Truth be told, the airbrush tattoo business remains one of the ideal businesses for people who love and have the talent for arts. This business is quite easy to manage and even newbies in the tattoo industry can easily start and run this venture. However, starting a successful airbrush tattoo business needs some planning and pre-research.
Airbrush tattoos are an attractive, temporary alternative to permanent tattooing. Popular at parties, the beach, and with teenagers, a temporary tattoo artist specializing in airbrushing can easily be in demand. The Airbrush Tattoo industry is currently the sixth fastest-growing industry in the United States and as more and more people understand the attraction of airbrush tattoos, this industry is poised to grow massively.
Steps on How to Write an Airbrush Tattoo Business Plan
Table of Content
Executive Summary
King’s Art will be a new airbrush tattoo business in Coney Island, New York City. Coney Island is home to an aquarium, action-packed rides, restaurants, shops, and more. From roller-coasters to go-karts, to live entertainment and boardwalk games; the beachfront at Coney Island has something for everyone, and we intend to leverage this growing demand to offer airbrush tattoos as well as sell a wide range of clothing items and posters featuring prime tattoo designs by our in-house artists.
Company Profile
a. Our Products and Services
Tattoos are expensive and painful, and most especially, they are permanent. What you want today might seem boring tomorrow, and what a person wants at the beach isn’t necessarily the one he or she wants at work, in a business meeting, at a sporting or social event, while shopping, at a Dance, or even out to dinner.
At King’s Art, we will offer men, women, and teenagers the best possible method of self-expression without the pain and permanence of a real tattoo. We strongly believe that this, coupled with affordability, convenience, and fast application will make King’s Art a very successful business in New York City.
b. Nature of the Business
King’s Art will be a service-based retail business offering airbrush tattoos to interested clients using an atomizer, stencils, and special body paints. We will also make available a well-stocked beachside boutique offering a wide range of clothing items and posters featuring prime tattoo designs by our in-house artists. At King’s Art, we are committed to offering our customers top-notch service experience by only working with artists who have a well-built portfolio and are experienced in the industry.
c. The Industry
The industry we intend to focus on at King’s Art is the Temporary Tattoo industry.
d. Mission Statement
At King’s Art, our mission is to offer top-notch services to our customers in the Coney Island, NY area both through airbrush tattoos and through other products.
e. Vision Statement
At King’s Art, our vision is to excel due to our attention to detail regarding customer service. Owing to our unheralded customer attention, King’s Art will slowly but surely gain market share ensuring we create long-term relationships with our clients. Lastly, our location will allow us to attract a lot of walk-in traffic.
f. Tagline or Slogan
King’s Art – The Designs of Kings!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
King’s Art will be registered as an LLC in the State of New York. We strongly believe that the LLC structure will perfectly suit our business since it offers the following benefits;
- Protect the personal assets of our owners, stakeholder, and employees
- Have tax choices that benefit our bottom line
- Grow our business
- Gain credibility with customers
h. Organizational Structure
- Chief Executive Officer (Owner)
- Store Manager
- In-house Tattoo Artists
- Sales and Marketing Manager
- Accountants
- Customer Services Executive
- Cleaners
i. Ownership/Shareholder Structure and Board Members
Just as it was noted above, King’s Art will be registered as a limited liability company solely owned by Matthew and Cynthia Cross with 51% ownership by Matthew Cross and 49% ownership by Cynthia Cross.
SWOT Analysis
a. Strength
- Excellent retail space in a well-visited entertainment center
- Well-trained artists with substantial portfolios and industry experience
- Well-trained retail employees with a wide style repertoire, and customer-focused business practices.
- A vast range of services is offered.
- Competitive prices.
b. Weakness
- As a new entrant to the market, we at King’s Art lack the brand equity that many of our retail competitors have earned over years of service.
- The quest to continually stay consistent in terms of fashion and style.
- Massive startup costs
c. Opportunities
- A steadily growing market that is genuinely unaffected by the economic environment.
- The ability to reduce marginal fixed costs as our customer base grows.
- Increasing sales opportunities as more people and tourists visit Coney Island
i. How Big is the Industry?
According to reports, the global temporary tattoo industry is very massive, valued at USD 809.8 million in 2019, and is expected to reach USD 1084.4 million by 2026.
ii. Is the Industry Growing or Declining?
The global temporary tattoo industry is growing at a CAGR of 7.6% during the forecast period, 2020– 2026. This growth is mostly attributed to the rise in technology, urbanization, social media marketing, and disposable income.
iii. What are the Future Trends in the Industry
According to industry reports, the increase in demand to create a glamorous illusion on the skin is projected to bolster the demand for temporary tattoos in the future. In addition, advancement in printing technology will improve tattoo manufacturing processes, and also help to encourage market growth.
A good number of people get skin allergies such as pigmentation loss and scars by applying temporary tattoos. Experts believe this will be a major restrain for the market growth. However, the market for tattoos is growing extensively and the right concept and tattoo idea are expected to create new opportunities.
iv. Are There Existing Niches in the Industry?
No, there are no existing niches in this market because airbrush tattoo is a well-defined niche in the temporary tattoo industry.
v. Can You Sell a Franchise of your Business in the Future?
No, at King’s Art we intend to launch our first airbrush tattoo and premium retail shop in Coney Island, before going on to establish more outlets in strategic beach locations in the United States. All our stores will be company-owned and will be managed using our well-defined customer-centric culture.
d. Threats
- Competition from other established shops.
- A change in traffic patterns as they relate to our business location in Coney Island.
i. Who are the Major Competitors?
- Trina Merry Bodypainter
- Harlem Hype Tattoo & Body Piercing
- Fabulous Faces By Kellie
- Illuminated Faces
- Chameleon Tattoo
- Facepainting and Parties By Maria
- Balloonscapes Entertainment
ii. Is There a Franchise for Airbrush Tattoo Business?
- Par-T-Perfect: $4,995-$6,995.
- Australian Airbrushed Tattoos: $0-$25,000.
- Glamour Shots:$218,420 to $264,950
iii. Are There Policies, Regulations, or Zoning Laws Affecting Airbrush Tattoo Business?
Yes, you need to understand that the rules and regulations governing the registration and licensing of businesses as well as zoning laws are instituted at state levels, and will surely vary depending on the state in which your store is located.
Also, have it in mind that the type of legal structure you choose for your store will influence the policies and regulations you have to comply with. Some states have rules that apply to the zoning of business premises, therefore endeavor to check what the requirements are in your state before you invest in business premises.
Marketing Plan
a. Who is Your Target Audience?
i. Age range
At King’s Art, our target customers fall within the age range of 16 to 54.
ii. Level of Educational
At King’s Art, our stores will be open to the general public irrespective of class and level of education.
iii. Income Level
According to reports, the median household income in our business location remains $39,213.
iv. Ethnicity
At King’s Art, there will be no restriction in terms of the ethnicity of our prospective clients. We will see to the various needs and requests of a vast range of clients.
v. Language
King’s Art will be accessible to everyone, regardless of language and accent. By leveraging Google Translator software, we also intend to welcome foreigners and tourists.
vi. Geographical Location
Anybody from any geographical location will be welcome to shop at King’s Art.
vii. Lifestyle
We believe our clients will mainly be people looking to attend birthday parties, girl’s-night-out events, beach events, bachelorette parties, or passion parties.
b. Advertising and Promotion Strategies
- At King’s Art, we will run a steady advertisement to maintain exposure in relevant markets. Community newspapers, tourism publications, youth sports programs, and similar channels will be a key promotion effort.
- Advertisements with major publications will be used selectively, depending on cost-effectiveness. These ads will include discount coupons so that responses to the ads can be tracked.
- King’s Art will be advertised by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
- Note that when not busy providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their beauty products, and (b) remind customers after a certain period of time has passed that they might want to check out the latest products.
i. Traditional Marketing Strategies
- Partner with hotels and other hospitality businesses in the area
- Collaborate with Organizations for Good Causes
- Drive Traffic to our Business Website
- Offer Promotions and Discounts
- Leverage Creative Packaging for our Retail Products
- Marketing via Direct Mail
ii. Digital Marketing Strategies
- Build a community around our business to grow brand advocacy
- Include testimonials to our web pages
- Excellent content marketing
- Make use of Micro-influencers
- Find customers through social listening
- Collaborate with hotels and spas
iii. Social Media Marketing Plan
- Upload Content That Will Entice our Target Customer
- Leverage Facebook as a Key Communication Tool
- Use Twitter As An Information Source About Your Services
- Offer Incentives For Instagram Word-Of-Mouth
- Provide Group Deals
- Use Twitter hashtags
c. Pricing Strategy
At King’s Art, our prices will remain moderate to ensure that customers feel that they received great value. Have it in mind that our prices will be set based on the size of the stencil, the paint used, the labor involved, and desired profit margin.
Sales and Distribution Plan
a. Sales Channels
At King’s Art, sales will be encouraged via word-of-mouth. We will ensure that our clients are given a few business cards to hand out to friends when they talk about their new temporary body art and client information will be retained. In addition, all our artists will be expected to remind customers about products featuring their designs that are being offered and can give these products for discounts or free to collectors who return for more services.
Aside from our in-store sales efforts, the artists will also be tasked with promoting their work at parties, events, and while on the street, by wearing King’s Art shirts often and offering business cards to people they meet. By guaranteeing health and customer satisfaction, we at King’s Art believe we have everything to achieve success in our business endeavors.
b. Inventory Strategy
Our intention at King’s Art is to source stencils, atomizers, and all other retail inventories from well-researched suppliers in the Brooklyn area of New York City. We also plan to make use of encompassing inventory software to adequately manage and automate our supply processes. After extensive research, we decided to use and subscribe to Studio Cloud.
Note that this software provides a unified system along with Cloud syncing, Client management, scheduling, reporting, and much more! StudioCloud is a FREE, easy-to-use, business management software that works on both Mac and PC and includes free cloud services.
c. Payment Options for Customers
At King’s Art, we intend to make available the following payment options to our clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
To better serve our clients, we at King’s Art have a returns policy that will ensure they have complete confidence when dealing with us. Our terms and conditions for returning damaged wear or products include;
- If for any reason a client is unsatisfied with the quality of the tattoos we sent, we will refund the entire purchase price.
- Notification of damaged or faulty product must be within 4 days of receipt.
- The damaged or faulty item may need to be returned to us before we issue a refund or replacement.
- All returned items will have to be sent by a trackable delivery service.
- Products are expected to be in the original box and packaging and unused condition.
- In some cases, we will ask for images of the damaged product before issuing a refund or replacement.
- All returns must have a completed Returns Form.
e. Customer Support Strategy
To be successful, we understand the need to always have an adequate supply of stencils. Stencils are ready-made designs our clients can choose from, and this will help to ensure we produce consistent and quick results. Truth be told, the more stencils we have for a potential client to choose from, the more likely there will be repeat business.
In addition, while the stencils can show potential clients what designs are available for them to select from, we ensure we create a portfolio of finished work that will help them visualize what the final tattoo will look like.
Operational Plan
Our operational plan at King’s Art involves creating a conducive environment for our target groups. Via this operational plan, we intend to convert local customers who may only seek one temporary tattoo initially to become repeat customers. We will achieve this by implementing the following;
- Provide competitively-priced airbrush tattoos to encourage “tattoo newbies”
- Retaining high-quality artists
- Make available a vast range of custom designs in different styles to broaden the appeal
- Source and sell additional products with designs by the tattoo artists to build an additional revenue stream
a. What Happens During a Typical Day at an Airbrush Tattoo Business?
Just like a typical shop, owners of airbrush tattoo shops will spend a good part of their day with clients. However, before any project is started, the artist and client will have to ensure they are both on the same page especially in terms of the piece and how it ought to look. Most often, the customer will arrive with an idea and let the artist draw the plans, or they can choose from a wide array of stencils.
Once the specifics are agreed on, the artist can start the process. When not with clients or making suggestions, owners of these businesses will have to spend time drawing, painting, and dreaming up new ideas for tattoos. This offers additional work to add to the business portfolio.
b. Production Process
At King’s Art, we will take the best designs and print them on t-shirts, posters, and other resale items. These items will be sold through the shop as well with King’s Art branding. Customers will include both those new to tattoos and tattoo aficionados, all within the ages of 18 and 40.
c. Service Procedure
At King’s Art, our service procedures will include the following approaches to pricing, distribution, advertising and promotion, and customer service.
- Pricing: Our pricing strategy will be based on a competitive pricing model used by other similar service providers.
- Distribution: All our services and products will be dispensed from our centrally located store.
- Advertising and Promotion: With our shop in a high-traffic location, our visibility will likely increase with each coming day. A targeted advertising campaign will also communicate our intended messages at King’s Art.
- Customer Service: All our employees have been trained in top-class customer service. They have can remedy any problems encountered on their own without having to first receive permission from a supervisor.
d. The Supply Chain
King’s Art will be a new airbrush tattoo business in Coney Island, New York City. We will always strive to provide the following benefits to our customers:
- Convenience
- Excellent Customer Service
- Competitive Pricing
e. Sources of Income
- Providing airbrush tattoos to “tattoo newbies”
- Sourcing and selling additional products with tattoo designs
Financial Plan
a. Amount Needed to Start your Airbrush Tattoo Business?
Coupled with all the supplies and equipment like rubbing alcohol, swabs, table, and chairs, setting powder, gloves, carbon-dioxide tank, stencils, glitter, paint, and airbrushes, we will need around $76,430 to start our business in Coney Island.
b. What are the Cost Involved?
- Licenses and Permits: $2,000
- Business Cards and Flyers: $1,000
- Insurance: $1,200
- Rent: $1,500
- Computer Software: $500
- Website Development: $1,000
- Grand Opening Advertisements: $500
- Airbrush Tattoo Supplies: $4,000
- Inventory: $10,000
- Miscellaneous: $3,000
c. Do You Need to Build a Facility?
No! we do not intend to build a new facility, but instead, lease a well-positioned facility to start our business.
d. What are the Ongoing Expenses for Running an Airbrush Tattoo Business?
- Stocking inventory
- Marketing strategy and related advertising investments
- Insurance
- Labor
e. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner): 0
- Store Manager: $54, 028
- In-house Tattoo Artists: $51,500
- Sales and Marketing Manager: $46,830
- Accountants: $43,500
- Customer Services Executive: $36,540
- Cleaners: $27,110
f. How Do You Get Funding to Start an Airbrush Tattoo Business
- Funds from personal savings and sale of personal stocks and properties
- Obtain soft loans from family members and friends.
Financial Projection
a. How Much Should You Charge for your Service?
According to reports, prices average around $10, and the materials cost from 14 cents to about a dollar. Note that successful businesses in this market can make $300 per hour over an eight-hour day. The longer you’ve been in business and the more of a name you make for yourself, the more you can charge.
b. Sales Forecast?
We know that our business might not generate enough revenue in the first month; however, we are confident that it will become fully profitable by the first quarter of the first year. We also expect that King’s Arts will reach its full potential of sales in the first year.
- First Fiscal Year (FY1): $360,000
- Second Fiscal Year (FY2): 800,000
- Third Fiscal Year (FY3): $1,340,000
c. Estimated Profit You Will Make a Year?
According to industry reports, tattoo artists tend to make less than $15,000 in their first year. However, with time and as you make a name for yourself and your shop, the potential is there to make above $100,000 annually.
d. Profit Margin of an Airbrush Tattoo Business
Note that after expenses, airbrush tattoo shops have an average profit margin of 55%.
Growth Plan
a. How do you intend to grow and expand?
At King’s Art, we intend to launch our first airbrush tattoo and premium retail shop in Coney Island before going on to establish more outlets in strategic beach locations in the United States. All our stores will be company-owned and will be managed using our well-defined customer-centric culture.
b. Where do you intend to expand to and why?
At King’s Art, our business plan is to grow and expand into other top beach cities in the United States. These cities are known to attract a constant flow of tourists, and these we believe are our target market for the future. The cities we intend to expand into within 10 years in business include;
- Newport, Rhode Island
- Kihei, Maui, Hawaii
- Provincetown, Massachusetts
- Carmel by the Sea, California
- Asbury Park, New Jersey
- Anna Maria Island, Florida
- Ocean City, Maryland
- Long Beach, Washington
Exit Plan
At King’s Art, we strongly believe that acquisition and mergers will be our most ideal exit plan. Since we won’t be exclusively selling our own products and services; we believe that acquisition and mergers will propel us more into the open market.