Tablature Tattoo, a new tattoo parlor will be opened in suburban Greenwood NJ. It will offer a place for tattoo enthusiasts and collectors to get their tattoos done by two well-known, skilled artists. The business offers basic tattoos, one-hour tattoos, and full sessions with the artists. The artists are available to offer extended consultations as well as custom design work. The business will sell clothing and posters with designs by the artists. Jake Hunt and Julie Hunt, husband and wife, are seeking a $10,000, 3-year loan to start the business.
Because the business has low capital requirements, and because the company intends to use low cost marketing techniques and direct sales to attract initial customers, $22,200 is all it takes to launch. With a low startup cost, and high margins of tattoo work (around 75%), this business will generate positive cash flows within six months. They can also repay their loan easily. Based on the full-time employment of these three people, sales will surpass $300,000.
Objectives
Tablature Tattoo’s first three years of operations will see it achieve these objectives:
- Reach annual revenues of approximately $330,000 in year three
- Successfully create 5446 tattoos over three years
- You can earn net profits to the owners for a substantial total compensation including salaries, dividends and other payments.
Mission
Tablature Tattoo creates safe and impressive tattoo art for Greenwood, NJ customers through tattoos as well as other products featuring artwork by the shop’s tattoo artists. Jack Hunt and Julie Hunt seek to make the business a full-time business, sharing their income with an additional employee artist to help build the business.
Keys for Success
These are the keys to success in the business of tattoo shops:
- Encourage customers to come back for more sessions with artists.
- Making the health and care of customers and tattoos a top priority to ensure the safety of the customers, employees, and business
- Encouragement of creativity and collaboration with talented artists