How to Write a Tanning Salon Business Plan
Indoor tanning began as a therapeutic practice offering the beneficial effects of UV light. By the 1970s, indoor tanning had become widespread in Europe. There are about 19,000 small tanning salons in the United States, according to the Indoor Tanning Association. Despite health concerns about exposure to UV rays, indoor tanning is popular throughout the U.S. Industry sources report that each year, approximately 10 percent of the U.S. population visits indoor tanning establishments.
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Instructions
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Explain how your business is organized legally: proprietorship, S corporation or limited liability company (LLC). Describe your location and explain how convenient it is for your customers. Ideal locations include popular shopping centers with ample parking and facilities that are close to health clubs. List how many customers can be accommodated at one time and what products, such as lotions and sunglasses, you offer for sale. Include information about your pricing policy and whether you offer long-term memberships as well as single visits.
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Tell readers what kind of equipment your salon uses and what treatments you offer. For example, if your salon offers spray tanning services as well as tanning beds and sun lamps, you should include that information in your business plan. Give the brand names of your equipment and explain how you will ensure that your tanning equipment will always be in compliance with U.S. Food and Drug Administration regulations.
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State your plan for marketing your services with advertising in newspapers, on local radio and television, and online. If you plan special promotions and public relations initiatives, include those in your business plan. Describe your competition and tell how your salon's services will be better.
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Write a comprehensive financial section that provides information about your current finances and your prospects. If you are just starting this business, include your starting balance sheet. It must list the assets of your business in one part and your liabilities in another part. Your assets minus your liabilities equal the net worth. Working with your business team and your financial adviser, create a financial projection of your company's results (income, expenses and cash flow) over the next three years. It is a good practice to break out the first year of the projection monthly; the second and third year's projections can include annual amounts. If you are seeking funding from an investor or a bank, you and your management team will have to provide personal financial statements.
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Provide brief biographical summaries of your management team. If any team member has experience in indoor tanning, give information on that background. List your attorneys, accountants and other outside professional team members in this section.
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Write an executive summary that contains the most important features of your tanning salon. If you have the best location for a salon, include that. If your pricing is better than the competition, include that. Write this section last, but place it first in your finished business plan.
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Tips & Warnings
Seek advice from your attorney and insurance carrier to understand your liability from customers who may claim damage from tanning sessions.
References
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