How Does a Tanning Salon Business Work?

A small to medium size tanning salon is estimated to set you back by about $100 thousand per year, which is huge by any standards. This is also not a business that can be kick-started from home. The rent of the premises alone would be in the range of $10 to $35 thousand per year. In order to have this business running successfully, location, size of the salon and overall presentation is very important.
Another big expense in this venture is the compensation package and benefits you offer the personnel you employ. You will need a minimum of 5 employees: receptionist/secretary, 1 or 2 tanning bed operators, a technical person and a janitor to keep the place cleaned every day.

Once you decided that this is the business for you, you need to plan how to start and run it. The starting phase requires that you draw up a detailed and professional business plan that covers all the aspects of the business, starting from your goals and the means to achieve them, to the projected wealth generation such business would provide. Have collateral ready if you are planning to apply for a loan.
You will have to arrange for the money to fund this endeavor. You could do so by applying for a loan from a bank or by raising the requisite money form friends and relatives. Depending upon the available budget, you will need to decide whether you should buy or lease the necessary equipment, furniture and tanning beds you need.

You also need to ascertain whether you would offer stand-up booths for your clients. If so, you will need to know how many, where they will be installed and who will operate them. You also need to decide at this time where your salon will be located. Choose a location that is frequented by people, as visibility is a big factor in the profitability of the tanning business.

Once the details of the starting phase are taken care of, you will need to turn your attention to the second phase: the factors that influence how you would run your business profitably. You need to work out how you will charge your customers for the services you provide. Some tanning salons charge per session, some offer time slots, while yet others offer package deals for their customers.

Initially, until you are accepted as a veteran, you need to offer your services at an introductory price. This is a strategy that will tempt many to try out your place instead of your competitors'. Use this opportunity to charm these clients to your side by offering impeccable service plus a little extra that would keep your customers coming back for more.

This is a business that needs to offer 100 percent satisfaction if you want to establish your niche in the industry. This is one reason why your salon should be located in a prominent place, and why you should not spare any expense when it comes to furnishing your business station, as the image of the place would be as important as the quality of the tanning you provide.