Do you want to start a spray tan business and want to know the cost breakdown? If YES, here are 15 factors that affect the cost of opening a spray tan company. The tanning salon industry includes companies that provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services.
Some operators in this industry also run complimentary services such as health spas, fitness centers, mobile tanning locations, beauty parlors and hair salons et al. If you are conversant with the tanning business, you will realize that there is room for an investor or entrepreneur to start his or her own salon and still get a fair share of the market as long as his or her services meet the existing requirements.
Opening a spray tanning salon might not be entirely easy, but one thing is sure, it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed. People often think that starting a spray tanning salon does not require any technical or professional skills; in as much as this is true, you will still need to learn the art of tanning, have good business skills and of course customer services skills.
In this article, we will help you with the estimated cost of opening a spray tanning salon in your city.
The Estimated Cost Breakdown to Open a Spray Tanning Salon Business
When it comes to starting a standard spray tanning salon business, one is expected to spend the bulk of the startup capital on leasing a salon facility in an ideal location, purchasing and installing spray tanning equipment and machines. Please note that the exact cost of opening a spray tanning salon depends on the size of the salon and where it will be located.
Aside from that, you are not expected to spend much except for purchasing tanning and other skincare supplies and of course paying of your employees and utility bills. These are the key areas where you are expected to spend your startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand launching of the spray tanning salon in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant (it includes writing of business plans) – $4,500.
- Insurance (general liability, workers’ compensation and property casualty and other related insurance policy) coverage at a total premium – $12,400.
- The cost for payment of rent for a salon facility for 12 months at $1.76 per square feet in the total amount of – 75,600.
- The cost remodeling the facility and constructing a standard spray tanning salon – $50,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, and 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- $50,000
- The cost for storage hardware (bins, rack, shelves, creates) – $20,720
- The cost for salon equipment (cash register, security, ventilation, signage) – $750
- The cost of purchase of distribution trucks – $35,000
- The cost of launching a website – $600
- The cost for our opening party – $5,500
- Miscellaneous – $5,000
From the rough estimate as listed above, you will need a minimum of two hundred and seventy five thousand five hundred and fifty USD ($275,550) to establish a medium – scale but standard spray tanning salon business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers to go to the market or directly contact wholesalers and suppliers of the type of machines and equipment, raw materials and supplies they need in order to get the real time prices of these items.
The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above. Having said that, here are some of the factors that will influence the cost of opening a spray tanning business in the United States of America;
15 Factors That Determine How Much It Cost to Open a Spray Tan Business
1. The Type of the Spray Tanning Salon
A major factor that will determine the overall cost of opening a spray tanning salon business in the United States of America is the type and size of salon in question. For example, it will cost more to open a spray tanning salon operating from a facility than the opening a mobile business.
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 perform jobs in customer’s home, hotels, hostels, camp grounds and any private location, giving you the advantage of visibility for marketing purposes.
2. The Choice of Location
Another major factor that will determine the cost of opening a spray tanning salon in the United States of America is the location of the spray tanning salon. As a matter of fact, there are business consultants and realtors who are specialized in helping people choose an ideal location for their businesses; a location that will guarantee them to profitability within the shortest time frame.
For example, renting or leasing a salon facility in a location that is off the city center or off a major road will be less expensive when compared to renting a salon facility in a highbrow area; a location along a major road with high vehicular and human traffic.
3. The Required Licenses and Permits
In the United States of America, you cannot open a spray tanning business without first applying for the mandatory license and permits. You would need operational license, building license, zonal permits, signage permits and chemical handlers license amongst others to start your business.
These licenses and permits cost money and it will influence the overall cost of opening a spray tanning salon business. Please note that you will pass through several inspections before you can be issued your permits – this will also cost you money.
In order to get the overall cost of licensing associated with opening a new spray tanning salon in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements, so do your homework.
4. The Type of Facility
The type of facility you want to operate your spray tanning salon in is also a major factor that will determine the overall cost of opening the business. As regards the facility, you have the options of renting a salon facility, leasing a facility in a shopping mall or designing and constructing your own salon from the scratch.
With renting and leasing, you may spend to modify the facility to fit into the picture you have in mind, but there is a limit to how far you can go. Let us assume that you want to construct your salon facility from the scratch.
It means that you will buy the land or a property, bring up your design and of course construct and equip the salon facility. With that, you will agree that you are going to spend way more when compared to people that rent or lease a salon facility in a shopping mall or booth rental facility.
5. Your Product and Services Offerings
Another key factor that will determine the cost of opening a spray tanning salon in the United States of America is the service offerings of the salon. The fact that there are different types of spray tanning salons means that these businesses are designed to operate differently.
The cost for opening a strictly brick and mortar spray tanning salon that offer robust services such as spray-on tanning services, airbrush tanning services, body contour tanning services, sunless tanning services, running complimentary services and selling of spray tanning related products will be far more when compared to the cost of opening a strictly mobile spray tanning salon business.
6. The Size of the Spray Tanning Salon Business
Another very important factor that determine the cost of opening a spray tanning salon in the United States of America is the size of the salon. Of course, the larger the spray tanning salon, the larger the budget to get it up and running.
Aside from the cost of stocking the salon with supplies, it will also cost you more to position employees to man different job positions in the salon. For example, less than a handful of employees can man a spray tanning salon that is in a 12 by 12 facility while it will take about a dozen employees to man a spray tanning salon that is in a 24 by 24 facility.
7. The Cost of Hiring and Paying a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan document, a marketing plan, comprehensive SWOT analysis, and other advisory services.
So also, an attorney will help you with registering the business, drafting contract documents (especially for your suppliers and creditors) and offering you all the legal expertise that will help you start the business on the right foundation. Of course, these services will cost you money and it will indeed influence the overall cost of opening a spray tanning salon in the United States of America.
8. The Cost for Branding, Promotion and Marketing of the Spray Tanning Salon Business
The cost for branding, promoting and marketing the spray tanning salon is yet another key factor that will determine the overall cost of opening the business in the United States of America. Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing.
As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction in the industry in your city. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your spray tanning salon.
9. The Cost of Furnishing and Equipping the Salon
Another factor that will determine the cost of opening a spray tanning salon business is the cost of furnishing and equipping the facility. You will quite agree that aside from the basic facilities, an investor can spend more than expected to furnish the spray facility to look unique.
Before you can open a spray tanning salon, you will need items such as spray tanning booth, UV tanning equipment, Spray – On tanning equipment, Body Contour tanning equipment, and tanning airbrush, storage hardware (bins, rack, shelves, case), counter area equipment, Flat Screen TVs, sound system, Satellite dish and decoder, furniture (table, and stools), telephones, filing cabinets, store equipment (cash register, POS machines, security, CCTV, ventilation, signage), and security and fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening a spray tanning salon.
10. The Cost of Insurance
The cost of paying for insurance policy cover is yet another important factor that will determine the overall cost of opening a spray tanning salon in the United States of America. In the United States and most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
11. The Cost of Registering the Business
The cost of registering the spray tanning business is yet another cost that will influence the overall cost of opening a spray tanning salon in the United States of America. Although, the cost of registering a business is not significant, but it will no doubt add to the overall cost of opening the business.
12. Source of Your Supplies
Another major factor that will determine the cost of opening a spray tanning salon in the United States of America is the source of your supplies.
For example, if you don’t produce your tanning solutions and you have to rely on supplies, if you are able to build a robust business relationship with some of the leading spray tanning solution production companies, then you would have succeeded in cutting down the cost of your supplies. As a matter of fact, you can even get your supplies on credit.
13. Cost of Recruiting and Training Your Staff
The fact that you are opening your spray tanning salon as a new business means that you are expected to recruit and train your staff to conform to the kind of business you want to operate. The training will help you sell the corporate culture of your organization to your new employees. As expected, it will cost you money to hire trainers that will help you train your new hires and that will add to the overall cost of opening your spray tanning salon business.
14. The Cost of Uniforms, Shoes and Caps for Your Employees
Another factor that will determine the overall cost of opening a spray tanning salon business in the United States is the cost of purchasing and customizing uniforms, shoes, and caps amongst others. Your staff need uniforms and they are expected to put on these uniforms when they are on duty. All these uniforms will cost you money which is why it must be part of your budget.
15. The Cost of your Grand Opening
You will agree that in recent times, no spray tanning salon business opens its door for business without first organizing an opening party to officially launch the business. This means that the cost of the grand opening of a spray tanning salon business is part of the factors that will determine the overall cost of opening the business in the United States of America.
You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party. The bottom line is that it is a cost that must be part of your budget and this cost will influence the overall cost of opening the spray tanning salon business.
In Conclusion,
Please note that there are other factors not listed above that will sure influence the overall cost of opening your spray tanning salon business which is why we will advise that you work with a result driven business consultant in your city.