You want to open a tattoo shop, but where do you start? From finding a location, to hiring artists, to the day to day finances – there’s a lot to cover! This sample business plan should provide you with insight on what a business plan for a tattoo company should look like. Take a skim through, and as you’re reading begin generating ideas for your tattoo company. If you need any help you can reach out for a business plan review or for our professional business plan writing services.
1.0 Executive Summary
“Sample Tattoo Shop Inc.” operating as “Sample Tattoo Shop” (the company) was incorporated on August 1, 2021 in the state of Florida by John O’Miley. Sample Tattoo is based at 100 Allen St. Miami, Florida where customers receive small tattoos and customized tattoos by an experienced team of professional artists.
In recent years the tattoo industry has seen a surge in demand as tattoos become more commonplace in society. Furthermore, with the rise of social media, more people are conscious of their physical appearance and are looking to express themselves and their individuality.
To meet this demand, Sample Tattoo Shop, led by Owner & Operator John O’Miley will provide a clean, hygienic and comfortable experience to clientele. Sample Tattoo will be a leader in providing not only the highest quality tattoos, but an unrivaled tattoo experience.
John O’Miley brings 8 years of direct experience in custom tattooing. He has worked at 6 shops across the US, and in doing so has developed an abundance of knowledge in client care and management. Dean is focused on establishing the company on a commitment to customer-centrism. By engaging in feedback from each client, the company plans to not only lead, but in fact evolve the tattoo industry standard.
Sample Tattoo Shop Inc. is seeking a $50,280 business loan through the Small Business Administration. The funds will be used to purchase equipment, furniture and decor for the shop, to develop a state of the art website, and for six months of a marketing budget.
2.0 Business Overview
Sample Tattoo Shop is currently a one-shop studio that provides two overriding styles: small and customized tattoos. The business is founded by John O’Miley , an experienced and respected tattoo artist in the Miami area. Over the first year of operation a few artists will be hired to expand options for clients and increase gross revenues. The business will provide both basic and customized designs based on the client’s needs and requirements. Clients include individuals that are new to tattoos and tattoo enthusiasts.
2.1 Industry Overview
The global tattoo industry has an annual revenue of $3 billion per year, and is expected to grow nearly 8% annually. This near 8% increase can be attributed not only to the increasing popularity of tattoos but younger generations choosing expensive customized work instead of less expensive, pre-designed artwork. Once the client has been tattooed, the customer return rate increases substantially.
The tattoo industry has low barriers to entry and high profit margins. After a few years of establishing clientele, most tattoo artists earn at least $100,000 CAD per year. Most tattoo shops have an average profit margin of 30% after expenses.
2.2 Mission & Vision Statement
Our mission is to provide the greatest tattoo experience available in the state of Florida.
Our vision is a tattoo industry where client care becomes just as important as the final result.
2.3 Goals and Objectives
Sample Tattoo Shop’s primary goal is to retain artists who are not only talented at tattooing but also have great personalities. Communication plays a key role in the tattoo industry, and thus an artist must understand what the client wants and deliver it accordingly. Sample Tattoo Shop recognizes that artists with great personalities tend to receive more loyal customers.
2.4 Key Success Factors
Working with talented artists with great personalities: Clients come in search of talented artists because they believe the artist will provide a heightened standard of service. So, it is important to have talented artists. There’s also another factor associated with success. That is Customer Retention. This is possible only when the artist is talented and professional, in other terms having a good personality. People always respect and prefer a person with a good attitude. A talented artist would bring business to the company but a talented artist with a good personality would bring new business and retain the clients which is essential for the growth of the company.
Creating a safe and comfortable environment for clients: It is important to make the client feel safe and comfortable. At Sample Tattoo, all equipment is cleaned and sterilized frequently. The shop plays music according to the client’s preference, and offers Netflix so the client can feel as comfortable as possible. The more comfortable and connected the client feels, the greater a chance the client will return for another positive experience.
Having more loyal customers: Sample Tattoo is focused on retaining loyal customers; which act as advocates, thus bringing more business to the company.
John O’Miley is currently the company’s main tattoo artist. He will be accompanied by another artist for basic tattoo work and a virtual assistant to book sessions and answer questions about tattoo maintenance. By the third year, the company will have the following professionals:
Tattoo Artists (3)
The tattoo artists will be involved in consultation, drawing, stenciling, tattooing and ordering of tattoo supplies.
Virtual Assistant (1)
The receptionist/manager’s work will involve booking, scheduling & rescheduling appointments, bank deposits, daily payroll management, and taking photographs of finished tattoos.
Tattoo Apprentice (3)
Tattoo apprentices will perform the following work: cleaning, setting up/taking down work areas, learning to draw/tattoo, stenciling, running errands for supplies, helping artists with tattooing.
2.6 Management Team
Owner & Operator
About John O’Miley
John O’Miley is a well-spoken, likable, and personable artist with expert knowledge in the body modification industry specializing in custom tattooing. While most tattoo artists cannot draw, talent has always been present, making it easy, fast and efficient to produce an idea on paper or directly to the skin using traditional pencils, pencil crayons, and markers.
“Being able to put oneself in the shoes of the client and understanding even the most basic needs to make them feel welcome and safe is paramount to good business practices and productivity.”
– John O’Miley , Sample Tattoo Shop Inc.
Geronimo Tattoo and Piercing, Miami, Florida
2021 – to present
- Consulted with clients to understand their idea, vision and desires for a tattoo
- Provided clients with a detailed outline of the process before applying the tattoo
- Used safe sterilized techniques and maintained safe and comfortable environment to the clients
- Gave the clients proper home care instructions after applying the tattoo
- Frequently sterilized tools and equipments
- Keeping in touch with the existing clientele
- Gaining knowledge on how to run a business
- Keenly observing and understanding current scenario of the tattoo industry
- Networking with other artists
Mobile Tattooing, Georgia
- Packing light (took a big business and shrunk it down to fit inside one tattoo case for easier transportation and travelling by air)
- During this time money was tight and I didn’t take on many tattoos. Raising my son was most important because he had Slight Torticollis which I needed to correct. He has a shortening of the muscle in his neck which I needed to physically stretch out several times a day to correct his neck. This process took many months.
Black Tattoo and Piercing, Georgia
Head Artist – 2016
- Achieved high customer satisfaction by doing quality work and creative tattoo work
- Identified key issues of the business and fixed it
- Increased the revenue of the studio and brought many new clients
- Held meetings with the team to improve the business
- Focused on developing a good work culture in the studio
- Responsible for hiring new artists as clientele increased (15 requests per hour for my service)
- Took responsibility of finance and paid the artists
- Dealt with the head of health department overseeing the body modification industry
- Did spore testing and delivered spore tests to labs
- Health board compliance and resolving issues by following recommendation by the health inspector
- Learned sales funnel with regards to converting conversations into deposits for appointment booking
- Built close relationships with clients by making myself reachable and personable
- Delegating tasks to artists
- Teaching client aftercare by sharing stories of past experiences where things went wrong and directing them to not make the same mistakes
Mobile tattoo artist, Manitoba
- Travelled to far places to provide a service to the client
- Responsibly ordered supplies without getting help from the shop
- Coordinated and maintained relationships with suppliers
- Started teaching one apprentice
Twisted Ink, Manitoba
Professional Tattoo Artist
- Worked on designing and applying bigger tattoos (sleeves, back pieces, etc)
- Responsible for conducting contests to promote the shop
- Complexity of tattoos were more gratifying
- Passed Georgia Health body modification competency test and certified as a body modification technician with permit to work
- Maintained a hygienic and neat work environment
- Responsible for setting up/taking down of work areas
- Worked closely with the team of tattoo professionals
- Handled Tattoo appointment booking process, Cash outs/payouts, Pay split agreements
- Learned how to deal with people experiencing shock and loss of consciousness
- Learned how to create a safe environment and culture
- Audio engineering (routing, mixing, processing, side chaining, compression, mastering, limiting, filtering, distortion, programming synths, setting up plug-ins, stabilization of music production software environment, Ableton live, FLStudio, etc.)
- Art apps (paint, photoshop, procreate)
- Website building apps (wix, shopify)
Mount Park College 2015
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3.0 Products & Services
Sample Tattoo will be involved only in tattooing where the artists will perform ordinary and customized tattoos based on the client’s needs and requirements. The pricing is based on a per hour basis. The pricing for tattoo service is provided below:
$250 deposit (non-refundable)
$180.00/hour + Tax
$100.00 / 30 min + Tax
$45.00/15mins + Tax (after first hour)
The deposit will be paid back after the last follow-up and photography.
The company is located at 100 Allen, Miami, Florida. The standard business hours are from 9:00 a.m. to 6:00 p.m Monday – Saturday. Clients will schedule appointments with our virtual assistant and pay the deposit amount on our website.
The company will use a variety of equipment including:
- (1 rotary, 2 coils, 1 pen) including many different needle cartridges
- tube tips, for different tattoo effects (sizes: 3rl, 5rl, 9rl, 11rl, 7rs, and 9ft)
- digital power supply and analogs
- two types of cords (RCA, Clip)
- 2 ultra-thin foot pedals.
- small tools to fix/replace parts
- Spare parts (coil springs, contacts, sprocket)
Artists are allowed to bring their own equipment provided they follow all standard safety and health processes.
Stocking up inventory is important in the tattoo industry. Sample Tattoo Shop will have all the necessary items in inventory such as needles, and cleaning materials.
5.0 Market Overview
The tattoo business has low startup costs and above average profit margins. There is an 8% compound annual growth rate (CAGR) for tattoo studios. With the increase in people getting tattooed, the industry is flourishing in the Canadian market.
5.1 Market Trends
During the covid pandemic in 2020, all industries, including tattoo studios took a hit. Since the tattoo industry involves frequent interactions with the customer, tattoo studios too had to close down which resulted in a 9.5% revenue decline from the previous years. But currently, the industry is starting to rebound as many prospective customers are making frequent enquiries to have work completed.
The tattoo industry has grown quickly over the past years which is currently valued at $3 billion per year. The growth rate of this industry is on an upward trend with more people accepting tattoos in society. Even Canada’s current Prime Minister, Justin Trudeau has a tattoo on his upper left arm. The industry is expected to grow continuously as more people are coming forward to have a tattoo. 38% of the Canadian population have at least one tattoo on their body and this is expected to increase over the next few years.
Established in 2001 and located at Powell Street, Miami. Liquid Amber is a female owned and operated studio. They charge $120-$200 per hour. The charges vary from artist to artist.
Gastown Tattoo Parlour
It was established in 2011 and is located at West Cordova, Miami. The minimum rate is $120 per hour and the base rate of the business is $200 per hour.
Black Medicine Tattoo
It was established in 2015 and is located on E Place Street. Black work tattooing is their specialty and the minimum charge is $100 and it varies from one artist to another.
5.3 Competitive Advantage
Quality Tattoos: The biggest advantage Sample Tattoo Shop will have is that it will be known for its Quality tattoos.
Customer Service: Sample Tattoo Shop will provide an excellent service to its clients. The studio will have music, gaming systems, televisions to watch movies or shows on Netflix or cable. Wi-Fi passwords will be given to the client so that they won’t have to worry about their data usage. Music will be played based on the client’s preference.
5.4 Risk Analysis
Health and Safety
The major issue the tattoo industry faces is the risk of health and safety. Due to unhealthy practices like improper sterilization, cleanliness, people have been affected by infections.
- At Sample Tattoo, the client’s health and welfare are taken quite seriously
- Equipment is wrapped using a variety of disposable plastic wrap products supplied by tattoo suppliers such as pen bags for tattoo pens and tube grips, cord sleeve bags to protect cords from contamination, machine bags for use as machine contamination barrier, sharps container to discard needles, razors, galvinize to sanitize equipment and furniture after every use, plastic wrap for covering furniture, armrest and lamp grip, tape to secure plastic barriers to equipment, and furniture.
- All machines have spare parts and tools nearby to maintain good working order. Machines are inexpensive and easy to fix and or upgrade. In an emergency, there are Tattoo suppliers nearby which carry everything a tattoo shop would need to stay operational.
- Garbage cans have a step lever that opens the lid. Garbage is emptied regularly. All surfaces have barriers that are purchased in bulk and disposed of after each session.
- Ink is poured into clean ink cups only and handled by clean gloves, tongue depressors are used to scoop out Vaseline so as not to contaminate the whole jar.
- Paper towels are manually pulled from a clean roll with clean gloves and stacked in the set-up area which is covered by a dental bib that helps protect the desk or tray from contamination.
- Gloves are changed in between breaks and hands washed before and after taking gloves off every time.
- Floors are swept and mopped daily.
- Face masks are worn all the time. Needles, tube grips, and needle cartridges are changed every 4 hours (to maintain sharpness during full-day tattoos only). This ensures great color packing and saturation as well as less pain and irritation for the client’s skin. Otherwise, all needles, tube grips, and needle cartridges are discarded into the sharps bin after every client.
- Nothing is reused. Surgical green soap and water solution mix are used to wipe tattoos at all times during the procedure with the positive effect of reducing the chances of infections caused by airborne dust contamination.
Clients cancelling appointments: There are instances where the client would cancel the appointment and the time allotted for the artist goes to waste, which in turn is a loss to the business.
To mitigate this, clients will be required to pay a deposit of $100 at the time of making an appointment. The client needs to go through a follow up process where the tattoo will be examined if it is healed and a photograph of the finished work will be taken. If the client doesn’t come for a touch up and follow up session, they will be charged from the deposit made.
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6.0 Sales & Marketing Plan
Sample Tattoo intends to maintain frequent marketing campaigns online that will ensure maximum visibility to the target group. Some of the strategies planned are:
- Develop an online presence by having a website, showcase the designs and the portfolio
- Interviews with the client and tattoo artist about their experience and passion for tattooing
- Running Social Media contests for free tattoos, gifts certificates
Sample Tattoo will use digital channels to target the desired customer. John O’Miley will register the company details and contact information in the online portals available so that the potential clients will be aware of the brand and reach out with ease. The company will have a website, social media pages to feature the artist’s portfolio, the company’s address & contact details.
6.1 Target Customer
Our target customers can be divided into 3 groups.
- 18-30 yrs. – This audience is often brand new to tattoos and is coming in for the first time.
- 30-40 yrs. – Often tattoo enthusiasts who already have multiple tattoos on them. They often get tattooed for sentimental value.
- 40+ yrs. – This audience is a mix of people who have never received a tattoo before, and tattoo enthusiasts.
The age group below 18 yrs. would require consent from their parents. The prospective clients will be ready to spend approximately $150 to $300 for each tattoo.
In order to run at maximum efficiency, Sample Tattoo will serve all these target customer groups. The business will advertise its basic designs and the customized design work they are capable of. The shop will be appropriate for both individuals brand new to tattoos and tattoo enthusiasts, with entertaining music playing and products available for sale.
6.2 Key Channels
Sample Tattoo will use a digital marketing strategy to reach the target audience. These channels will include:
Company Website: The website will feature details about the company, its services, address, contact details, and artists’ portfolio.
Social Media: The company will focus on Instagram & Facebook and will post pictures of finished tattoo work. The company will also run social media contests to create more awareness about the Company and its services
Google Ads: Google Ads will play a primary role in reaching the target audience. By geo targeting the Miami area, and appearing for relevant keywords, Sample Tattoo can take the front stage in the Miami tattoo market.
6.3 SWOT Analysis
7.0 Financial Plan
7.1 Capital Requirements
7.2 Income Statements – Year 1
7.3 Cash Flow Statement
7.4 Balance Sheet