Tattoo Shop Business Plan Template [Updated 2024]

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Tattoo Shop Business Plan Template

If you want to start a Tattoo Shop or expand your current Tattoo Shop, you need a business plan.

The following Tattoo Shop business plan template gives you the key elements to include in a winning Tattoo Shop business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.


Tattoo Shop Business Plan Template

I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is a tattoo shop in [insert location here] that focuses on providing high-quality tattoo services to the surrounding community. The Company offers world-class, custom tattoos in a relaxed, friendly, and safe environment. The Company strives to ensure that its customers get the tattoo they want, whether in greyscale or colored, traditional or new school, cartoons or photo-realism, cover-ups or reworks.

Products Served

The Company will provide the following services to its customers:

  • Designing customized tattoos
  • Predesigning tattoos
  • Maintenance and aftercare tattoo services
  • Administering permanent makeup tattoos
  • Laser tattoo removal services
  • Other related consulting and advisory services

Customer Focus

[Company Name] will primarily offer its service to the residents living within a 5-mile radius of the business location. The demographics of the customers are as given below:

  • Female residents: 27,394
  • Male residents: 16,345
  • Average Income: $45,800
  • Median Age: 30 years

Management Team

[Company Name] is led by [Founder’s name], who has been in the tattoo industry for [x] years. During his apprenticeship in the tattoo industry, he acquired an in-depth knowledge of tattoo designing and is well aware of all health regulations related to this precarious work. Additionally, he worked in a tattoo shop alongside a professional tattooist, learning how to manage and run a tattoo business before starting [Company name].

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

  • There is currently a high demand for tattoo services in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
  • The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of youngsters visiting nearby.
  • The management team has a track record of success in the tattoo business.
  • The upscale tattoo business is a proven business and has succeeded in communities throughout the United States.
  • Market trends such as being worn by public figures like celebrities, athletes, and people within the fashion industry reflect that tattoos have become more and more popular.

Financial Highlights

[Company Name] is currently seeking $370,000 to launch its tattoo shop. Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

The following graph outlines the pro forma financial projections for [Company Name] over the next five years:

Financial SummaryYear 1Year 2Year 3Year 4Year 5
Revenue$965,742 $1,878,611 $2,718,300 $3,477,900 $4,285,228
Total Expenses$390,241 $630,018 $931,935 $1,171,906 $1,429,992
EBITDA$575,501 $1,248,593 $1,786,365 $2,305,994 $2,855,237
Depreciation$8,720 $8,720 $8,720 $8,720 $8,720
EBIT$566,781 $1,239,873 $1,777,645 $2,297,274 $2,846,517
Interest$5,077 $4,442 $3,807 $3,173 $2,538
PreTax Income$561,705 $1,235,431 $1,773,838 $2,294,101 $2,843,978
Income Tax Expense$196,597 $432,401 $620,843 $802,935 $995,392
Net Income$365,108 $803,030 $1,152,995 $1,491,166 $1,848,586
Net Profit Margin38%43%42%43%43%


II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name], located at [insert location here], is a new, upscale tattoo shop focusing on providing professional tattoo services to the local community in a modern environment. It will showcase a well-designed interior as well as a full-featured waiting area where customers can expect to feel at home in this creative, judgment-free, and welcoming environment.

The Company’s primary service includes designing customized tattoos. Customers can either provide a picture of what they want or can communicate their requirements. They can also choose a design from the catalogue of tattoo designs comprising traditional, neo-traditional, realistic, watercolor, Japanese, tribal, and blackwork tattoos. It will also provide tattoo aftercare and maintenance services along with consultation and advice on how to take care of tattoos.

[Company Name] will select artists from a pool of certified, creative, and highly experienced tattooists in and around [insert location here] and the surrounding area. The Company will ensure that they hold themselves accountable to the highest standards by meeting the client’s needs precisely and completely.

[Company Name]’s History

[Founder’s Name] is an entrepreneur with a passion for tattoos who seeks to provide a pleasant and convenient tattoo experience to the community by offering a wide selection of tattoos for everyone in one place. [Company Name] will become a known tattoo shop in [Location], offering a complete tattoo service experience.

Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the tattoo shop.

Since incorporation, the company has achieved the following milestones:

  • Found office space and signed Letter of Intent to lease it
  • Developed the company’s name, logo, and website
  • Created the list of tattoo designs
  • Determined equipment and inventory requirements
  • Began recruiting key employees with experience in the tattoo industry

[Company Name]’s Products/Services

The Company provides the following tattoo services:

  • Designing customized tattoos
  • Predesigning tattoos
  • Maintaining aftercare tattoo services
  • Administering permanent makeup tattoos
  • Laser tattoo removal services
  • Other related consulting and advisory services


III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

[Company Name] competes against small, individually owned tattoo shops and major regional or national chains. There are 29,235 Tattoo Artists businesses in the US, an increase of 6.2% from last year. The tattoo industry generates an estimated $1.7 billion in revenue. Tattoos and body art in the U.S. have soared in popularity lately, especially amongst Millennials, fueling an industry comprised of 20,000 tattoo parlors or studios. The industry, which also includes body piercing and tattoo removal, is estimated to be worth $3 billion and is growing strongly.

The Tattoo Artists industry has exhibited growth over the last five years, partially due to the popular culture, which includes tattoo-related reality television programs, which have made tattoos less cultural taboo. In addition, individuals have continued to demand customized tattoos with intricate designs rather than predesigned tattoos.

Going forward, the tattoo artists industry will continue to grow, as the US population will likely become increasingly tattooed. Also, cultural and religious taboos surrounding tattoos and people having tattoos on their bodies have increasingly faded, leading to strong growth in demand for tattoo artists.

Lastly, it is becoming a trend from finding tattooists or tattoo studios, stepping up their designs to 3D, and going beyond having a tattoo design catalog to leveraging social media platforms such as Instagram, Facebook, Twitter, and YouTube, etc., to display their tattoo designs.


IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will serve the residents of [company location] and its surrounding areas.
The area it will serve is populated mostly by moderate to affluent people; as a result, they have the means to pay for higher quality service.

The precise demographics of the town in which our retail location resides is as follows:

SpringdaleWyndham
Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

The Company will primarily target the following three customer segments:

  • High-Income Individuals: The Company will attract people with high-incomes who are conscious about fashion trends and have the disposable income to spend on tattoos.
  • Young People: The town has a large population of active young people who seek tattoo services. There are multiple high schools and colleges located in the surrounding area. According to a study published in the U.S. National Library of Medicine, 69 percent of students polled obtain a tattoo and/or body piercing between the ages of 18 and 22 while in college.
  • Celebrities / Public Figures: The Company will also reach out to a number of celebrities and public figures who use tattoos as a means of self-expression. Some famous figures have ink that’s inspired by their past or to pay tribute to a loved one, making the body art very meaningful to the individual. [Company name] can anticipate a significant increase in business as a result of such public figures’ tattoo service needs.


V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

Tattoo Art
Tattoo Art is one of the popular tattoo shops in town and has been in business for xx years. Tattoo Art offers a wide array of services that one would expect from a tattoo shop.
Besides offering tattoo services, Tattoo Art also offers body piercing services. The belief that customer satisfaction is as important as their products and services has helped Tattoo Art garner a vast base of customers, which continues to grow by the day. Tattoo Art generally has low and medium-priced options for each type of tattoo design. However, they do not provide at least 50% of the high-end tattoo styles that [Company Name] plans to carry.

Body Ink
Body Ink provides its customers with thousands of tattoos and tattoo designs that they can browse from the comfort of their homes. Customers are able to browse through their vast database of tattoos and tattoo designs from one central location. Body Ink categorizes designs to make it easy to find what its customers are looking for. However, Body Ink’s search result layout is sensory overloaded as all the images load, and it feels like minimal organization.

Classic Tattoo
Classic Tattoo was established in [xx]. It has a solid reputation for treating its clients right. Classic Tattoo’s current location is in [location], which is filled with restaurants, pubs, salons, and barbershops. Classic Tattoo caters to a high-end clientele looking to be tattooed by innovative artists in a more serene setting than that of the normal bustling tattoo shop.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Management: The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
  • Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
  • Great service at an affordable price: The complete array of tattoo services offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these services at a much more affordable price.
  • Location: [Company Name]’s location is near the center of town, giving the company access to people going to and leaving the colleges, clubs, bars, and passersby shopping in the city.


VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the tattoo industry. Customers can expect to receive professional tattoo services from skilled tattoo artists for a price somewhere between discount chains and luxury establishments.
The [Company Name] brand will focus on the company’s unique value proposition:

  • Offering a wide collection of tattoos designed for men and women
  • Convenient location
  • Comfortable, customer-focused environment
  • Moderate price point
  • Providing excellent customer service

Promotions Strategy

[Company Name] expects its target market to be residents living within a 5-mile radius of the location. The Company’s promotions strategy to reach the audience includes:

Pre-Opening Events
Before opening the tattoo shop, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz, and awareness for [Company Name] in the area.

Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.

Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets. Community newspapers, college publications, fashion programs, and similar channels will be a major promotion effort.

Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different tattoo designs and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter and LinkedIn will also help understand changing customer needs.

Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their service for the first time.

Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Pricing Strategy

Pricing strategy is one of the most important functions that any business can plan for attracting customers. Prices are a foundational element of a company’s revenues—if managed carefully, they can generate high profits.

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the tattoo service. The customer can expect to receive quality tattoo services for a more affordable price than what they pay at an ultra-premium tattoo shop.


VII. Operations Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Functional Roles

[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served by the earliest available specialist, but priority will be given to clients who booked an appointment prior. In the meantime, the waiting customers can engage themselves in the waiting area, which features television, current popular magazines, and the latest tattoo designs.

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Service Functions

  • Tattoo artists
  • Maintenance personnel
  • Receptionist

Administrative Functions

  • General & administrative functions including legal, marketing, bookkeeping, etc.
  • Inventory management
  • Hiring and training staff

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Launch [Company Name] store
[Date 5]Reach break-even


VIII. Management Team

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name] is led by [Founder’s Name], who has been in the tattoo business for xx years. While [Founder] has never run a tattoo store himself, he has extensive experience providing tattoo services and working in major tattoo studios for the past xx years. As such, [Founder] has an in-depth knowledge of the tattoo business, including:

  • Graphic design, illustration, digital arts
  • Art history
  • The essentials of health and hygiene

[Founder] also has personal relationships with highly skilled tattoo artists across the community.

[Founder] graduated from the University of ABC where he majored in Arts.

Hiring Plan

[Founder] will serve as the store manager. In order to launch the tattoo shop, the company will need to hire the following personnel:

  • Tattoo artist [Number]
  • Receptionist [Number]
  • Operations Manager

As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:

  • Additional tattoo artists
  • Assistant manager for helping with day-to-day operations


IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenues will come from the tattoo services rendered to its customers. The major costs for the company will be salaries of the staff as tattoo artists are paid through a combination of salaries and commission, rewarding them for performance and making specialists an active part in business retention and development. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $370,000 to launch its tattoo shop.
Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of customers per dayPer location
FY 120
FY 235
FY 355
FY 475
FY 5100
Annual Lease ( per location)$60,000

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

 
5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

 
5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.