Tattoo Parlor Business Plan

Plan Outline
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Executive Summary Company Summary Products and Services Market Analysis Summary Strategy and Implementation Summary Management Summary Financial Plan Appendix

Executive Summary
Tablature Tattoo will open a small tattoo parlor in suburban Greenwood, NJ, where both tattoo newbies and collectors will be able to work with two established, talented artists. The business will provide small, introductory tattoos from existing designs, basic tattoos that can be executed in one hour, and full half-day sessions with the artists. The artists can offer extended consultations and custom design work with the customers as needed. The business will also sell a wide range of clothing items and posters featuring designs created by the two artists at the business. The founders, husband and wife Jake and Julie Hunt (a tattoo artist and retail administrator), seek a $10,000, three-year loan to launch the business. The business needs only $22,200 to launch, due to the low capital requirements of the business and the intention to use low-cost marketing techniques and direct selling to find initial customers. This low startup cost and the high margins on tattoo work (around 75%) will lead to positive cash flow within 6 months and the ability to repay this loan easily, as well as provide impressive dividends to the owners and a generous salary to the additional freelance artist contracted by the business. Sales will exceed $300,000 by the third year based on the full-time work of these three individuals.

Objecti es
Tablat
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will meet t e followi

objecti es over its first t ree years of operation:

Reach annual revenues of approximately $330,000 in year three Successfully create 5446 tattoos over three years Earn net profits for the owners, for si nificant total compensation to the two owners including salaries and dividends

Mission
Tablature Tattoo will create safe, impressive tattoo art for customers in the Greenwood, NJ area both through tattoos and through other products featuring art by the shop's tatto artists. o The business seeks to create a full time livelihood for Jack and Julie Hunt, the owners, while sharing revenue generously with an additional employedartist who will help to build the business.

Keys to Success
Keys to success in the tattoo shop business include: 1. Encouraging repeat customers (collectors) who return again and again for full sessions with artists they love 2. Making the health and care of customers and tattoos a top priorityto ensure the safety of the customers, employees, and business 3. Working with talented artists and encouraging their expression and freedom

Co p ny Summary
Tablature Tattoo, to be located in Greenwood, New Jersey within a centrally -located major route strip mall, will be launched in 2010. The business will be founded and run by Jake Hunt, an experienced tattoo artist, and his wife, Julie Hunt, who has retail administrative experience. A second tattoo artist will be hired to expand the options for customers and to

and signage permit. The location will be in a strip mall in Greenwood and will feature an open space for reception. gloves. property of $10. Computer software includes a basic calendar/scheduling program. and accounting software (basic QuickBooks). reception area items (a reception desk. Business cards and flyers include enough business cards for two years for the two tattoo artists and flyers advertising the grand opening to be distributed and posted in the area. autoclave. The owners will seek a space requiring minimal or no renovation to achieve this layout. and other resale items and sold through the shop as well with Tablature Tattoo branding and signatures by the artists. Tattoo supplies include chemicals (sterilizers. The business will provide color tattoos both from original designs by the artists and basic public domain designs. and a single bathroom. mirrors. ointments and soap). occupancy permit. credit card reader. pens. covered trash bin). waiting room and two tattoo stations. linens. Customers will include both those new to tattoos and tattoo collectors.000. This offers liability of $500. skin scribes). cash register. and sterilization room equipment (ultrasonic unit. Insurance will be secured from Tribal Ink-surance or another tattoo shop insurance provider. chair. Website development is for the creation of a basic website and grand opening advertisements include small ads in local papers in the weeks preceding the opening. and additional insurance for the landlord. laptop. Long-term assets include signage for the exterior of the shop. a small office space. Assets required include the cash needed to reach cash flow break-even. posters. paper products. sharps container. phone). Start-up inventory includes the inks and dyes needed to stock the store for launch. two binders for flash art). waiting area furniture (loveseat. phone). Original designs which are considered the best by the artists and the customers will be printed onto t-shirts. stencil paper. a sterilization room. towels. and skin marking supplies (thermofax. Start-u Summary Start-up expenses for Tablature Tattoo are limited. office equipment (printer/scanner/copier. business licenses. a digital camera. sterilization pouches). Rent is for one month for renovation of the location prior to opening. tattoo station equipment (two tattoo chairs. Com a y Ow ershi The business is established as a limited liability partnership between Jake and Julie Hunt with 51% ownership by Jake Hunt and 49% ownership by Julie Hunt. disinfectants. Other current assets includes a security deposit for the shop location.make better use of the company's resources. antiseptics. all predominantly between the ages of 20 and 40. inventory program. a sound system (speakers and iPod dock). Licenses and permits include a building permit for renovation on the space. . health department permit.000. tool box. lights. coffee table.

.Start-up Requirements Start-up Expenses Licenses and Permits Business Cards and Flyers Insurance Rent Computer Software Website Development Tattoo Supplies Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements $9.bplans.000 $8. For many customers who get asmall tattoo. small designs by the artists or standard public-domain designs. These tattoos can generally be finished in 45 minutes and with a minimum amount of consultation with the client.800 $2.000 $2.200 $1.000 $1.000 $1. Custom designs cannot be provided as an introductory tattoo.com/tattoo_parlor_business_plan/company_summary_fc.cfm#ixzz1Hns3f u6b products and Services Tablature Tattoo will provide the following services to customers: y y y Introductory/shop-minimum tattoos Basic tattoos (~1 hour session) Full sessions (2-6 hour sessions) Introductory tattoos are for those who are new to tattoos.000 $18.000 $1.700 Grand Opening Advertisements $500 Read more: http://www.500 $5.500 $500 $1.300 $27. They are basic.000 $1.

Short runs will be printed. Those who are more adventurous and who intend to collect tattoos will often choose the other services. and potentially other items. A fall 2006 survey by the Pew Research Center found that 36% of Americans aged 18 to 25. The artists will choose their best and most popular designs four times a year and have runs of these items printed.it may be the only tattoo they ever receive. hoodies. These are not generally custom-designed tattoos.bplans. Basic tattoos offer some consultation with the client. but may include some customization of existing designs. bags. and about an hour of work with an artist. These include t-shirts. NJ. The items will be sold for an average of $20. .com/tattoo_parlor_business_plan/products_and_services_fc. The price for these sessions will be $300 at launch. The price for this service will be $100 at launch. and 40% of those ages 26 to 40. Clients can view binders of the flash art (photos and images of designs by the artists and public domain designs they can work from) while sitting on the couch in the shop's waiting area. which will vary depending on the type of item. Full sessions allow creative freedom for the artist to create customization of a design or an original design for a customer and freedom for the customer to know that there is a ceiling on the price he or she will pay. In a working-class town like Greenwood.cfm#ixzz1Hn s7DVcw Market A alysis Summary Tattoos are no longer sought out only by fringes of the market. Some do convert to get more tattoos in the future. caps. Julie can discuss options and prices with the customers if the artists are working with customers at the moment. Each item will contain the Tablature Tattoo logo and can be signed by the tattoo artist if desired. Tablature Tattoo will also sell branded products in the store with designs created by the shop's tattoo artists. Some other statistics about the market: y y y The National Geographic News stated in April 2000 that 15% of all Americans were tattooed (or approximately 40 million people) Esquire Magazine estimated in March 2002 that 1 in 8 Americans (12%) was tattooed. A 2003 Harris Poll found that 16% of all adults have at least one tattoo. a wider number of colors. posters. The price for an introductory tattoo will be $60 at launch. allowing the business to respond to customer preference based on what sells (both the types of items and the types of designs). Read more: http://www. these numbers may be higher. have at least one tattoo.

Market Analysis Year 1 Potential Customers Growth Year 2 Year 3 Year 4 Year 5 CAGR . This group will seek custom designs. Tattoo collectors: This group connects with the lifestyle associated with having tattoos. people living in the West (20%) are more likely to have tattoos. lesbian and bisexual population (31%) and among Americans ages 25 to 29 years (36%) and 30 to 39 years (28%). Many seek to cover large portions of their body with tattoos. These individuals may become tattoo collectors. but most simply get one tattoo in their life. Tattoo newbies: May seek out a tattoo for the experience of receiving it. Democrats are more likely to have tattoos (18%) than Republicans (14%) and Independents (12%) while nearly equal percentages of males (16%) and females (15%) have tattoos. and become used to the pain or discomfort involved. eschew standard. especially in their younger years (late teens or twenties). The popularity of tattoos among celebrities also further encourages this group to get tattoos. This group will appreciate the work of specific artists and seek them out again. Collectors who like the work of the artists featured at Tablature Tattoo are especially likely to do this. NJ area include residents of Greenwood and surrounding towns who may travel to Tablature Tattoo.y y The highest incidence of tattoos was found among the gay. Regionally. The market is segmented into: y y Tattoo newbies or dabblers (those who get one tattoo) Tattoo collectors (those who get numerous tattoos) Market Segmentation The market segments in the Greenwood. to simply say they've done it. simple designs. making this number 10. to commemorate a specific relationship or affiliation. or for the danger associated with it or with those who have tattoos.000 individuals.

Rat-a-tat-tat: This shop features three successful artists focusing on tribal styles. Com etition and Buying Patterns In choosing between competitors.400 41. according to a U. The business will seek out both markets by advertising both its introductory designs and the elaborate design work they are capable of.448 10. The shop will be appropriate for tattoo collectors. those seeking tattoos consider: y The body of work of the artist .264 33. it is difficult to inspire new tattoo collectors in the area without first serving tattoo newbies with introductory tattoos. but turns away customers who are interested in a wider range of styles. he or she may have second thoughts) and including the flash art created by the artist .746 11. It features a revolving door of artists. with entertaining music playing and products available for sale.00% 4. However.795 4.00% Target Market Segme t Strategy Tablature Tattoo will seek to serve both of these key market segments in order to remain viable.Beginning with the tattoos on the body of the artist (if a customer doesn't like these designs and the taste of the artist. Generally. Furthermore. $100 is a standard market rate for one hour with a tattoo artist and the artist generally makes 40-50% of that amount per hour. The article ranked tattooing as the sixth fastest growing retail venture of the 1990s.200 10. paging services. Customers are attracted through internet advertising and their websites. The artists are generally freelance contractors working on 1099 and controlling their own hours and schedules.816 43. its price of $50 for a basic tattoo is competitive. Serving tattoo collectors alone may not yield a large enough market. Tablature Tattoo will compete with: y y Target Tattoo: This shop is located in an area mall and focused on introductory tattoos and short sessions.699 46.00% 4.000 10. Tattoo shops are generally independent ventures run by tattoo artists. which is in keeping with the freedom they desire.000 31.S. on the average.995 35. right behind Internet.Tattoo Newbies Tatoo Collectors Total 4% 4% 4. News & World Report article. tattoo studios are under increasing legal pressure from tax authorities to reclassify these artists as employees as most work primarily in one studio. NJ area. Service Busi ess A alysis There are an estimated 20. This limitation of the store gives it a successful niche. an establishment is being added in the country every day.00% 30. In the Greenwood. However.249 44. referrals and word-of-mouth.000 adult Americans. Some feature just one artist and some feature a number of them (three or four is common). as artists generally have higher aspirations than working at a shop like this.000 40. which said. bagels.600 32. computer and cellular phone service. This translates into a tattoo parlor for at least every 10.096 11. tattoo artists do not want to work for owners who are not artists themselves.000+ parlors operating in the United States.

the business intends to convert local customers who may only seek one tattoo initially to become repeat customers.y y Comfort talking to the artist . Read more: http://www. price is more of a concern for tattoo newbies than collectors. rent. at local establishments and hand out at events and on the street in the preceding week. establish job security and establish a client base with limited risk. When customers understand that a higher price sometimes means no shortcuts are being taken. establishing a brand.its artists. and it is up to the tattoo artist to explain the safety precautions taken and experience he or she has which explains the price charged.cfm#ixzz 1HnsCason Strategy and Im lementation Summary Tablature Tattoo seeks to follow a strategy of appealing to both new tattoo customers and tattoo collectors by creating an environment and products/services desirable to both groups. or other business concerns. Price . Through this strategy. The following tactics will be used prior to launch: y Print 1.000 flyers advertising the grand opening of the business to post in the area of the shop.com/tattoo_parlor_business_plan/market_analysis_summary_fc. they may feel more comfortable and price becomes less of a concern. purchasing basic supplies. this will be a perfect situation for a tattoo artist who wants to focus on his or her art. The business will do this by: y y y y Offering competitively-priced introductory tattoos to encourage "tattoo newbies" Retaining high-quality artists to retain tattoo collectors Offering a wide range of custom designs in different styles to broaden appeal Selling additional products with designs by the tattoo artists to build an additional revenue stream Com etitive Edge Tablature Tattoo will create a competitive edge through the cultivation and retention of its most valuable assets .Customers are often bargain hunters. Of these concerns. Jake Hunt will be tied to the business as an owner and the second artist will be well rewarded for his or her work through open-ended shares in revenues generated through his or her designed products and commissions on tattoos.bplans.Customers want to know that their wishes are understood and that the artist will work towards the goal they want and not their own ends. Marketing Strategy The marketing strategy of the business involves marketing to a wide range of potential customers in the Greenwood area. By not having to worry about overhead. .

by wearing Tablature Tattoo shirts often and handing out business cards to people they meet. tattoo shop databases and the Yellow Pages The principals and additional artist handing out business cards and wearing Tablature Tattoo shirts to promote the opening Running ads in the local papers about the grand opening The artists calling their rolodexes of previous clients (collectors) to tell them about the new business and encourage them to come back The grand opening. and images of products for sale in the shop and prices List the website on search engines. the prices for services. Each customer will be called by the receptionist after a week to check in on how the tattoo is healing and to thank them again. and 6% for full sessions. Beyond in-store sales efforts. Ongoing marketing work will include: y y y Continuing to hand out business cards Printing flyers periodically promoting discounts and new products and posting them in the area Maintaining the website with new products and art Sales Strategy Sales will be encouraged through word-of-mouth. events.y y y y y Create a basic website with contact information and directions. This pamphlet will be purchased from an industry provider. as buyers will be those who have had tattoos from the artists and appreciate their designs. Sales Forecast The cost of sales for the services offered is 8% for shop-minimum tattoos. Full sessions will grow faster than other areas as the artists gain reputation in the community for more elaborate work. 7% for basic tattoos. . Clients will be given a few business cards to hand out to friends when they talk about their new tattoo and client information will be retained. Resale items are not expected to sell until after tattoo business begins. Cost of sales will also include a pamphlet on tattoo care given to each customer. pages with galleries of art of the two artists. and while on the street." Resale items are projected at 40% cost of sales on average. the artists will promote their work at parties. a five-day event. Ensuring health and customer satisfaction will also be a sales strategy. as ink and supplies becomes less of a cost as the longer sessions involve more preliminary design work and less "ink per hour. local business databases. will consist of a promotion giving introductory tattoos at 25% off ($45). The artists will also remind customers about products featuring their designs which are being offered and can give these products for discounts or free to collectors who return for a number of tattoos.

853 .200 $116.480 $49.00 $100. and manage and market the business. T-shirts.75 $22.416 Year 3 $66.00 756 655 539 340 2.00 Sales Shop-Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2-6 hours) $33. T-shirts.05 Year 2 Year 3 Resale Items (Posters.00 $21.00 $315.848 $190.) $20. Sales Forecast Year 1 Unit Sales Shop-Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2-6 hours) Total Unit Sales Unit Prices Shop-Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2-6 hours) 558 492 387 1.00 $300.100 $47.873 $52. etc. etc.15 $110.628 $68.00 $105.) 184 Resale Items (Posters. create designs for other resale items.00 794 688 577 357 2.The sales forecast represents an amount of work that is reasonable for two full-time artists.621 Year 1 $60.290 Year 2 $63.510 $75.796 $169. while allowing time for them to work on flash art.25 $330.

444 $6.678 $3.72 $19.472 Milestones The milestones table details the marketing activities described in the marketing strategy summary. etc.00 Direct Cost of Sales Shop-Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2-6 hours) Subtotal Direct Cost of Sales $2.561 $3.461 Year 1 $7.855 $21.00 $18. etc.00 $202. These activities are undertaken with a high focus on using low -cost or free marketing methods to promote the launch of the business. Julie Hunt will manage a ll marketing activities and Jake Hunt will promote the business directly by contacting clients.078 Year 3 $5. etc. T-shirts.) $3.192 $2.80 $7.35 $18.868 $327. and posting/handing out flyers and business cards.681 Total Sales Direct Unit Costs Shop-Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2-6 hours) $4.137 $293.147 $24.Resale Items (Posters.109 Resale Items (Posters.) $1.816 $10.04 $7.201 $5.434 Year 2 $5. networking.451 $3.810 $4.90 $8. T-shirts.000 $500 $0 $0 $0 $0 $2.309 $11.500 Budget Manager Julie Julie Julie Julie Julie Julie Jake Jake Jake & Julie Julie Department Marketing Marketing Marketing Marketing Marketing Marketing Sales Sales Marketing Operations .40 $7.966 $14.673 $4.29 $7.) $8.85 $8.82 Resale Items (Posters. T-shirts. Milestones Milestone Print Flyers Create Ads Create Website Print Business Cards List Website Run Ads Post Flyers Heavy Pre-Opening Promotion (Calls and Networking) Grand Opening Regular Operations Begin Totals 2/1/2010 2/1/2010 2/1/2010 2/1/2010 3/1/2010 3/1/2010 3/1/2010 3/15/2010 3/22/2010 3/29/2010 Start Date 2/15/2010 2/15/2010 2/28/2010 2/15/2010 3/15/2010 3/15/2010 3/15/2010 3/21/2010 3/26/2010 3/29/2010 End Date $500 $0 $0 $500 $1.

and half of the tattoo services provided. She will work at the reception desk and in the office of the business as needed. Jake Hunt will manage this artist and will seek an established artist with a body of work and clientele who values the ability to not have to deal with the overhead and business concerns which the Hunts will handle. where the printer/copier is located. direct sales efforts. She will be responsible for managing reception.500 $46. Julie Hunt will be operations manager. insurance. Wages listed below for the second artist are based on an assumption of splitting the tattoo and design work equally between Jake and the second artist.cfm#ixzz1Hn sNceC8 Financial Plan .bplans. contracting and working with the employed second tattoo artist.187 $178.bplans.492 $58. and other administrative requirements. but will have his or her pay tied directly to services rendered and received 40% commission on tattoos provided and designed products sold.500 $55. He will be responsible for strategy. answering phone and email inquiries.687 $65. payroll.500 $52.716 Read more: http://www.416 3 3 3 $136.com/tattoo_parlor_business_plan/strategy_and_implementation_summary _fc. and head of marketing).000 $60. He will be the final say on choosing designs for additional products. The second tattoo artist brought into the company will start work at part-time hours and move quickly to full-time hours. purchasing supplies and managing inventory.com/tattoo_parlor_business_plan/management_summary_fc. Personnel Plan Year 1 Jake Hunt Julie Hunt Second Artist Total People Total Payroll Year 2 Year 3 $49. She will order resale products from suppliers. Jake Hunt will fill in at reception when business is slow and Julie needs to work in the office.800 $40. Salaries shown for the principals include benefits. bookkeeping and accounting.cfm#ixzz1HnsJ4HlX Management Summary Jake Hunt will be CEO of Tablature Tattoo.200 $49. marketing efforts. Personnel Plan Jake and Julie Hunt will both be compensated as employees for their work (Jake as tattoo artist and manager of products and Julie as administrator.192 $163.Read more: http://www. financial officer.

They will borrow $2. a long-term loan.000 on credit cards and seek a three-year loan of $10.The financial plan for Tablature Tattoo is to raise $27.300 $27.000 $8.500 $0 $15. Break-even Analysis The monthly break-even is shown below.000 in funding needed to launch. The units break-even represents an average between the different business services and products and is not as helpful as a target.500 $9. Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start -up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Total Liabilities Capital Planned Investment Jake Hunt Julie Hunt Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding $7. with their home equity as collateral.000 $2. Julie and Jake Hunt. allowing for dividends to be paid to the owners beyond their salaries starting in year two.000 from a combination of personal savings. The business will achieve cash flow and profit break-even in the seventh month of operation and net profit will be achieved in the first year.000 $0 $12.300 $18.700) $6.000 for the remaining cash. who will each contribute $7. and short-term borrowing to launch the business. This will cover the required $27.800 $18. Start-u Funding The start-up funding will be primarily from investment by the co-owners and founders.800 $0 $9.500.500 $7.700 $18. .000 ($8.300 $8.000 $10.300 $27.000 Other Current Liabilities (interest -free) $0 Im ortant Assum tions The table below presents assumptions used in the financial calculations of the business plan.

207 131 $16. Depreciation is for the long-term assets of the business over three years. . Payroll taxes of 15% and employee benefits of 10% (health insurance) are applied to payroll for the Hunts and thesecond artist's wages. Rent is $1.98 Estimated Monthly Fixed Cost $15. Inflationary increases are applied to most items and to prices charged to customers. The marketing budget includes $150 per month to cover website hosting and maintenance and periodic runs of flyers or new business cards.90 Average Per-Unit Variable Cost $8.500 per month and utilities $150 per month (electricity.Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue $124. phone and internet). Tattoo supplies of $100 per month are anticipated to replenish items purchased before the launch. Insurance is not expected to rise significantly as the business will stay within its insurance bracket during this period.386 Projected Profit and Loss Gross margins will improve slightly as sales of full sessions increase relative to other services.

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890 $2.200 $182. The short term debt will be paid off in the first year and the long-term loan will be paid off over the first three years of operation.000 $1.376 $500 $16.487 13.200 $234.910 $59.673 $271.970 92.187 $1.866 $18.413 EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $7.561 $187.923 $39.452 $68.096 $1.900 92.466 $19.505 $47.434 $21.279 $932 $1.55% Projected Cash Flow The business will reach cash flow break-even mid-year.517 $71.273 $26.800 $1.000 for unexpected needs.466 $18.461 $14.109 $0 $24. Some additional long-term assets (replacements of equipment and additional tools) will be purchased over these years as well.109 $302.192 $1.81% Year 2 $293.236 $24.807 $1.910 $1.540 $1.846 14.851 $56. .63% $202.983 $167 $20.716 $1.800 $1.985 $3.487 $163.61% Year 3 $327.561 $0 $14.200 $20. and be able to pay dividends in year two while keeping a cash balance of around $20.078 $24.137 1.63% Profit Before Interest and Taxes $5.200 $214.761 92.Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Tattoo Supplies Total Operating Expenses $136.344 $3.429 $1.478 $1.854 $1.46% $178.673 $0 $21.

658 Year 1 $23.434 $327.197 $0 $0 $0 $0 $0 $0 $218. even while accounts payable will increase due to a greater volume of sales.475 $0 $0 $3.166 $0 $0 $0 $0 $0 $0 $353.998 $274.475 $0 $0 $0 $0 $0 $0 $316.331 $0 $1.434 $293.536 $23.724 Principal Repayment of Current Borrowing $2.200 $40.461 $202.000 $310. HST/GST Paid Out Other Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $16.166 $0 $0 $3.833 $30.200 $30.546 $178.336 $136.891 $26.736 $16.922 $6.187 $89.000 Long-term Liabilities Principal Repayment $3.192 $53.355 $22.000 $345.333 $0 $1.716 $95.078 Year 2 Year 3 Projected Balance Sheet The business will create a healthier position as it pays off its long-term and short-term debt.359 $252.Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.790 $163.597 $189.714 $16.078 $327.554 $6. VAT.411 $7.909 Year 2 $26.461 $293.197 $0 $0 $600 $0 $211. VAT.245 Year 3 $202. .

04% 15.393 Year 1 $6. which includes tattoo parlors.67% 100.700) $3.08% 2.28% 5.66% 40.600 $1.34% 9.724 $2.734 $23.924 $29.98% 95.500 $19.500 $34.332 $2.437 $7.487 $18.94% 6.07% 91.46 100.58% 4.49% 59.39% 100." NAICS 812199.536 $1.000 $7.00% 75.81% 0.468 $29.956 $15.349 $0 $0 $7.80% 45.69% 4.708 $26.00% 92.708 Year 3 $16.Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital $7.58% 100.93% Year 2 11.624 $1.a.17% 28.292 $6.00% 20.137 $9.39% 30.21% 6.770 $34.00% 22.076) Total Liabilities and Capital $23.95% 100.506 Year 2 Year 3 ($35.00% 22.41% 84.604 $18.437 Business Ratios The business ratios here are compared against "other personal care services.349 $3.292 $0 $0 $7.563) ($36.08% 63.866 $3.283 $1.746 $1.939 $0 $0 $7.32% 99.500 $27.00% 92.61% 79.64% 19.70 3.00% 92.800 $4.89% 2.00% 31.680 $15.924 $7.42% 0.13% 3.331 $10.46% 6.000 $39.69 4.31% n.664 $13.47% Year 3 Industry Profile -6.61% 20.26% .00% 24.939 $15.770 $5.55% Selling.63% 78.32% 44.35 1.25% 36.136 $30. 44.939 $0 $7.71% 74.92% 6.54% 55.00% 0.798 $202 $34.604 Year 2 $8.87% 77.000 $47.34% 100.66% 8.846 $26.16% 0. Ratio Analysis Year 1 Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Advertising Expenses Profit Before Interest and Taxes Main Ratios Current 2.82% 11.659 $22.96% 100.891 $2.87% 0.68% 100. General & Administrative Expenses 91.393 Net Worth $9.000 ($8.

100 $100 $13.660 Month 4 $4.033 $206 $266 $522 $98 $1.00 $100.640 Month 1 $4.00 $20.92 12.460 $3.a Read more: http://www.00 $100.) Total Sales Direct Unit Costs Shop -Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2 -6 hours) Resale Items (Posters.400 $200 $14. T -shirts.940 Month 3 $4.) Sales Shop -Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2 -6 hours) Resale Items (Posters.010 Month 6 $4.09% 190.00 60 52 42 27 181 Month 12 $60.65 9.84 n.80 $7.06 12.00 $2.100 $3.a n.00 $8.160 $226 $294 $576 $152 $1.000 $7. etc.00 $8.28 95.00 $300.00 54 48 38 23 163 Month 10 $60.00 $20.700 $244 $15.00 $300.00 $8.624 8.00 $100.47 21.30 1.66% 4.80 $7.80 $7.000 $503 $20.00 $18.00 43 38 29 12 122 Month 5 $60.80 $7.00 $300.00 $20. etc.a n.00 $8.00 $18.200 $412 $17.800 $11.16% Year 1 1.700 $4.800 $427 $18.55% Year 2 13.00 $18.a n.00 $100.545 $288 $364 $756 $216 $1.80 $7.00 35 30 25 2 92 Month 1 $60.952 Month 8 $4.00 $2.00 $8.500 $40 $12.47 59.787 113.00 $100.00 $2.00 $20.53% n.00 37 32 26 3 98 Month 2 $60.00 $100.00 $3.00 0.200 $12.887 Month 9 $4.320 $245 $322 $648 $171 $1.820 $4.00 $300.00 $18.a n.a n.00 $2.00 $18. T -shirts.a n.367 5.00 $20.49% 19.420 $5.00 $2.00 $8.00 $100.00 $20.00 45 40 30 16 131 Month 6 $60.000 $9.00% $2. etc.06 22.00% 6. etc.35 27 8.Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.00 $20.cfm#ixzz1HnsTgKKu A Sales Forecast endix Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Unit Sales Shop -Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2 -6 hours) Resale Items (Posters.00 $18.59 12.200 $7.00 $300.00 $300.00 $3.00 $300.00 $8.00 $8.324 Month 5 $4. T -shirts.87% 255.96% 20.80 $7.33% 196.88 $26.32 15.11 23% 4.580 $3.600 $381 $17.00 n.52 0.00 $3.00 57 50 40 25 172 Month 11 $60.00 $100.93% Year 3 14.bplans.12 31% 2.00 $20.a n.200 $9.91 9.00% 40.400 $8.00 $3.a n.092 $216 $280 $540 $124 $1.00 $20.a 0.000 $310 $16.a 11.00 $18. etc.939 Month 12 $4.600 $10.001 Month 7 $4.800 $60 $13.80 $7.600 $539 $21.600 $5.00 $20.08% 298.80 $7.63% 178.) Subtotal Direct Cost of Sales $168 $210 $450 $16 $844 $178 $224 $468 $24 $894 $187 $238 $486 $40 $951 $197 $252 $504 $80 $1.51 0.45 0.060 $4.a 1.66% 47.600 $8.00 $2.00 .48 0.00 $18.00 $300.32 36.73% 1.00 $300.80 $7.76 0.00 $18.42 n.22 0.69 0. T -shirts.00 51 46 36 21 154 Month 9 $60.400 $463 $19.10 25% 3.00 $300.24% 3.00 $300. T -shirts.a n.220 $3.00 $8.923 Month 11 $4.00 $100.80 $7.00 $300.17 29 9.com/tattoo_parlor_business_plan/financial_plan_fc.340 $3.a n.400 $10.17 30 9.55% 33.80 $7.800 $8. to Liab.00 $8.00 $18.280 Month 2 $4.00 $100.39 n.00 39 34 27 5 105 Month 3 $60.00 $100.00 $20.80 $7.75 8.00 $18.00 $100.386 $259 $336 $684 $185 $1.00 41 36 28 10 115 Month 4 $60.69% 476.240 $4.81 $19.248 $235 $308 $612 $165 $1.56 0.00 $18.a $12.46% 208.00 $20.) Direct Cost of Sales Shop -Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2 -6 hours) Resale Items (Posters. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 2.000 $12.940 $4.00 $8.00 47 42 32 19 140 Month 7 $60.00 $2.) Total Unit Sales Unit Prices Shop -Minimum Tattoos Basic Tattoos (~1 hour) Full Sessions (2 -6 hours) Resale Items (Posters.00 $8.464 $274 $350 $720 $201 $1.568 411.00% 7.00 49 44 34 21 148 Month 8 $60.903 Month 10 $4.

918 $1.624 $0 $1.177 $4.502 92.386 93.372 $1.850 $3.00% $1.011 $0 $0 $0 $0 $0 $0 $13.086 $65 $555 $1.011 $200 $0 $278 $0 $0 $0 $12.850 $2.125 $3.42% $10.854 $100 $17.160 $150 $172 $1.234 $12.660 $15.850 92.432 $70 $357 $833 4.550 Month 5 $1.388 3 $12.68% $11.587 $1.364 $1.360 $0 $0 $0 $0 $0 $0 $18.125 $3.649 $14.177 Month 7 $4.056 $3.595 $100 $14.64% Month 11 $20.248 $0 $1.115 $200 $0 $278 $0 $0 $0 $16.500 $150 $0 $1.85% $11.500 $150 $0 $1.Personnel Plan Month 1 Jake Hunt Julie Hunt Second Artist Total People Total Payroll 0% $4.907 $150 $139 $1.386 $17.375 Month 8 $4.500 $150 $0 $1.500 $150 $0 $1.500 $150 $0 $1.623 $15.087 $1.871 $1.739) $99 ($593) ($1.903 $19.500 $150 $0 $1.956 $5.850 $4.187 $1.049 ($706) $10.752 $5.850 $2.065 3 $11.790 8.040 $4.833 Month 4 $1.388 Month 8 $1.65% Month 9 $18.564 $11.489 $2.735 $100 $15.280 $13. VAT.660 $14.295 6.674 $0 $0 $278 $0 $100 $0 $20.582 ($955) ($816) $89 ($313) ($731) -4.701 $12. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long -term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.651 Month 1 $1.99% $12.232 92. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long -term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long -term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $1.773 $16.320 $16.940 $951 $0 $951 $12.790 $60 $767 $1.887 $1.921 $2.202 3 $11.92% $12.177 $150 $139 $1.182) $104 ($727) ($1.559 ($268) $7.956 $4.657 $1.425 $18.216 $11.939 $1.707 $1.18% Month 4 $14.66% Month 8 $17.260 $1.033 $13.565 Month 9 Month 10 Month 11 Month 12 $4.907 Month 5 $4.745 $17.656 $100 $14.87% Month 6 $16.887 $19.850 $2.907 $4.821 $2.793 $100 $15.092 $0 $1.53% $11.117 ($2.173 $200 $0 $278 $0 $0 $0 $16.010 $16.631 $2.989 93.360 $200 $0 $278 $0 $100 $0 $18.877 $13.436 $0 $0 $0 $0 $0 $0 $19.763 Month 4 $4.065) -7.001 $17.614 $100 $14.125 $3.500 $150 $0 $1.248 $15.324 $1.753 92.160 $14.075 $18.813 $1.903 $20.939 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Pro Forma Balance Sheet Month 1 Assets Starting Balances Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 .115 $0 $0 $0 $0 $0 $0 $15.503 Month 2 $4.727 ($895) $8.565 $5.160 $6.170 $15.60% Pro Forma Cash Flow Month 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax.436 $200 $0 $278 $0 $100 $0 $18.674 $0 $0 $0 $0 $0 $0 $22.265 ($1.040 $150 $139 $1.226 $200 $0 $278 $0 $0 $0 $17.592 $200 $0 $278 $0 $100 $0 $19.75% Month 7 $17.092 $14.384) -10.893 ($43) $96 $79 ($37) ($85) -0.185 3 $12.125 $3.125 $3.62% Month 12 $21.824 $100 $16.375 $150 $172 $1.624 $11.361 Month 7 $1.631 $150 $139 $1.500 $150 $0 $1.636 $100 $14.735 ($503) ($364) $84 ($176) ($411) -2.98% $11.363 $6.001 $17.16% $11.125 $3.914 $2.503 $150 $139 $1.172 $190 $8.233 $11.400 3 $11.590 3 $11.545 $0 $1.375 $4.508 $10.903 $1.826 $2.43% $10.005 ($950) $9.66% Month 10 $19.439 92.940 $14.752 $150 $172 $1.062 $0 $0 $0 $0 $0 $0 $14.412 $10.363 Pro Forma Profit and Loss Month 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Insurance Payroll Taxes Tattoo Supplies Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales 15% $10.850 $3.762 $1.416 ($1.280 $894 $0 $894 $12.850 $3.952 $1.565 $150 $172 $1.500 $150 $0 $1.055 Month 3 $1.125 $3.286 $2.706 $100 $15.495 $58 $979 $2.998 $56 $831 $1.597 Month 11 $1.398 Month 9 $1.850 $2.511 $200 $0 $278 $0 $100 $0 $19.125 $3.160 $4.176 ($626) $8.545 $19.32% Month 2 $13.932 3 $10.464 $18.323 $3.289) $94 ($456) ($1.660 $1.95% Month 5 $15.528 3 $10.184 $16.305 $1.697) -13.940 $13.285 10.281 $0 $0 $0 $0 $0 $0 $17.752 $4.463 $17.125 $3.451 $1.749 $11.627 92.280 $13.632 92.755 $0 $0 $278 $0 $100 $0 $20.378 92.733 $1.887 $18.84% $12.796 93.598 $10.386 $0 $1.077 $11.631 Month 3 $4.173 $0 $0 $0 $0 $0 $0 $15.939 $21.952 $18.010 $17.755 $0 $0 $0 $0 $0 $0 $23.001 $1.433 $15.640 $13.788 8.503 $95 $10.108 $1.281 $200 $0 $278 $0 $0 $0 $17.64% $11.200 $1.923 $1.311 $13.850 $3.827 $1.788 3 $10.226 $0 $0 $0 $0 $0 $0 $16.956 $150 $172 $1.125 $3.291 Month 6 $1.878) ($1.640 $12.125 $3.062 $200 $0 $278 $0 $0 $0 $15. VAT.940 8.800 $11.850 $4.850 $3.160 $0 $1.500 $150 $1.763 $3.677 $100 $14.763 $625 $8.320 $0 $1.981 3 $11.763 $150 $139 $1.64% $10.592 $0 $0 $0 $0 $0 $0 $21.640 $844 $0 $844 $11.858 $16.324 $16.010 $1.923 $20.923 $21.363 $150 $172 $1.27% Month 3 $13.464 $0 $1.125 $3.777 3 $11.500 $150 $0 $1.656 3 $10.536 $10.618 $2.850 $3.952 $17.342 Month 2 $1.321) ($2.763 $100 $15.695 Month 12 $12.094 $9.040 Month 6 $4.575 $100 $14.033 $0 $1.511 $0 $0 $0 $0 $0 $0 $20.324 $15.495 Month 10 $1.153 $600 $772 $75 $157 $367 2.624 $20.500 $150 $0 $1.316 92.473 $11.428) ($1.

000 $139 $4.cfm#ixzz1HnsZDCYB .500 $10.300 $18.734 $23.393 Month 12 $9.500 $12.219 $4.248 $1.400 $1.743 $7.697) $4.294 Month 10 $5.092 $1.776 $13.033 $1.187 $1.700) ($4.464 $1.294 $5.422 $16.127 $5.000 $695 $4.950 $16.364 $1.686 $800 $0 $5.294 $14.500 $14.575 Month 8 $5.127 $15.545 $1.663 $3.373) $927 $14.422 $9.220 $13.000 ($8.942 $13.500 $11.006) $1.292 $0 $0 $7.022 $1.448 $15.000 $0 $2.657 $894 $1.790 Month 4 $5.000 $1.000 ($8.279 $1.000 ($8.com/tattoo_parlor_business_plan/appendix_fc.000 $417 $4.084 Month 5 $5.866 $3.744 Month 6 $5.154 $4.156 $1.178 $4.000 ($8.200 $0 $5.744 $927 $5.722 $17.497 $7.510 $1.500 $11.000 $0 $5.861 $18.423 $4.006 $4.292 $6.500 $13.000 ($8.000 $15.000 $18.212 $6.159 $8.600 $1.Current Assets Cash Inventory Other Current Assets Total Current Assets Long -term Assets Long -term Assets Accumulated Depreciation Total Long -term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long -term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $2.500 $1.762 $1.700) ($1.543 $200 $0 $5.881 $4.072 $15.332 $13.288) $1.664 $13.624 $1.522 $3.350 $3.918 $1.479 $8.700) ($5.219 $17.000 ($8.386 $1.346 $8.278 $15.000 ($8.672 $7.742 Month 3 $5.694 $3.462 $8.166 $14.950 Month 7 $5.806 $20.578 $8.583 $16.022 $15.862 $7.393 $9.000 $0 $5.300 $5.094 $14.500 $13.000 ($8.054 $13.790 $1.575 $2.700) ($5.500 $12.088) $5.554 $15.bplans.000 $556 $4.827 $1.305 $15.888 $14.320 $1.700) ($4.700) $3.613 Month 11 $5.108 $1.500 $10.462 $1.000 ($8.773 $3.400 $0 $5.713 $11.600 $0 $5.881 Month 1 $5.116 $15.444 $15.700) $1.300 $2.700) $0 $6.300 $6.241 $15.556 $9.800 $2.610 $14.166 $14.707 $951 $1.422 $5.300 $1.956 $15.000 ($8.656 $15.603 $3.756 $1.818 $15.950 $1.173) $2.051 $9.500 $19.742 $2.146) $2.437 $23.084 $1.444 $14.602 $8.700) ($3.800 $0 $4.878 $18.779 $7.000 $12.197 $7.862 $0 $0 $5.200 $1.877) $1.663 Month 9 $5.012 $4.100 $1.002 $600 $0 $5.733 $1.000 $10.110 $9.174 $6.700) ($1.437 $5.272 $400 $0 $5.082 $15.700) ($5.588 $15.160 $1.722 $14.174 $0 $0 $6.367 $15.137 $9.451 $1.659 Read more: http://www.486 $8.000 ($8.553 $9.700) ($4.020 $10.212 $18.081) $3.603 $18.000 $834 $4.154 $16.416 $13.000 $278 $4.497 $20.423 $15.500 $16.807 $16.012 $15.500 $14.856 $8.000 ($8.498 $13.613 $7.000 ($8.536 $1.813 $1.878) $3.500 $10.294 $5.773 Month 2 $5.300 $11.700) ($2.

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