Tablature Tattoo will open a small tattoo parlor in suburban Greenwood, NJ, where both tattoo newbies and collectors will be able to work with two established, talented artists. The business will provide small, introductory tattoos from existing designs, basic tattoos that can be executed in one hour, and full half-day sessions with the artists. The artists can offer extended consultations and custom design work with the customers as needed. The business will also sell a wide range of clothing items and posters featuring designs created by the two artists at the business. The founders, husband and wife Jake and Julie Hunt (a tattoo artist and retail administrator), seek a $10,000, three-year loan to launch the business.
The business needs only $22,200 to launch, due to the low capital requirements of the business and the intention to use low-cost marketing techniques and direct selling to find initial customers. This low startup cost and the high margins on tattoo work (around 75%) will lead to positive cash flow within 6 months and the ability to repay this loan easily, as well as provide impressive dividends to the owners and a generous salary to the additional freelance artist contracted by the business. Sales will exceed $300,000 by the third year based on the full-time work of these three individuals.
Tablature Tattoo will meet the following objectives over its first three years of operation:
- Reach annual revenues of approximately $330,000 in year three
- Successfully create 5446 tattoos over three years
- Earn net profits for the owners, for significant total compensation to the two owners including salaries and dividends
Tablature Tattoo will create safe, impressive tattoo art for customers in the Greenwood, NJ area both through tattoos and through other products featuring art by the shop’s tattoo artists. The business seeks to create a full-time livelihood for Jack and Julie Hunt, the owners, while sharing revenue generously with an additional employed artist who will help to build the business.
Keys to Success
Keys to success in the tattoo shop business include:
- Encouraging repeat customers (collectors) who return again and again for full sessions with artists they love
- Making the health and care of customers and tattoos a top priority to ensure the safety of the customers, employees, and business
- Working with talented artists and encouraging their expression and freedom