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Tanning Salon Business Plan
Executive Summary
Tropical Tan is a start up company seeking financing. Tropical Tan has an experienced management team, excellent location, and sound business strategy. This business plan will highlight Tropical Tan’s needs, market, sales plan, and financial statements.
Tropical Tan will be located in Chino Hills, CA. This is a market area of 160,000 individuals. The location is in a high traffic strip mall with national chains. The business’ main service will be offering tanning booths to individuals. Tropical Tan will offer six high quality tanning beds and limited retail sales of tanning lotion, bathing suits/swimwear, and sunglasses.
1.1 Objectives
- Sales of $380,000 in Year 1 and $425,000 by the end of Year 3.
- Net Profit higher than 40%.
- Net income more than 10% of sales by Year 3.
1.2 Mission
Tropical Tan will offer our clients the highest quality indoor tanning experience, with top-of-the-line beds and tanning accelerators. Tropical Tan will set itself apart from the competition by making customer satisfaction a top priority. Employees will be treated with dignity, and will be provided with special benefits such as moderate health insurance coverage, free tanning sessions, and a special company picnic once a year. Employees are the public face of Tropical Tan, and their health and goodwill is integral to the success of the business.
1.3 Keys to Success
- Location – being located in a high traffic strip mall and across the street from a health club.
- Convenience – with quick tan beds less time is spent in the bed, and extended business hours.
- Customer Service – focus on our customers’ comfort and needs.
Company Summary
Tropical Tan will, upon commencement of operations, provide the service of tanning booth rentals. We will provide an upscale, sanitary environment, along with quality lotions, swimwear, and sunglasses. Superior customer service and high quality tanning equipment will set Tropical Tan apart from the competition.
2.1 Company Ownership
Tropical Tan will be created as a Sole Proprietorship based in Chino Hills owned by its principal investors and principal operators.
2.2 Start-up Summary
Keith and Shelly Harwood have $65,000 to invest in the business and are looking to finance an additional $50,000 for the build out and start up of their salon. The funds will be used to finance start-up costs, remodel the location, purchase the equipment, and initial inventory. The funds will be repaid through earnings.
Products and Services
Tropical Tan will provide the service of tanning booth rentals to individuals. The company relies on seven SunQuest Pro brand tanning beds. Each bed includes 24 Wolff tanning lamps. Sessions range from 20-30 minutes each. Session costs are listed in the sales forecast summary.
Tropical Tan will also retail a line of tanning lotions, bathing suits/swimwear, and sunglasses.
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