Are you about starting an indoor tanning salon? If YES, here is a complete sample tanning salon business plan template & feasibility report you can use for FREE. If you are looking towards launching a business as an aspiring entrepreneur, one of your best bet is to launch a tanning salon business. The right time to start such business is now simply because the tanning salons industry is presently at its growing stage.
Setting up a tanning salon business could be a fun, profitable and an interesting business for someone who is skilled in the trade and with business perseverance and smartness. With the right location, top-notch service and good marketing skills, you can serve varieties of customers that cuts across individual and corporate clients, celebrities and regular people et al.
However, starting up a tanning salon business may not require pretty huge start – up capital, it also needs a significant investment capital, solid planning, and attention to detail in order to keep your business profitable. The bottom line is that if you are determined to explore the entrepreneurial world by starting a standard and licensed tanning salon, then you should consider going through the tanning salon business plan below.
A Sample Tanning Salon Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
The tanning salons industry includes companies that provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services. So also, 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.
In recent time, the tanning salons industry has grown as the united states consumers have enough money to spare for services such as tanning and other health and beauty services and products. As a result of this development, the demand for personal services and other luxury services has risen as consumers increase their spending on discretionary items and services.
It is expected that in 2016, the growth for this industry will plummet as health concerns mitigate 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 show that the United States tanning salon market exceeded the $5 billion mark in 2011, with industry growth having slowed to around -1% for the five preceding years, according to research from IBIS World. The American Tanning Institute estimates 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 Tanning Salons Industry in the United States of America, is worth over $5 billion, with an estimated growth rate of 2.1percent. There are about 30,000 registered and licensed tattoo studios in the United States and they are responsible for employing about 150,000 people. It is import to start that no tanning salon company can boast of having a lion market share in the industry; the industry is very much open for competitions from all players.
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 and maximize their number of customers. 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.
Over and above, the tanning salons industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own tanning salon business and of course make good money from the industry. Just ensure that your salon is well located in an environment with the right demography and you will be fine.
2. Executive Summary
Carissa & Jamborees Tanning Salon®, LLC is a U.S based and licensed tanning. We have been able to secure a standard and well – positioned facility in a central and busy district in Charleston – West Virginia. We are a tanning salon company that is set to compete in the highly competitive and fragmented tanning salons industry not only in Charleston – West Virginia, but also throughout the United States market because we intend opening our outlets in key cities across the United States.
Carissa & Jamborees Tanning Salon®, LLC will provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services. So also, we will be involved in running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al.
Our business goal is to become one of the leading tanning salons in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry. Our workers are going to be selected from a pool of certified, creative and highly experienced tanning experts in and around Charleston – West Virginia and also from any part of the United States of America as the business grows.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading tanning salons in the United States and throughout the globe.
At Carissa & Jamborees Tanning Salon®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for all our partners, employees and for our clients.
Carissa & Jamborees Tanning Salon®, LLC is founded by Carissa Lennon a member of the American Tanning Institute and a renowned beautician per excellence who graduated with from New York School of Arts and her sister and business partner for many years Jamborees Lennon. They have a combine experience that can help them build Carissa & Jamborees Tanning Salon®, LLC to favorably compete with leaders in the tanning salons industry.
3. Our Products and Services
Carissa & Jamborees Tanning Salon®, LLC was established with the aim of maximizing profits in the tanning salons industry. We want to compete favorably with the leading tanning salons in the United States which is why we have but in place a competent team that will ensure that every tanning services or related services rendered meet and even surpass our customers’ expectations.
We will work hard to ensure that Carissa & Jamborees Tanning Salon®, LLC is not just accepted in Charleston – West Virginia but also in other cities in the United States of America where we intend opening our chains of tanning salons. Our products and services are listed below;
- Providing UV tanning services
- Providing spray-on tanning services
- Providing airbrush tanning services
- Providing body contour tanning services
- Providing sunless tanning services
- Running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al
- Merchandise sales of tanning related products
4. Our Mission and Vision Statement
Our vision is to establish a standard and world class tanning salon whose services and brand will not only be accepted in Charleston – West Virginia but also in other cities in the United States of America where we intend opening our chains of tanning salons.
Our mission is to provide professional tanning services and other related services to individual clients and corporate clients. We want to build a tanning salon brand that can favorably compete with other leading brands in the tanning salon industry.
Our Business Structure
Carissa & Jamborees Tanning Salon®, LLC is a tanning salon that intend starting small in Charleston – West Virginia, but hope to grow big in order to compete favorably with leading tanning salons in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business cum brand we want to own. This is why we are committed to only hire the best hands within our area of operations.
At Carissa & Jamborees Tanning Salon®, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Salon Manager
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Tanning Specialist
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- 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.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serves as project manager of the organization; works directly with employees
- Develops strategic plan by studying the trends in the tanning salons industry, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the tanning specialists perform efficiently, coordinate employee efforts, and facilitate communications between management and the workforce
- Ensures that the organization work in line with international best practices.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Carissa & Jamborees Tanning Salon®, LLC
- Serves as internal auditor for Carissa & Jamborees Tanning Salon®, LLC
Licensed Tanning Specialists
- Responsible for providing UV tanning services
- Responsible for providing spray-on tanning services
- Responsible for providing airbrush tanning services
- Responsible for providing body contour tanning services
- Responsible for providing sunless tanning services
- Handle complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al
- In charge of merchandise sales of tanning related products
Client Service Executive
- Welcomes clients and potential clients 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 Human Resource and Admin Manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Carissa & Jamborees Tanning Salon®, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured tanning salon business that can favorably compete in the highly competitive tanning salons industry in the United States and the world at large.
Part of what the team of business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Carissa & Jamborees Tanning Salon®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Carissa & Jamborees Tanning Salon®, LLC;
Our core strength lies in the power of our team; our workforce. We have a team of certified, creative and highly trained and experience tanning specialists, a team with excellent qualifications and experience in the tanning salons industry.
Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry. Another strength that counts for us in the location of our tanning salon; it is located in one of the most ideal locations for such business in Charleston – West Virginia.
As a new tanning salon in Charleston – West Virginia, it might take some time for our tanning salon to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive tanning salons industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
No doubt, the opportunities in the tanning salons industry are massive considering the number of individuals in the United States who are embracing the tanning culture shift. As a tattoo artist studio, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power especially for luxury services like tanning. Another threat that may likely confront us is the arrival of a new tanning salon in same location where our target market exist and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
A close study of the tanning salons industry shows that recently, consumers have become increasingly conscious about issues such as the environment and health in general. A trend toward going green, natural products and personal responsibility for health through informed consumer choices is obvious across several industry sectors. The tanning salons 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 options for those attracted to the low start – up cost involved in this type of business. Market entry is becoming more difficult due to increasingly strict regulation hence the need to improvise.
Lastly, in recent time, indoor tanning has received unfavorable publicity due to associated health risks such as skin cancer et al. As a result, 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
Before starting our tanning salon in Charleston – West Virginia, we conducted a thorough market survey and feasibility studies and we are certain that there are loads of young and old people who would need the services of a tanning salon.
Carissa & Jamborees Tanning Salon®, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. In view of that, we have created strategies that will enable us reach out to various groups of people who we know will need our services. Below is a list of the people that we will specifically market our services to;
- Celebrities / Stars / Public Figures
- Corporate Executives
- Sports Men and Women
- Power Bikers and Cyclists
- Every Individual both old and young in Charleston – West Virginia
Our Competitive Advantage
Surviving in the business world as a tanning salon operator requires more than, your expertise, creativity, and knowing how to deliver standard tanning services et al but also how to network with key people that matters; decision makers that can decide who will get a tanning contract from celebrities or other corporate clients.
Because of the competitive nature of the global tanning salons industry, there is an increasing degree of related business activities, with franchises dominating the market and tanning salon chains a common feature. Larger outfits are diversifying to offer a wider range of related services such as health, beauty and skin services to boost their market share and increase their revenue.
We are quite aware that to be highly competitive in the tanning salons industry means that you are not only expected to be able to deliver consistent and highly creative tanning services, but you must be able to meet set targets.
Our competitive advantage lies in the power of our team; our workforce. We have a team of certified, creative and highly trained and experience tanning specialists, a team with excellent qualifications and experience in the tanning salons industry.
Aside from the synergy that exists in our carefully selected workforce, our tanning services will be guided by best practices in the industry. Another strength that counts for us in the location of our tanning salon; it is located in one of the most must busiest places highly suitable for such business in Charleston – West Virginia.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups tanning salons businesses in the United States) 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 achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Carissa & Jamborees Tanning Salon®, LLC is established with the aim of maximizing profits in the tanning salons industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Carissa & Jamborees Tanning Salon®, LLC will generate income by offering the following services;
- Providing UV tanning services
- Providing spray-on tanning services
- Providing airbrush tanning services
- Providing body contour tanning services
- Providing sunless tanning services
- Running complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al
- Merchandise sales of tanning related products
10. Sales Forecast
One thing is certain, there would always be individual who would need to experience what it means to tan their face or body.
We are well positioned to take on the available market in the tanning salon industry in Charleston – West Virginia and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our tanning salon business to enviable heights.
We have been able to critically examine the tanning salon market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Charleston – West Virginia.
Below are the sales projections for Carissa & Jamborees Tanning Salon®, LLC. It is based on the location of our tanning salon business and of course the wide range of tanning services we offer and our target market;
- First Fiscal Year-: $120,000
- Second Fiscal Year-: $350,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same tattoo artists services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and increases our market share. We will leverage on improving on our services, turnaround time and facility to ensure that we win new clients and retain old clients as well.
Our unique selling proposition is that we are well positioned, we offer mobile tanning services and people can easily access our facility, our various payment platforms are highly reliable.
Our sales and marketing team will be recruited based on their vast experience in tanning salons industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Carissa & Jamborees Tanning Salon®, LLC.
Our corporate goal is to grow Carissa & Jamborees Tanning Salon®, LLC to become one of the top 10 tanning salon brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Charleston – West Virginia but also in other cities in the United States of America where we intend opening our chains of tanning salons.
Carissa & Jamborees Tanning Salon®, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Open our tanning salon business with a big party.
- Advertise our tanning salon business on national dailies, local TV stations and local radio station
- Promote our tanning salon business online via our official website and all available social media platforms
- Introduce our business by sending introductory letters alongside our brochure to celebrities, sports clubs, schools, corporate organizations, households and key stake holders in Annapolis – Maryland
- Print out fliers and business cards and strategically drop them in offices, sport facilities, libraries, public facilities and train stations et al.
- Delivering consistent customer experiences to all our members; making our first impression count positively to those that patronize our services for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our tanning salon facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Charleston – West Virginia
- Create a loyalty plan that will enable us reward our consistent clients especially those that introduces their friends and family members to the business.
- Engage on road shows within our neighborhood to create awareness for our tanning salon services.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of Charleston – West Virginia and other cities in the United States of America where we intend opening our chains of tanning salons which is why we have made provisions for effective publicity and advertisement of our business.
Below are the platforms we intend to leverage on to promote and advertise Carissa & Jamborees Tanning Salon®, LLC;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our tanning services
- Install our Bill Boards on strategic locations all around Charleston – West Virginia
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact corporate organizations by calling them up and informing them of Carissa & Jamborees Tanning Salon®, LLC and the services we offer
- List our tanning salon business in local directories / yellow pages
- Advertise our tanning salon in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
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 (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients in Charleston – West Virginia and throughout the United States.
Be that as it may, we have 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 or when they introduce their friends and family members to our business. The prices of our services will be same as what is obtainable in the United States’ tanning salon services open market.
- Payment Options
The payment policy adopted by Carissa & Jamborees Tanning Salon®, 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 Carissa & Jamborees Tanning Salon®, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our tanning services and products.
13. Startup Expenditure (Budget)
In setting up any 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 good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools 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 tanning salon business; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Carissa & Jamborees Tanning Salon®, LLC in the United of America;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of – $10,000.
- The total cost for hiring Business Consultant – $5,000.
- The amount needed for the purchase of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The total cost for the purchase of accounting software, CRM software and Payroll Software – $3,000
- The total cost for leasing facility for the business – $150,000.
- The total cost for facility remodeling – $50,000
- Other start-up expenses including stationery – $1000
- 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 purchase of tanning equipment, tools and other start-up inventory (tanning supplies) – $25,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, snooker board, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our grand opening party – $15,000
- Miscellaneous – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (300,000) U.S. dollars to successfully set – up a medium scale but standard tanning salon business in the United States of America.
Generating Funding / Startup Capital for Carissa & Jamborees Tanning Salon®, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as tanning salon. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Carissa & Jamborees Tanning Salon®, LLC is a family business that is solely owned and financed by Carissa & Jamborees Lennon and their immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Carissa & Jamborees Tanning Salon®, 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 tanning services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Carissa & Jamborees Tanning Salon®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
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. 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.
Check List / Milestone
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility for our tanning salon: Completed
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Purchase of tanning tools and equipment and supplies: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress