,928 | $42,800 | $38,032 | $31,760 | $28,848 | $25,520 | $26,672 | $27,376 | $29,296 | $31,216 |
Lotions/swimwear/sunglasses/etc. | 0% | $500 | $612 | $675 | $702 | $621 | $603 | $585 | $549 | $507 | $603 | $633 | $684 |
Total Sales | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Lotions/swimwear/sunglasses/etc. | $250 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $250 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Part-time Help | 0% | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 |
Part-time Help | 0% | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 | $645 |
Part-time Help | 0% | $0 | $0 | $645 | $645 | $645 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Owners | 0% | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Total People | 3 | 3 | 4 | 4 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | |
Total Payroll | $5,290 | $5,290 | $5,935 | $5,935 | $5,935 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
Direct Cost of Sales | $250 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Other Costs of Sales | $27,996 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $28,246 | $250 | $300 | $300 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | |
Gross Margin | $4,654 | $34,586 | $39,303 | $43,202 | $38,403 | $32,113 | $29,183 | $25,819 | $26,929 | $27,729 | $29,679 | $31,650 | |
Gross Margin % | 14.15% | 99.28% | 99.24% | 99.31% | 99.35% | 99.23% | 99.15% | 99.04% | 99.08% | 99.11% | 99.16% | 99.22% | |
Expenses | |||||||||||||
Payroll | $5,290 | $5,290 | $5,935 | $5,935 | $5,935 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | |
Sales and Marketing and Other Expenses | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | $1,817 | |
Utilities | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | $350 | |
Insurance | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Payroll Taxes | 15% | $794 | $794 | $890 | $890 | $890 | $794 | $794 | $794 | $794 | $794 | $794 | $794 |
Loan Repayment | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | $996 | |
Janitorial Service | 15% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 |
Other | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | $500 | |
Total Operating Expenses | $10,147 | $10,147 | $10,888 | $10,888 | $10,888 | $10,147 | $10,147 | $10,147 | $10,147 | $10,147 | $10,147 | $10,147 | |
Profit Before Interest and Taxes | ($5,493) | $24,439 | $28,415 | $32,314 | $27,515 | $21,966 | $19,036 | $15,672 | $16,782 | $17,582 | $19,532 | $21,503 | |
EBITDA | ($5,493) | $24,439 | $28,415 | $32,314 | $27,515 | $21,966 | $19,036 | $15,672 | $16,782 | $17,582 | $19,532 | $21,503 | |
Interest Expense | $162 | $157 | $152 | $148 | $143 | $138 | $133 | $128 | $124 | $119 | $114 | $109 | |
Taxes Incurred | ($1,696) | $7,285 | $8,479 | $9,650 | $8,212 | $6,549 | $5,671 | $4,663 | $4,998 | $5,239 | $5,826 | $6,418 | |
Net Profit | ($3,958) | $16,998 | $19,784 | $22,516 | $19,160 | $15,280 | $13,232 | $10,881 | $11,661 | $12,224 | $13,593 | $14,976 | |
Net Profit/Sales | -12.03% | 48.79% | 49.96% | 51.76% | 49.57% | 47.21% | 44.96% | 41.74% | 42.91% | 43.69% | 45.42% | 46.95% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
Subtotal Cash from Operations | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $32,900 | $34,836 | $39,603 | $43,502 | $38,653 | $32,363 | $29,433 | $26,069 | $27,179 | $27,979 | $29,929 | $31,900 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $5,290 | $5,290 | $5,935 | $5,935 | $5,935 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | $5,290 | |
Bill Payments | $1,927 | $31,651 | $12,341 | $13,656 | $15,669 | $13,249 | $11,514 | $10,660 | $10,626 | $9,986 | $10,234 | $10,849 | |
Subtotal Spent on Operations | $7,217 | $36,941 | $18,276 | $19,591 | $21,604 | $18,539 | $16,804 | $15,950 | $15,916 | $15,276 | $15,524 | $16,139 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | $575 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $7,792 | $37,516 | $18,851 | $20,166 | $22,179 | $19,114 | $17,379 | $16,525 | $16,491 | $15,851 | $16,099 | $16,714 | |
Net Cash Flow | $25,108 | ($2,680) | $20,752 | $23,335 | $16,474 | $13,249 | $12,054 | $9,544 | $10,688 | $12,128 | $13,830 | $15,186 | |
Cash Balance | $54,441 | $51,761 | $72,512 | $95,848 | $112,322 | $125,571 | $137,625 | $147,169 | $157,857 | $169,985 | $183,815 | $199,001 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $29,333 | $54,441 | $51,761 | $72,512 | $95,848 | $112,322 | $125,571 | $137,625 | $147,169 | $157,857 | $169,985 | $183,815 | $199,001 |
Inventory | $250 | $1,000 | $750 | $450 | $1,150 | $900 | $650 | $400 | $1,150 | $900 | $650 | $400 | $1,150 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $29,583 | $55,441 | $52,511 | $72,962 | $96,998 | $113,222 | $126,221 | $138,025 | $148,319 | $158,757 | $170,635 | $184,215 | $200,151 |
Long-term Assets | |||||||||||||
Long-term Assets | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 | $27,000 |
Total Assets | $56,583 | $82,441 | $79,511 | $99,962 | $123,998 | $140,222 | $153,221 | $165,025 | $175,319 | $185,757 | $197,635 | $211,215 | $227,151 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $850 | $31,241 | $11,888 | $13,131 | $15,226 | $12,864 | $11,158 | $10,305 | $10,293 | $9,645 | $9,874 | $10,436 | $11,971 |
Current Borrowing | $0 | ($575) | ($1,150) | ($1,725) | ($2,300) | ($2,875) | ($3,450) | ($4,025) | ($4,600) | ($5,175) | ($5,750) | ($6,325) | ($6,900) |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $850 | $30,666 | $10,738 | $11,406 | $12,926 | $9,989 | $7,708 | $6,280 | $5,693 | $4,470 | $4,124 | $4,111 | $5,071 |
Long-term Liabilities | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 |
Total Liabilities | $20,850 | $50,666 | $30,738 | $31,406 | $32,926 | $29,989 | $27,708 | $26,280 | $25,693 | $24,470 | $24,124 | $24,111 | $25,071 |
Paid-in Capital | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 | $65,000 |
Retained Earnings | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) | ($29,267) |
Earnings | $0 | ($3,958) | $13,039 | $32,823 | $55,339 | $74,500 | $89,779 | $103,012 | $113,892 | $125,554 | $137,778 | $151,371 | $166,347 |
Total Capital | $35,733 | $31,775 | $48,772 | $68,556 | $91,072 | $110,233 | $125,512 | $138,745 | $149,625 | $161,287 | $173,511 | $187,104 | $202,080 |
Total Liabilities and Capital | $56,583 | $82,441 | $79,511 | $99,962 | $123,998 | $140,222 | $153,221 | $165,025 | $175,319 | $185,757 | $197,635 | $211,215 | $227,151 |
Net Worth | $35,733 | $31,775 | $48,772 | $68,556 | $91,072 | $110,233 | $125,512 | $138,745 | $149,625 | $161,287 | $173,511 | $187,104 | $202,080 |
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Interested in launching a new tanning salon business? You aren't alone; the tanning industry is becoming more popular and lucrative each year, driven by a society that sees a tan as an attractive accessory to any person's appearance. If you are hoping to open a tanning salon, however, you will be going through a lengthy process that not only involves clearing the entrepreneurial obstacles that every business startup has to master, but also means understanding the scientific and safety implications of tanning. Here are 10 steps to help you along your way.
It's common knowledge in the entrepreneurial world that you don't want to enter an industry that you have not researched extensively. The same holds true for prospective tanning salon owners, so visit several salons to gain an understanding of how these businesses work. Speak with owners about their experience in the industry, note the salon's staffing needs, and take notes on the facilities and the flow of the business as a whole.
To run a good tanning salon, you need an understanding of the industry that goes beyond simple business knowledge. Since tanning is, at its core, a scientific process, you need to have a thorough understanding of how that process works before you go into business as a salon that offers tanning services. When you can explain the tanning process to clients, they will be more willing to give you their business because they will trust that you know what you are doing and that your salon, therefore, is a safe place for them to get a tan.
No entrepreneurial venture can get off the ground without a business plan that explains, in exhaustive detail, how the venture will operate. Industry research, staffing and equipment requirements, location information, financial analysis, and ownership structure are just a few of the pieces of information you are going to need to compose a successful business plan. Click here to learn more about business plan preparation.
Part of the reason that your business plan needs to be sound is that you will use it when trying to secure funding for your business, whether from a lending institution like a bank or from a private investor. You need startup capital to get your business off the ground, so make sure you have the necessary funds before you move any further.
You will want a business location that is visible and easily accessible from a high-traffic area, but you will also want a place where you won't have to pay the steepest rents in town. Look at a few potential office locations, keeping an eye out for offices that you won't have to renovate too much to turn it into a tanning salon.
Inevitably, however, every new office location needs a bit of renovating and outfitting before it can become a tanning salon. Equipment like tanning beds, lamps, and spray tan systems are important, but so are reception areas, nice bathrooms, and rooms where customers can tan in private.
From the name of your business and the signage outside of your office to billboards around town and advertisements in local newspapers and magazines (or even on TV), you will need to consider how you are going to promote your business to the public.
Even if you are the sole proprietor of your business, you will need a small staff to make your tanning salon run like a well-oiled machine. Receptionists and attendants are key to making sure that any tanning salon keeps moving at a steady clip.
In most cases, tanning salons are extremely safe, but user error or malfunctioning equipment can result in injuries, and in case that happens, you will need insurance to protect your business from liability. Property insurance is also a must to protect your premises and equipment from vandalism and theft.
Once all the boxes are ticked on the checklist, it's time to have your grand opening! Invite friends and family in for a discount tan; set up advertising to announce the milestone. With any luck, you will have people pouring through your doors to see what your new business has to offer.
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A tanning salon is a business that offers services for artificial tanning and skin beautification. Tanning salons usually specialize in one type of tanning; either UV-bed light tanning or booth spray tan application. Please note that some tanning salons also run complementary services such as health spas, fitness centers, mobile tanning locations, beauty parlors, hair salons et al.
Statistics have it that the Tanning Salons Industry in the United States of America is worth over $3.5 billion, with an estimated growth rate of 4.9 percent between 2022 and 2027. There are about 30,000 registered and licensed tattoo studios in the United States and they are responsible for employing about 150,000 people.
Executive summary.
Mariah Martins™ Tanning Salon, Inc. is a licensed tanning salon that will be based in Las Vegas, Nevada and the organization will be committed to serving those who need professional tanning services. We are going to be health-conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our organizational structure.
Mariah Martins is the founder and CEO of Mariah Martins™ Tanning Salon, Inc.
A. our products and services.
Mariah Martins™ Tanning Salon, Inc. will provide a wide range of services such as;
Our tanning salon will operate the B2C – Business to consumer business model. We will offer our services directly to the end-user without any middleman arrangement.
Mariah Martins™ Tanning Salon, Inc. will operate in the Tanning Salons industry.
Our mission is to provide safe and healthy tanning services in a secured and relaxed facility and atmosphere.
Our vision is to become the pacesetter in every city where we are located.
Mariah Martins™ Tanning Salon, Inc. – Meeting Your Tanning Needs!
Mariah Martins™ Tanning Salon, Inc. will be formed as a Limited Liability Company, LLC. The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s assets from claims against the business, including lawsuits.
A. strength.
The Tanning salon industry is a big and growing industry. The industry reached a market size of 3.5 billion U.S. dollars in 2023.
The tanning salon industry is growing. The market size of the Tanning salon industry in the US has grown 0.6% per year on average between 2017 and 2022.
Please note that the market size of the Tanning Salons industry in the US increased faster than the Other Services (except Public Administration) sector overall.
The tanning salon industry is changing, and players in the industry are improvising. No doubt, technology, and customized software will change the landscape of the industry going forward.
Yes, there are existing niches when it comes to tanning salons. Here are some of them;
Mariah Martins™ Tanning Salon, Inc. has plans to sell franchises in the nearest future and we will target major cities with a growing working class and upwardly mobile people who want to look beautiful and classy.
Yes, there are franchise opportunities for the tanning salon business. Here are some of them;
Yes, there are county and state regulations for tanning salons and it is essential to state that each state has its requirements as there are different laws and costs per state, it’s essential to do your own research into local regulations and zoning policies.
California, Delaware, District of Columbia, Hawaii, Illinois, Kansas, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New York, North Carolina, Oklahoma, Oregon, Rhode Island, Texas, Vermont, Virginia, Washington, West Virginia, banned the use of tanning beds for all minors under 18.
Oregon and Washington do allow some minors to use tanning devices with a medical exception. At least 44 states and the District of Columbia regulate the use of tanning facilities by minors. Please note that no tanning salon shall be permitted within a five-hundred-foot radius of any existing residence, recreation, park, civic facility, or religious establishment.
FDA regulates products that emit radiation, including sunlamp products and products that use sunlamp products, such as tanning beds and tanning booths. FDA also regulates medical devices and classifies them into one of three classes: class I, class II, and class III.
A. who is your target audience.
i. Age Range
Our target market comprises adults above 18 years old who have the finance to do business with us.
ii. Level of Educational
We don’t have any restrictions on the level of education of those we will welcome in our tanning salon.
iii. Income Level
We don’t have any cap on the income level of those we are looking to welcome to our tanning salon.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people we are looking forward to welcoming to our tanning salon.
v. Language
There is no restriction when it comes to the language spoken by the people we are looking forward to welcoming to our tanning salon.
vi. Geographical Location
Anybody from any geographical location will be welcome in our tanning salon.
vii. Lifestyle
Mariah Martins™ Tanning Salon, Inc. will not restrict any person from accessing our facility and services based on their lifestyle, culture, or race.
When working out our pricing strategy, Mariah Martins™ Tanning Salon, Inc. will make sure it covers time, service delivery, supplies, premium, economy or value, and full tanning salon package for each of our clients. All our pricing strategies will reflect;
A. sales channels.
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, hospitals, freelance marketers, and social media influencers to help refer clients to us.
Mariah Martins™ Tanning Salon, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our clients.
The fact that we will need tanning salon supplies (gloves, extraction fans, shower caps, disposable clothing, nose plugs, baby wipes et al) per time means that Mariah Martins™ Tanning Salon, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.
We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
Here are the payment options that Mariah Martins™ Tanning Salon, Inc. will make available to her donors and contributors;
At Mariah Martins™ Tanning Salon, Inc., we offer services, and the nature of services we offer does not accommodate return policy but we will make sure we give out incentives from time to time to our customers.
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve our goal. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnerships and referrals that will enable the firm to boost our service offerings and support revenue growth.
There is no production process when it comes to a tanning salon business.
Mariah Martins™ Tanning Salon, Inc. will establish a business relationship with wholesale supplies of tanning salon supplies.
Mariah Martins™ Tanning Salon, Inc. will make money from;
A. amount needed to start our tanning salon.
Mariah Martins™ Tanning Salon, Inc. would need an estimate of $385,500 to successfully set up our tanning salon in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.
Mariah Martins™ Tanning Salon, Inc. will not build a new facility for our tanning salon; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
A. how much should you charge for your service.
At Mariah Martins™ Tanning Salon, Inc. our service charge will range anywhere from $20 to $150 depending on the nature of the service rendered.
The ideal profit margin we hope to make at Mariah Martins™ Tanning Salon, Inc. will be between 35 and 50 percent on service charges.
A. how do you intend to grow and expand .
Mariah Martins™ Tanning Salon, Inc. will grow our tanning salon by first opening other facilities in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the sixth year.
Mariah Martins™ Tanning Salon, Inc. plans to expand to Sumter, South Carolina, Tinton Falls, New Jersey, Santa Fe, California, Stillwater, Oklahoma, Longboat Key, Florida, Wintergreen, Virginia, Charleston, West Virginia, Palm Beach Gardens, Florida and Portland, Oregon.
The reason we intend to expand to these locations is the fact that, for example, Portland boasts of having the highest number per capita in the U.S. — one for every 11,286 residents, and they are known to patronize tanning salon services.
The founder of Mariah Martins™ Tanning Salon, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Mariah Martins is already grooming her daughter Adele Martins to take over from her. Adele Martins is at the moment being groomed to go through the company’s employment process without any bias.
If you’re opening a tanning salon , it’s important to familiarise yourself with tanning salon safety laws. It’s your responsibility to ensure your salon complies with relevant regulations and sunbed use guidelines. Not only is this important for legal reasons, but it also helps to protect your staff and customers.
In this article, we’ll explain UK health and safety regulations regarding the use of sunbeds. We’ll also discuss how tanning salon software can help you stay compliant.
According to the Sunbeds (Regulation) Act 2010, it is illegal for under-18s to use UV sunbeds. This means that, as a tanning salon owner, you must ensure that nobody under the age of 18:
Failure to comply with these sunbed regulations could result in a fine of up to £20,000. So, you must take all reasonable steps to ensure that every customer is over the age limit.
For example, ask new clients for photographic ID and train staff in recognising fraudulent documents. You can also use software such as ActiveSalon to check the customer’s date of birth when booking online.
Besides age restrictions, there are a number of additional sunbed laws and regulations that you must follow. These primarily fall under British Standards, the Health and Safety at Work Act (1974) and the Management of Health and Safety at Work Regulations (1999).
In the UK, there is a legal limit on the maximum amount of UV radiation that sunbeds can emit (British Standards 60335-2-27).
Your tanning beds must not exceed a solar irradiance level of 0.3 watts per square metre. This is equivalent to the midday Mediterranean summer sun. Any output above this carries an increased risk of burning and is deemed unsafe.
As a sunbed operator, you must carry out a risk assessment on your equipment – namely, the risks of UV exposure. This involves:
You’re obligated to take measures to control these risks ‘as far as is reasonably practicable’. For example, ensure customers wear eye protection while using the beds. You should also advise clients on safe levels of UV exposure according to their skin type.
We recommend having each client sign a legal disclaimer acknowledging and consenting to any potential health risks. You can store and view signed disclaimers digitally using tanning salon software .
There’s no legal requirement in the UK for tanning salons to be licensed. However, some local authorities may introduce licensing, restrict how your business operates or mandate regular inspections.
This will vary depending on where your business is located. For example, in Wales, sunbeds must be supervised by a ‘competent person’ at all times. Find your local council for more details.
Beyond UK tanning salon safety laws, the Health and Safety Executive (HSE) has published voluntary guidance for tanning salons. You should:
While these protocols are not mandatory, they will help you to provide a safe, professional service. We also recommend registering with the Sunbed Association and following their code of best practice.
The HSE also offers sunbed usage guidelines for tanning salon customers. They recommend that individuals should not use sunbeds if they:
You should ask for this information in your new client forms and warn against tanning if these criteria apply.
ActiveSalon is the UK’s leading software designed specifically for tanning salons. Stay compliant with the help of built-in tanning industry guidelines and safety policies.
Our intelligent system will cross-reference each client’s date of birth to ensure they’re over 18 before making a booking. ActiveSalon’s skin-typing and appointment history features allow you to thoroughly assess each customer’s personal risk and prevent over-tanning. Store and access your clients’ signed disclaimers using our secure, cloud-based customer database.
To discover more amazing features, start your free trial of ActiveSalon today. Contact us on 0161 507 1598 or through email at [email protected] .
Loukas has been a part of the tanning industry since 2013; what he doesn’t know isn’t worth knowing! As a Director of SolarTrack Systems, his responsibilities don’t just include ActiveSalon, but a variety of different tools and packages.
Ready to take your tanning salon to the next level? Call us at 0161 507 1598 , contact us , or try our free trial by clicking the button below…
Vitamin D is an essential nutrient that plays a major role in the body’s overall health. It helps to regulate calcium and phosphate in the body, contributing to the health of our bones, teeth and muscles. A lack of vitamin
ActiveSalon, the number one tanning salon software (UK), is full of useful features and business management tools. One particularly helpful feature is real-time syncing, which allows for instant data transfer across devices. Whether you run a small independent tanning salon
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Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Tanning Salon business and to apply for needed funding to cover your startup costs. Step 2. Projecting your revenues/income. The Tanning Salon industry can have great results.
There are between 3,000 and 5,000 tanning salons in the UK alone, so the appetite for tanning is clearly very strong. The key to success in this sector is to know your customers, as this will enable you to stay ahead of the curve and offer the products and services they want the most. ... A business plan is often used to attract investors, but ...
Full reporting. Make sure to choose software that will grow with your business. ActiveSalon, for example, offers full accessibility from any location - with unlimited users and instant data syncing across branches. 6. Hire and Train Staff. Before you can open a tanning salon business, you'll need to hire staff.
3. Create Your Ideal Customer Profile. Your ideal customer profile (ICP) is a detailed description of someone who's likely to visit your tanning salon. Include things like their age, gender, location, income and values. Here is an ICP example of a business plan for a salon: "Sun Glow's ideal customer is a woman aged 18-39, living in ...
A business plan for a Tanning Salon business is a comprehensive document that outlines the goals, strategies, operations, and financial forecasts of the salon. It typically includes information on the target market, competitive analysis, marketing strategies, pricing, services offered, staffing requirements, and projected revenue and expenses.
plan. The business plan includes everything you need to consider before opening and while running your salon. Your business plan should describe in detail your ideas and in particular things like: 3 Potential Revenues (search for demographic reports and discuss with salon operators and other specialists about how profitable the tanning business ...
Tanning Salon Business Plan Template. Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their tanning salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a tanning salon ...
July 23, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful tanning salon. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your salon's identity, navigate the competitive market, and secure funding for growth.
Download this free tanning salon business plan template, with pre-filled examples, to create your own plan. Download Now Or plan with professional support in LivePlan. Save 50% today . Available formats: What you get with this template. A complete business plan. Text and financials are already filled out and ready for you to update. ...
Writing a tanning salon business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
The cost for purchase of tanning equipment, tools and other start-up inventory (tanning supplies) - $25,000. The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) - $4,000. The cost of Launching a Website - $600.
A Tanning Salon Business Plan is a comprehensive document outlining the blueprint for establishing and operating a tanning salon. It encompasses strategic objectives, market analysis, financial ...
Our Tanning Salon Business Plan Template & Guidebook is designed to help you easily create a comprehensive business plan for your tanning salon. This guidebook provides step-by-step instructions on how to create each section of your business plan, as well as helpful tips and examples to ensure that your plan is thorough and effective. With our ...
The average price for a tanning membership is about $40 a month. After rent, overhead, and labor, your profit margin should be about 30%. In your first year or two, you could sell 400 memberships, bringing in $192,000 in annual revenue. This would mean $57,000 in profit, assuming that 30% margin.
With 3,000 - 5,000 tanning salons in the UK alone, it's certainly a profitable business. Approximately 1 million UK men and women visit tanning salons every day, with 10% of adults classified as regular sunbed users. Furthermore, recent trends suggest that sunbed use is increasing year on year. So, is there profit in a tanning salon?
But, your salon's success depends on many things like location, customer base, how well you run things, and your prices. Metric. Average UK Tanning Salon. Annual Revenue. £200,000 - £500,000. Profit Margin. 20% - 35%. Sunbeds and spray tans are getting more popular, which helps tanning salons make more money.
Here's our six step guide to opening a tanning salon: 1. Do Market Research. Before opening a tanning salon, it's essential to understand your target market and the demand for your services in your local area. Conducting market research will help you identify your potential customers, competitors, and the overall market trends.
3.3 How the Business will be started. Suntan Salon will be started in Manhattan in a leased building featuring spacious air-conditioned rooms, wide reception space, a conservatory, a waiting room and four bathrooms. In addition to the usual inventory, the company will purchase air conditioned climatronic controlled aromatherapic tanning beds ...
2. Draft a tanning salon business plan. 3. Develop a tanning salon brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for tanning salon. 6. Open a business bank account and secure funding as needed. 7. Set pricing for tanning salon services. 8. Acquire tanning salon equipment and supplies. 9.
Tropical Tan will offer six high quality tanning beds and limited retail sales of tanning lotion, bathing suits/swimwear, and sunglasses. The objective of this business plan is to acquire $50,000 in additional funding. This money will be used to purchase inventory, tanning beds, and other expenses as noted in the Start-up table.
6. Renovate and outfit your location. Inevitably, however, every new office location needs a bit of renovating and outfitting before it can become a tanning salon. Equipment like tanning beds, lamps, and spray tan systems are important, but so are reception areas, nice bathrooms, and rooms where customers can tan in private. 7.
A tanning salon is a business that offers services for artificial tanning and skin beautification. Tanning salons usually specialize in one type of tanning; either UV-bed light tanning or booth spray tan application. Please note that some tanning salons also run complementary services such as health spas, fitness centers, mobile tanning locations, beauty parlors, hair salons et al.
According to the Sunbeds (Regulation) Act 2010, it is illegal for under-18s to use UV sunbeds. This means that, as a tanning salon owner, you must ensure that nobody under the age of 18: Uses a sunbed. Is offered the use of a sunbed. Is present in a 'restricted zone' (any room or space, wholly or partly enclosed, in which a sunbed is ...