Calculate the start up cost for your tanning business so you can analyze and anticipate probable expenses. Below are instructions and tips on how to calculate start up costs for tanning salon business.
- Make a feasibility study in having a tanning salon business in your area. Besides the expenses, you must anticipate the profit that you will make. Also, determine your target market, and possible competition in your area.
- Determine the needed permits and licenses in your area to start your tanning salon business. Ask ideas and suggestions from small business organizations and the Chamber of Commerce in your location to anticipate and determine probable costs.
- Find a strategic business area. Your business location must be accessible to people. Commercial areas are much expensive to rent or buy, but it is the most accessible. But there are also strategic residential areas especially if it is located near the market or the main city. After finding your business location, decide if you want to rent or buy it. You may need to build a new building in the location, so anticipate possible renovation or build-up costs. If possible, find two or three possible locations for your tanning salon business, then opt for the best location.
- Find and compare tanning beds. You might spend several thousand dollars or more for a tanning bed. Research and contact companies who are offering promos for people who want to endeavor in a tanning salon business. Compare their offers and negotiate. You also need to have tanning beds parts and replacement bulbs on hand.
- Buy a timer system for your tanning salon. The cost of the timer system will depend on the number of rooms that are connected to your system. You can start small to determine if the business will prosper; add more rooms if your tanning salon gets more customers.
- Determine the furnishings that you need. It includes safety furniture, safety signs, and signage among others. Decorating your salon also include mirrors and curtains among others. You always need to have a supply of tanning products that include towels, and eye protection that your customers need for their tanning session.
- Determine the cost of commercial liability insurance. Besides the insurance of your tanning salon, your customers must feel security that they are insured in case they get into any injury or accidents while they are on your salon.
- Find employees. It is better if you can get experienced tanning salon personnel. But you can get people who are willing to be trained and become part of your business. Estimate utility bills and payroll costs. Also, add the payroll taxes for the succeeding 3 months.
- Advertising. People must know that you will be opening a salon two or three weeks beforehand. You may need commercials, and print, radio, or television advertisements among others. Remember that frequent and effective advertising can help boosts the recall value of your tanning salon business. Identity is important in advertising; you must establish the reputation and identity of your tanning salon so people can easily recall it.
Your training salon business will help people achieve their desired tan. Post warning labels in your tanning salon so people will appreciate your care for them.