Are you about starting a spray tanning company? If YES, here’s a complete sample mobile spray tanning business plan template & feasibility report you can use for FREE to raise money.
Okay, so we have considered all the requirements for starting a spray tanning business. We also took it further by analyzing and drafting a sample mobile spray tanning marketing plan template backed up by actionable guerrilla marketing ideas for mobile spray tanning companies. So let’s proceed to the business planning section.
As an aspiring entrepreneur who is looking for a profitable business to start in the united states of America, you can consider opening your own mobile spray tanning business but first of all, you should go and learn the trade.
You can actually learn spray tanning at a beauty school and to further hone your skills, you can work as an intern in a spray tanning salon or beauty spa around you.
Starting a mobile spray tanning business may not require huge startup capital, but it does require solid planning, and attention to details. Mobile spray tanning business eliminates the need for a physical business location, therefore limiting start-up costs considerably.
An aspiring entrepreneur can successfully start a mobile spray tanning business and operate in customer’s home, hotels, hostels, camp grounds and any private location. The downside includes having to travel with your tools and supplies, including large quantities of water.
The demand for mobile spray tanning services declined during the recession due to the declining household spending on beauty and grooming services. As the economy grew back, there was a corresponding increase in demand for spray tanning related services.
Below is a sample mobile spray tanning business plan template that can help you to successfully write your own with little or no hassles.
A Sample Mobile Spray Tanning Business Plan Template
1. Industry Overview
Mobile spray tanning business is a subset of the tanning salons industry and this industry is made up of companies that provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services. Some operators in this industry are also involved in running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al.
The tanning salons industry has grown as United States consumers have enough money to spare for tanning and other health and beauty services.
As a result of this development, the demand for luxury services has risen as consumers increase their spending on discretionary items and services. In 2016, the growth in this industry plummeted as health concerns mitigated improving macroeconomic conditions.
Going forward, the tanning salons industry is expected to generate more income through the sale of sunless tanning beds and other merchandise, which will to a large extent take care of financially empowered consumers who are looking towards making luxury purchases.
Statistics shows that the United States tanning salon market exceeded the $5 billion mark in 2011, with industry growth having slowed to around -1 percent for the five preceding years, according to research from IBIS World. The American Tanning Institute estimates that there are around 30,000 indoor tanning facilities in the US. These facilities employ more than 150,000 people and serve close to 30 million customers.
The Tanning Salons Industry is currently in the growth stage of its life cycle. Statistics has it that the Industry in the United States of America is worth over $5 billion, with an estimated growth rate of 2.1 percent.
There are about 30,000 registered and licensed spray tanning/tanning salons in the United States and they are responsible for employing about 150,000 people. Notwithstanding, no spray tanning salon can boast of having a lion market share in the industry.
Research conducted by IBISWORLD shows that Ultraviolet (UV) tanning generates about 50.9 percent of the industry’s revenue. UV tanning can be done in tanning beds or in tanning booths. One advantage of tanning booths is that they take up less space; typically, 10 to 15 square feet, which is about half the room needed for a tanning bed. As a result of this, companies can install a greater number of units.
Furthermore, tanning booths are sometimes preferred because they are more hygienic. Nevertheless, the traditional tanning bed remains the industry’s standard. Tanning booths or beds are outfitted with fluorescent lamps that emit UV in a similar spectrum as the sun. The average sessions last between 10 minutes and 20 minutes.
Some of the factors that encourage entrepreneurs to start their own spray tanning salons is that the business is easy to set up, it requires minimal startup capital and manpower especially if you are operating a mobile tanning salon business.
The spray tanning salons industry is very open to any aspiring entrepreneur who has acquired the required training, skills and perhaps professional certifications to start his or her own business. Just ensure that your salon is located in an environment with the right demography and you will be amazed at the rate people will patronize your services.
2. Executive Summary
Classic Beauty™ Mobile Spray Tanning, LLC is a registered mobile spray tanning business that is incorporated under the law of the United States of America. Even though our core business is mobile spray tanning services, we will secure a small salon facility in a densely populated business district in Miami-Hialeah, Florida, U.S.
Our basic service as a mobile spray tanning company will revolve around manicure and pedicure services and other complimentary services. Our intention of starting a mobile spray tanning business is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
We are quite optimistic that our values and quality service offering will help us drive our mobile spray tanning business to enviable heights and also help us attract the number of clients that will make our business highly profitable. We will be dedicated to establishing good business relationships with our clients by giving them value for their money and reasons for them to hire our services over and over again.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality and affordable services. We are open to the use of latest technology in the Tanning industry.
Classic Beauty™ Mobile Spray Tanning, LLC is owned and managed by Ms. Belinda Moore. She is spray tanning specialist with various professional certifications such as Indoor Tanning Certification, Spray Tanning Certification, Smart Tan Certification and Norvell Spray Tan Certification.
Ms. Moore has over 5 years’ experience managing some of the leading spray tanning salons in different cities in the United States of America prior to starting Classic Beauty™ Mobile Spray Tanning, LLC.
3. Our Products and Services
Classic Beauty™ Mobile Spray Tanning, LLC is a well – equipped mobile spray tanning company that offers a wide range of services that revolves around the tanning salons industry. We intend giving our customers every reason to always hire our services which is why we have customized our services. These are the services we will offer as a mobile spray tanning company;
- Providing spray-on tanning services
- Providing airbrush tanning services
- Providing body contour tanning services
- Providing sunless tanning services
- Running complimentary services
- Sale of spray tanning related products
4. Our Mission and Vision Statement
- Our vision is to become the leading mobile spray tanning company in the whole of Miami – Hialeah – Florida and with active presence in major cities in the United States of America.
- Our mission as a mobile spray tanning company is to develop a highly successful mobile spray tanning Business model which provides quality spray tanning services in our community, and to become a standard for an ideal mobile spray tanning business not only in the State of Florida but also throughout the United States of America.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our mobile spray tanning company on the right business foundation.
We want to build a business of dedicated workforce who will ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on autopilot.
With the wide range of our service offerings, we are only expected to employ more than is required to run a conventional mobile spray tanning business. Classic Beauty™ Mobile Spray Tanning, LLC Company will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
- Marketing and Sales Executive
- Client Service Executive
- Field Workers (Mobile Spray Tanning Specialists) (6)
- Truck / Van Driver
5. Job Roles and Responsibilities
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Ensure that the facility is in tip top shape and conducive enough to welcome customers
- Prepares budget and reports for the organization
- Carries out induction for new team members
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily activities of organization.
Marketing and Sales Executive
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Develops, executes and evaluates new plans for increasing clients
- Document all customer contact and information
- Represent Classic Beauty™ Mobile Spray Tanning, LLC Company in strategic meetings
- Helps to increase sales and growth Classic Beauty™ Mobile Spray Tanning, LLC Company.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Classic Beauty™ Mobile Spray Tanning, LLC Company
- Serves as internal auditor for Classic Beauty™ Mobile Spray Tanning, LLC Company.
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager
- Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Field Workers (Mobile Spray Tanning Specialist) (6):
- Responsible for providing spray-on tanning services
- Responsible for providing other complimentary services such as airbrush tanning services, body contour tanning services, providing sunless tanning services
- Sale of spray tanning related products
- Responsible for recommending and selling spray tanning related products to customers
- Handles any other duty as assigned by the manager
- Responsible for transporting equipment, supplies and workers to clients
- Runs errand for the organization
- Handle any other duty as assigned by the manager.
6. SWOT Analysis
It is important to note that a mobile spray tanning business can easily generate sales with little stress as long as it is well positioned. We are building a standard mobile spray tanning business which is why we have decided to subject our business idea to SWOT Analysis.
We hired the services of a HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Classic Beauty™ Mobile Spray Tanning, LLC Company, Miami-Hialeah – Florida;
Classic Beauty™ Mobile Spray Tanning, LLC Company is centrally located in a densely populated residential estate in Miami-Hialeah – Florida; our location is in fact one of our major strengths. We have state of the art mobile spray tanning equipment and tools and we are also one of the very few salons in the whole of Miami-Hialeah, Florida that offer a wide range of tanning services.
Another strength that counts for us is the power of our team. We have a team of hardworking and dedicated individuals who have the magic wand to grow a new business to become a national phenomenon.
Classic Beauty™ Mobile Spray Tanning, LLC Company is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients since the business entails them opening their doors to us.
We are centrally located in one of the largest residential area in Miami-Hialeah – Florida and our business concept has also positioned us to be a one stop shop in the mobile spray tanning line of business.
The truth is that there are no standard mobile spray tanning businesses within the area we are going to cover; the closest mobile spray tanning company to our proposed location is about 3 miles away. So, in a nutshell, we do not have any direct competition within our target market area.
Some of the threats that are likely going to confront Classic Beauty™ Mobile Spray Tanning, LLC are unfavorable government policies, seasonal fluctuations, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where our target clients are located.
7. MARKET ANALYSIS
- Market Trends
A close study of the industry shows that consumers have become increasingly conscious about health issues, and so the use of natural products is obvious across several industry sectors. The tanning industry in particular has been a cause for concern due to the risk of skin cancer associated with using tanning beds.
Another obvious trend in this industry is the advent of mobile tanning spray services. Mobile tanning spray services are an attractive business option for those attracted to the low startup cost involved in this type of business. Market entry is becoming more difficult due to increasingly strict regulation hence the need to improvise.
Because indoor tanning has received unfavorable publicity due to associated health risks such as skin cancer, spray tans have been rising in popularity. Spray tanning involves the use of aerosols to darken skin, imitating a tanned effect, which lasts for around a week.
Airbrush tanning currently constitutes the beauty industry’s most dynamic market segment, according to the American Tanning Institute. Spray tanning and body bronzing were ranked the two most lucrative services in the industry in a survey recently carried out on the US spa/salon sector.
8. Our Target Market
Prior to choosing a location for our mobile spray tanning business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.
The demographic component of those who need the services of mobile spray tanning services spreads across the public sector, the organized private sector, and individuals from different strata of the society and from all walks of life. Below is a list of the people and organizations that our mobile spray tanning services are designed for;
- Camp grounds
Our competitive advantage
Mobile spray tanning business is an easy to set up business that does not require huge capital base to achieve; anybody can set a mobile spray tanning business if they have the required skills. It means that the possibility of mobile spray tanning businesses springing up in the location where our mobile spray tanning business is located is high.
We aware of this which is why we decided to come up with a business concept that will position us to become the market leader in Miami-Hialeah – Florida.
Our competitive edge is that we are standard mobile spray tanning business that has loads of complimentary business offerings that can easily attract customers within the radius of our mobile spray tanning business operations.
We can confidently say that the location of our mobile spray tanning business is a positive for us. For the time being, Classic Beauty™ Mobile Spray Tanning, LLC has no real competitors that can match the quality of services we offer. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Classic Beauty™ Mobile Spray Tanning, LLC Company is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Classic Beauty™ Mobile Spray Tanning, LLC Company will generate income by offering the following services;
- Providing spray-on tanning services
- Providing airbrush tanning services
- Providing body contour tanning services
- Providing sunless tanning services
- Running complimentary services
- Sale of spray tanning related products
10. Sales Forecast
We are well positioned to take on the available market in Miami-Hialeah – Florida and we are quite optimistic that we will meet our set target of generating enough income from our first six months of operation and grow our mobile spray tanning business and our clientele base.
We have been able to examine the mobile spray tanning market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Classic Beauty™ Mobile Spray Tanning, LLC Company. It is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year: $120,000
- Second Fiscal Year: $250,000
- Third Fiscal Year: $450,000
N.B: This projection is done based on what is obtainable in the tanning salons industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location.
- Marketing Strategy and Sales Strategy
The marketing strategy adopted by Classic Beauty™ Mobile Spray Tanning, LLC is going to be driven basically by excellent customer service, honesty and quality service delivery. We want to drive sales via the output of our jobs and via referral from our satisfied customers.
Classic Beauty™ Mobile Spray Tanning, LLC is a mobile spray tanning business that is strategically located and we are going to maximize the opportunities that is available which is why we spend more to locate the business in a location that is visible.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets. Classic Beauty™ Mobile Spray Tanning, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our mobile spray tanning business by sending introductory letters alongside our brochure to households, hotels, hospitals, hostels, and camp grounds et al and key stake holders in Miami-Hialeah – Florida.
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Advertise our mobile spray tanning company in relevant beauty and style magazines, newspapers, TV and radio station.
- Attend relevant expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied students
- Join local chambers of commerce and industry to market our services.
11. Publicity and Advertising Strategy
Classic Beauty™ Mobile Spray Tanning, LLC Company is set to create a standard for mobile spray tanning businesses in Miami-Hialeah – Florida, which is why we will adopt and apply best practices in our business. Here are the platforms we intend leveraging on to promote and advertise Classic Beauty™ Mobile Spray Tanning, LLC Company;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our mobile spray tanning business in relevant magazines, local newspaper, local TV and radio stations
- Promote our business online via our official website and employ strategies to pull crowd to the website on a regular basis
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards in strategic locations in and around Miami-Hialeah – Florida
- Leverage on direct coupon mailing approach
- Engage in roadshows from time to time in target communities all around Miami-Hialeah – Florida
- Distribute our fliers and handbills in target areas all around Miami-Hialeah – Florida.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than our competitors are offering in Miami-Hialeah, Florida. We have also put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
The prices of our services will be same as what is obtainable in the open market knowing full well that home services attract extra charges.
- Payment Options
The payment policy adopted by Classic Beauty™ Mobile Spray Tanning, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Classic Beauty™ Mobile Spray Tanning, LLC will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered and products purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up a mobile spray tanning business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are well taken care of.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a mobile spray tanning business; it might differ in other countries due to the value of their money.
This is what it would cost us to start our own standard mobile spray tanning company in the United of America;
- The total fee for registering the Business in Miami-Hialeah – Florida – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing small facility – $50,000.
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for the purchase of equipment and startup inventory and supplies (spray tanning booth, UV tanning equipment, Spray – On tanning equipment, Body Contour tanning equipment, and tanning airbrush et al) – $25,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for the purchase of mobile truck – $35,000
- Miscellaneous – $2,000
We would need an estimate of $120,000 to successfully launch our mobile spray tanning business in Atlanta – Georgia, US.
Generating Startup Capital Classic Beauty™ Mobile Spray Tanning, LLC Company
Classic Beauty™ Mobile Spray Tanning, LLC is owned and managed by Ms. Belinda Moore and her immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank.
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $70,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Classic Beauty™ Mobile Spray Tanning, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our mobile spray tanning services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Classic Beauty™ Mobile Spray Tanning, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money 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
- Acquiring facility and remodeling the facility: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Purchase of truck: In Progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors: In Progress