Are you about starting a laser tattoo removal company? If YES, here is a complete sample laser tattoo removal business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a laser tattoo removal business. We also took it further by analyzing and drafting a sample laser tattoo removal marketing plan template backed up by actionable guerrilla marketing ideas for laser tattoo removal companies. So let’s proceed to the business planning section.
Why Start a Laser Tattoo Removal Business?
In this age, the market for laser tattoo removal is big and growing rapidly. Tattoos and tattoo parlours have become a part of our modern culture and their popularity reaches all demographics. Statistics has shown that the prevalence of “tattoo regret” is increasing as a lot of people who got tattoos in the past few years are beginning to regret it.
As the only safe, effective solution to unwanted tattoos, laser tattoo removal is in high-demand. Due to the fact that tattoos expanded into the affluent populations that always consume aesthetic procedures, tattoo removal is also now becoming a popular cosmetic treatment at spas.
Starting a laser tattoo removal business is a venture you should consider because tattoo removal patients are often willing to pay a premium for each treatment. Report has it that the average tattoo removal treatment costs $200, and the appointment takes only 15 minutes from start to finish.
Have it in mind that most tattoos take between 5 and 10 treatments for complete removal. That means that for an average patient with a small-to-medium sized tattoo to achieve complete laser removal results, he or she has to pay between $1000 and $2000 over a period of time – and most patients are happy to pay that price.
To successfully start this business, you need a few basic elements: office space, a marketing budget, and a high-quality laser. Note that the space required for a successful tattoo removal practice is minimal: a waiting room, a treatment room, and an office. The treatment room can be quite small and still be enough to let you practice.
Also, the procedure itself needs minimal consumable costs (bandages and antibiotic ointment), so it is very lucrative for any willing entrepreneur. In this business, you can boast of doing something you enjoy, as laser tattoo removal is very fun to learn and easy to perform. The procedure on its own is straightforward, but requires extensive knowledge to properly assess tattoos, determine treatment settings, and achieve optimal results.
Laser tattoo removal clinics have a simple business model. There’s the laser, office space, staff, and marketing – those are all the elements you need for a successful clinic. Another factor to consider if you want to venture into this business is the satisfaction of local regulations, which differ by state.
To run your business hitch free, you have to comply with the law and consult with a lawyer before starting your business. Note that most state medical boards need at least a medical director to delegate or supervise your treatments.
A Sample Laser Tattoo Removal Business Plan Template
- Industry Overview
According to industry reports, the tattoo Removal Market was valued at $11,614 million in 2016, and is expected to reach at $27,317 million by 2023, growing at a CAGR of 12.7% from 2017 to 2023. For the sake of this market, tattoo is seen as a temporary or permanent mark made on a body part by inserting pigment or ink under the skin.
The tattoo market is rising at a phenomenal rate, leading to upsurge in tattoo removal market as well. Have it in mind there are many tattoo removal procedures, which include laser, surgical, creams, and others (intense pulsed light therapy, saline, deep chemical peels etc.).
But in all these, laser is the widely preferred procedure due to its accuracy in removing tattoos and relatively lesser side effects, while surgical procedure such as dermabrasion & surgical excision is a long healing and painful process. Tattoo removal creams are also available in the market.
Usage of these creams is painless, however, time taking, but they have various side effects depending upon the skin type, and the removal is not precise. Individuals can decide to get rid of their tattoos due to various reasons.
Some of these include career purposes, social conditions, personal situations, and more, which has been the major driver for the tattoo removal market. We also believe that change in lifestyle and constantly changing trends has grown the demand for tattoo removal in the market. But the truth remains that high cost and the various side effects associated with tattoo removal procedures affects the growth of the tattoo removal market.
According to industry reports, this market is segmented on the basis of procedure, end user, and geography. By procedure, the market is categorized into laser (passive & active laser), surgical (dermabrasion & surgical excision), creams, and others (intense pulsed light therapy, saline, deep chemical peels etc.).
Then by the end user, the market is segmented into hospitals, clinics, and others (tattoo shops and parlours). By geography, it is analysed across North America, Europe, Asia-Pacific, and LAMEA as well as among its major countries. Statistics has it that the laser procedure of tattoo removal is the most prevalent and attractive segment due to its effectiveness and minimal side effects.
The different types of lasers used in the tattoo removal industry include Q-switched ruby laser, Q-Switched Nd-YAG laser, and Q-Switched Alexandrite laser. These are used to remove black as well as coloured tattoos in approximate seven or more sessions or visits. Report also has it that North America dominated the global tattoo removal market occupying nearly half of the share in 2016, registering the highest CAGR of around 13.3% during the forecast period.
Europe witnessed the significant CAGR of 12.8% and the second highest share in the global market, owing to rise in regrets for tattoos followed by increase in demand for its removal. The South Africa tattoo removal market was valued at $87 million in 2016, and is expected to grow at a CAGR of 10.3% during the forecast period.
Laser Tattoo Removal Business Plan – Executive Summary
Black Knox is a laser tattoo removal clinic in Los Angeles, where both tattoo newbies and collectors will be able to work with experts to remove and cover their tattoos. Tattoos are no longer just body designs but a fashion mainstream and a popular culture in our modernized society. But just as a lot of people are getting new tattoos, others are striving to book for tattoo removal because of either regret or because the tattoo have become out-dated.
We at Black Knox will provide that opportunity for people who would want to remove those tattoo using Laser removal procedures. We will also extend consultations and private services to our customers. Black Knox founders, Liam and Mercy Jefferson, seek a $40,000, three-year loan to start up Black Knox.
Due to the low capital requirements of the business and the intention to use low-cost marketing techniques and direct selling to find initial customers, we at Black Knox need only $360,000 to launch our business. Note that this low startup cost and the high margins on tattoo removal (around 75%) will lead to positive cash flow within 6 months and the ability to repay this loan easily, as well as provide impressive dividends to the owners and a generous salary to all our working staff.
We at Black Knox expect our sales to exceed $600,000 by the third year based on the full-time work of our start up workforce. We also believe that Los Angeles is the ideal location for our business because it is the second-most populous city in the United States, after New York City.
With an estimated population of four million, Los Angeles is the largest and most populous city in the state of California and the cultural, financial, and commercial centre of Southern California. Los Angeles is one of the most substantial economic engines within the United States.
Los Angeles is also famous as the home of Hollywood, a major centre of the world entertainment industry. We chose Los Angeles as our business location due to the vast opportunity it presents us at Black Knox and we hope to leverage it to the fullest.
- Our Products and Services
Black Knox will provide laser tattoo removal services and consultancy to the people of Los Angeles and its environs. We will also sell branded products in the clinic with designs created by the company. These include t-shirts, hoodies, bags, caps, posters, and other items. The messages printed on these products will be directed to our customers and also used as a medium to spread our business message.
We also have plans to print short runs, allowing the business to respond to customer preference based on what sells (both the types of items and the types of message). We plan to sell the items for an average of $20, but prices will differ depending on the type of item. Note that each item will contain our business logo and can be signed by our Managing Director.
- Our Vision Statement
Our vision at Black Knox is to make the health and care of our customers a top priority to ensure the safety of customers, employees, and the business
- Our Mission Statement
Our mission at Black Knox is to create a safe, impressive tattoo removal for customers in Los Angeles. We seek to create a full-time livelihood for Liam and Mercy Jefferson, the owners, while sharing revenue generously with additional employed workforce who will help to build the business.
- Our Business Structure
Black Knox will be formed as a limited liability partnership between Liam and Mercy Jefferson with 51% ownership by Liam Jefferson and 49% ownership by Mercy Jefferson. Our clinic will be located in Los Angeles, within a centrally-located major route strip mall.
Black Knox will be founded and run by Liam Jefferson, an experienced tattoo removal technician, and his wife, Mercy Jefferson, who has marketing and retail administrative experience. We will also hire extra tattoo removal technicians to expand the options for customers and to make better use of the company’s resources. We plan to hire the professionals below to help us at Black Knox achieve our business objectives.
- Managing Director
- Laser technician
- Clinic attendants
- Marketing Officer
- Security Guard
Roles and Responsibilities
- Is the senior Technician at Black Knox
- In charge of activities related to the delivery of Laser tattoo removal services such as cost management, utilization review, quality assurance, and medical protocol development
- Oversees the activities of technicians, including the recruiting and credentialing processes
- Attend standing meetings (board, committee, etc.)
- Monitor quality and appropriateness of services and care
- Provide guidance and leadership for performance guidelines
- Develop policies and procedures
- Manage strategic development
- Oversee documentation and care planning
- Manage staffs relations and/or representation
- Handle clinical patient complaints
- Address emergency issues
- Support technician education
- Manage community relations
- Handle staff behaviour and impairment issues
- Models demographic information as it relates to those who need our services
- Sources for clients for the company
- In charge of promoting the company’s image
- In charge of creating marketing and sales strategies, etc.
- Represents the organization in some strategic business meetings
- Handles any other duty as assigned by the director
- Sees to it that clients are attended to and on time
- Books clients for sessions
- Passes information to the technicians about clients
- Reaches out to clients when information needs to reach them
- Handles laser tattoo removal
- Handles other duties assigned by the manager
- May prepare and write technical reports to recommend solutions to technical problems.
- Receives payments on behalf of the organization
- Issues receipt to customers
- Prepares financial report at the end of every working week
- Purchase supplies and equipment as authorized by management
- Monitor office supply levels and reorder as necessary
- Tag and monitor fixed assets
- Pay supplier invoices in a timely manner
- Take all reasonable discounts on supplier invoices
- Pay any debt as it comes due for payment
- Monitor debt levels and compliance with debt covenants
- Issue invoices to customers
- Handles financial transaction on behalf of the company
- Interfaces with our bankers
- In charge of payment of tax, levies and utility bills
- Handles any other duty as assigned by the office
- Mops the floors
- Wipes down the machines
- Washes off the folding tables
- Cleans the bathroom
- Empties the trash
- Washes the windows
- Ensures that the clinic is secured at all times
- Controls traffic and organize parking
- Patrols around the building on a 24 hours basis
- Submits security reports weekly
- Handles any other duty as assigned by the manager
Laser Tattoo Removal Business Plan – SWOT Analysis
We at Black Knox explicitly understand the need to research our industry and make adequate plans needed to succeed. We employed the services of a renowned Consulting firm to help with our SWOT Analysis. Explained below are the results presented to us at Black Knox:
According to our SWOT analysis, our strength in this industry lies on the plans we have to ensure repeat customers who return again and again for full sessions. Also we have made concrete plans to ensure the care of customers and employees. We have acquired all necessary insurance and also contracted a medical practitioner to work in our clinic.
Our SWOT analysis noted that our prototype website may not have the ability and sophistication to compete with other competitor websites. Also our cash flow is impaired and business hours are limited for a retail establishment (Monday through Friday 9:00 a.m. to 6:00 p.m.)
Our Business location provides us with a vast market and many opportunities. Los Angeles is often billed as the “Creative Capital of the World”, because one in every six of its residents works in a creative industry and there are more artists, writers, filmmakers, actors, dancers and musicians living and working in Los Angeles than any other city at any time in history. These individuals are more likely to get a tattoo and want to clean it for a new one the next minute. It provides enormous opportunities for us at Black Knox and we will do anything legally possible to leverage it fully.
According to the SWOT analysis, prolonged economic downturn might affect the rebound of area businesses and limits discretionary income. Also fast technological advances that could render existing equipment as obsolete and a new competitor opening in the location are the threats we might be facing at Black Knox.
Laser Tattoo Removal Business Plan – MARKET ANALYSIS
- Market Trend
The art of tattooing has gone through several iterations. What started as a war-time and biker gang-related tradition quickly shifted to a universal trend, and now has become more refined with the awareness that social media has brought to worldwide tattoo artists and their abilities.
As the demand for tattoos rose, more and more shops opened. But more doesn’t always mean better. Report has it that due to the lack of early regulation, many shops were executing poor tattoos that weren’t applied with the right techniques, which led to fading, cracking, and general disfiguring of the art.
At that point, the stigma picked up that tattoos carried ulterior meanings; that they communicated a promiscuous or unprofessional culture. The idea that “tattoos are forever” became daunting rather than promising. The world and especially those with tattoos needed an alternative.
Up till date, a lot of die-hard tattoo artists see laser tattoo removal as a blemish on the rich history of tattoo culture, in which every piece is meant to be placed properly, using techniques that will hold up against time and aging; it’s meant to be forever, even if you didn’t take the time and finances to properly execute your art.
But artists today now publicize that they are utilizing this technology as well. Due to they are so ingrained in the culture, they watch as new trends and technology come along, and see opportunities for newer, better tattoos from artists they respect and admire.
They leverage laser technology to create space for new pieces and taking away the old, faded tattoos that they no longer like or that they regret. Also many Hollywood stars are also engaging in laser tattoo removal. Due to popularity draws a lot of attention to the body, and these stars know that their worst attributes will be highlighted – having old, bad, or regrettable tattoos are not favourable.
- Our Target Market
Black Knox will strategically serve two key market segments in order to remain consistent in the industry. We plan to seek out the two key market segments by advertisement channelled with direct specifics to reach them. These two key market segments include:
- Tattoo Newbies
These individuals inked a tattoo for the experience of receiving tattoos, so they can say they’ve done it, to commemorate a specific relationship or affiliation, but want to remove it for the danger associated with it, it’s out dated or they no longer have connections with those with who they took the tattoos.
These individuals may not become tattoo collectors, they just get one tattoo in their life, especially in their younger years (late teens or twenties). Also popularity of tattoos among celebrities in Los Angeles also further encourages this group to get tattoos.
- Tattoo Collectors
We believe that these individuals connect with the lifestyle associated with having tattoos. They seek to cover large portions of their body with tattoos but later want to remove some to give space for more. This group will appreciate the work of experienced removal technicians and seek them out again.
- Our Competitive Advantage
We at Black Knox hope to implement our competitive advantage through the cultivation and retention of our most valuable assets – our workforce. Liam Jefferson will function as the business owner and our other experienced technicians will be rewarded for their work through open-ended shares in revenues generated through commissions on laser tattoos removal services.
We believe that by not stressing over overhead, rent, establishing a brand, purchasing basic supplies, or other business concerns, this will be a perfect situation for a tattoo removal technician who wants to focus on his or her art, establish job security and establish a client base with limited risk.
Laser Tattoo Removal Business Plan – Sales and Marketing Plan
- Marketing and Sales strategy
Our marketing and sales strategy at Black Knox involves marketing to a wide range of potential customers in Los Angeles. The following tactics will be used prior and after we launch:
- Print 1,000 flyers advertising the grand opening of the business to post in shops, at local establishments and hand out at events and on the street in the preceding week.
- List the website on search engines, local business databases, tattoo shop databases and the Yellow Pages
- Wearing Black Knox shirts to promote the opening
- Running ads in the local papers about the grand opening
- The grand opening, a five-day event, will consist of a promotion giving introductory branded products
- Create a basic website with contact information and directions, the prices for services, images of products for sale in the shop and prices
- Printing flyers periodically promoting discounts and new products and posting them in the area
- Maintaining the website with new trends and advices
Laser Tattoo Removal Business Plan – Publicity and Advertising strategies
We plan to encourage sales through word-of-mouth. Our customers will be given a few business cards to hand out to friends when they talk about removing a tattoo. Our technicians and staff will also remind customers about products featuring messages which are being offered and can give these products for discounts or free to collectors who return for a number of services.
Also beyond in-store sales efforts, our staff will promote their work at parties, events, and while on the street, by wearing Black Knox shirts often and handing out business cards to people they meet. We also plan to make health and customer satisfaction a sales strategy at Black Knox. Each customer will be called by the receptionist after a week to check in on how they feel about the procedure and to thank them again.
- Our Sources of Income
We at Black Knox will generate income by providing laser tattoo removal services and consultancy to the people of Los Angeles and by charging them for those services. We will also sell branded products in the clinic with designs created by the company.
These include t-shirts, hoodies, bags, caps, posters, and potentially other items. The messages printed on these products will be directed to our customers and also used as a medium to spread our business message.
We also have plans to print short runs, allowing the business to respond to customer preference based on what sells (both the types of items and the type of message). We plan to sell the items for an average of $20, which will differ depending on the type of item.
- Sales Forecast
The cost of sales for the services offered at Black Knox is 12% for 1-3 sessions, 15% for basic 4-7 laser removal sessions, and 13% for full 7-12 sessions, laser and necessary items needed to achieve the needed goal becomes less of a cost as the longer sessions involve more work and less analysis.
Resale items are projected at 40% cost of sales on average. Cost of sales will also include a pamphlet on tattoo care given to each customer. This pamphlet will be purchased from an industry provider.
We at Black Knox do not expect resale items to sell until after laser tattoo removal business begins, as buyers will be those who have had tattoos and now want to get rid of them. Our PR team believes this growth is achievable for the following reasons:
- We believe that a great deal of our growth will come from expanding and adding new doors. We will begin 2019 with no accounts. As we add accounts we will experience both per door growth and geometric growth in the size of our client base.
- We believe that our clinic launch schedule will result in us exceeding our range being approximately 10 times as large in service offering by the beginning of 2020.
- Our advertising plan (media and PR) will grow our annual media budget to be spent extensively by 2020. This will increase brand awareness by both the consumer and the retailer.
- Our sales plans do not include sales to our own outlets or from the catalogue. Our margin plans reflect these sales coming from first cost. It is our belief that this approach assures a true measure of profitability for our branded material and a true measure of growth for our sales efforts.
Our Pricing Strategy
Our pricing strategy at Black Knox will be to establish a price-to-benefits ratio that positions our laser tattoo removal business as a superior value in the industry. Our branded products will be priced to provide the retailer with a 50% maintained margin and offer a product exchange program for current accounts. Our product prices will be gotten after the appropriate retail is determined to make sure that the shelf price represents a value to the consumer.
- Payment Options
We at Black Knox understand the different preferences of people when it comes to payment, that is why we have made adequate plans to create a platform that will suit our diverse clients at different times. We have also partnered with a renowned banking platform to serve our clients very well and comfortably. We hope to make available the following payment options for our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment through POS
- Payment through PayPal
- Payment via check
- Payment with cash
Laser Tattoo Removal Business Plan – Financial Projection and Costing
Our start-up expense at Black Knox is limited. We will spend our funds on licenses and permits including a building permit for renovation on the space, business licenses, health department permit, occupancy permit, and signage permit. We would include enough business cards for two years for our workers, and flyers advertising the grand opening to be distributed and posted in the area.
Note that our insurance will be secured from Lincoln Insurance. Rent is for one month for renovation of the location prior to opening. Our business location will be in a strip mall in Los Angeles and will feature an open space for reception, waiting room and three removal sections, a sterilization room, a small office space, and a single bathroom. Computer software includes a basic calendar/scheduling program, inventory program, and accounting software (basic QuickBooks).
Website development is for the creation of a basic website and grand opening advertisements include small ads in local papers in the weeks preceding the opening. Laser tattoo removal supplies include chemicals (sterilizers, antiseptics, disinfectants, ointments and soap), paper products, linens, towels, gloves, and lasers. The financial projection and costing of Black Knox is outlined as follows;
- Cost of incorporating the Business – $750.
- Cost for basic insurance policy covers, permits and business license – $100,000
- The cost of acquiring a suitable Office facility 6 months (Re – Construction of the facility inclusive) – $120,000
- The budget for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $10,000
- The price of purchasing of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $12, 000
- The Cost of Launching our official Website – $4,000
- Our budget for paying at least five employees for 6 months plus utility bills – $70,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $34,000
- Miscellaneous: $5,000
From our cost analysis above, we need approximately $360,000 to start Black Knox successfully.
Generating Startup Capital for Black Knox
Our start up fund at Black Knox will come majorly from investment by the co-owners and founders, Liam and Mercy Jefferson, who will each contribute $150,000. They will borrow $20,000 on credit cards and seek a two-year loan of $40,000 for the remaining cash, with their home equity as collateral. This will cover the required $360,000 in funding needed to launch the business.
LASER TATTOO REMOVAL BUSINESS GROWTH: Sustainability and Expansion Strategy
Our financial plan at Black Knox is to raise $360,000 from a combination of personal savings, a long-term loan, and short-term borrowing to launch our laser tattoo removal business. We believe that Black Knox will achieve cash flow and profit break-even in the sixth month of operation and net profit will be achieved in the first year, allowing for dividends to be paid to the owners beyond their salaries starting in year two.
Note that our marketing budget includes $250 per month to cover website hosting and maintenance and periodic runs of flyers or new business cards. Depreciation is for the long-term assets of the business over three years. Rent is $1,800 per month and utilities $160 per month (electricity, phone and internet). We do not expect insurance to rise significantly as the business will stay within its insurance bracket during this period.
Payroll taxes of 15% and employee benefits of 10% (health insurance) are applied to payroll for the Jeffersons and other principle staff. Laser tattoo removal supplies of $230 per month are expected to replenish items purchased before the launch. Inflationary increases are applied to most items and to prices charged to customers.
Just like we stated above, our business will reach cash flow break-even mid-year, and will be able to pay dividends in year two while keeping cash balance of around $298,000 for unexpected needs. Our short-term debt will be paid off in the first year and the long-term loan will be paid off over the first two years of operation. Some additional long-term assets (replacements of equipment and additional tools) will be purchased over these years as well.
We also understand that our customers will always want to know that their wishes are understood and that the technician will work towards the goal they want and not their own ends. We have also made plans to ensure that our workforces are well trained in their primary duties and also in customer service.
Our customers will have to bargain with the Jeffersons, but it is most times up to the tattoo removal technician to explain the safety precautions taken and experience he/she has which explains the price charged. When customers understand that a higher price sometimes means no shortcuts are being taken, they may feel more comfortable and price becomes less of a concern.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and Marketing/Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress