Tattoo Shop Business Plan Template
If you want to start a Tattoo Shop or expand your current Tattoo Shop, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of tattoo shop business plans.
The following tattoo shop business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Sample Business Plan Template for a Tattoo Shop
I. Executive Summary
Business Overview
[Company Name] is a tattoo shop in [insert location here] that focuses on providing high-quality tattoos 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 grayscale 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 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 and safety regulations related to this precarious work. Additionally, he worked in a tattoo shop alongside a professional tattooist, learning how to manage and run a successful tattoo shop before starting [Company name].
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for tattoos 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.
- An upscale tattoo parlor 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 Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 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 |
Pre-Tax 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 Margin | 38% | 43% | 42% | 43% | 43% |
II. Company Overview
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 catalog of tattoo designs comprising traditional, neo-traditional, realistic, watercolor, Japanese, tribal, and black work 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 talented 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 seek 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, supplies, and inventory requirements
- Began recruiting key employees with experience in the tattoo industry
[Company Name]’s Products/Services
The Company provides the following services:
- Designing customized tattoos
- Predesigning tattoos
- Tattoo maintenance services
- Administering permanent makeup tattoos
- Laser tattoo removal services
- Other related consulting and advisory services
III. Industry Analysis
[Company Name] competes against small, individually owned tattoo shops and major regional or national chains. There are 29,235 talented tattoo artists 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 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 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 experienced 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
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:
Springdale | Wyndham | |
---|---|---|
Total Population | 26,097 | 10,725 |
Square Miles | 6.89 | 3.96 |
Population Density | 3,789.20 | 2,710.80 |
Population Male | 48.04% | 48.84% |
Population Female | 51.96% | 51.16% |
Target Population by Age Group | ||
Age 18-24 | 3.68% | 3.52% |
Age 25-34 | 5.22% | 4.50% |
Age 35-44 | 13.80% | 13.91% |
Age 45-54 | 18.09% | 18.22% |
Target Population by Income | ||
Income $50,000 to $74,999 | 11.16% | 6.00% |
Income $75,000 to $99,999 | 10.91% | 4.41% |
Income $100,000 to $124,999 | 9.07% | 6.40% |
Income $125,000 to $149,999 | 9.95% | 8.02% |
Income $150,000 to $199,999 | 12.20% | 11.11% |
Income $200,000 and Over | 32.48% | 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
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 garners 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 target customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all 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 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
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 tattoos 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 tattoo shops 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 amongst 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 tattoo shops 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
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 strategy, bookkeeping, etc.
- Inventory management
- Hiring and training staff
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
Date | Milestone |
---|---|
[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
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 tattoos 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:
- Talented 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
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 day | Per location |
---|---|
FY 1 | 20 |
FY 2 | 35 |
FY 3 | 55 |
FY 4 | 75 |
FY 5 | 100 |
Annual Lease (per location) | $60,000 |
5 Year Annual Income Statement
Year 1 | Year 2 | Year 3 | Year 4 | Year 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 | |
PRE-TAX 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 1 | Year 2 | Year 3 | Year 4 | Year 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 1 | Year 2 | Year 3 | Year 4 | Year 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 |