tanning salon business plan uk

Tanning Salon Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their tanning salons. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a tanning salon business plan template step-by-step so you can create your plan today.

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What is a Tanning Salon Business Plan?

A business plan provides a snapshot of your tanning salon as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Tanning Salon

If you’re looking to start a tanning salon, or grow your existing tanning salon, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your tanning salon in order to improve your chances of success. Your tanning salon business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Tanning Salons

With regards to funding, the main sources of funding for a tanning salon are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for tanning salons.

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How to write a business plan for a tanning salon business.

If you want to start a tanning salon or expand your current one, you need a business plan. Below are links to each section of your tanning salon business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of tanning salon you are operating and the status. For example, are you a startup, do you have a tanning salon that you would like to grow, or are you operating tanning salons in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the tanning salon industry. Discuss the type of tanning salon you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of tanning salon you are operating.

For example, you might operate one of the following types of tanning salons:

• UV Bed Tanning Salon : this type of tanning salon focuses on just providing the UV bed tanning option to its clients
• Tanning and Bronzing Tanning Salon: this type of tanning salon offers tanning bedsas well as booth spray tanning application.
• Tanning Salons integrated with Other Salon Services: this type of tanning salon is integrated in a larger salon that offers hair cuts and styles and nail services, for example.

In addition to explaining the type of tanning salon you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the tanning salon industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the tanning salon industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your tanning salon business plan:

• How big is the tanning salon industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your tanning salon? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your tanning salon business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: high school and college students, working professionals, homemakers, and retirees.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of tanning salon you operate. Clearly, homemakers would respond to different marketing promotions than retirees, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other tanning salons.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes hair and nail salons, gyms, and dermatologist offices. You need to mention such competition as well.

With regards to direct competition, you want to describe the other tanning salons with which you compete. Most likely, your direct competitors will be tanning salons located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of tanning salon are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider selection of tanning beds?
• Will you provide tanning services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a tanning salon business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of tanning salon company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to a tanning salon, will you provide bronzing and spray tan, massage, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your tanning salon company. Document your location and mention how the location will impact your success. For example, is your tanning salon located in a busy retail district, a business district, near a college or university, suburban neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your tanning salon marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your tanning salon, including greeting and accommodating clients, answering phone and web appointment requests, social media marketing, client interaction, and ordering supplies for your tanning salon.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your tanning salon to a new city.  

Management Team

To demonstrate your tanning salon’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing tanning salons. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a tanning salon or successfully running a salon or beauty business .  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client a day or multiple new clients ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your tanning salon, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a tanning salon:

• Cost of tanning beds and lotions.
• Cost of advertising.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your tanning salon lease or list of new or existing clients you will have.  

Putting together a business plan for your tanning salon is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the tanning salon industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful tanning salon.  

Tanning Salon Business Plan FAQS

What is the easiest way to complete my tanning salon business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Tanning Salon Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of tanning salon business you are operating and the status; for example, are you a startup, do you have a tanning salon business that you would like to grow, or are you operating a chain of tanning salon businesses?

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Tanning Salon Business Plan Template

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Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management, why write a business plan.

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
• Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
• Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
• Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
• Business plans allow you to position your brand by understanding your company’s role in the marketplace.
• Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
• Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

• Executive Summary
• Company Overview
• Industry Analysis
• Consumer Analysis
• Competitor Analysis & Advantages
• Marketing Strategies & Plan
• Plan of Action
• Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at [email protected] . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Tanning Salon business plan, fill out the form below and download our Tanning Salon business plan template. The template is a word document that can be edited to include information about your Tanning Salon business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning

Want a bespoke business plan for your tanning salon business, our expertise, tanning salon business plan template faqs, what is a business plan for a/an tanning salon business, how to customize the business plan template for a tanning salon business, what financial information should be included in a tanning salon business plan, are there industry-specific considerations in the tanning salon business plan template, how to conduct market research for a tanning salon business plan, what are the common challenges when creating a business plan for a tanning salon business, how often should i update my tanning salon business plan, can i use the business plan template for seeking funding for a tanning salon business, what legal considerations are there in a tanning salon business plan.

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Starting a Tanning Centre Business in the United Kingdom

• Starting a Tanning Centre Business…

Beginner’s Guide on Starting a Tanning Centre Business in the United Kingdom

Setting up a tanning business requires a descriptive and realistic business plan, including the regulations and prerequisites of the establishment itself. Here’s a practical guide in running safe tanning and solutions with responsible service.

What Is a Tanning Centre Business?

Starting a Tanning Centre Business overviews skin beautification and artificial tanning services. Business owners are well-educated with both processes of spray tan application and UV-bed light tanning. This practice accentuates individuals who want to improve their skin appearance, sometimes treat specific skin conditions, or even try out on holiday tans most favored in western countries.

Many tanning salons provide package memberships monthly or annual to complement the sessions. It also offers retail products such as skin bronzing lotions, lotions, and sunscreens.

Basic Materials to Cover

Ensure that the property dimensions suit your budget and the types of clients you would serve. Then, you’ll have to purchase or own these essential items as you start your established business.

• Upgraded electrical for tanning beds
• Eye protection & cleaning materials
• Spay tan systems
• Various solutions in different shades and brands
• Extraction unit & master kit

Prerequisites and Factors to Consider

Opening a salon requires extensive research and critical information. Oftentimes, tanning with no proper procedures would have adverse effects on the clients. Remember to follow the advice of skin experts and dermatologists, especially in terms of risks in UV exposure. You should acquire mastery and certification in demonstrating your tanning practices before offering services. Some certifications include National Spray Tanning Professional Association (NSTPA), National Tanning Training Institute (NTTI), and Sun is Life Training and Certification.

Staff Requirements

The number of people you would need to employ depends on the range of your business (if you offer added services). However, you need to hire at least consultants, well-trained tanning individuals, instructors, and cleaning groups to ensure a pleasant and convenient tanning service. The details of your staffing and directory board are requisites in company registration in the UK . So, make sure that everyone in the management is educated in regards to the safe and efficient practice of equipment.

Tanning Centre Business Registration Process

To secure your establishment, you need to set up the type of business and staffing recruitment you’re planning to manage first. Founding a business is manageable but does require a lot of work. That is why most sole traders and collaborative people in business contact company incorporation services for a fast and accurate business registration process. It helps them manage accounting responsibilities and separate financing prerequisites, thus understanding the guidelines and position of liability.

As a sole trader, you need to register first in HMRC, and you would need to file a tax return every year through self-assessment. This includes keeping your business financial report. Naming your business does not require registration. And applying for VAT is also admissible if your turnover is over £85,000. Contact 3E Accounting for a reliable and secure way of Starting a Tanning Centre Business.

Meanwhile, registration of limited companies is usually performed by agents or professionals. But here are some details you could follow:

• File accounts and Company Tax Return.
• Storage of company guidelines.
• Article of associations.
• An agreement between the shareholders in terms of the transaction prerequisites.

You could register your business online, via post, through an agent, or through the services offered by 3E Accounting. You would have to submit basic informational needs, including your name and other necessary documents, memorandum, and articles of association. Better if you prepared it beforehand.

Licenses and Permits Needed in a Tanning Centre Business

Now that you have the fundamentals of Starting a Tanning Centre Business in the United Kingdom, keep yourself informed with the regulations in tanning salon companies as per the Birmingham British Council:

• Licensed facilities of ultraviolet tanning equipment, conditioned by the maximum exposure levels in sessions.
• Health and Safety Executive are issued warning notices and guidance notes.
• Medical conditions and compliant sunbed tubes.

Other licenses or permits you need to acquire varies on the activities you would like to consider, but here are the secondary requirements you entail:

• Notification to process personal data from the Information Commissioner’s Office (ICO)
• Massage and special treatments, therapist registration documents (added services)
• Permission to place tables and chairs on the pavement (if applicable)
• Pavement or street display license (England and Wales)
• Public space surveillance (CCTV) license, music permits (if applicable)
• Other permit and licenses certifications to be issued by the local authority

Keep in mind that registering and permitting your business in the United Kingdom would help you employ insurance and make it legally recognized. So it would be most secure to ask assistance from the leading UK corporate service provider , ensuring that your business process is fair and constitutional.

Advertising & Marketing Your Tanning Business

Having the finest and quality-assured equipment is among the leading factors of exceptional service for your clients. Still, you have to market your newly established tanning first and attract potential long-term customers. A good marketing strategy is appealing but does not overwhelm the target audience. The right amount of exposure will help you emerge in the market.

Consider expressing presence in both print and online, applying the elements of graphics and public relations. Some helpful tips include referral programs, contribution to the online community, presenting relevant recommendations and information, and brochures.

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Tanning Salon Business Plan Template

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Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Tanning Salon Business Plan

Given the current high demand, recurring revenue, and low overhead costs for tanning, it is more likely to succeed as a startup. So, if you are planning to start your tanning salon, then you want an actionable plan in place.

Need help writing a business plan for your tanning salon business? You’re at the right place. Our tanning salon business plan template will help you get started.

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How to Write a Tanning Salon Business Plan?

Writing a tanning salon business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

• This section may include the name of your tanning salon business, its location, when it was founded, etc.

Market opportunity:

• For instance, you may include tanning beds, spray tans, skincare routines, etc in this section.

Marketing & sales strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

• Traditional tanning salons
• Sunless tanning salons
• Fitness tanning salons
• Specialty tanning salons
• Mobile tanning salons
• Tanning salons with other salon services
• Describe the legal structure of your tanning salon company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• Your target market can include youth, makeup enthusiasts, etc.

Market size and growth potential:

Competitive analysis:, market trends:, regulatory environment:.

Here are a few tips for writing the market analysis section of your tanning salon business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your tanning services:

Mention the tanning salon services your business will offer. This list may include services like,

• Indoor tanning beds,
• Spray tans,
• Tanning lotions,
• Other salon services

Describe each service:

Additional services:.

In short, this section of your tanning salon plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

• For example, advanced care, affordable pricing, flexible schedule, and well-trained staff can be your USP.

Pricing strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your tanning salon business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your tanning salon business. Be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Operational process:, inventory & supply management:.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your tanning salon business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Key managers:.

• It should include, key executives, senior management, and other department managers including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your tanning salon services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your tanning salon business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample tanning salon business plan will provide an idea for writing a successful tanning salon plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our tanning salon business plan pdf .

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Frequently asked questions, why do you need a tanning salon business plan.

A business plan is an essential tool for anyone looking to start or run a successful tanning salon business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your tanning salon company.

How to get funding for your tanning salon business?

There are several ways to get funding for your tanning salon business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your tanning salon business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your tanning salon business plan and outline your vision as you have in your mind.

What is the easiest way to write your tanning salon business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any tanning salon business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Opening a Tanning Salon: The 7 Things to Do First

• Loukas Gregory
• July 20, 2022

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If you’re wondering how to open a sunbed shop, it is important to do your homework beforehand. There’s a lot that goes into opening a tanning salon, so you’ll need to budget your time and resources accordingly.

You’ll need to register and insure your business, invest in equipment and software , hire staff and more. The key to success is being fully prepared before you even think about opening your doors.

In this guide, we will outline seven of the most important things you need to do first when opening a tanning salon (UK). This list is by no means exhaustive, but it will give you a good starting point on which to build your business.

1. Create a Tanning Salon Business Plan

The first step to opening a tanning salon is creating a comprehensive business plan. This outlines your business goals, strategies, financial projections and more. You’ll need to:

• Conduct in-depth research into your target market and industry trends, both local and national
• Decide what services and products to sell, and your USP (unique selling point)
• Create your tanning salon brand (name, logo, mission statement , etc.)
• Make a financial plan with a full breakdown of projected profits and expenses

You will also need to calculate and source your start-up capital, budgeting for 10-20% extra in case of unforeseen expenses. Consider everything from the premises itself to your tanning salon software subscription.

2. Find a Location for Your Sunbed Shop

Next, you’ll need to rent or buy suitable premises for your tanning salon. This should ideally be in a high-footfall area with good visibility and easy access. Look for a location close to other businesses, as this can generate passing trade. 

You will need a building large enough for your sunbeds, reception and waiting area, customer toilets and staff facilities. If you’re selling retail products, you’ll also need somewhere to store your inventory.

Before deciding on a location, research your local competitors. If there are other tanning salons nearby, this indicates there’s a market for tanning in your area. However, you may have to work harder to stand out from the crowd.

3. Register Your Tanning Salon

Now that you have your business plan and premises, it’s time to register your tanning salon with the relevant authorities. You will need to:

• Register as a limited company with Companies House
• Register for corporation tax with HMRC
• Register as employer and set up PAYE
• Get employer’s liability insurance , and look into optional policies (e.g. commercial property and public liability insurance)
• Check with your local council for any restrictions or permissions needed for opening a sunbed shop

While not mandatory, you should also consider becoming a member of the Sunbed Association and following their code of best practice.

4. Rent or Buy Your Sunbeds

One of the most important investments you’ll make when opening a sunbed shop, UK or otherwise, is the sunbeds themselves. You can buy them outright for around £7,000 each, buy them on lease-purchase, or rent them.

Renting is often the preferred route for salon owners, as it usually includes installation, repairs and maintenance. Whatever you choose, your sunbeds must not exceed 0.3 watts of UV irradiance per square metre (the legal limit).

Don’t forget other necessary equipment such as seating, décor and retail shelving. When everything is in place, you will need to conduct a risk assessment according to HSE guidelines .

5. Invest in Good Tanning Salon Software

To run your tanning salon smoothly and efficiently, you’ll need to invest in tanning software. This will help with your salon’s day-to-day operations, such as booking appointments and taking payments. Good tanning salon software will include a multitude of helpful features , such as:

• Digital booking management
• Automatic appointment reminders
• Custom pricing structures, discount codes and referral programmes
• T-max manager integration for remote sunbed control
• Cloud-based client records stored in accordance with GDPR
• Email and SMS marketing
• Quick POS system
• Full reporting

Make sure to choose software that will grow with your business. ActiveSalon, for example, offers full accessibility from any location – with unlimited users and instant data syncing across branches.

6. Hire and Train Staff

Before you can open a tanning salon business, you’ll need to hire staff. Each of your staff members should receive full training in:

• Sunbed operation and maintenance
• UK tanning salon laws and safety guidelines
• General health and safety, first aid and fire safety
• Customer service

You will also need to train staff to use your tanning salon software, including how to input and view client records, make bookings and operate the POS system.

7. Advertise Your Grand Opening

Now that your premises, equipment and staff are ready, it’s time to think about how to open a tanning salon for business. One of the best ways to generate interest is to host a grand opening, offering special perks such as a free moisturising lotion or branded merchandise. You can advertise your opening day in many ways, including:

• Distributing flyers in local businesses or through a letterbox campaign
• Putting up posters in strategic locations
• Advertising on social media, such as Facebook and Instagram
• Investing in PPC (pay-per-click) advertisements through Google

You can also advertise a referral rewards programme, where existing customers can refer their friends for a discount on their next session. Software such as ActiveSalon can help you set this up.

Discover ActiveSalon with a Free 3-Month Trial

If you’re planning to open a tanning salon, you’ll need to invest in the right tanning salon software. ActiveSalon, the UK’s leading tanning salon management system, provides everything you need to run, manage and grow your business.

Our cloud-based system offers a secure, comprehensive client database, lightning-fast POS, full reporting and much more. And with built-in multi-site management, you can access the system from anywhere, anytime – with unlimited users and real-time syncing across locations.

Discover all of ActiveSalon’s incredible features by starting your free 3-month trial today.  Simply fill in our enquiry form, call us on 0161 507 1598 or email [email protected] to find out more.

Loukas has been a part of the tanning industry since 2013; what he doesn’t know isn’t worth knowing! As a Director of SolarTrack Systems, his responsibilities don’t just include ActiveSalon, but a variety of different tools and packages.

Contact ActiveSalon today!

Ready to take your tanning salon to the next level? Call us at 0161 507 1598 , contact us , or try our free trial by clicking the button below…

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Tanning Salon

Back to All Business Ideas

How to Start a Tanning Salon

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 18, 2022 Updated on May 14, 2024

Investment range

$52,550 - $93,100

Revenue potential

$192,000 - $480,000 p.a.

Time to build

0 – 3 months

Profit potential

$57,000 - $144,000 p.a.

Industry trend

People love to have that sun-kissed look, even in the winter when they’re stuck indoors for weeks on end. Tanning salons have exploded in recent years, with the US tanning industry expanding nearly 75% in the last decade. 

If you want to ride that wave, you could start your own tanning salon and make a good living while helping people look great. You could open a franchise outlet for the likes of Palm Beach Tan or South Beach Tanning Company, or start your tanning salon from scratch.

But before you make your move, you need to understand how to start, market, and run a business. Fortunately, you’ll find all the information you need in this step-by-step guide as you prepare to launch your successful tanning salon. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a tanning salon has pros and cons to consider before deciding if it’s right for you.

• Hot Market – Tanning is all the rage, so demand is high
• Good Money – Multiple sources of revenue
• Expansion Opportunity – Build your business, then franchise it
• Crowded Market – Many established salons to compete with
• Investment Required – Tanning beds are expensive

Tanning salon industry trends

Industry size and growth.

• Industry size and past growth – The US tanning salon industry is worth $3.9 billion in 2022 after expanding 75% in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/tanning-salons-united-states/ ))
• Growth forecast – The US tanning salon industry is projected to grow 4.9% in 2022.
• Number of businesses – In 2022, 7,052 tanning salon businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/tanning-salons-united-states/ )) 
• Number of people employed – In 2022, the US tanning salon industry employs 61,770 people.(( https://www.ibisworld.com/industry-statistics/employment/tanning-salons-united-states/ ))

Trends and challenges

Trends in the tanning salon industry include:

• Thanks to celebrity clients, spray tanning is becoming the method of choice for many people due to the risks of skin cancer from UV tanning equipment.
• Personalized tanning treatments that include customizable colors based on skin tone are becoming more common. 

Challenges in the tanning salon industry include:

• Health risks and warnings from the Centers of Disease Control have drastically reduced demand for UV tanning.
• Inhaling certain components of spray tanning materials can also cause health issues, creating concern among consumers.

How much does it cost to start a tanning salon business?

Startup costs for a tanning salon range from $50,000 to $95,000. Costs include a space rental, space preparation with tanning booths, and tanning equipment. 

You’ll need a handful of items to successfully launch your tanning salon business, including: 

• Spray tanning machines
• Commercial tanning beds
• Inventory of lotions
• Protective eyewear
• Cleaning supplies

How much can you earn from a tanning salon business?

The average price for a tanning membership is about $40 a month. After rent, overhead, and labor, your profit margin should be about 30%. 

In your first year or two, you could sell 400 memberships, bringing in $192,000 in annual revenue. This would mean $57,000 in profit, assuming that 30% margin. As your brand gains recognition and you get referrals, memberships could rise to 1,000. With annual revenue of $480,000, you’d make a fantastic profit of $144,000.

What barriers to entry are there?

There are a few barriers to entry for a tanning salon. Your biggest challenges will be:

• The startup costs of your space and equipment
• Breaking into a market crowded with tanning salons

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Step 2: hone your idea.

Now that you know what’s involved in starting a tanning salon, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research tanning salons in your area to examine their products and services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a tanning salon that also has a nail salon or a tanning salon with extended hours.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as spray tanning or UV tanning.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You can offer both tanning beds and spray tanning for one-time use, or in membership form. You can also sell skincare products for added revenue. 

How much should you charge for tanning?

A single use of a tanning service is about $20. Memberships average about $40 per month. After the costs of rent, overhead, and labor you should aim for a profit margin of about 30%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, although it may tend to be younger. You can market on sites like TikTok, Instagram, and Facebook.

Where? Choose your tanning salon location

The location of your tanning salon can play a significant role in its success. Look for a spot with high visibility, such as a busy commercial area or a location near a popular attraction. Consider the demographics of the area, including the age and income range of the population.

Take into account the layout and design of the space, ensuring that it is both visually appealing and functional.

By choosing the right location for your tanning salon, you can establish a thriving business that not only provides customers with a sun-kissed glow but also promotes relaxation and self-care. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Tanning Salon Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “tanning” or “tanning salon”, boosts SEO
• Name should allow for expansion, for ex: “Emma’s Tanning Palace” over “Emma’s Maternity Tanning Salon”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Tanning Salon Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize the vision and strategy of your tanning salon, highlighting its range of tanning services, target market, and approach to providing a safe and luxurious tanning experience.
• Business Overview: Describe the focus of your tanning salon, which includes offering various tanning options such as UV tanning beds, spray tans, and tanning lotions.
• Product and Services: Detail the range of services offered, including different levels of UV tanning, spray tanning, and skincare products.
• Market Analysis: Assess the demand for tanning services in your area, considering factors like local demographics and lifestyle trends.
• Competitive Analysis: Compare your salon to local competitors, focusing on how your services, equipment quality, or salon atmosphere will stand out.
• Sales and Marketing: Outline your strategy for attracting and retaining customers, such as membership packages, promotional offers, or social media marketing.
• Management Team: Highlight the experience and qualifications of your team, especially in areas like customer service, beauty industry, and salon management.
• Operations Plan: Describe the day-to-day operations of the salon, including equipment maintenance, customer appointments, and health and safety standards.
• Financial Plan: Provide an overview of financial aspects, including start-up costs, pricing strategy, and projected profitability.
• Appendix: Include supplementary documents like business licenses, equipment warranties, or detailed market research data to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to tanning salons. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your tanning salon will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a tanning salon business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Tanning Salon Business Licenses and Permits

Starting a tanning salon business requires obtaining a number of licenses and permits from local, state, and federal governments.

Your state may require that you have a tanning license. There are also requirements to post information about the dangers of UV rays from tanning beds. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your tanning salon business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as SalonTouch , DaySmart , or TanTrack , to manage appointments, membership signups, customer database, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Developing a website for your tanning salon is crucial in today’s digital landscape, acting as your online storefront. You have two primary options: utilizing a website builder for a more hands-on, cost-effective approach, or hiring a professional web developer for a custom-designed site.

The importance of a well-optimized website cannot be overstated; it should be user-friendly, mobile-responsive, and optimized for search engines to enhance visibility. Including clear, compelling call-to-actions (CTAs) is vital to guide visitors towards booking appointments or contacting your salon. High-quality images, engaging content, and easy navigation further ensure a positive user experience, making your website an effective tool for attracting and retaining clients.

Here are some powerful marketing strategies for your future business:

• Choose Relevant Directories : Begin by listing your salon on popular platforms like Google My Business, Yelp, Bing Places, and any local business directories specific to your area or industry.
• Optimize for Local SEO : Ensure your salon ranks in local searches and on maps. Use relevant keywords, keep your Google My Business listing updated, and actively seek customer reviews.
• Social Media Engagement : Utilize platforms like Instagram, Pinterest and Facebook to showcase services, share before-and-after photos, and engage with your audience. Regular posts and stories can build a loyal following.
• Email Marketing : Send newsletters to inform clients about new services, special offers, and loyalty programs. Personalized emails can help in retaining customers.
• Collaborations and Influencer Partnerships : Work with local businesses and influencers to increase your reach. This can include cross-promotions or special events.
• Referral Programs and Discounts : Encourage word-of-mouth marketing by offering incentives for referrals and first-time visitors. This helps in building a customer base quickly.
• Community Engagement : Participate in local events or host your own, like open houses or wellness seminars. This raises brand awareness and positions your salon as an active community member.
• Consistent Branding and Messaging : Ensure your marketing materials, both online and offline, reflect your brand identity and values consistently. This helps in building a recognizable and trusted brand.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your tanning salon meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your tanning salon business could be: 

• Get that golden look with spray tanning
• 24/7 tanning to fit your schedule
• Unlimited tanning memberships – lowest fees in town

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a tanning salon business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in tanning salons for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in tanning salons. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a tanning salon business include:

• Tanning Salon Attendants – greet and service customers
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Tanning Salon – Start Making Money!

Tanning salons are booming, and have already zoomed past their pre-pandemic levels. You could get a share of the growing market with your own tanning salon, build a thriving and popular operation — even a national franchise!

You’re off to a golden start by growing your business knowledge, so now it’s time to lay out the beds and launch your successful tanning salon.

• Tanning Salon Business FAQs

A tanning salon can be very profitable. You can make money from individual tanning appointments, memberships, and the sale of skin care products.

Qualifications and skills necessary to start a tanning salon may include knowledge of tanning equipment and techniques, business management skills, customer service experience, and understanding of safety regulations related to tanning.

You could start a tanning salon on the side by having limited hours, but that would seriously impact your revenue potential. A tanning salon is best run as a full-time business.

Differentiate your tanning salon from competitors by offering additional services like spray tanning, skin care consultations, or beauty products, providing a clean and welcoming environment, offering flexible pricing options, and emphasizing exceptional customer service.

The popularity of tanning salons can vary depending on location and cultural factors. It is important to conduct market research to assess the demand and potential customer base in your specific area.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Tanning Salon Name
• Create a Tanning Salon Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Tanning Salon Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Tanning Salon - Start Making Money!

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Tanning Salon Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Beauty Care Industry » Tanning Salon

Are you about starting an indoor tanning salon ? If YES, here is a complete sample tanning salon business plan template & feasibility report you can use for FREE .

If you are looking towards launching a business as an aspiring entrepreneur, one of your best bet is to launch a tanning salon business. The right time to start such business is now simply because the tanning salons industry is presently at its growing stage.

Setting up a tanning salon business could be a fun, profitable and an interesting business for someone who is skilled in the trade and with business perseverance and smartness.

With the right location, top-notch service and good marketing skills, you can serve varieties of customers that cuts across individual and corporate clients, celebrities and regular people et al.

However, starting up a tanning salon business may not require pretty huge start – up capital, it also needs a significant investment capital, solid planning, and attention to detail in order to keep your business profitable.

The bottom line is that if you are determined to explore the entrepreneurial world by starting a standard and licensed tanning salon , then you should consider going through the tanning salon business plan below.

A Sample Tanning Salon Business Plan Template

1. industry overview.

The tanning salons industry includes companies that provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services.

So also, some operators in this industry are also involved in running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al.

In recent time, the tanning salons industry has grown as the united states consumers have enough money to spare for services such as tanning and other health and beauty services and products.

As a result of this development, the demand for personal services and other luxury services has risen as consumers increase their spending on discretionary items and services.

It is expected that in 2016, the growth for this industry will plummet as health concerns mitigate improving macroeconomic conditions. Going forward, the tanning salons industry is expected to generate more income through the sale of sunless tanning beds and other merchandise, which will to a large extent take care of financially empowered consumers who are looking towards making luxury purchases.

Statistics show that the United States tanning salon market exceeded the $5 billion mark in 2011, with industry growth having slowed to around -1% for the five preceding years, according to research from IBIS World. The American Tanning Institute estimates there are around 30,000 indoor tanning facilities in the US. These facilities employ more than 150,000 people and serve close to 30 million customers.

The Tanning Salons Industry is currently in the growth stage of its life cycle. Statistics has it that the Tanning Salons Industry in the United States of America, is worth over $5 billion, with an estimated growth rate of 2.1percent. There are about 30,000 registered and licensed tattoo studios in the United States and they are responsible for employing about 150,000 people. It is import to start that no tanning salon company can boast of having a lion market share in the industry; the industry is very much open for competitions from all players.

Research conducted by IBISWORLD shows that Ultraviolet (UV) tanning generates about 50.9 percent of the industry’s revenue. UV tanning can be done in tanning beds or in tanning booths. One advantage of tanning booths is that they take up less space; typically 10 to 15 square feet, which is about half the room needed for a tanning bed.

As a result of this, companies can install a greater number of units and maximize their number of customers. Furthermore, tanning booths are sometimes preferred because they are more hygienic. Nevertheless, the traditional tanning bed remains the industry’s standard. Tanning booths or beds are outfitted with fluorescent lamps that emit UV in a similar spectrum as the sun. The average sessions last between 10 minutes and 20 minutes.

Over and above, the tanning salons industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own tanning salon business and of course make good money from the industry . Just ensure that your salon is well located in an environment with the right demography and you will be fine.

2. Executive Summary

Carissa & Jamborees Tanning Salon®, LLC is a U.S based and licensed tanning. We have been able to secure a standard and well – positioned facility in a central and busy district in Charleston – West Virginia. We are a tanning salon company that is set to compete in the highly competitive and fragmented tanning salons industry not only in Charleston – West Virginia, but also throughout the United States market because we intend opening our outlets in key cities across the United States.

Carissa & Jamborees Tanning Salon®, LLC will provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services. So also, we will be involved in running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al.

Our business goal is to become one of the leading tanning salons in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry. Our workers are going to be selected from a pool of certified, creative and highly experienced tanning experts in and around Charleston – West Virginia and also from any part of the United States of America as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading tanning salons in the United States and throughout the globe.

At Carissa & Jamborees Tanning Salon®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.

Carissa & Jamborees Tanning Salon®, LLC is founded by Carissa Lennon a member of the American Tanning Institute and a renowned beautician per excellence who graduated with from New York School of Arts and her sister and business partner for many years Jamborees Lennon. They have a combine experience that can help them build Carissa & Jamborees Tanning Salon®, LLC to favorably compete with leaders in the tanning salons industry.

3. Our Products and Services

Carissa & Jamborees Tanning Salon®, LLC was established with the aim of maximizing profits in the tanning salons industry. We want to compete favorably with the leading tanning salons in the United States which is why we have but in place a competent team that will ensure that every tanning services or related services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Carissa & Jamborees Tanning Salon®, LLC is not just accepted in Charleston – West Virginia but also in other cities in the United States of America where we intend opening our chains of tanning salons. Our products and services are listed below;

• 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

4. Our Mission and Vision Statement

Our vision is to establish a standard and world class tanning salon whose services and brand will not only be accepted in Charleston – West Virginia but also in other cities in the United States of America where we intend opening our chains of tanning salons.

Our mission is to provide professional tanning services and other related services to individual clients and corporate clients. We want to build a tanning salon brand that can favorably compete with other leading brands in the tanning salon industry.

Our Business Structure

Carissa & Jamborees Tanning Salon®, LLC is a tanning salon that intend starting small in Charleston – West Virginia, but hope to grow big in order to compete favorably with leading tanning salons in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business cum brand we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Carissa & Jamborees Tanning Salon®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Salon Manager

Human Resources and Admin Manager

• Sales and Marketing Executive
• Tanning Specialist

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Salon Manager:

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying the trends in the tanning salons industry, and financial opportunities; presenting assumptions; recommending objectives.
• Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
• Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
• Make certain that the tanning specialists perform efficiently, coordinate employee efforts, and facilitate communications between management and the workforce
• Ensures that the organization work in line with international best practices.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Carissa & Jamborees Tanning Salon®, LLC
• Serves as internal auditor for Carissa & Jamborees Tanning Salon®, LLC

Licensed Tanning Specialists

• Responsible for providing UV tanning services
• Responsible for providing spray-on tanning services
• Responsible for providing airbrush tanning services
• Responsible for providing body contour tanning services
• Responsible for providing sunless tanning services
• Handle complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al
• In charge of merchandise sales of tanning related products
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the Human Resource and Admin Manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Carissa & Jamborees Tanning Salon®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured tanning salon business that can favorably compete in the highly competitive tanning salons industry in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Carissa & Jamborees Tanning Salon®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Carissa & Jamborees Tanning Salon®, LLC;

Our core strength lies in the power of our team; our workforce. We have a team of certified, creative and highly trained and experience tanning specialists, a team with excellent qualifications and experience in the tanning salons industry.

Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry. Another strength that counts for us in the location of our tanning salon; it is located in one of the most ideal locations for such business in Charleston – West Virginia.

As a new tanning salon in Charleston – West Virginia, it might take some time for our tanning salon to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive tanning salons industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the tanning salons industry are massive considering the number of individuals in the United States who are embracing the tanning culture shift. As a tattoo artist studio, we are ready to take advantage of any opportunity that is available in the industry.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power especially for luxury services like tanning. Another threat that may likely confront us is the arrival of a new tanning salon in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

A close study of the tanning salons industry shows that recently, consumers have become increasingly conscious about issues such as the environment and health in general. A trend toward going green, natural products and personal responsibility for health through informed consumer choices is obvious across several industry sectors. The tanning salons industry in particular has been a cause for concern due to the risk of skin cancer associated with using tanning beds.

Another obvious trend in this industry is the advent of mobile tanning spray services. Mobile tanning spray services are an attractive business options for those attracted to the low start – up cost involved in this type of business. Market entry is becoming more difficult due to increasingly strict regulation hence the need to improvise.

Lastly, in recent time, indoor tanning has received unfavorable publicity due to associated health risks such as skin cancer et al. As a result, spray tans have been rising in popularity. Spray tanning involves the use of aerosols to darken skin, imitating a tanned effect, which lasts for around a week.

Airbrush tanning currently constitutes the beauty industry’s most dynamic market segment, according to the American Tanning Institute. Spray tanning and body bronzing were ranked the two most lucrative services in the industry in a survey recently carried out on the US spa/salon sector.

8. Our Target Market

Before starting our tanning salon in Charleston – West Virginia, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of young and old people who would need the services of a tanning salon.

Carissa & Jamborees Tanning Salon®, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our services. Below is a list of the people that we will specifically market our services to;

• Celebrities / Stars / Public Figures
• Corporate Executives
• Sports Men and Women
• Power Bikers and Cyclists
• Every Individual both old and young in Charleston – West Virginia

Our Competitive Advantage

Surviving in the business world as a tanning salon operator requires more than, your expertise, creativity, and knowing how to deliver standard tanning services et al but also how to network with key people that matters; decision makers that can decide who will get a tanning contract from celebrities or other corporate clients.

Because of the competitive nature of the global tanning salons industry, there is an increasing degree of related business activities, with franchises dominating the market and tanning salon chains a common feature. Larger outfits are diversifying to offer a wider range of related services such as health, beauty and skin services to boost their market share and increase their revenue.

We are quite aware that to be highly competitive in the tanning salons industry means that you are not only expected to be able to deliver consistent and highly creative tanning services, but you must be able to meet set targets.

Our competitive advantage lies in the power of our team; our workforce. We have a team of certified, creative and highly trained and experience tanning specialists, a team with excellent qualifications and experience in the tanning salons industry.

Aside from the synergy that exists in our carefully selected workforce, our tanning services will be guided by best practices in the industry. Another strength that counts for us in the location of our tanning salon; it is located in one of the most must busiest places highly suitable for such business in Charleston – West Virginia.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups tanning salons businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Carissa & Jamborees Tanning Salon®, LLC is established with the aim of maximizing profits in the  tanning salons industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Carissa & Jamborees Tanning Salon®, LLC will generate income by offering the following services;

10. Sales Forecast

One thing is certain, there would always be individual who would need to experience what it means to tan their face or body.

We are well positioned to take on the available market in the tanning salon industry in Charleston – West Virginia and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our tanning salon business to enviable heights.

We have been able to critically examine the tanning salon market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Charleston – West Virginia.

Below are the sales projections for Carissa & Jamborees Tanning Salon®, LLC. It is based on the location of our tanning salon business and of course the wide range of tanning services we offer and our target market;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $350,000
• Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same tattoo artists services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and increases our market share. We will leverage on improving on our services, turnaround time and facility to ensure that we win new clients and retain old clients as well.

Our unique selling proposition is that we are well positioned, we offer mobile tanning services and people can easily access our facility, our various payment platforms are highly reliable.

Our sales and marketing team will be recruited based on their vast experience in tanning salons industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Carissa & Jamborees Tanning Salon®, LLC.

Our corporate goal is to grow Carissa & Jamborees Tanning Salon®, LLC to become one of the top 10 tanning salon brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Charleston – West Virginia but also in other cities in the United States of America where we intend opening our chains of tanning salons.

Carissa & Jamborees Tanning Salon®, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Open our tanning salon business with a big party.
• Advertise our tanning salon business on national dailies, local TV stations and local radio station
• Promote our tanning salon business online via our official website and all available social media platforms
• Introduce our business by sending introductory letters alongside our brochure to celebrities, sports clubs, schools, corporate organizations, households and key stake holders in Annapolis – Maryland
• Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
• Delivering consistent customer experiences to all our members; making our first impression count positively to those that patronize our services for the first time
• Make use of attractive hand bills to create awareness and also to give direction to our tanning salon facility
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around Charleston – West Virginia
• Create a loyalty plan that will enable us reward our consistent clients especially those that introduces their friends and family members to the business.
• Engage on road shows within our neighborhood to create awareness for our tanning salon services.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of Charleston – West Virginia and other cities in the United States of America where we intend opening our chains of tanning salons which is why we have made provisions for effective publicity and advertisement of our business.

Below are the platforms we intend to leverage on to promote and advertise Carissa & Jamborees Tanning Salon®, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our tanning services
• Install our Bill Boards on strategic locations all around Charleston – West Virginia
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of Carissa & Jamborees Tanning Salon®, LLC and the services we offer
• List our tanning salon business in local directories / yellow pages
• Advertise our tanning salon in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients in Charleston – West Virginia and throughout the United States.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they introduce their friends and family members to our business. The prices of our services will be same as what is obtainable in the United States’ tanning salon services open market.

• Payment Options

The payment policy adopted by Carissa & Jamborees Tanning Salon®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Carissa & Jamborees Tanning Salon®, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via Point of Sale Machine (POS)
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our tanning services and products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a tanning salon business; it might differ in other countries due to the value of their money.

However, this is what it would cost us to set up Carissa & Jamborees Tanning Salon®, LLC in the United of America;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
• The total cost for hiring Business Consultant – $5,000.
• The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
• The total cost for leasing facility for the business – $150,000.
• The total cost for facility remodeling – $50,000
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for purchase of tanning equipment, tools and other start-up inventory (tanning supplies) – $25,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand ( 300,000 ) U.S. dollars to successfully set – up a medium scale but standard tanning salon business in the United States of America.

Generating Funding / Startup Capital for Carissa & Jamborees Tanning Salon®, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as tanning salon. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Carissa & Jamborees Tanning Salon®, LLC is a family business that is solely owned and financed by Carissa & Jamborees Lennon and their immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Carissa & Jamborees Tanning Salon®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our tanning services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Carissa & Jamborees Tanning Salon®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our tanning salon: Completed
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Purchase of tanning tools and equipment and supplies: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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How to Start a Profitable Tanning Salon Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a tanning salon business plan., 3. develop a tanning salon brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for tanning salon., 6. open a business bank account and secure funding as needed., 7. set pricing for tanning salon services., 8. acquire tanning salon equipment and supplies., 9. obtain business insurance for tanning salon, if required., 10. begin marketing your tanning salon services., 11. expand your tanning salon business..

Before starting a tanning salon business, it's crucial to perform a comprehensive market analysis to understand the current landscape and identify opportunities for growth. This analysis will guide your business strategy and help you make informed decisions. Below are the key steps to take:

• Research the local demographic to determine the target market's age, income, and lifestyle preferences that align with tanning salon services.
• Analyze competitors by identifying existing tanning salons in the area, their services, pricing, and market share to assess the level of competition you'll face.
• Evaluate industry trends by looking at the latest developments in tanning technology, customer preferences, and regulatory changes that may impact the business.
• Assess the demand for tanning services within your target market, considering factors such as seasonality and the popularity of indoor tanning.
• Understand the regulatory environment to ensure compliance with health and safety standards, licensing requirements, and any legal restrictions on tanning services.

Are Tanning Salon businesses profitable?

Yes, tanning salons can be profitable businesses, depending on the size and location of the salon and the local demand for tanning services. Factors such as competition, cost of supplies, staff costs, and marketing can also affect the profitability of a tanning salon.

Creating a thorough business plan is paramount when venturing into the tanning salon industry. It will serve as a roadmap for your business, outlining your vision, goals, and the strategies you'll employ to achieve success. Below are crucial components to include in your tanning salon business plan:

• Executive Summary: Summarize your business concept, target market, and competitive advantages. Highlight financial projections and funding requirements.
• Company Description: Provide an in-depth look at your tanning salon, services offered, and how your business fits into the market.
• Market Analysis: Research the tanning industry, identify your target demographic, and analyze competitor strengths and weaknesses.
• Organization and Management: Outline your business structure, ownership details, and information about the management team.
• Services: Detail the tanning services you plan to offer, including equipment and product lines.
• Marketing Plan: Develop strategies for attracting and retaining customers, branding, and advertising.
• Operational Plan: Describe the day-to-day operations, location, facilities, equipment, and staff requirements.
• Financial Plan: Include projected income statements, cash flow statements, and balance sheets for the next three to five years.
• Appendix: Add any additional documents that support your business plan, such as resumes, permits, and lease agreements.

How does a Tanning Salon business make money?

A tanning salon business typically makes money by charging customers for the use of its tanning beds, booths, and other services. These fees are usually based on the length of time spent tanning, the type of tanning bed used, or the type of service provided. Tanning salons may also offer other services such as spray tans, lotions, makeup, and waxing, which can generate additional revenue.

Developing a brand for your tanning salon is crucial as it sets the tone for customer experience and distinguishes you from competitors. A strong brand resonates with your target audience and communicates the essence of your business. Keep the following points in mind as you craft your brand.

• Define Your Brand Identity: Choose a name, logo, and color scheme that reflect the luxurious and relaxing experience your salon will provide.
• Establish Your Unique Selling Proposition (USP): Identify what makes your salon different, such as innovative tanning technology, organic tanning products, or exceptional customer service.
• Create a Brand Voice: Decide on the tone and language that will characterize your brand communications, ensuring consistency across all platforms.
• Target Audience: Understand the demographics and preferences of your ideal customers to tailor your brand messaging effectively.
• Visual Elements: Invest in high-quality visuals that represent your brand well, including interior design of your salon, marketing materials, and online presence.
• Consistency is Key: Make sure all your branding elements are consistent across every touchpoint with customers, from your storefront to your social media profiles.

How to come up with a name for your Tanning Salon business?

When coming up with a name for your Tanning Salon business, it is important to choose something that will represent the quality and atmosphere of your business. Think of a name that is unique and memorable, yet simple and easy to pronounce. Consider words that are associated with sun, beaches, and relaxation. Finally, make sure the name is available and can be trademarked.

Starting a tanning salon involves several critical steps, and one of the most important is formalizing your business registration. This legal step will ensure your business complies with all regulations and tax requirements. Here's a guide to help you navigate this phase:

• Choose a business structure (e.g., sole proprietorship, partnership, LLC, or corporation) that fits your needs and offers the right balance of legal protections and benefits.
• Register your business name with the appropriate state authority, ensuring it's unique and not already in use.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, which is necessary for hiring employees and opening a business bank account.
• Apply for the necessary business licenses and permits specific to a tanning salon, which may include a health department permit and a cosmetology establishment license.
• Check with your local government for any additional requirements, such as a certificate of occupancy or zoning permits, especially if you're planning to renovate a space for your salon.
• Consider the need for additional registrations, such as state-specific tax registrations for sales tax or unemployment insurance.

Resources to help get you started:

Explore vital resources designed for tanning salon business owners looking for insights on market trends, operational best practices, and strategic business growth:

• IST Magazine (Indoor Tanning Association): A leading publication for tanning salon professionals offering industry news, marketing strategies, and health information. https://istmagazine.com/
• Smart Tan Network: Provides education, certification, and business services for the indoor tanning industry, including best practices for salon safety and customer care. https://smarttan.com/
• Tanning Trends Magazine: Offers articles, tips, and latest trends for salon owners to keep their business ahead in the competitive market. No direct link provided due to the variability of availability.
• The Sun Tan Association (STA): A source for industry reports, legislative updates, and networking opportunities for tanning salon businesses. http://www.suntanningassociation.com/

Opening a tanning salon requires careful attention to regulatory compliance. Before you can welcome your first clients, it's crucial to obtain the appropriate licenses and permits that reflect your commitment to safety and legal operation. Here's what you need to focus on:

• Business License: Register your tanning salon with the local or state government to obtain a general business license, which is a basic requirement for any commercial operation.
• Health Department Permits: Because tanning salons involve direct impact on customers' health, you may need a health-related permit from the county health department, ensuring that your establishment meets sanitation and safety standards.
• Specialized Tanning Permits: Some jurisdictions require a specific tanning facility permit due to the potential risks associated with tanning equipment. Check with your local government to see if this applies to you.
• Building Permits: If your salon requires construction or significant remodeling, you'll need to obtain the proper building permits before you begin the work.
• Fire Department Inspection: Safety is paramount, so a fire department inspection may be necessary to ensure your salon complies with fire safety regulations, particularly if you're using high-powered tanning equipment.

What licenses and permits are needed to run a tanning salon business?

To operate a tanning salon business, you will need to obtain a business license from your local government. Additionally, depending on the state, you may also need to obtain a special permit from the state health department or similar agency that regulates salons and tanning facilities.

After laying the groundwork for your tanning salon, it's time to ensure your financial infrastructure is solid. Opening a dedicated business bank account will help you manage your salon's finances effectively. Additionally, securing the necessary funding is a crucial step to cover startup costs and maintain a cash flow before your business becomes profitable. Follow these guidelines:

• Choose the right bank: Research banks offering business accounts with low fees and good customer service. Consider if they provide additional services like credit lines or merchant services.
• Prepare the necessary documents: You will need your business registration details, EIN, ownership agreements, and possibly a business plan when opening your account.
• Explore funding options: Determine how much funding you need and consider sources such as small business loans, personal savings, investors, or crowdfunding.
• Develop a solid business plan: A well-crafted business plan can be instrumental in securing loans or investments as it shows the viability of your business.
• Understand the terms: Whether it's a loan or investment, make sure you fully understand the terms, including interest rates, repayment schedules, and any potential equity you're giving up.

Setting the right pricing strategy for your tanning salon services is crucial to attract customers while ensuring profitability. It's essential to consider market rates, your costs, and the perceived value of your offerings. Here are some guidelines to help you set competitive and fair prices:

• Research Competitors: Look at the pricing of similar tanning salons in your area to get a benchmark for your own prices. Aim to stay competitive without undercutting your service value.
• Cost-Plus Pricing: Calculate the total cost of providing each service, including equipment, products, labor, and overhead. Add a markup percentage to ensure a profit.
• Value-Based Pricing: Consider the perceived value of your services to customers, such as the quality of your tanning beds, location, and customer service, and price accordingly.
• Tiered Pricing: Offer multiple tiers of service, such as basic, premium, and luxury tanning experiences, to cater to different customer preferences and budgets.
• Membership or Package Deals: Encourage repeat business by offering memberships or package deals at a discounted rate.
• Seasonal Adjustments: Consider adjusting prices or offering promotions during peak and off-peak seasons to maximize revenue year-round.

What does it cost to start a Tanning Salon business?

Initiating a tanning salon business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $37500 for launching such an business. Please note, not all of these costs may be necessary to start up your tanning salon business.

Starting a tanning salon requires careful selection of equipment and supplies to ensure safety, comfort, and the best possible experience for your clients. From state-of-the-art tanning beds to skin care products, each item plays a vital role in the operation of your salon. Here are some essential equipment and supplies to consider:

• Tanning Beds: Invest in a variety of high-quality commercial tanning beds, including both lie-down and stand-up models.
• UV-Free Tanning Options: Offer sunless tanning solutions like spray tan booths or handheld spray tan equipment for clients who prefer UV-free options.
• Safety Gear: Stock up on protective eyewear for clients to prevent UV exposure to the eyes during tanning sessions.
• Sanitizing Products: Ensure a hygienic environment with hospital-grade disinfectant cleaners for tanning equipment and surfaces.
• Skincare Products: Provide a range of tanning lotions, bronzers, and skin moisturizers for before and after tanning care.
• Reception and Waiting Area Furniture: Create a welcoming environment with comfortable seating and attractive decor.
• Point of Sale System: Choose a reliable POS system to manage sales, appointments, and client memberships efficiently.
• Marketing Materials: Invest in promotional items like brochures, business cards, and signage to attract and retain customers.

List of Software, Tools and Supplies Needed to Start a Tanning Salon Business:

• Tanning beds
• Supplies for sanitization and cleaning
• Protective eyewear
• Tanning lotions, creams and sprays
• Furniture for customers
• Point of sale system
• Accounting software
• Business plan
• Website design software
• Customer relationship management software
• Advertising materials
• Marketing materials

Securing the right insurance for your tanning salon is crucial to protect your business from potential risks and liabilities. Different types of insurance will cover various aspects of your business, from property damage to customer lawsuits. Here are some key steps to consider when obtaining business insurance:

• Research the types of insurance: Common policies for tanning salons include general liability, professional liability, property insurance, and workers' compensation. Understand what each policy covers and what is required in your area.
• Consult with insurance professionals: Speak with insurance agents who specialize in small businesses or specifically in the beauty and wellness industry. They can provide personalized advice and help you navigate the options.
• Compare quotes: Get quotes from multiple insurance providers to compare coverage options and costs. Look for comprehensive coverage at a competitive price.
• Consider bundling policies: You may save money by bundling different types of insurance with the same provider through a Business Owner's Policy (BOP).
• Review and update regularly: As your business grows and changes, so will your insurance needs. Review your policies annually or after any significant changes to your business.

Now that your tanning salon is set up and ready to welcome clients, it's time to spread the word and attract customers. A well-thought-out marketing strategy will help you establish your brand, create awareness, and differentiate your salon in a competitive market. Here are some key steps to effectively market your tanning salon services:

• Develop a strong brand identity: Create a memorable logo, choose a color scheme, and develop a voice that resonates with your target audience.
• Launch a user-friendly website: Ensure your website is visually appealing, mobile-responsive, and provides all essential information such as services, pricing, location, and booking options.
• Utilize social media: Engage with potential clients on platforms like Instagram, Facebook, and Twitter. Share before-and-after photos, promotions, and tanning tips to build a community.
• Offer opening promotions: Attract initial customers with discounts, package deals, or a referral program to encourage word-of-mouth marketing.
• Partner with local businesses: Collaborate with gyms, spas, and beauty salons to cross-promote services and tap into their customer base.
• Invest in online advertising: Use Google Ads and social media advertising to target local customers searching for tanning services.
• Collect reviews and testimonials: Encourage satisfied clients to leave positive reviews online, which can be powerful endorsements to prospective customers.

Expanding your tanning salon business requires strategic planning and a focus on customer satisfaction. By diversifying your services and leveraging marketing techniques, you can attract a larger clientele and grow your brand. Here are some key strategies to consider:

• Invest in New Technology: Keep your salon competitive by offering the latest tanning equipment and skin care technology, such as spray tan booths or red light therapy.
• Introduce Additional Services: Complement tanning with other beauty and wellness services like massages, facials, or a nail bar to become a one-stop beauty destination.
• Enhance Customer Experience: Implement a loyalty program, offer package deals, and create a comfortable and inviting atmosphere to encourage repeat visits.
• Expand Online Presence: Use social media and online marketing to reach a wider audience. A well-maintained website and active social media profiles can attract new customers.
• Open Additional Locations: If your current salon is thriving, consider opening new salons in different areas to tap into new markets.
• Form Partnerships: Collaborate with local businesses, gyms, and spas to offer cross-promotions that can benefit all parties involved.
• Analyze Market Trends: Stay informed about industry trends and customer preferences to offer services that meet the changing demands of the market.

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How to Open a Tanning Salon: Step-by-Step Guide

Learn how to open a tanning salon with our six step guide. Discover the profitability of the tanning salon industry and how to succeed in today's market.

No credit card required.

Starting a tanning salon can be a fruitful endeavor, but like any business, it requires careful planning and execution. As someone who has been in the beauty industry for years, we know the ins and outs of opening a successful tanning salon. And if you're passionate about the beauty industry and interested in starting a small business, opening a tanning salon may be the perfect fit for you.

In this step-by-step guide, we’ll walk you through everything you need to know to start your own successful tanning salon – from market research to managing your business with the help of GlossGenius. So, grab your favorite drink and let's dive in!

What Does a Tanning Salon Do?

A tanning salon provides clients with the opportunity to achieve a sun-kissed glow without having to expose themselves to the sun's harmful UV rays. In a tanning salon, customers can choose between UV tanning beds and spray tanning booths.

UV tanning beds emit UV rays that mimic the sun's rays, while spray tanning booths spray a fine mist of self-tanning solution onto the skin. Some tanning salons also sell a variety of tanning lotions and other products that can enhance and prolong a client's tan. Additionally, many tanning salons offer other beauty services such as teeth whitening, red light therapy, and infrared sauna sessions to provide customers with a complete beauty and wellness experience.

How Profitable Is a Tanning Salon?

If you're considering opening a tanning salon, you're probably wondering about its profitability. According to IBISWorld , the indoor tanning industry in the US generated a revenue of $2.8 billion in 2022. The industry has been growing steadily in recent years, with a projected growth rate of 2.8% from 2021 to 2026. This indicates that there is a high demand for indoor tanning services and a great potential for profitability in the industry.

But, it's important to note that the profitability of a tanning salon depends on various factors, including location, competition, overhead costs, and the quality of services offered. In general, a well-run tanning salon can generate an average annual revenue of $150,000 to $350,000. It's essential to do thorough market research and create a solid salon business plan to ensure that your tanning salon is profitable.

Now, we’ll go over the steps you need to take to successfully launch your own tanning salon.

6 Steps to Opening a Tanning Salon

Here’s our six step guide to opening a tanning salon:

1. Do Market Research

Before opening a tanning salon, it's essential to understand your target market and the demand for your services in your local area. Conducting market research will help you identify your potential customers, competitors, and the overall market trends.

You can start by researching things like demographics of your area, such as:

• Income levels

These will help you determine if there's a demand for a tanning salon business. You can also use online tools such as Google Trends , social media platforms, and industry reports to gain insights into the tanning salon industry and consumer behavior.

Another essential aspect of market research is analyzing your competitors. You should identify the existing tanning salons in your area, their pricing, services, and marketing strategies. Understanding your competitors' strengths and weaknesses will help you develop a unique value proposition and position your tanning salon business.

By conducting thorough market research, you can make informed decisions on your tanning salon's location, services, pricing, and marketing strategies, which will help you set up a successful tanning salon business.

2. Create a Salon Business Plan

Creating a tanning salon business plan is essential to the success of your tanning salon. Your business plan should outline the structure of your business, the services you plan to offer, your target market, financial projections, and marketing strategies. It will serve as a roadmap for your tanning salon business and will help you make informed decisions.

Your business plan should start with a summary of your business concept and what sets it apart from other tanning salons in the area. This should be followed by a market analysis, which will help you determine your target market and the competition in the area. You should also include a section on your management and staff, outlining their qualifications and responsibilities.

Next, you should outline the services you plan to offer, including details on the types of tanning beds or equipment you will have, any additional services such as spray tanning or skincare treatments, and any retail products you plan to sell.

Your financial projections should include estimates for startup costs, monthly operating expenses, revenue projections, and a break-even analysis. It is essential to ensure that your financial projections are realistic and based on market research and analysis.

Finally, your marketing plan should outline how you plan to attract and retain customers. This could include advertising in local media, creating a social media presence, and offering promotions or loyalty programs. Your business plan should be reviewed and updated regularly to ensure that your business stays on track and continues to grow.

3. Secure Funding

Starting a new business, such as a tanning salon, requires funding. Most small businesses will need some sort of financial backing to get started. According to Profitable Venture, you’ll need a minimum of $298,000 to open a tanning salon.

As an entrepreneur and business owner, you have several options for securing funding for your tanning salon. One of the most popular options is to obtain a business loan from a bank or other financial institution.

When applying for a business loan , you will need to provide the lender with a well-written business plan, financial projections, and other relevant documents. Keep in mind that lenders will want to see that your tanning salon has the potential to be profitable and that you have a solid plan in place for repaying the loan.

Another option for securing funding for your tanning salon is to have some sort of general liability. This can be done by forming a limited liability company (LLC) . This will help protect your personal assets in case the business is sued or runs into financial trouble. Additionally, forming an LLC can make it easier to obtain financing since it gives your business more credibility and professionalism.

No matter which funding option you choose, it's important to have a clear plan for how you will use the money to start and grow your tanning salon. Make sure to do your own research here as getting a bank loan is a big initiative. You might want to look into other alternatives first, like sourcing money from family and friends. But, with the right funding and a solid business plan, you can turn your dream of owning a tanning salon into a reality.

4. Plan Your Location and Equipment

Once you've got the funds secured and a business plan in place, it's time to start thinking about the location of your tanning salon and what equipment you'll need to get started. Firstly, you'll want to consider the size and layout of your space. Think about how many tanning machines and airbrush rooms you'll need to accommodate your target customer base.

When selecting a location, make sure to consider factors such as:

• Foot traffic
• Accessibility
• Competition from other local businesses

You'll also want to ensure that the space has proper ventilation and meets local zoning and building codes.

In terms of tanning equipment, you'll need to invest in high-quality tanning machines that offer different levels of intensity to accommodate a range of skin types. You may also want to consider offering airbrush tanning as an alternative to UV tanning. Don't forget to also stock up on essential skin care products such as tanning lotions and oils. You'll also want to invest in a tanning salon software that allows you to manage bookings and accept payments from customers.

Additionally, you'll need to decide on the business structure that works best for you. Consider forming a limited liability company (LLC), instead of a sole proprietorship, to protect yourself and your assets from potential legal liabilities. Overall, careful planning and investment in quality equipment will set you up for success in the tanning salon industry.

5. Hire Staff as Needed

Once you have determined the type of services you want to offer and have chosen your location, it's time to hire employees for your tanning salon. The number of staff you'll need will depend on the size of your business, the range of services offered, and the number of clients you anticipate having.

For a new business, it's usually best to start with a small team and expand as the business grows. You'll need to find people with experience in the tanning salon industry, including airbrush technicians, receptionists, and sales associates. You can post job listings on job boards or social media, or you can reach out to local beauty schools to find qualified candidates.

When you are hiring employees, make sure that you are aware of all legal requirements regarding employees , including minimum wage, hours of work, and worker's compensation insurance. You should also have a clear job description and training program in place for each position.

It's important to create a positive and supportive work environment for your employees, as this can help to reduce staff turnover and increase employee satisfaction. Consider offering employee incentives, such as discounts on tanning services or skincare products. By hiring qualified staff members and creating a supportive work environment, you can build a strong team that will help your tanning salon thrive.

6. Marketing Your Tanning Salon

Once you have your tanning salon up and running, it's time to start marketing your business to potential customers. One effective way to do this is by utilizing marketing tools provided by GlossGenius. With GlossGenius, you can create a personalized website for your salon that showcases your services, pricing, contact information, and allow clients to book with you online .

One of the most important things you can do when marketing your tanning salon is to make sure you have a strong online presence. This means creating a website, as well as social media accounts on platforms like Instagram, TikTok, and Facebook. With GlossGenius, you can easily create a professional-looking website that showcases your salon and your services, and even allows customers to book appointments online .

In addition to creating a website and social media accounts, you can also utilize GlossGenius' email and text message marketing tools to stay in touch with your clients and offer promotions and discounts. These tools can help you build relationships with your clients and keep them coming back to your salon.

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When marketing your tanning salon, it's also important to build relationships with other local businesses in your community. For example, you could offer discounts to customers who refer new clients to your salon , or partner with a local spa or skin care business to offer packages that include both tanning and other services. This can help you attract more clients through word-of-mouth referral marketing.

By using GlossGenius' marketing tools and taking advantage of local partnerships, you can help your tanning salon stand out in a competitive industry and attract new customers.

GlossGenius: Managing Your Tanning Salon

In conclusion, opening a tanning salon can be a rewarding and profitable business venture if you take the time to do the necessary research and planning. By following the six steps outlined in this guide, you can set yourself up for success and establish a thriving tanning salon.

Additionally, using a management tool like GlossGenius can streamline day-to-day operations and make running your tanning salon easier. With GlossGenius' marketing tools and easy-to-use interface, tanning salon owners can focus on providing exceptional service and growing their business. Sign up for GlossGenius' free trial today and see how it can help your tanning salon or beauty salon thrive!

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Tanning Salon Business Plan Sample

Published Jul.23, 2018

Updated Apr.24, 2024

By: Brandi Marcene

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Table of Content

Do you want to start men’s salon business?

Do you want to start a tanning salon? Well, about one-third American population go to salons for tanning their skin so you will not be at loss after starting this business. Tanning business yields an immense profit but it requires proper planning as well as a lot of effort for its startup. Besides obtaining a license, you will have to buy medical equipment and machinery along with hiring experienced tanning experts.

However, the first thing you must do before starting this business is to create a detailed and effective business plan . In case you don’t know how to write a business plan, you can take help from the sample tanning salons business plan  available online or this sample plan of a tanning salon startup ‘Suntan Salon’.

Executive Summary

2.1 the business.

Suntan Salon will be a licensed and registered tanning salon which will provide high-quality tanning service. The business will be started in a leased building in Manhattan, New York.

2.2 Management

Suntan Salon will be owned by Jack Andrew, who currently runs a pharma products business. Being associated with the pharma industry, Andrew knows how to start a tanning salon and operate it efficiently.

2.3 Customers

Our customers will initially be the residential community-based in Manhattan. We will offer different packages with different exposure times as per their choice.

2.4 Business Target

Our business targets to be achieved within the next three years are as follows:

Company Summary

3.1 company owner.

Suntan Salon will be owned by Jack Andrew who is a wealthy businessman famous for his pharma products companies. Being associated with the pharma industry, Andrew is well aware of all health regulations related to this precarious work and has also hired medical experts for his venture.

3.2 Why the Business is being started

Andrew has been interested in healthcare-related businesses since the start of his career and due to his vast field experience, he knows how to start a tanning salon business . In addition to that, he aims to make a profit in this domain by providing unparalleled tanning services.

3.3 How the Business will be started

Suntan Salon will be started in Manhattan in a leased building featuring spacious air-conditioned rooms, wide reception space, a conservatory, a waiting room and four bathrooms. In addition to the usual inventory, the company will purchase air conditioned climatronic controlled aromatherapic tanning beds installed with high powered tanning lamps and music system. The startup costs are as follows:

The detailed startup requirements are given below:

Products and Services

Your tanning salon business plan must include the services you are going to provide to your customers. You should devise your services’ plan keeping in mind that you have to survive in a competitive environment where there are many similar businesses in the market. After you have decided what services will you provide, you can train your staff accordingly such as training them on how to operate the tanning machines or how to start a tanning bed .

Suntan Salon will provide the following services to its customers:

• 10 Minutes Tan: We will provide a 10 minutes tan service for the who don’t want to get exposed to Ultraviolet rays for long. This tan will last for a fortnight or a month and is fairly lighter as compared to the other package.
• 25 Minutes Tan: We will provide a 25 minutes tan service people who want to get a strong shade and are strong enough to endure slightly long-term exposure to rays. This tan will last for more than 2 months and will give them a darker look.
• Tanning Lotion: We will also sell tanning lotion needed after a person gets tanning service. This is to facilitate our customers so that they don’t have to go and buy tanning lotion for themselves.

Our customers can make a reservation with us by visiting our salon or through our official website.

Strategy and Implementation Summary

When you know how to open a tanning salon business , the next step is to define an effective strategy for business to attract and gain more customers.

5.1 Competitive Analysis

Our biggest competitive advantage will be the friendly-environment and comfort that we will provide to our customers. Furthermore, we will make sure to keep our salon and tanning beds in a clean, spotless state.

Our second biggest competitive advantage will be our exceptional customer healthcare service. We will make sure that our customers get only that tan exposure which will suit their skin and doesn’t affect their health. Besides, we’ll use the latest and best-in-class machines for our services.

5.2 Sales Strategy

After carrying out a detailed analysis, we came up with the following ideas to advertise and sell ourselves.

• We will advertise our tanning salon through social and mass media.
• We will provide discount on customer referrals.
• We will offer a 15% discount on our services for the first month of our launch.

5.3 Sales Forecast

Personnel plan.

The personnel plan of our tanning salon business is as follows.

6.1 Company Staff

We will initially hire the following people:

• 1 Manager for managing all operations in the salon
• 1 Accountant for maintaining financial and other records
• 3 Tanning experts for attending the customers
• 3 Assistants for helping the experts
• 1 Technician for maintaining our machines
• 1 Receptionists for interacting with customers and recording their orders

All the employees will be hired by following strict testing procedures and will also be trained before onboarding.

6.2 Average Salary of Employees

The following table shows the forecasted data about the salaries of the employees for the first year.

Financial Plan

The financial plan covers all the expenses needed for the startup of a business so you must develop it before laying the base for a new business. To maximize your tanning salon profit , you must formulate a thorough financial plan covering all the costs of inventory, equipment, tanning machinery, payroll, rent, etc. You can take help from this sample business plan for a general idea but it is recommended to take guidance from a financial expert if you need accurate figures.

7.1 Important Assumptions

7.2 brake-even analysis, 7.3 projected profit and loss, 7.3.1 profit monthly, 7.3.2 profit yearly, 7.3.3 gross margin monthly, 7.3.4 gross margin yearly, 7.4 projected cash flow, 7.5 projected balance sheet, 7.6 business ratios.

Download Tanning Salon Business Plan Sample in pdf

OGS capital professional writers specialized also in themes such as lash business name ideas , business plan for a nail salon , shiny nail polish enterprise business plan , business plan for a salon , tattoo shop business plan , Herbalife business plan and many others.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Government Funding For A Tanning Salon Business

Category: Business List

Tags: business funding , Government Funding , startup funding

Recommended Next: The Entrepreneur’s Definitive Guide to Securing Free Government Grants

Starting, growing, and/or expanding a Tanning Salon Business is never easy work. There are always costs that are involved and unless you have the funds you need, this can pose to be a challenge. While you can save money to use, or borrow money, finding government funding for a Tanning Salon Business can be the stepping stone you need to make your business dream come true.

The British government has several government funding programmes that a Tanning Salon Business may be able to take advantage of. These government funds may come from your local government office, from the regional government, or the national government.

Start your funding search now, to find relevant government funding for a Tanning Salon Business

A little about government funding programmes

If you are looking for government funding, or any type of government grants, loans, or other options to startup or expand a Tanning Salon Business in the UK, it’s important to know the basics of funding in general.

Government funding programmes can come from various levels of the British government. While not everyone is eligible for everything, the various agencies provide funding to business owners across the UK for specific things ranging from hiring, training, marketing, equipment purchase, and more. The majority of the funding available via the government will come in the form of a government grant, a government loan, or various tax incentives. Each programme has its own pros and cons and you should speak to a government funding expert to get help with finding funding for your small business. While you may not be eligible for every type of funding, having a clear understanding of your funding needs can open doors to various options.

Using government funding for your Tanning Salon Business

While there are many government funding programmes available for small business owners across the UK. Your business has to be eligible for them before you can plan on spending the money. As a Tanning Salon Business, you may have a number of startup or expansion expenses you want to have covered via government funds, so it is crucial that you understand what you can use the funds for before you apply. Speak to a funding expert to better understand how to use the funds and what you can use the funds for .

As a small business in the UK, the below are some of the business activities which you may be able to obtain funding for (including grants, government loans, tax breaks/credits..etc)

Some of the more common funding requirements that business owners try and take advantage of, including those starting a Tanning Salon Business business include: business acquisition costs, to help with purchase of new or used equipment, to aid with business planning, expansion capital, and for research and development.

If you are unsure of what you need for your small business just yet, speaking with a funding expert or a business consultant will help narrow down the needs. Speak to an expert now.

How much can you get in government funding?

Each business has different funding requirements. There is often no set amount as to how much it will cost you to startup, expand, or to operate your Tanning Salon Business.

While it’s easy to say, “I need £50,000 to start my Tanning Salon Business”, or “I need £500,000”; the process to determine your needs in detail should come first. This often requires a proper business plan to be done to help you determine your goals as well as your needs – in order to help you understand how much in government funding you need.

Each government funding agency has the amounts that they are comfortable providing business owners. These amounts vary and depend on a number of factors.

These factors can include the specific business you are in (the industry), your location, what you need funding for, how much you need, when you need it by, how effective your business plan is, your financial, in certain cases your credit score and more. These factors are used to determine quite a lot, and how much you may be eligible for.

As a Tanning Salon Business and based on the funding needs mentioned above (not taking into consideration other factors), others in the same industry have been successful at obtaining between as little as £25,000 and as much as £500,000. This does not reflect how much you would be able to obtain but gives you an idea of the ranges. To determine if you are eligible for any funding, you can speak to a funding expert now .

As a Tanning Salon Business, what is needed to apply for government funding?

When you are ready to apply for funding for your small business, be it a Tanning Salon Business, or any type of business, it’s important to understand that each funding program has its own criteria which you must follow.

Since each grant, loan, and funding programme is different in what they require of you as an applicant, it is important to read the qualification, criteria, and requirements being asked. You can speak to a funding expert to get a better understanding of this and what is specifically needed in your case.

If you are ready, you can speak to a funding expert now .

Generally speaking, the must-haves before you apply to any government funding programme includes:

• A solid business plan
• 3 year financials (current financials or projections)
• PitchDeck presentation (not mandatory but helpful)
• Completed and confirmed funding application

In addition to these 4 critical must-haves, you will have to ensure you meet the eligibility criteria which can often ask that you are in the correct industry, location, have the right funding needs, that you apply on time (pre-deadline)..etc

Each of the general requirements is something you should have ready before you decide to apply.

• Your business plan should be detailed and should explain your Tanning Salon Business in detail, along with a breakdown of any and all funding needs.
• The financials for your Tanning Salon Business should be clear and growth year over year should be shown.
• Your PitchDeck presentation if you decide to do one for your Tanning Salon Business should be no more than 15 slides and should be visually appealing and match the points covered in your business plan.

These 3 documents will ensure you have the majority of what is needed to apply for funding for your Tanning Salon Business.

If you need help, guidance, and handholding through the steps, working with a business and funding expert is the best way to ensure no issues. Speak to an expert now .

Ready to get started?

If you are ready to get started, and launch/expand your own Tanning Salon Business, you can register and use the Small Business Startup Platform .

The platform provides you access to the Business Plan Builder Tool which will allow you to develop your Tanning Salon Business plan from scratch, with expert guidance and assistance. It will also help you figure out how to create your 3 year financials projections, so you will be ready for the next steps.

The PitchDeck Tool will help you create a visually appealing presentation, made to impress investors or government funding agencies with the only thing left to do is to find the government funding options you can apply for. And we help with that too!

The Funding Database will provide you access to all available government funding for a Tanning Salon Business, as well as other options which including business acquisition costs, to pay for consulting services, to help with purchase of new or used equipment, marketing and advertising costs, and product or service development costs

With your access to the Small Business Startup Platform, you will have access to experts 24/7, with step-by-step assistance through each step to helping you build up with what is needed for your Tanning Salon Business, and to help you find all available government funding options.

Who can get government funding?

The British government provides quite a lot of funding each year to help thousands of small business owners benefit from the various funding options.

While there are a number of Tanning Salon Business startups or expanding businesses that secured different types of government funding, finding the funds for you should be a process that you work on with a funding expert. Work with an expert now .

Here are just a few small businesses across the UK that were successful at obtaining government funding. You can also see over 10,000 of these within the Small Business Startup Platform.

UK Startups has helped thousands of small businesses over the years with securing government grants, government loans, finding private funding, building business plans, providing expertise and guidance through the steps, and more.

In addition to providing this type of help to many Tanning Salon Business owners, other business ideas that we’ve helped include:

• Pet Supply Store -> build a business plan for Pet Supply Store and find funding .
• Warehouse -> build a business plan for Warehouse and find funding .
• Boat Club -> build a business plan for Boat Club and find funding .
• Records Storage Facility -> build a business plan for Records Storage Facility and find funding .
• Office Equipment Rental Service -> build a business plan for Office Equipment Rental Service and find funding .
• Public University -> build a business plan for Public University and find funding .
• Rare Book Store -> build a business plan for Rare Book Store and find funding .
• Video Equipment Repair Service -> build a business plan for Video Equipment Repair Service and find funding .
• Pond Contractor -> build a business plan for Pond Contractor and find funding .
• Patent Attorney -> build a business plan for Patent Attorney and find funding .

Working with an expert at UK Startups will ensure that they have the skills required to assist you with a Tanning Salon Business, or any other business that you may be deciding to get into.

Want to know more about the experts?

Working with an expert on starting your small business, be it a Tanning Salon Business or something else – you want to ensure that you always work with the best business consultants, experts, and advisors that can help your business achieve success and to help you find the best funding options for your needs.

Working with UK Startup experts ensures you get dedicated support 24/7 from various individuals with experience in your industry and an understanding of your needs. Each expert provides a unique skill to be able to help you achieve your goals with your business plan, the financial, pitching your business model to investors, finding funding, and more.

The experts, which are part of the Small Business Startup Platform are available 24/7 via the Ask an Expert program. This is available to all members and the service should come in handy when starting your own Tanning Salon Business. In addition to being available 24/7 for any business-related questions, some of the direct assistance you can benefit from when using the experts include:

• Providing you with application guidance and review service
• Assisting with the pitch process
• Assistance with creating your business plan
• Helping you determine your funding needs and requirements
• Providing you with an in-depth review of your work
• Guiding you with your financial projections
• Helping you with your financial statements, including balance sheet, cash flow, and profit/loss statements
• Searching for available government grants and other funding options for you

Ready to get started and work with an expert? It is as easy as registering here .

Checklist to help with government funding for Tanning Salon Business

The process of starting a Tanning Salon Business can be a simple one if you have access to the funds you need. The below checklist will help you with the steps needed to secure government funding for a Tanning Salon Business.

This checklist is best used with the Small Business Startup Platform and set of tools/resources:

This can be done on paper, in Word, or using the Business Plan Builder Tool. As you go through the process of writing down your business idea, be sure to use the Ask an Expert program to request help, guidance, or assistance if something is unclear. Following the right step-by-step guide to developing a plan that can help with getting government funding is the key to success.

Once you’ve had a chance to go through the business plan, be it in full, or partially, sharing your work with an expert who specializes in business plans should be the next step. An expert who has an in-depth understanding of government funding and what is needed to succeed will review your work and provide you with actionable feedback to help you complete the plan needed to start your Tanning Salon Business.

The process of creating financials is a fairly complicated one. By using experts to help you, via the Ask an Expert program, the projections of your financials can be done with ease. This process will help you with the step by step in putting together proper, annualized projections including documents that are needed by funding agencies.

Having a PitchDeck presentation to go along with your business plan can help with show the visual side of the business model as well as your funding needs. By having a PitchDeck presentation that is optimized for funding and summarizes your government funding needs, the process of sharing your information with a funding agency does get simplified. You can use the Ask an Expert program to get step-by-step help with developing the best PitchDeck for your business.

The funding search is not a complicated process, but it can be if you are doing it on your own. In fact, the average time it takes to find funding on your own can range from 6 to 8 weeks, if you know where to look! With the Funding Database and access to the Ask an Expert program, the search process of finding government funding for Tanning Salon Business becomes much easier.

Use the experts to help you find the best options for your needs

The last step of the checklist to find government funding for a Tanning Salon Business is to ensure you fill out the funding applications correctly. While you can do this on your own, directly via the funding agency, it is a good idea to use the Ask an Expert program and have an expert guide you step by step through the application process and review them before being sent out.

The 6-step checklist process of starting and finding funding for your Tanning Salon Business can be done fairly quickly with the right tools, resources, and services available via the Small Business Startup Platform .

To use the Small Business Startup Platform for your own business – register right here .

Still not ready?

Starting a small business is a lot of work, especially if you need funding to ensure your success. If you are still in the early phases, it’s good to work with an expert to start correctly, right from the beginning. But if you need a bit more time, the below resources about government grants, government loans, government funding in general, starting up, business planning..etc should help focus you in the right direction:

• Funding the Future: Understanding R&D Tax Relief for UK Enterprise
• How Much Does It Cost To Start A Small Business?
• Private Investors as a Funding Source Guide
• Funding Database Walkthrough: East England Business Grants and Funding
• Government funding options for starting a small business

INSTANT ACCESS - Early JUNE Government Funding Options

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How to Open a Tanning Salon

A golden-tanned body never goes out of style. Many consumers work hard to feel and look healthy and a bronzed body is part of their health regimen. Most, however, don’t have the funds or space to purchase a tanning bed for their private use, making the tanning salon a more viable option.

Learn how to start your own Tanning Salon and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a tanning salon by following these 10 steps:

• Plan your Tanning Salon
• Form your Tanning Salon into a Legal Entity
• Register your Tanning Salon for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Tanning Salon
• Get the Necessary Permits & Licenses for your Tanning Salon
• Get Tanning Salon Insurance
• Define your Tanning Salon Brand
• Create your Tanning Salon Website
• Set up your Business Phone System

We have put together this simple guide to starting your tanning salon. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Tanning Salon Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your tanning salon?

Business name generator, what are the costs involved in opening a tanning salon.

First, you’ll need to decide if you want to have tanning beds or spray tanning available for your clients. This will help in determining the type and size of space you need. Once you’ve secured a space, it’s time to start purchasing supplies.

Spray tan machines cost anywhere from $500-$5,500, while UV tanning beds can cost upwards of $10,000 each. Both can be found used for a moderate price.

Once these important purchases have been made, you’ll just need a few basic items, which will run you approximately $4,000:

• Eye protection
• Timer system for each bed
• Cleaning supplies
• Signs and brochures regarding tanning bed safety and UV ray exposure
• Upgraded electrical for tanning beds
• Cash register and credit card machine
• Marketing products

Read our tanning salon purchasing guide to learn about the materials and equipment you'll need to start a tanning salon, how much to budget, and where to make purchases.

What are the ongoing expenses for a tanning salon?

Your energy bill will be one of your largest ongoing expenses. Salon owners report paying anywhere from $500 - $1500 a month. Exact amount will depend upon the time of year, how many beds you own, and how busy you are. Payroll and payroll taxes are also a major expense, which will fluctuate seasonally with the business.

Budget for at least $200 per month for cleaning and maintaining the beds. Retail products will set you back another $1,000 per month. If you decide to do spray tans rather than tanning beds, your inventory costs will be higher, but can be offset by a lower energy bill.

Who is the target market?

While you will always have a revolving door of first-time clients, most tanning salons thrive from their repeat customers. These individuals are committed to looking their best and maintaining a golden tan is part of that look.

How does a tanning salon make money?

Revenue from a tanning booth is generated on a per client, per visit basis. Many salons have multiple beds and/or spray tan options available and are priced accordingly. Visits last up to 15 minutes per session and will vary based on the client’s specific needs.

Customers are charged per visit. Tanning bed sessions range anywhere from $5-$20 each, depending upon the length of the visit and the level of tanning bed used. Spray tans are billed the same, with salons charging between $25-$50 per visit.

How much profit can a tanning salon make?

Your business’ profit is directly tied to the number of beds you maintain and how often those rooms are filled. On average, each room should generate between $12,000 - $15,000 annually. Each visit will cost you $6 - $9 in supplies and energy costs. Some salon owners report making upwards of $58,000 in profit, while others claim to have very little left after business and personal expenses. The one item they all agree on - more beds = more profit.

How can you make your business more profitable?

Tanning businesses who have reported higher earnings offer a variety of tanning options and skin care products. If you’re looking to increase your business’ profits, consider including the following in your business strategy:

• Stock your shelves with skincare and tanning products
• Become certified
• Offer both airbrush tan and UV tanning
• Offer a mobile service for spray tanning
• Set up membership options, with each tier offering different incentives
• Offer additional spa services. If customers only have to go one place for multiple services, they’re more likely to return

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your tanning salon is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

Legislation is being processed which will restrict tanning booth users to consumers over the age of 18.

State & Local Business Licensing Requirements

Though this varies by state, tanning salons are typically required to provide consumers with warning statements informing them of the risks that accompany UV radiation. Consumers must sign the warning statement after reading it. More information related to tanning business regulations can be found here.

In addition, certain local licensing or regulatory requirements may apply. For more information:

• Check with your town, city or county clerk’s office for information about local permits and licenses.
• Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Release of Liability

To avoid liability and potential lawsuits, tanning salon businesses should have their clients sign a release of liability. Here is an example of one such form.

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your tanning salon when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Tanning Salon needs and how much it will cost you by reading our guide Business Insurance for Tanning Salon.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a tanning salon

Not everyone is a tanner. As a salon owner, it’s important to know and understand your clientele. Focus your marketing efforts on consumers who pride themselves on health and beauty. This could include hair and nail salon customers, gym members, and people preparing for a special event. Many have found success through offering a free initial/consultation visit, which gives you an opportunity to show them why your establishment outshines the rest.

How to keep customers coming back

As with any small business, word of mouth can make your business. Remember, your customers are spending their money on a luxury service. Show them you appreciate them by always giving them a relaxing and enjoyable experience. Your pricing should be transparent and your staff should be energetic and helpful. Most importantly, your workspace should always be immaculate.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Opening your own tanning salon requires good business sense and a commitment to the business. For those who are passionate about helping people maintain that “summer glow,” a tanning booth can be a lucrative business venture.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a tanning salon?

As the owner of a tanning salon, your biggest task will be to interact with clients. Both personally and online, you’ll need to educate consumers regarding a healthy skin care regimen and to dispel any myths regarding tanning bed safety. The tanning beds will need to be maintained and salon product inventory should be kept up. Since the business can be seasonal, you’ll also need to spend part of each day analyzing and tweaking your marketing strategy to ensure you reach your target audience year round.

What are some skills and experiences that will help you build a successful tanning salon?

As the owner of a tanning business, you’ll need strong business skills. Your work will require you to interact with clients and staff regularly, so strong interpersonal skills are critical. Many consumers have been taught that tanning is bad for the skin, so an understanding of the effects, as well as skin care will also be beneficial. The National Tanning Training Institute and Smart Tan offer both educational and networking opportunities that can prove invaluable to your business’ success.

What is the growth potential for a tanning salon?

Typically, tanning salons remain small, serving those in their community. If your goal is to build a larger business, consider starting your own franchise or partnering with a franchised company such as Sun Tan City.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

Your team will be an integral part of the business’ success. It’s important to employ individuals who are well-groomed and professional. Many of your customers will turn to your team with questions regarding the risks of using a tanning bed as well as proper protocol.

Read our tanning salon hiring guide to learn about the different roles a tanning salon typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Useful Links

Truic resources.

• TRUiC's Tanning Salon Hiring Guide
• TRUiC's Tanning Salon Purchasing Guide

Industry Opportunities

• Franchise opportunity
• American Suntanning Association
• UV Tanning Certification Opportunity
• National Tanning Training Institute

Real World Examples

• Large tanning franchise
• Independent tanning salon

Further Reading

• Startup Costs for Tanning Salons

Have a Question? Leave a Comment!

How to start a beauty salon

Our experts, written and reviewed by:.

Even amid a nearly unprecedented cost of living crisis, there’s still room in a lot of people’s budget for a little glow up now and then. For customers needing a treat in these otherwise pretty grim times, there’s always going to be room for a visit to the beauty salon.

But what’s key to a salon or spa’s success is that, alongside giving flawless treatments, you also provide a relaxing and enjoyable experience – not to mention implementing added safety measures fit for the post-Covid world.

This can be confusing for new businesses to navigate, but don’t worry. Here at Startups.co.uk, we’re experts in everything there is to know about leasing premises, getting equipment and paying staff. Read on to find out the top tips and tricks for opening a beauty salon, and how to run a successful business once launched.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have practical resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

This article will cover:

Beauty salon or day spa ideas, your beauty salon business plan, beauty industry regulations.

• Finding the right location or premises

Sourcing equipment and getting software

Hiring beauty therapists, marketing your beauty salon or day spa.

When starting a beauty business, you’ll need to consider a key question – which beauty therapy services will you be offering to clients?

Salons and spas can offer a range of treatments, but here are just a few examples to get you thinking:

• Manicures and pedicures
• Eyebrow microblading, threading or shaping
• Hair treatments such as bleaching, waxing, electrolysis or laser hair removal
• Massages, from hot stone to deep tissue to facial
• Tanning services such as spray-on fake tans or tanning beds
• Specialist hair treatments such as hair extensions, chemical straightening, perms or Brazilian blow drys
• Specialist beauty treatments such as botox or cellulite reduction
• Professional make-up and makeovers

Remember, in this industry staying ahead of current trends is key. If you specialise in nail art but don’t offer the new style everyone wants to try, for example, you’ll lose out to the competition – so be prepared to revise your treatment lists every now and then.

Rachel Fox, founder of The Beauty & Blow Dry Studio , said: “At the beginning it was all about offering a small selection of maintenance treatments. That has slowly changed and developed over the last year or so, as you listen to client feedback and pick up feelers for what they want. It’s all about growth and improvement. Our clients trust us, so if we introduce a new treatment or product, it’s because we know they’ll love it.”

Some additional questions you’ll want to ask yourself include.

• An increasing number of men are now seeking specialist health and beauty treatments – do you want your salon to attract men, women or both? You’ll need to tailor your treatments, branding and marketing accordingly.
• How much money would you like to spend? The equipment needed for basic treatments like manicures and pedicures costs a few hundred pounds, whereas laser machines could cost thousands.
• Would you like to branch into retail? Selling beauty products at your reception will add another revenue stream, but you’ll have to invest in getting the stock.

Conducting market research

Once you have a salon concept in mind, it’s crucial that you evaluate its viability and chances of success before committing to it.

To do this, you’ll first need to work out who your target audience is. You can then use this to conduct thorough market research and gain feedback on your idea from your target customers.

Only when you’re satisfied with, and ready to learn from, the results of your market research should you proceed with your salon or spa idea.

Choosing a salon name

Naming is equal parts fun and difficult. Of course, you should love your business’ name, but it’s just as important that it works as an accurate representation of your brand image.

Beauty salon name ideas:

• List the words that come to mind when you think about your salon and the experiences you’re offering. Don’t limit yourself; get everything down! Then try combining them in interesting ways, exploring their synonyms, et cetera.
• Try incorporating your own name or nickname into the salon’s name.
• Try incorporating the name of the town or city you’ll be based in into your salon’s name.
• List puns or plays on words relating to your treatments – do any make a good name? (Don’t do this if your brand image is more high-end luxury than laid-back fun.)

Remember, your name should be:

• Unique (you don’t want clients to confuse you with another business)
• Easy to read, spell and pronounce
• Appealing to your target audience
• Available to use as a company name (check using the Companies House register )
• Available to use as a website domain name

Once you’ve chosen the perfect name, you’ll need to officially register it – learn how with our guide to registering a company name .

Leah Durrant, founder of Beauty Re:Treat , says: “The name needs to be easily remembered and show off your brand in one name. Most importantly, you should think about how it will come across on search engines like Google. We chose Beauty Re:Treat as when people google ‘beauty’ and ‘retreat’, we will be one of the suggestions that come up.”

Writing a hair and beauty salon business plan will help you to plot out each aspect of running your salon, from your marketing strategy and plans to hire therapists right down to the nitty gritty of your financials.

How much does it cost to open a beauty salon?

As already stated, you’ll need to invest a substantial sum into your salon or spa from the get-go. The key outlays you’ll face are:

• Renting/leasing your premises
• Furnishing your salon or spa (if necessary)
• Purchasing/renting equipment, tools and products
• Paying your staff’s salaries

When it comes to start-up costs, Durrant says they “completely depend on the rent of the shop, the size, the staff, the décor and treatments.

“I didn’t invest a huge amount as I don’t believe you need to, but I would say around £25,000 minimum is a good amount to start up.”

Meanwhile, Nicole suggests that start-up costs can be lower, at “anywhere from around £10,000 to £15,000 upwards ”.

But when it comes to costs, you should also be as prepared as possible. Always include a contingency budget for 150% of what you think your budget will be.

Bear in mind that you’ll also need to pay for business rates, the licenses you need to perform your treatments, and business insurance (more on this in section three) – and don’t forget the costs of a good website, a business phone system to enable customers to make bookings, and of course a point of sale system so they can pay!

How much might you earn as a beauty salon owner?

The money you take home will depend on the amount you charge for your services, versus the overheads and expenses you pay out. So, the prices you pick for your treatments are very important – they must enable the potential to make a profit, while remaining attractive to your target customer

When it comes to earnings, Nicole says “Really busy salons can earn anywhere from a minimum of £3,000 a month for a busy stylist, so depending on the size of your salon, you can work out your personal salon’s earning potential”. Durrant adds: “If you run your salon well you can earn £50,000 to £100,000 or more.”

However, you shouldn’t expect to turn a profit straight away. It’s likely that months – even years – will pass before you start taking in more money than you are paying out or investing in running your salon. But don’t be disheartened – you’ve every chance of making a fantastic profit once you’re established; you just need to be patient and work hard.

Rachel Fox, of The Beauty & Blow Dry Company, says: “The most important thing is to keep fresh and exciting and bring treatments in that your clients want. This means reinvesting any money you may potentially earn yourself, back into your business. At least for the first few years.

“One day I know that I will take a good wage from it but for me it’s all about growth and being the best we can be.”

Adhering to legal legislation and beauty industry regulations is of paramount importance if you want your beauty salon or day spa to be run safely and legally.

Particularly post-Covid, the average consumer has come to expect safety measures like hand sanitisers and increased sanitisation as a given for most firms, so you don’t want to risk the safety, or custom, of your clients.

Take a look at our guide to beauty salon legislation and regulations to:

• Learn about the qualifications and training you’ll need to complete to become a salon or spa owner.
• View our regulations checklist, which will take you through the beauty salon insurance and licenses you’ll need, plus financial considerations.
• Learn how to ensure your beauty salon or spa complies with crucial health and safety regulations, including coronavirus requirements.

Finding the right location and premises

When starting a beauty salon, the location you open in is absolutely crucial to your success. If you’re not near the right customers and miles away from relevant shops and facilities, you’ll struggle to get people through the door.To find the best possible location for you, evaluate your shortlist of place by considering the following:

• Footfall: count how many people pass through your potential location during business hours. Generally, the busier the better.
• Population: you’ll want the people who live in, or otherwise frequent, your chosen area to fit your target market. Consider factors like the age, gender and estimated income bracket of the people there.
• Competition: get to grips with the salons and spas that already operate in the area, work out what they offer and how successful they are.
• Transport links: make sure your salon is accessible in terms of public transport and driving. It’s worth checking out nearby parking allowances, too – customers may be leaving your salon without makeup, or with skin reddening from treatments, and so on.
• Availability: seek out the available properties in each area and work out whether they’d be a good fit for you in terms of size, layout, architectural design and rental/leasing costs.

Remember – there’s a maelstrom of property licensing regulations involved with opening a salon, and in some cases your local authority might not allow you to use a certain property as a beauty salon or spa – so you’ll need to confirm it with them before agreeing to rent a place.

When it comes to opening a beauty salon or day spa, getting the right equipment, good quality furniture, top notch products and streamlined salon software will be a costly but crucial stage of the process.

Read our guide to salon equipment and software to learn:

• How to find suppliers who’ll provide you with beauty treatment equipment and products.
• Which equipment and software you need to accept customer payments at reception.
• Why installing beauty salon software will benefit you.

According to Nicole: “Looking for stylists or beauticians is one of the hardest things in business as trying to find somebody that has the personality, as well as the ability to carry out the work, can be a tall order at times.”

Indeed, your beauty salon or spa is only as good as the staff who work in it, so it’s important that you find competent beauty therapists to man your business.

To find candidates, Leah Durrant’s salon uses “a number of methods.” These include posters inside and in the window of the salon, word of mouth, social media, Indeed and other recruitment websites.

Qualifications

At the very least, all of your therapists should have a qualification from a recognised government body. In fact, most insurance providers won’t cover your salon unless your therapists have a Level 2 or 3 NVQ, or exam equivalent.

“I always look for NVQ Level 3 minimum in beauty,” Fox says, “along with good presentation, an excellent telephone manner and great customer service skills.” Durrant adds: “The main criteria I look for when recruiting a beauty therapist is a positive attitude and passion, and that they’re honest, friendly and professional.”

Different candidates will have different levels of experience – some may be freshly qualified while others could have worked in salons for years. The level of experience you’d like your therapists to have is up to you.

Highly-experienced therapists might bring skills that you don’t have to the table, while inexperienced therapists can be trained to perform your treatments exactly how you’d prefer them to be done.

Fox explains that she looks for “a minimum of three years in-salon experience” as she is not a trained therapist herself. “However, no matter what difficult position I’ve been in, I would much rather be down a staff member than have a bad staff member. They can do much more harm to your business than not having as many appointments available for your clients, so I would always say keep your standards high.”

Paying your therapists

When managing shifts and salaries, it’s important to meet beauty industry standards and expectations so as not to get a reputation as an unfair employer.

Therapists usually work a five-day week of 37 to 40 hours (typically including Saturdays), but some salons operate on six and seven days.

Salaries for beauty therapists average at £15,000 to £20,000 a year dependent on experience, while highly experienced therapists and salon managers can earn over £20,000. Use these figures as a guideline for what you pay your staff, but remember therapists working in central London will expect London weighting too.

If your therapists are going to earn commission for the treatments they book and perform – and any products they sell – this will typically sit at 10%.

Hiring an apprentice

Alternatively, you might choose to take on an apprentice and train them at your salon while they study for a qualification.

The simplest way to get an apprentice is to register with an apprenticeship training agency (ATA). These recruit apprentices on behalf of the employer (you), and arrange the candidate’s training with you.

If you’d rather find an apprentice yourself, however, you’ll need to choose which course – and from which training body – you’d like your apprentice to be studying for, and request to take on a student from the course.

Once you have someone, work with them to put together an apprenticeship agreement and commitment statement. These will set out the amount of time you’ll employ them for, the training you’ll provide them, and what both you and they will do to ensure the apprenticeship goes well.

Government funding is available to businesses who take on apprentices, so get in touch with the National Apprenticeship Service to find out whether you’re eligible for any.

With so many salons and day spas open today, each needs to prove its value in innovative ways. You can use the following techniques to spread the word:

Build a website

If nothing else, you absolutely must have a sleek, professional website – customers who hear of you will seek it out to take a look at your treatments, check out your prices and find your contact details.

To get a website up and running, you can either hire a freelance web developer to work with, or use a website building platform . Cost-effective and simple to use, these platforms are ideal for beginners.

Compare website builders and their prices directly and for free here !

Use social media

On social media, you can share images and details of your treatments, your salon’s environment and your therapists, giving potential customers a sense of familiarity with your salon.

Maximise the power of social media by:

• Using a tone of voice and communication style that’s consistent with your brand image
• Using professional, high-quality images
• Sharing popular hashtags that are relevant to your salon and treatments
• Staying engaged with your followers by responding to their comments and instant messages
• Experimenting with competitions and giveaways

Email your customers

Keeping in regular contact with your clients via email, sharing special offers and updates on what the business is up to, is an excellent way to keep them engaged and thinking of your salon or spa.

Durrant advises to “Market your salon from your software; send out newsletters, texts and recommend a friend cards to clients to keep them coming back to the salon and to gain new clients too”. A CRM (customer relationship management) system will help to streamline this process, personalising emails and newsletters with each customer’s name, automating sends, collating customer data and more.

Check out our guide to the best CRM tools for small businesses , and compare CRM systems quotes for free.

Offer packages and tailored experiences

When people visit a salon or spa, they like to feel special. While you should always aim to give your clients a great experience, you can capitalise on this even further by crafting special packages.

For example, you could include a glass of champagne with a treatment, or throw in free hand massages with your manicures. You could also get in on the party and events market, offering special packages for groups – for instance, providing drinks of their choice and giving them free samples of products.

Introduce a rewards scheme

Salon customers tend to be loyal – if they’ve had a good experience with you they’ll probably come back again.You can really drive this loyalty further by offering a rewards scheme – for example, after getting four treatments the customer can have their fifth for free, or at a reduced price.

What’s next?

Opening a beauty salon is a huge undertaking, but if you’re passionate about providing fantastic treatments to clients, there’s every chance that you will find success.

With the right qualifications and training, plus some stellar customer service skills, a warm personality and a lot of patience, you can use this guide to make your beauty salon the best it can be.

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