The tattoo removal business is part of the tattoo artists’ industry and the industry comprises of businesses that provide tattoo services by injecting ink under the skin and permanently altering the coloration of the skin. This industry also includes businesses that provide tattoo-related maintenance, design, and modification services. Those that offer laser tattoo-removal services may be included in the industry especially when they provide other core services in the industry.
The Tattoo Artistic industry in the United States of America is worth $722 million, with an estimated growth rate of 9.8 percent. There are about 35,399 registered and licensed tattoo studios in the United States and they are responsible for employing about 54,712 people.
Steps to Start a Tattoo Removal Business in 2023
Table of Content
1. Conduct Market Research
The first step in the market research process for your tattoo removal business is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source information that will help you maximize your business, information that will enable you to find techniques and equipment that will help you operate your tattoo removal business with less stress.
a. Who is the Target Market for Tattoo Removal Business?
The target markets for your tattoo removal business are people who already have tattoos.
b. Is Tattoo Removal Business a Profitable Business?
Yes, the tattoo removal business is profitable, and a recent study carried out on behalf of the Vocational Training Charitable Trust (VTCT), shows that 89 percent of the beauty industry has experienced an increased demand for aesthetic treatments such as tattoo removal, with millennials driving the trend being twice as likely as other age groups to seek tattoo removal.
Please note that tattoo removal services won’t be profitable if it is a stand-alone business. Adding laser tattoo removal services to your existing practice can add $8,000 to $20,000 per month in profit within 3 to 6 months.
c. Are There Existing Niches in the Industry?
There is no niche area in the tattoo removal business because the business is a niche area in the tattoo artists industry. A tattoo removal service can also specialize in laser tattoo removal techniques.
d. Who are the Major Competitors?
- Fort Worth Tattoo Removal Company
- Removery Tattoo Removal & Fading
- Local Tattoo and Laser Company
- Miami Ink Off Tattoo Removal Clinic
- Baltimore Tattoo Removal
- Astanza Laser
- Ink Blasters Precision Laser Tattoo Removal
- Tattoff, Inc.
- Delete – Tattoo Removal and Medical Salon
- Atlantic Laser Tattoo Removal
- Inkaway Laser Tattoo Removal
- East Coast Laser Tattoo Removal
- Shipers Laser Tattoo Removal Center Dallas
- Winter Park Tattoo Removal
- Premium Tattoo Removal
- Tattoo Removal Inc.
- Disappearing inc.
- San Diego Laser Tattoo Removal
- Clean Slate Laser Tattoo Removal
- MEDermis Tattoo Removal
e. Are There County or State Regulations or Zoning Laws for Tattoo Removal Business?
No, there are no county or state regulations or zoning laws for a tattoo removal business. Players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.
f. Is There a Franchise for Tattoo Removal Business?
Yes, there are franchise opportunities for the tattoo removal business, and here are some of them;
- Just Tattoo Removal Franchise
- Skinial USA, LLC Franchise
- Go Tattless Franchise
- The Laser Lounge Spa Franchise
- Tattoff, Inc. Franchise
g. What Do You Need to Start a Tattoo Removal Business?
- A Feasibility Report
- Business Plan
- Business Tattoonses and Permits
- EIN (Employer Identification Number)/Federal Tax ID Number.
- Salon facility
- A Corporate Bank Account
- Tattoo removal equipment and tools
- Tattoo removal supplies
- Startup Capital
Memorable Name ideas for Tattoo Removal Business
- Tattoo Pro© Tattoo Removal Company, Inc.
- Tattoo and More® Tattoo Artistry Company, Inc.
- Make Free© Tattoo Removal Company, Inc.
- David Dre® Tattoo Removal Company, Inc.
- Clean Skin™ Tattoo Removal Company, Inc.
- Kyle Kone™ Tattoo Removal Company, LLC.
- Free Start© Tattoo Removal Company, LLC
- We Remove® Tattoo Removal Company, Inc.
- Doctor Tattoo© Tattoo Removal Company, Inc.
- Like Pro© Tattoo Removal Company, Inc.
- Up and Done® Tattoo Removal Company, Inc.
- Cleanest Group® Tattoo Removal Company, Inc.
- Danton Group® Tattoo Removal Company, Inc.
- Nelly Don® Tattoo Removal Company, Inc.
- The Eliminator® Tattoo Removal Company, Inc.
- Rapid Cure© Tattoo Removal Company, Inc.
- Lucy and Co™ Tattoo Removal Company, LLC
- Paddington® Tattoo Removal Company, Inc.
- Captain Tattoo® Salon, Inc.
- Crystal Clear™ Tattoo Removal Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Tattoo Removal?
Although there are some options when it comes to the business structure for a tattoo removal business, the one that most players consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will also need to obtain an EIN.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Tattoo Removal Business?
- General Business License
- Health and Safety Permit
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Tattoo Removal Business?
These are some of the certifications you need to open a tattoo removal company;
- CPR Certification (Only required in some states)
- First Aid Certification (Only required in some states)
- OSHA Bloodborne Pathogens Certification for Tattoo Artists (Required by all states)
e. What Documents are Needed to Open a Tattoo Removal Business?
These are some of the basic legal documents that you are expected to have in place if you want to legally run a tattoo removal business in the United States of America;
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a tattoo removal business, usually you may not need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Tattoo Removal Business?
When it comes to starting a tattoo removal business, the startup costs range from $20,000 to over $350,000 depending on how much equipment the business owner decides to purchase. The price of specialist laser machines ranges from $150,000 to $300, 000 dollars, hence making the start-up costs to be substantial. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Costs Involved in Starting a Tattoo Removal Business
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Promotional expenses for the opening of the tattoo removal business for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance – $2,400.
- The cost for renting or leasing and equipping a salon facility – $20,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational cost for the first 3 months (salaries of employees, payments of bills and fueling et al) – $10,000
- The cost for the purchase of tattoo removal equipment and tools – $5,000
- The cost for start-up inventory – $3,000
- The cost for store equipment (cash register, security, ventilation, signage) – $1,750
- The cost of purchase and installation of CCTVs: $2,000
- The cost of launching a website: $600
- Miscellaneous: $2,000
c. What Factors Determine the Cost of Opening a Tattoo removal business?
- The size and type (mobile or salon-based) of the tattoo removal business
- The choice of location
- The required licenses and permits
- The type of salon facility (rent, lease, or acquired)
- The additional services offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the tattoo removal business
- The cost for furnishing and equipping the tattoo removal business
- The cost for insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your tattoo removal business as you only need a small saloon space to carry out your services.
e. What are the Ongoing Expenses of a Tattoo removal business?
- Cost of stocking up supplies such as numbing creams, salt, cleaning towels, disposable gowns, hand gloves, facemask et al
- Utility bills (fueling for utility truck, internet, phone bills, signage and sewage et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Salon (Owner) – $48,103 per year
- Accountants (Cashiers) – $25,000 per year
- Tattoo Removal Technicians – $31,000 per year
- Utility Van Driver – $21,150 per year.
g. How Do You Get Funding to Start a Tattoo Removal Business?
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Apply for a loan from your bank/banks
- Source soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Tattoo and More® Tattoo Removal, Inc. is a licensed tattoo artistry and tattoo removal salon. We have been able to secure a standard and well-positioned salon facility in a central residential estate in Las Vegas – Nevada. We are a tattoo removal business that is set to compete in the highly competitive and fragmented industry not only in Las Vegas – Nevada but also throughout the United States because we intend to open our outlets in key cities across the United States.
b. Products and Service
- Tattoo removal
- Providing skin treatment after tattoo removal
- Tattoo cream sale
c. Mission Statement
Our mission is to provide professional and healthy tattoo removal services and other related services to individuals. We want to build a tattoo removal salon that can favorably compete with other leading brands in the industry.
Our vision is to build a tattoo removal salon that will be a household name in Las Vegas – Nevada and throughout the United States of America.
d. Goals and Objectives
The goals and objectives of the tattoo removal business are to help people get rid of tattoo from their skin and to give them useful tips that will help them maintain their skin after the tattoo removal process.
e. Organizational Structure
- Chief Executive Officer (Owner)
- Tattoo Removal Technicians
- Utility Van Driver
a. SWOT Analysis
The strength of our tattoo removal business is that we have certified tattoo removal technicians under our payroll. Our most popular and effective tattoo removal and treatment service use a patented, safe, and effective laser tattoo removal machine. We also have robust relationships with tattoo shops that can easily recommend clients to us.
Having extra finance to open chains of tattoo removal salons and hiring some of the finest tattoo removal experts might be what will count as a weakness for our organization.
The fact that people will keep experimenting with tattoos and would want to remove them when they are not pleased means that the industry is full of opportunities.
The presence of well–established tattoo removal salons and complementary businesses within the location we intend to start our business is one of the major threats that we are going to be confronted with. We have been able to put in place strategies that will help us win a fair share of the available market in Las Vegas – Nevada.
b. How Do Tattoo Removal Companies Make Money?
A tattoo removal business makes money by charging its clients when they offer tattoo removal, provide skin treatment after tattoo removal, and the sale of tattoo creams and merchandise.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your tattoo removal salon by sending introductory letters alongside your brochure to households and key stakeholders in and around your city
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, and train stations et al.
- Use friends and family to spread the word about your tattoo removal salon
- Post information about your tattoo removal salons on bulletin boards in places like tattoo salons, schools, libraries, and local coffee shops.
- Place a small or classified advertisement in the newspaper, or local publication about our tattoo removal salon
- Advertise your tattoo removal salon in relevant beauty magazines, newspapers, TV, and radio stations.
- Engage direct marketing approach
- Encourage word-of-mouth marketing from loyal and satisfied clients.
a. How Much Should You Charge for your Service?
The cost of laser tattoo removal depends on the size, color, and age of the tattoo. According to the American Society for Aesthetic Plastic Surgery, the national average cost of laser removal is $463. Tattoo removal isn’t covered by most insurance companies because it’s considered to be a cosmetic procedure.
b. How Much Profit Do Tattoo Removal Business Owners Make a Year?
A standard tattoo removal business owner will make between $38 per hour and $78,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the tattoo removal business
- The location of the tattoo removal business is covering
- The management style of the tattoo removal business
- The business approach of the tattoo removal business
- The advertising and marketing strategies adopted by the tattoo removal business
- The number of years the tattoo removal service is in business
d. What is the Profit Margin of a Tattoo Removal Business?
The profit margin of a tattoo removal business is not fixed. It could range from 60 percent to 85 percent depending on the size, color, and age of your tattoo and of course the time, equipment, and supplies required to carry out the services.
e. What is the Sales Forecast?
Below is the sales forecast for a tattoo removal business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year (FY1): $220,000
- Second Fiscal Year (FY2): $320,000
- Third Fiscal Year (FY3): $480,000
Set Up your Office
a. How Do You Choose a Perfect Location for Your Tattoo Removal Business?
- The demography of the location especially as it relates to people with tattoos
- The demand for the services of tattoo removal businesses in the location
- The purchasing power of the residents of the location
- Accessibility of the location
- The number of tattoo removal businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Tattoo Removal Business?
- Las Vegas, Nevada
- San Francisco, California
- New York City, New York
- Miami, Florida
- Los Angeles, California
- Fairhope, Alabama
- Chicago, Illinois
- Philadelphia, Pennsylvania
- Dallas, Texas
c. What Equipment is Needed to Operate a Tattoo removal business?
You should be prepared to purchase laser machines, inventory management software, and other relevant software applications. You will also need computers or laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
When it comes to hiring employees for a standard tattoo removal business, you should make plans to hire a competent Salon Manager (you can occupy this role), Accountant, Tattoo Removal Technicians, and Van Driver. These are some of the key employees that you can work with.
Launch the Business Proper
Tattoo removal businesses usually open their doors for business with an opening party. You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. The bottom line is that with proper launching of the tattoo removal business, you will be able to officially inform people in your city that your tattoo removal service is open for business.
a. What Makes a Tattoo Removal Business Successful?
- Choose a good location and salon facility to launch the business
- Make sure your tattoo removal technicians use safe methods when removing a tattoo
- Throw an open house party before officially opening the tattoo removal business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your tattoo removal business
- Leverage on all available online and offline platforms to promote your tattoo removal business
Please note that with the right location, top-notch service, and good marketing skills, you can serve varieties of customers that cut across different genders and age groups.
b. What Happens During a Typical Day at a Tattoo Removal Business?
- The tattoo removal salon is open for the day’s work
- The jobs to be done for the day are reviewed and all the needed materials are put together
- When clients work in, they are attended to
- Tattoo removal technicians are transported to locations to remove tattoos from their customer’s skin as requested
- Staff return back to the office and reports for the day is written and submitted
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Tattoo Removal Business?
- Ability to pay attention to details
- Ability to use laser machines
- Good managerial and human development skills
- Good Accounting and Bookkeeping Skills
- Visionary Leadership
- Team-building & Interpersonal Skills.
- Excellent communication and negotiation skills.
- Organizational skills.
- Problem-solving ability.
- Good Supervisory skills
- Experience in working in the tattoo artistry industry
- Experience in managing people
- Experience in business administration