Creating a business plan for your tattoo shop is an important step that helps guide your planning, growth, strategy, and tactics. It’s a powerful tool that gives you clarity on your market, competition, products, services and marketing strategy.
Think of it as a tattoo mission statement — a document that states what your business does, why and for whom.
Creating a business plan for a tattoo shop is critical for other reasons. Many banks and other lenders require a business plan to secure funding. It helps you define and hone in on the target market for tattoo shops and develop tattoo shop marketing strategies.
Here are 5 steps to creating a business plan for your tattoo shop.
Step 1: Understand What a Business Plan Is
A business plan is a set of documents that define your business purpose, structure, and strategies. While there are several formats you can use to create your business plan, it typically includes the following components:
- An executive summary
- An overview of your company
- Information about your products and services
- A marketing plan
- Information on company management
- Your company’s financial plan
Together, these elements provide a well-rounded perspective on what your business is and how it will succeed.
Step 2: Create an Executive Summary
What do you want? That’s the gist of the executive summary. This short statement, usually no more than half a page to a full page. Key elements in this section include:
- Business Concept: What’s the business, what products and services will be sold, what market will it serve and what is its competitive advantage?
- Financial Components: This portion lists key financial elements such as projected sales, cash flow, profits and returns on investment.
- Financial Requirements: What capital is needed to start or expand your business and how will it be used?
- Business Position: This section lists the business structure, when it was created and key personnel.
Essentially, the executive summary is a short summary of the other sections, which go into more detail.
Step 3: Detail Your Products and Services
No two tattoo shops are exactly alike. This section helps you detail the products and services of a tattoo shop you want to market. This section goes into detail about those products and services, pricing and why your tattoo shop is uniquely positioned for success when selling these products and/or services.
Step 4: Define Your Market
This is where research is going to come into play. Think of it as the opportunity and possibilities for your tattoo shop business. It’s where you can detail the following:
- Target Market: Who are the customers to whom you are seeking to sell? What are the wants and needs that your business can fulfill for them?
- Market Trends: This section illustrates unique opportunities, shifts or changes in the market, changes to your customers’ demographics or preferences, trending products or services and other insights that will influence business success.
- Market Growth: Is the market for your tattoo business growing or shrinking? Why? This section shows how your business is positioned to adapt.
- Competition: Who are your competitors? This section demonstrates who else can meet your potential customers’ needs and what you’ll do to differentiate.
Step 5: Develop a Marketing Plan
What is it going to take to get customers in the door of your tattoo shop? Defining your market is an important first step. But next comes the approach you’ll use to draw customers in. This strategy will depend on several factors — your location, the products and services you offer, and the customers you’re looking to attract.
Next, you’ll want to develop the marketing messages that will compel new and returning business. What media will you use — social media, radio, television, newspaper, sponsorships, special events, leaflets?
Creating a business plan helps get your ideas on paper and a clear vision of what your tattoo shop is all about. Your business plan should include the following:
- A clear executive summary
- Well-defined products and services
- Market analysis
- A solid marketing plan
You’ll want to protect your tattoo shop from the unexpected, too. That’s where Marine Agency Insurance comes in. Contact us today to learn how to ensure your tattoo shop has the insurance coverage it needs to protect your hard work.