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.
Steps on How to Write a Tanning salon business Plan
Table of Content
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;
- UV tanning services
- Spray-on tanning services
- Airbrush tanning services
- Body contour tanning services
- Sunless tanning services
- Running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al
- Merchandise sales of tanning-related products
b. Nature of the Business
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.
c. The Industry
Mariah Martins™ Tanning Salon, Inc. will operate in the Tanning Salons industry.
d. Mission Statement
Our mission is to provide safe and healthy tanning services in a secured and relaxed facility and atmosphere.
e. Vision Statement
Our vision is to become the pacesetter in every city where we are located.
f. Our Tagline (Slogan)
Mariah Martins™ Tanning Salon, Inc. – Meeting Your Tanning Needs!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
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.
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Salon Manager
- Tanning Specialists
- Cashier and Customer Service Officer (Receptionist)
i. Ownership / Shareholder Structure and Board Members
- Mariah Martins (Owner and Chairman / Chief Executive Officer) 51 Percent Shares
- Austin Martins (Board Member) 19 Percent Shares
- Sydney Lance (Board Member) 10 Percent Shares
- Moses Simone (Board Member) 10 Percent Shares
- Cynthia Jeremiah (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for tanning salon
- Highly experienced and qualified employees and management
- Access to supplies
- Highly secured and clean facility
- Inability to initially manage the organization without falling back on savings
- Financial Limitations
- Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
- Inability to retain our highly experienced and qualified employees longer than we want
- Growing acceptance of tanning services
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
i. How Big is the Industry?
The Tanning salon industry is a big and growing industry. The industry reached a market size of 3.5 billion U.S. dollars in 2022.
ii. Is the Industry Growing or Declining?
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.
iii. What are the Future Trends in the Industry
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.
iv. Are There Existing Niches in the Industry? If YES, List them
Yes, there are existing niches when it comes to tanning salons. Here are some of them;
- Spray Tanning Booths
- Tanning Salon
- Mobile tanning salon.
v. Can You Sell a Franchise of your Business in the Future?
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.
- The spread of coronavirus and similar pandemics
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Management of employees requires time, money, and efforts
- The FDA and the medical and health department could change their regulatory status and decide to enforce strict regulations that can strangulate new businesses
- The arrival of competitors within our market space.
i. Who are the Major Competitors?
- Beach Bum Tanning & Airbrush Salon
- Energy Spa Salon & Tanning
- Sun Rayz Tanning Center
- 4 Seasons Salon
- Bronze Republic Tanning Salon: Hillsborough
- Future Tan’s Tanning Spa
- Amoy Salon and Spa
- Gotham Glow Airbrush Tanning
- NY Sun Club Tanning & Airbrush
- South Beach Tanning Company
- Body Color Tanning Salon
- Club Tan Salon
- Hollywood Tans
- Cayman Tanning Salon
- Coconutz Tanning Salon
- Toasted Tanning Salon
- Glow Tanning Salon
- Sol Us Tanning Riverside
- Tanfastic Tanning & Hair Salon
- Sun Tan City
ii. Is There a Franchise for Tanning Salon Business?
Yes, there are franchise opportunities for the tanning salon business. Here are some of them;
- Hollywood Tans (Investment: $269,500)
- Planet Beach (Initial investment: $104,300 – $248,900)
- Tan Republic (Initial investment: $96,000 – $388,500)
- Palm Beach Tan (Initial investment: $441,196 – $769,350)
- South Beach Tanning Co. (Initial investment: $163,840 – $596,000)
- Executive Tans (Initial investment: $258,000 – $448,000)
- Rapid Wax (Initial investment: $78,750 – $190,150)
- iTan (Initial investment: $326,000 – $650,000)
- Desert Sun (Initial investment: $198,500 – $427,500)
- The Palms Tanning Resort (Initial investment: $489,750 – $517,000)
- The Tan Company (Initial investment: $393,354 – $739,928)
- Boca Tanning Club (Initial investment: $136,500 – $518,000)
- Beach Bums (Initial investment: $150,000)
- Tropi Tan (Initial investment: $191,500 – $380,000)
- Image Sun (Initial investment: $195,000 – $867,000)
- LA Sunset Tan (Initial investment: $247,900 – $652,500)
- Aruba (Initial investment: $150,000)
- Mirage (Initial investment: $126,000 – $286,000)
- Sol’exotica (Initial investment: $70,000 – $150,000).
iii. Are There Policies, Regulations, or Zoning Laws Affecting Tanning Salons in the United States?
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.
There is no restriction when it comes to the ethnicity of the people we are looking forward to welcoming to our tanning salon.
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.
Mariah Martins™ Tanning Salon, Inc. will not restrict any person from accessing our facility and services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch the Attention of Potential Clients.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with other healthcare service providers and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (coupon books, billboards), and referral (also known as word-of-mouth marketing).
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our clients.
- Create an efficient content marketing strategy.
- Create a community for our freelance marketers and influencers.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
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;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
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.
b. Inventory Strategy
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.
c. Payment Options for Customers
Here are the payment options that Mariah Martins™ Tanning Salon, Inc. will make available to her donors and contributors;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
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.
e. Customer Support Strategy
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.
a. What Happens During a Typical Day at a Tanning Salon?
- The business is open for the day’s work
- The beds and equipment are cleaned, adjusted, and set for the day’s job
- Customers are attended to
- Scheduled maintenance and servicing of equipment are carried out
- Marketing/website upkeep
- Administrative duties are carried out
- The business is closed for the day.
b. Production Process
There is no production process when it comes to a tanning salon business.
c. Service Procedure
- Open facility and check tanning rooms, devices, eyewear, and restrooms for cleanliness. Mix sanitizer solutions and test concentration.
- Prepare for day’s operation: check appointments, gather client records and necessary paperwork, and conduct administrative duties.
- When clients arrive, have them sign in. Check their records, and explain the facility’s operations and their tanning session to them, after which you direct them to the tanning room. Once the client is ready, set the timer to the appropriate time.
- If the client is new, discuss the facility, explain services, packages, etc. Explain how an indoor tanning device works. Give them a tour of the facility. Show the client a tanning room. Show how the door locks. Explain how to operate the radio, how to turn the bed on when ready, how to shut the canopy, and show them where the emergency cut-off switch is.
- Have the client read and complete the client card. Make sure they have read the warning statement. Review the card for completeness. Make sure the client has signed and dated the card, recorded their birthday, stated that they are over 18 years old, or recorded parental consent signature if under 18 years old.
- Explain to the client the importance of protective eyewear. Make sure the client has and uses approved protective eyewear and signs the eyewear statement. Advise them to remove contact lenses and to apply 15 SPF lip protection.
- Check the user’s skin type and recommend proper exposure time and a schedule that will provide the best results.
- Set the timer to the proper time, not to exceed the maximum time.
- Record the date, length of exposure, and the name and initials of the employee who assisted on the client record.
- Send the client into a clean and properly sanitized bed to tan.
- Schedule the client’s next appointment.
- Clean and sanitize tanning devices, eyewear, and rooms after the client’s use.
- Measure sanitizing solution concentration twice daily.
- Check supplies daily i.e., eyewear, lotions, cleaners, and other products.
- At the end of the day, check client records and documents, count down, and clean the facility.
d. The Supply Chain
Mariah Martins™ Tanning Salon, Inc. will establish a business relationship with wholesale supplies of tanning salon supplies.
e. Sources of Income
Mariah Martins™ Tanning Salon, Inc. will make money from;
- Providing UV tanning services
- Providing spray-on tanning services
- Providing airbrush tanning services
- Providing body contour tanning services
- Providing sunless tanning services
- Running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al
- Merchandise sales of tanning-related products.
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.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $70,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- Start-up inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $120,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
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.
d. What are the Ongoing Expenses for Running a Tanning Salon Business?
- Cost of stocking up supplies (gloves, extraction fans, shower caps, disposable clothing, nose plugs, and wipes et al)
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Maintenance and repair of equipment
- Salaries of employees
e. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $45,000 Per Year
- Salon Manager – $35,000 Per Year
- Tanning Specialists – $30,000 Per Year
- Cashier and Customer Service Officer (Receptionist) – $26,100 Per Year
f. How Do You Get Funding to Start a Tanning Salon Business?
- Raising money from personal savings and sale of personal stocks and properties
- Applying for a loan from your bank/banks
- Source for soft loans from our family members and friends.
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.
- Spray tanning: $20 to $35
- Airbrush tanning: $30 to $90
- Mobile tanning: $60 to $150
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $500,000n
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1): (30% of revenue generated)
- Second Fiscal Year (FY2): (35% of revenue generated)
- Third Fiscal Year (FY3): (45% of revenue generated)
d. Profit Margin of a Tanning salon
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.
b. Where do you intend to expand to and why?
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.