Free Tattoo Shop Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a tattoo and body piercing shop while showcasing the expected financials and operations over the next three years. The Tattoo Shop, Inc. (“the Company”) is a New York based corporation that will provide tattoo and body piercing services to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
As stated above, the primary revenue source for the business will come from tattoo and body piercing services. At the onset of operations, the Company intends to hire three full time tattoo artists and body piercing specialists that will be able to render the services to the Company’s clients. At all times, the Company will remain within the letter of the law regarding the sale of these services while concurrently maintaining a clean and hygienic facility. The Company will also generate revenues from the sale of jewelry (studs and earrings) used on conjunction with the Tattoo Shop’s piercing services. The third section of the business plan will further describe the services offered by the Tattoo Shop.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Tattoo Shop’s mission is to become the recognized leader in its targeted market for tattoo and body piercing services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience as a tattoo artist. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Tattoo Shop, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Tattoo Shop requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Tattoo Shop, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Tattoo Shop. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the tattoo and body piercing services offered by the Tattoo Shop.
3.1 Tattoo and Body Piercing Services
The primary source of revenue for the business will be the tattoo and body piercing services offered to customers within the target market. The business will generate extremely high gross margins from this revenue stream as there are very few costs associated with providing this service. In lieu of hiring independent contractors, the Company will employ full time tattoo artists and body piercing specialists. At all times, the Tattoo Shop will comply with all laws regarding tattoo and body piercing services. Additionally, cleanliness and safety are the top priority of the business.
3.2 Sales of Jewelry
The secondary streams of revenue for the business will come from the sale of jewelry associated with the aforementioned body piercing services. Mr. Doe intends to maintain a moderate sized inventory of studs and earnings for customers. Furthermore, the Company will earn gross revenues of approximately 70% on the jewelry items sold to customers.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the tattoo and body piercing industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
Tattoo and piercing parlors annually generate more than $3 billion dollars of sales per year, and employ more than 34,000 artists and body service providers. The growth rate of this industry has remained solid with the increasing sociological acceptance of tattoos and body piercing. The industry is expected to continually grow as more people are getting tattoos. The sociological growth of this industry can be seen through the number of increased television shows and publications that explore, document, and educate people about tattoos, body art, and body piercing. Based on information provided by the US Economic Census, Management expects that the future growth rate of this industry will be approximately 5% per year during the next ten years.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Tattoo Shop intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Tattoo Shop.
5.1 Marketing Objectives
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Tattoo Shop to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Tattoo Shop will also use an internet based strategy. This is very important as many people seeking local services, such as tattoo artists, now the Internet to conduct their preliminary searches. Mr. Doe will register the Tattoo Shop with online portals so that potential customers can easily reach the business. The Company will also develop its own online website which will feature pictures of the Company’s artists’ portfolios, the Company’s contact information, preliminary pricing, and directions to the Company’s location. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the tattoo and body piercing services that the Tattoo Shop is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Tattoo Shop will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Tattoos and body piercing services are non-essential services, and as such, an economic recession may result in a decline in top line income. However, the business will operate a lean operation, and the high margin revenues generated by the business will ensure the Company’s continued profitability during deleterious economic conditions.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis