Mobile spray tan business plan for starting your own business

Are you thinking about starting a business that can offer tremendous opportunities in the future? Well, mobile tanning business is one of the most suitable choices then. And what’s more, it doesn’t even consume a large amount for startup!
People in a desire to look more beautiful simply go for a tan. However, they prefer to get a tan at their own house rather than in someone’s salon. So if you start a door-to-door tanning business you’ll surely be getting more customers. Moreover, opening a mobile tanning salon can also help you in reducing startup costs as you’ll not be required to set up and maintain a tanning facility.
So if you have decided to enter this venture, the first step is to create an airbrush tanning business plan. In case you aren’t aware of what essentials must be included in a business plan then you can take help from this sample spray tan business plan template for the startup, Tan Stunners.

Executive Summary

2.1 Mobile spray tan business

Tan Stunners, will be a registered mobile tanning business with its main office located in Pocatello, Idaho. The business will be owned by Julia Steve and will be based on providing spray tanning and airbrush tanning services to the residents of Pocatello by sending workers and equipment to their houses.

2.2 Management of spray tanning company

Before you go for a spray tan business start up you must devise a mobile tanning business plan so that everything about management and deals can be already planned.

Julia decided to oversee her business by herself, however, she’ll hire a co-manager, head of operations, tanning staff, general assistants, technical assistants, and transporters to ensure the successful running of the business.

2.3 Customers of spray tanning service

Knowing your customers before making a mobile airbrush tanning business plan can help a lot in making major decisions such as in deciding the services that should be provided.

Our customers will be mostly adults and young people including both men and women living in our city. Later in this spray tanning business plan, we’ll list groups of our customers with detailed analysis.

2.4 Business Target

Our target is to become the most renown mobile tanning service in our vicinity. Secondly, we aim at expanding our business to nearby cities. Our measurable target is to achieve a net profit margin of $10k per month by the end of the first year.

Mobile Spray Tan Business Plan - 3 Years Profit Forecast

Mobile Spray Tan Business Plan 1
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Company Summary

3.1 Company Owner

Tan Stunners will be owned by Julia Steve, a business graduate from the Haas School of Business. She has worked as a manager and is known for her exceptional organizational and management skills.

3.2 Why the Business is being started

After having a look at several available choices Julia decided to opt for mobile tanning business start up as it was easier. Starting your own spray tan business is comparatively simpler than other startups. Because for starting a mobile spray tan business, you don’t have to worry about rental costs and utility bills. Besides, if one is starting a mobile airbrush tanning business they have to just focus on tanning equipment, training of staff and transportation costs.

3.3 How the Business will be started

After gathering spray tan business tips Julia decided to do great from the time she starts her business. The business’s main office will be located in a leased building in Pocatello. High-quality equipment, tools, lotions, sprays will be bought and a highly planned and managed transportation system will be ensured.

The company will ensure a strong web presence while allowing customers to book tanning staff online. They will also be assigned with an ID and Login password so that their preferred workers, skin effects, and tanning experiences can be recorded for providing an improved experience.

The startup summary is as follows:

Mobile Spray Tan Business Plan - Startup Cost

The detailed start-up requirements are given below:

Start-up Expenses
Legal $145 500
Consultants $0
Insurance $75 250
Rent $75 250
Research and Development $75 250
Expensed Equipment $75 250
Signs $4 500
TOTAL START-UP EXPENSES $451 000
Start-up Assets $400 750
Cash Required $622 000
Start-up Inventory $62 250
Other Current Assets $435 000
Long-term Assets $450 000
TOTAL ASSETS $1 970 000
Total Requirements $2 421 000
START-UP FUNDING
Start-up Expenses to Fund $451 000
Start-up Assets to Fund $1 970 000
TOTAL FUNDING REQUIRED $2 421 000
Assets
Non-cash Assets from Start-up $850 750
Cash Requirements from Start-up $622 000
Additional Cash Raised $39 800
Cash Balance on Starting Date $45 650
TOTAL ASSETS $1 558 200
Liabilities and Capital
Liabilities $45 000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $48 000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $93 000
Capital
Planned Investment $2 421 000
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $2 421 000
Loss at Start-up (Start-up Expenses) ($907 600)
TOTAL CAPITAL $1 513 400
TOTAL CAPITAL AND LIABILITIES $1 606 400
Total Funding $2 421 000

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Services for Customers

Before researching on how to start a mobile airbrush tanning business you should decide your services. As you will have to carry your equipment from place to place to serve your clients in their homes so it’s required to first know which services can be provided like that.

Note

Moreover, knowing clearly what you’ll have to do can help you in availing most of the spray tanning business opportunities efficiently.

To give you an idea about usual services that are offered by such centers we’re enlisting ours, in this sample business plan on how to start a mobile spray tan business.

  • 15 Minutes Spray Tan: We will provide a 15-minutes spray tan service for those who don’t want a long exposure to UV rays. This 15-minute tan will last for almost a month and will provide clients with a less dark experience.
  • 25 Minutes Spray Tan: We will provide a 25-minute spray tan service for people who want a beautiful orange and significantly dark shade. Such a tan will last for about 3 months.
  • Airbrush Tan: We will provide natural-looking airbrush tanning services three months after we start spray tan business. As airbrush tanning is harmless in all ways so we expect to get customers of it too.
  • Manicures and Pedicures: We’ll provide feet, hands, and nails’ cosmetic treatment for therapeutic purposes.

All four services will be provided after deciding the product that can best suit the client’s skin.

Marketing Analysis of Mobile Spray Tan Business

Another thing that demands high accuracy and consideration if you are looking for how to start your own spray tanning business is marketing analysis. Being familiar with the market trends, market competitions and demand of one’s services specified to the area can help a lot in finding areas where more working is required.

Moreover, before opening a tanning business you must know who will be your customers. Knowing your target customers before starting a mobile spray tanning business can help you in devising major policies according to their ages, gender, and interests.

Bank/SBA Business Plan

5.1 Market Trends

According to IBISWorld tanning salons had been in great demand in 2019. The total revenue generated by tanning salons was reported to be $4billion in 2019. The website has also reported a growth rate of 5.2% in the past 5 years. These figures are clearly showing the market demand for tanning for which people have to go far away from their homes. So, one can easily imagine that the demand for mobile tanning services will be even higher as people want to have such personal services in their comfort zone.

5.2 Marketing Segmentation

The groups of target customers as identified by Tan Stunners are given here in this sample mobile spray tan business plan.

Mobile Spray Tan Business Plan - Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Young Women: The biggest consumer of our services will be young women in our city. The people in our vicinity are usually rich enough to afford tanning services in their homes. Among them, women are usually the most conscious about their appearance and beauty thus they are expected to avail all of our services including pedicures and manicures.

5.2.2 Men: Our second target group comprises of the male population in our city. Since tanning is also popular among them so they too are expected to avail our services.

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5.2.3 Senior Citizens: Our third target group consists of senior men and women in our city. They will most probably utilize our services of manicures and pedicures. However senior citizens from the rich community are also expected to contact us for our tanning services.

The detailed market analysis of our potential customers is given in the following table:

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Young Women 48% 42 866 51 439 61 727 74 072 88 887 10%
Men 29% 24 668 29 602 35 522 42 626 51 152 10%
Senior Citizens 23% 15 734 18 881 22 657 27 188 32 626 10%
Total 100% 83 268 99 922 119 906 143 887 172 665 10%

5.3 Business Target

  • To become the most renown mobile tanning service in our vicinity
  • To achieve the net profit margin of $10k per month by the end of the first year
  • To balance the initial cost of the startup with earned profits by the end of the first year
  • To open at least 2 more branches in this and nearby cities by the end of 5-years of the launch

5.4 Product Pricing

The area in which we will be going to serve is crowded with tanning salons but no one in the area is providing in-home services. Therefore, our prices are much higher than them.

Marketing Strategy

Before starting an airbrush tanning business it’s essential to find competitive aspects to come up with so that you can pull more and more clients. Also, an effective sales strategy plan must be developed before taking airbrush tanning business start up.

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6.1 Competitive Analysis

The biggest competitive advantage of Tan Stunners is that we provide services in homes. Usually, the working class hasn’t much time to go away from homes and sit in a salon to appear prettier. As we’ll be providing services in their homes for which they’ll have to just take out a few minutes from their busy routine, thus we are confident that this feature will make us a preferable choice than others. Secondly, people who opt for a tan will also avail manicures/ pedicures services when they will come to know that we’re offering them at the same time. Lastly, our highly trained and customer service oriented workers will impel our clients to only contact us for such services.

6.2 Sales Strategy

  • We will carry out a social media campaign to reach every person in our area
  • We will provide free manicure & pedicures services for people who avail our service of 25-minute tan for the first two months of our launch
  • We will advertise our services in business magazines, newspapers, and TV stations.

6.3 Sales Monthly

Mobile Spray Tan Business Plan - Sales Monthly

6.4 Sales Yearly

Mobile Spray Tan Business Plan - Sales Yearly

6.5 Sales Forecast

Mobile Spray Tan Business Plan - Unit Sales

Sales Forecast
Unit Sales Year 1 Year 2 Year 3
15 Minutes Spray Tan 9 500 9 750 10 250
25 Minutes Spray Tan 6 500 7 000 7 800
Airbrush Tan 2 500 2 600 2 700
Manicures and Pedicures 5 250 5 500 5 750
TOTAL UNIT SALES 23 750 24 850 26 500
Unit Prices Year 1 Year 2 Year 3
15 Minutes Spray Tan $40,00 $40,00 $40,00
25 Minutes Spray Tan $60,00 $60,00 $60,00
Airbrush Tan $30,00 $30,00 $30,00
Manicures and Pedicures $25,00 $25,00 $25,00
Sales
15 Minutes Spray Tan $380 000,00 $390 000,00 $410 000,00
25 Minutes Spray Tan $390 000,00 $420 000,00 $468 000,00
Airbrush Tan $75 000,00 $78 000,00 $81 000,00
Manicures and Pedicures $131 250,00 $137 500,00 $143 750,00
TOTAL SALES $976 250,00 $1 025 500,00 $1 102 750,00
Direct Unit Costs Year 1 Year 2 Year 3
15 Minutes Spray Tan $30,00 $30,00 $30,00
25 Minutes Spray Tan $45,00 $45,00 $45,00
Airbrush Tan $22,50 $22,50 $22,50
Manicures and Pedicures $18,75 $18,75 $18,75
Direct Cost of Sales
15 Minutes Spray Tan $285 000,00 $292 500,00 $307 500,00
25 Minutes Spray Tan $292 500,00 $315 000,00 $351 000,00
Airbrush Tan $56 250,00 $58 500,00 $60 750,00
Manicures and Pedicures $98 437,50 $103 125,00 $107 812,50
Subtotal Direct Cost of Sales $732 187,50 $769 125,00 $827 062,50

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Personnel plan

Before starting your own mobile spray tan business, it’s essential to decide how many people you’ll need to run your business. After deciding that you must start rigorous testing and interviews to select the most competent ones. As your workers will be directly responsible for customer satisfaction so it’s important to hire emotionally intelligent and skilled people.

7.1 Company Staff

Julia will oversee all the tasks of her company by herself however, she will hire the following people:

  • 1 Co-Manager for managing all operations
  • 1 Accountant for maintaining financial and other records
  • 6 Tanning/Pedicures/Manicures experts for tanning the customers
  • 6 General Assistants for general tasks
  • 1 Technician for maintaining the machines
  • 1 Web Developer for managing company’s websites and social sites
  • 1 Sales Executive for implementing sales strategy
  • 3 Drivers for transport services
  • 1 Receptionist for interacting with customers and recording their orders

7.2 Average Salary of Employees

 Personnel Plan
Year 1 Year 2 Year 3
Co-Manager $60 000 $66 000 $72 600
Accountant $30 000 $33 000 $36 300
Tanning/Pedicures/Manicures $130 000 $143 000 $157 300
General Assistants $80 000 $88 000 $96 800
Technician $15 000 $16 500 $18 150
Web Developer $20 000 $22 000 $24 200
Sales Executive $25 000 $27 500 $30 250
Drivers $35 000 $38 500 $42 350
Receptionist $15 000 $16 500 $18 150
Total Salaries $410 000 $451 000 $496 100

Financial Plan

Though mobile tanning business doesn’t require a large amount for the startup, still it is necessary to develop a detailed financial plan. Your financial plan must cover all the costs of inventory, equipment, tanning machinery, tanning lotions and sprays, payroll, transportation costs, etc.

Getting an estimate of possible expenses before you start airbrush tanning business can help you in devising policies to limit your expenses where they are not much needed.

To get a general idea about how an effective financial plan looks, you can take help from this sample business plan for Tan Stunners.

8.1 Important Assumptions

 General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,50% 11,00% 12,50%
Long-term Interest Rate 10,50% 10,50% 10,50%
Tax Rate 28,20% 29,60% 30,20%
Other 0 0 0

8.2 Brake-even Analysis

Mobile Spray Tan Business Plan - Brake-even Analysis

 Brake-Even Analysis
Monthly Units Break-even 5250
Monthly Revenue Break-even $229 740
Assumptions:
Average Per-Unit Revenue $225,50
Average Per-Unit Variable Cost $0,93
Estimated Monthly Fixed Cost $155 250

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss
Year 1 Year 2 Year 3
Sales $976,250  $1,025,500  $1,102,750 
Direct Cost of Sales $504,250  $535,150  $583,975 
Other $0 $0 $0
TOTAL COST OF SALES $504,250  $535,150  $583,975 
Gross Margin $472,000  $490,350  $518,775 
Gross Margin % 48.35% 47.82% 47.04%
Expenses
Payroll $357,000 $392,700 $431,970
Sales and Marketing and Other Expenses $2,850 $3,135 $3,449
Depreciation $1,250 $1,375 $1,513
Leased Equipment $0 $0 $0
Utilities $2,500 $2,750 $3,025
Insurance $2,800 $3,080 $3,388
Rent $5,500 $6,050 $6,655
Payroll Taxes $45,510 $50,061 $55,067
Other $0 $0 $0
Total Operating Expenses $417,410  $459,151  $505,066 
Profit Before Interest and Taxes $54,590 $31,199 $13,709
EBITDA $54,590 $31,199 $13,709
Interest Expense $0 $0 $0
Taxes Incurred $43,672 $24,959 $10,967
Net Profit $10,918 $6,240 $2,742
Net Profit/Sales 1.12% 0.61% 0.25%

8.3.1 Profit Monthly

Mobile Spray Tan Business Plan - Profit Monthly

8.3.2 Profit Yearly

Mobile Spray Tan Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Mobile Spray Tan Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Mobile Spray Tan Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Mobile Spray Tan Business Plan - Projected Cash Flow

 Pro Forma Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $30 450 $36 540 $43 848
Cash from Receivables $6 500 $7 800 $9 360
SUBTOTAL CASH FROM OPERATIONS $45 450 $54 540 $65 448
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $45 450 $54 540 $65 448
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $25 450 $30 540 $36 648
Bill Payments $15 450 $18 540 $22 248
SUBTOTAL SPENT ON OPERATIONS $37 650 $45 180 $54 216
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $36 450 $43 740 $52 488
Net Cash Flow $25 000 $30 000 $36 000
Cash Balance $20 350 $24 420 $29 304

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $175 250 $192 775 $212 053
Accounts Receivable $15 250 $16 775 $18 453
Inventory $2 120 $2 332 $2 565
Other Current Assets $1 000 $1 100 $1 210
TOTAL CURRENT ASSETS $202 500 $222 750 $245 025
Long-term Assets
Long-term Assets $10 000 $11 000 $12 100
Accumulated Depreciation $12 280 $13 508 $14 859
TOTAL LONG-TERM ASSETS $1 000 $1 100 $1 210
TOTAL ASSETS $165 400 $181 940 $200 134
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $8 560 $9 416 $10 358
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $8 570 $9 427 $10 370
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $7 655 $8 421 $9 263
Paid-in Capital $25 500 $28 050 $30 855
Retained Earnings $356 501 $392 151 $431 366
Earnings $100 200 $110 220 $121 242
TOTAL CAPITAL $189 360 $208 296 $229 126
TOTAL LIABILITIES AND CAPITAL $196 400 $216 040 $237 644
Net Worth $162 000 $178 200 $196 020

8.6 Business Ratios

 Ratio Analysis
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 4,00% 4,40% 5,06% 4,00%
Percent of Total Assets
Accounts Receivable 5,16% 5,68% 6,53% 9,70%
Inventory 1,70% 1,87% 2,15% 9,80%
Other Current Assets 1,61% 1,77% 2,04% 27,40%
Total Current Assets 127,45% 140,19% 161,22% 54,60%
Long-term Assets -8,71% -9,58% -11,02% 58,40%
TOTAL ASSETS 92,00% 101,20% 116,38% 100,00%
Current Liabilities 4,31% 4,74% 5,45% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,31% 4,74% 5,45% 54,10%
NET WORTH 91,37% 100,51% 115,59% 44,90%
Percent of Sales
Sales 92,00% 101,20% 116,38% 100,00%
Gross Margin 86,65% 95,31% 109,61% 0,00%
Selling, General & Administrative Expenses 68,35% 75,18% 86,46% 65,20%
Advertising Expenses 1,90% 2,08% 2,40% 1,40%
Profit Before Interest and Taxes 24,35% 26,79% 30,81% 2,86%
Main Ratios
Current 25,86 26,86 29,9 1,63
Quick 25,4 23,4 28,5 0,84
Total Debt to Total Assets 2,47% 2,71% 3,12% 67,10%
Pre-tax Return on Net Worth 61,48% 67,63% 77,78% 4,40%
Pre-tax Return on Assets 59,69% 65,66% 75,51% 9,00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 17,66% 19,43% 22,34% N.A.
Return on Equity 43,97% 48,36% 55,62% N.A.
Activity Ratios
Accounts Receivable Turnover 4,56 5,47 6,29 N.A.
Collection Days 92,00 110,40 126,96 N.A.
Inventory Turnover 19,70 23,64 27,19 N.A.
Accounts Payable Turnover 14,17 17,00 19,55 N.A.
Payment Days 27,00 32,40 37,26 N.A.
Total Asset Turnover 1,84 2,21 2,54 N.A.
Debt Ratios 0 0
Debt to Net Worth 0 0 0 N.A.
Current Liab. to Liab. 1 1,2 1,38 N.A.
Liquidity Ratios
Net Working Capital $150 650 $140 650 $180 200 N.A.
Interest Coverage 0 0,00% 0,00% N.A.
Additional Ratios
Assets to Sales 0,45 0,55 0,65 N.A.
Current Debt/Total Assets 4% 4,05% 4,66% N.A.
Acid Test 23,66 25,56 28,5 N.A.
Sales/Net Worth 1,68 1,78 1,83 N.A.
Dividend Payout 0 0 0 N.A.

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