Sample Tanning Salon Business Plan

To open a tanning salon, you will need to have a business plan. This document will outline your business goals, strategies, and how you intend to achieve them. Here is a sample template to help you get started writing your business plan.

Related: Guide to starting a tanning salon

Executive Summary

Tan Your Buns is a tanning salon that will be located in Chicago, Illinois. We offer quality tanning services at an affordable price. Our target market is people who are looking to get a quick and easy tan. Our competitive advantage is our convenient location and our ability to provide a high-quality service at a lower cost than our competitors. Our financial goal is to generate enough revenue to cover our costs and make a profit.

John Doe is the owner of Tan Your Buns. He has been in the tanning business for over ten years and has a passion for helping people look and feel their best. John’s experience in the tanning industry has taught him a lot about what it takes to run a successful business. 

Startup expenses are projected to total $114,000 and include tanning beds, building renovations, signage, and startup capital to cover the first few months of operation. The owner will invest $34,000 of his own funds, leaving a loan request of $80,000.

Tan Your Buns is committed to providing our customers with the best possible tanning experience. We will provide high-quality services at competitive prices. We will use a variety of marketing techniques to reach our target market. And we will carefully manage our expenses to ensure that we are able to generate a profit. With these strategies in place, we are confident that Tan Your Buns will be a successful business.

Company Description

Tan Your Buns is a tanning salon that will offer high-quality tanning services at an affordable price. We will be located in Chicago, Illinois. We offer a variety of services, including traditional tanning, airbrush tanning, and spray tanning. We also offer a variety of packages to fit our customers’ needs.

Our target market is people who are looking to get a quick and easy tan. Our competitive advantage is our convenient location and our ability to provide a high-quality service at a lower cost than our competitors.

Products and Services

Tan Your Buns offers a variety of tanning services, including traditional tanning, airbrush tanning, and spray tanning. We also offer a variety of packages to fit our customers’ needs.

Traditional Tanning

Our traditional tanning services use UV light to darken the skin. We offer both stand-up and lie-down tanning beds.

Airbrush Tanning

Our airbrush tanning services use a machine to spray a fine mist of tanning solution onto the skin. This is a quick and easy way to get a natural-looking tan.

Spray Tanning

Our spray tanning services use a machine to spray a fine mist of tanning solution onto the skin. This is a quick and easy way to get a natural-looking tan.

Packages

We offer a variety of packages to fit our customers’ needs. We have packages for first-time tanners, sun worshippers, and everyone in between.

Management

Legal Structure

Tan Your Buns will be an Illinois Limited Liability Company owned by John Doe.

Related: Learn more about choosing the right legal structure.

Team

Tan Your Buns is led by a team of experienced tanning professionals.

Owner

John Doe is the owner of Tan Your Buns, a tanning salon in Chicago, Illinois. John has been in the tanning business for over ten years and has a passion for helping people look and feel their best.

John’s experience in the tanning industry has taught him a lot about what it takes to run a successful business. He is committed to providing his customers with the best possible service and is always looking for ways to improve his business.

John is a strong believer in the importance of customer satisfaction. He knows that happy customers are the key to a successful business, and he goes above and beyond to make sure his customers are always satisfied.

Employees 

Tan Your Buns plans to initially hire two employees: a lead tanning technician and a receptionist. The lead tanning technician will have over five years of experience in the industry and will be responsible for providing traditional tanning, airbrush tanning, and spray tanning services. The receptionist will be responsible for greeting customers, scheduling appointments, and answering phone calls. Both employees will be highly experienced in their respective fields and will provide the highest level of customer service possible.

Licenses & Permits

Tan Your Buns has obtained the necessary licenses and permits to be compliant with all health regulations and to legally operate in Chicago.

Location

Tan Your Buns will be located at 123 Main Street, Chicago, Illinois. We are conveniently located near public transportation and have plenty of parking available. We chose this location because it is located close to potential customers and several large local businesses, so customers can get a tan during their lunch break. Additionally, there are few tanning salons in the immediate area, which gives us a competitive advantage.

Tan Your Buns has secured a lease for a 1,200-square-foot space in a busy shopping center. The shopping center is located in a high-traffic area with a large number of potential customers. Equipment Tan Your Buns will purchase top-of-the-line tanning equipment to provide our customers with the best possible experience. We will have four stand-up tanning beds, two lie-down tanning beds, and one airbrush machine. We will also have a small retail space to stock a variety of tanning solutions and lotions to meet our customers’ needs.

Marketing Plan

Market Analysis

The tanning salon industry has seen a decline in recent years due to the health risks associated with UV exposure. However, there is still a large market for people who are looking for a quick and easy way to get a tan.

The tanning industry is estimated to be worth $4 billion annually. The market is made up of two types of customers: those who visit tanning salons and those who use self-tanning products.

Tanning salons account for 70% of the market, with the remaining 30% made up of self-tanning products. The average customer spends $100 per year on tanning services.

Demographics

The customer demographic for Tan Your Buns is people who are looking to get a quick and easy tan. Our target market is individuals who are 18-45 years old and live in or around Chicago, Illinois. We will also market to college students and tourists who are visiting the city.

Promotions

There are a number of marketing strategies that a tanning salon can use to reach its target market. Some of the most effective strategies include online advertising, print advertising, and word-of-mouth marketing.

Online Marketing

Tan Your Buns will use a variety of online marketing techniques to reach our target market. We will use search engine optimization (SEO) to ensure that our website appears at the top of the search results for relevant keywords. Additionally, we will use pay-per-click (PPC) advertising to drive traffic to our website and be active on social media marketing to show our customer’s results.

Direct Mail

Tan Your Buns will use direct mail to reach potential customers who live in our target market. We will send postcards to residences and businesses in the area to promote our tanning services.

Print Advertising

Tan Your Buns will use print advertising to reach potential customers who live in our target market. We will place ads in local newspapers and magazines to promote our tanning services.

Pricing

Tan Your Buns is a for-profit business. We will generate revenue by providing traditional tanning, airbrush tanning, and spray tanning services to our customers. We will charge a per-session fee for our services. Our prices will be competitive with other tanning salons in the area.

Per-Session Fees:

• Traditional tanning: $25
• Airbrush Tanning: $35
• Spray Tanning: $45

The average expected customer is expected to spend $30 per visit. This amount includes the cost of the tanning service, as well as any retail products that the customer purchases.

Discounts

Tan Your Buns will offer a variety of discounts to our customers. We will offer a 10% discount to students and seniors, and a 20% military discount.

Financial Plan

To ensure that we are able to generate a profit, we will carefully manage our expenses. We will purchase high-quality equipment that will last for many years. Additionally, we will only hire experienced employees who are dedicated to providing excellent customer service.

In our first year of operation, we expect to generate $200,000 in revenue. Assuming the average customer expenditure is $30 per visit, Tan Your Buns will need to average just over 550 customers per month. 

We will carefully manage our expenses and use high-quality equipment to ensure that we are able to generate a profit.

Sales Projections

The projected sales for the first three years for Tan Your Buns are:

Year 1: $200,000

Year 2: $220,000

Year 3: $240,000

The sales projections for a tanning salon business are based on the assumption that the business will grow at a rate of 10% per year. This growth is based on the expectation that the business will add new customers and retain existing customers.

Annual Expenses:

The projected annual expenses for Tan Your Buns is projected to be:

• Rent: $36,000
• Utilities: $6,000
• Business insurance: $2,400 (What types of insurance does a tanning salon need?)
• Payroll: $120,000
• Marketing: $10,000
• Misc.: $5,000

Total Projected Annual Expenses: $189,400

Startup Costs

Below is a list of startup expenses.

Equipment – $54,000

• 4 stand-up tanning booth – $40,000
• 2 lie-down tanning beds – $12,000
• 1 airbrush machine – $2,000

Working capital – $34,000

• First six months rent – $18,000
• First six months utilities – $3,000
• First six months of insurance – $2,400
• Initial marketing – $4,000
• Miscellaneous – $6,600

Inventory – $1,400

• Lotions – $1,400

Supplies – $600

• Disposable liners – $300
• Towels – $300 

Building – $24,000

• Renovations to the space to update the bathrooms – $5,000
• Signage – $2,000
• Furniture for the reception area – $15,000
• POS system – $2,000

Total start-up costs – $114,000