Business ideas
8 min read

How to Start a Profitable Spray Tan Business [11 Steps]

Learn how to start a profitable spray tan business with our 11+ step guide. From equipment to marketing, we cover it all. Start your business today! #spraytan #entrepreneur #smallbusiness
Newfoundr

By Nick Cotter
Updated Feb 02, 2024

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This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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1. Perform market analysis.

When embarking on a new venture like starting a spray tan business, it's crucial to begin with a detailed market analysis. This step will help you understand the demand for spray tanning services, identify your target demographic, and gauge the competition. Here's how to perform a market analysis:

  • Research the local demand: Look into the number of people searching for spray tan services in your area, including seasonal trends and customer preferences.
  • Analyze competitors: Identify existing spray tan businesses in your vicinity. Note their services, pricing, marketing strategies, and any unique selling points.
  • Understand your audience: Determine the demographics of potential clients such as age, gender, income level, and lifestyle to tailor your services accordingly.
  • Assess pricing models: Evaluate the pricing strategies of competitors to establish a competitive yet profitable price point for your services.
  • Examine industry trends: Stay informed about the latest trends in the beauty and wellness industry, particularly those related to spray tanning technology and products.
  • Regulatory landscape: Ensure you are aware of any local regulations or certifications required to operate a spray tan business legally.
spray tan business image

Are Spray Tan businesses profitable?

Yes, spray tan businesses can be profitable. Many spray tan businesses offer a range of services such as full-body tanning, facial tanning, and other specialty services, allowing them to charge higher prices and make a profit. Additionally, the cost of supplies used in spray tanning is relatively low, so overhead costs are minimized. Finally, spray tanning is a popular trend that is growing in popularity, allowing spray tan businesses to take advantage of the increased demand.

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2. Draft a spray tan business plan.

Creating a detailed business plan is a critical step in launching a successful spray tan business. It will serve as a blueprint for your business, outlining your vision, goals, and strategies. Here's a guide to help you draft an effective plan:

  • Define your business model: Will you have a physical location, provide mobile services, or both?
  • Analyze your target market: Identify your ideal customers, their preferences, and behaviors.
  • Assess the competition: Understand your competitors' strengths and weaknesses and how you can differentiate your business.
  • Outline services and pricing: List the types of spray tan services you will offer and establish competitive pricing.
  • Develop marketing and sales strategies: Determine how you will attract and retain customers, including advertising, promotions, and partnerships.
  • Estimate startup and operational costs: Calculate the initial investment needed and the ongoing expenses to run your business.
  • Project financials: Create revenue forecasts, break-even analysis, and profit projections to ensure financial viability.
  • Consider regulations and certifications: Include any necessary licenses, certifications, and insurance required to operate legally and safely.

How does a Spray Tan business make money?

A spray tan business makes money by charging clients for services. This can be done through a variety of methods, including charging a flat rate per session, charging per minute of spray tanning, or offering package deals with multiple sessions. Additionally, spray tan businesses may offer additional services or products, such as tanning lotions, aftercare products, and sunless tanning products, which can be sold to generate additional revenue.

3. Develop a spray tan brand.

Creating a distinctive spray tan brand is crucial for standing out in a competitive market. It's about more than just a logo or a name; it's about crafting an identity that resonates with your target audience and reflects the quality of your service. Here are some key steps to help you develop a robust brand for your spray tan business:

  • Identify Your Unique Selling Proposition (USP): Determine what sets your spray tan service apart from others. It could be an exclusive formula, a unique application technique, or exceptional customer service.
  • Define Your Brand Personality: Decide on the voice and tone of your brand. Is it luxurious and high-end, friendly and approachable, or eco-conscious and natural? This will guide your marketing and communication efforts.
  • Design a Memorable Logo: Your logo should encapsulate your brand's essence and be recognizable at a glance. Consider hiring a professional designer to ensure quality and impact.
  • Choose a Color Scheme and Typography: Select colors and fonts that align with your brand's personality and are appealing to your target market. Consistency in these elements is key to brand recognition.
  • Create a Brand Story: Craft a narrative that connects customers to your brand on a personal level. This story should speak to the origins of your brand, your mission, and your values.

How to come up with a name for your Spray Tan business?

When deciding on a name for your spray tan business, it is important to choose something that is memorable and reflects your brand identity. Brainstorm ideas that are both creative and descriptive, such as using a combination of descriptive words, acronyms and puns. Consider the names of other businesses in the area and make sure that your chosen name is unique. Lastly, check with a local trademark office to make sure the name isn’t already taken.

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4. Formalize your business registration.

To ensure your spray tan business is legally compliant and recognized, formalizing your business registration is a crucial step. This process varies depending on your location and the structure of your business, but it usually involves filing paperwork with the appropriate government entity. Follow these guidelines to get started:

  • Choose a business structure (e.g., sole proprietorship, LLC, corporation) that best suits your needs and understand the liabilities and tax implications of each.
  • Register your business name with your local or state government, ensuring it is unique and not already in use.
  • Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
  • Apply for any necessary business licenses and permits specific to the spray tan industry, which may include a cosmetology license or a health department permit.
  • Register for state and local taxes to ensure you can legally operate and are set up to collect sales tax if applicable.
  • Keep records of all your registration documents and any correspondence with government agencies for future reference and annual renewals.

Resources to help get you started:

Explore key resources designed for spray tan entrepreneurs to gain insights on market trends, operational excellence, and strategic business growth:

  • The Tanning Store Blog: Offers comprehensive advice on spray tan techniques, equipment maintenance, and customer service best practices. https://thetanningstore.com/blog/
  • Spray Tan Class: Provides in-depth training programs and resources for starting and scaling a spray tan business. https://spraytanclass.com/
  • Tan Magazine: An industry publication covering the latest trends, products, and business tips for the sunless tanning sector. http://www.tanmagazine.com/
  • Sunless, Inc. Insights: A leading manufacturer of spray tan equipment and solutions, offering business resources, market analytics, and customer engagement strategies. https://sunlessinc.com/insights/

5. Acquire necessary licenses and permits for spray tan.

When starting a spray tan business, one crucial step is to ensure compliance with all local, state, and federal regulations. Acquiring necessary licenses and permits will not only legitimize your business but also protect you from potential fines and legal issues. Here's a guide to help you understand what you might need:

  • Business License: Obtain a general business license from your city or county clerk’s office. This is the primary permit that allows you to operate a business in your area.
  • Health Department Permit: Since spray tanning involves skin contact and cosmetic products, a health department permit may be required to ensure the safety and sanitation of your services.
  • Cosmetology License: Some regions require a cosmetology or esthetician license to perform spray tans. Check with your state’s cosmetology board to understand if this applies to your business.
  • Fire Department Permit: If you're using a physical location, you may need a permit from the fire department, especially if you're using spray tan booths or flammable materials.
  • Building and Zoning Permits: If you’re renovating a space or building a new location, ensure compliance with local building and zoning laws.
  • Specialized Training Certifications: While not always mandatory, certifications in spray tanning can enhance credibility and assure clients of your expertise.

What licenses and permits are needed to run a spray tan business?

Depending on your location, you may need a variety of permits and licenses in order to operate a spray tan business. Some of the most common licenses and permits include a business license, a seller's permit, and a tanning salon license from your state's health department. You may also need to register with your state's Department of Revenue for tax purposes and comply with additional city or county regulations.

6. Open a business bank account and secure funding as needed.

Opening a business bank account and securing funding are critical steps in establishing the financial foundation for your spray tan business. These steps not only help in managing your finances effectively but also in establishing credibility with your clients. Here's how to approach these important tasks:

  • Choose a bank: Research banks that offer business banking services. Consider fees, services, and convenience before making your decision.
  • Business Bank Account: Once you've chosen a bank, gather required documents such as your business license, EIN, and personal identification to open your account.
  • Understand your funding needs: Calculate the startup costs and ongoing expenses to determine how much funding you will need to launch and maintain your business.
  • Explore funding options: Look into small business loans, lines of credit, business credit cards, or seek investors who may be interested in your spray tan business.
  • Prepare a solid business plan: A well-crafted business plan can improve your chances of securing loans or attracting investors by clearly outlining your business strategy, financial projections, and growth potential.
  • Consider alternative funding sources: Crowdfunding, grants, and local small business contests can also provide financial support without the need for repayment.

7. Set pricing for spray tan services.

Setting the right prices for your spray tan services is crucial to attract customers and ensure profitability. When determining your pricing structure, consider the cost of supplies, the time it takes to provide the service, your expertise, and the local market rates. Here are some guidelines to help you set competitive and fair prices:

  • Assess the Market: Research what nearby competitors charge for similar services. Aim for prices that are competitive yet reflective of the quality you offer.
  • Cost Analysis: Calculate your costs per session, including products, equipment depreciation, utilities, and labor, to ensure you cover expenses and make a profit.
  • Service Levels: Consider offering tiered pricing based on the level of service (e.g., full body, half body, face) or type of tanning solution (e.g., organic, express tan).
  • Package Deals: Create packages or memberships for multiple sessions, which can provide value to customers and encourage repeat business.
  • Introductory Offers: Attract new clients with introductory pricing or discounts, but make sure these are sustainable and don't devalue your service.
  • Adjust as Needed: Regularly review and adjust your pricing to reflect changes in costs, demand, and industry trends without compromising on quality.

What does it cost to start a Spray Tan business?

Initiating a spray tan business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $1175 for launching such an business. Please note, not all of these costs may be necessary to start up your spray tan business.

8. Acquire spray tan equipment and supplies.

Starting a spray tan business requires the right equipment and supplies to provide a professional and satisfying service to your clients. It's essential to invest in quality tools that deliver consistent results and ensure customer safety. Here's a guide to help you acquire the necessary items:

  • Spray Tan Machine: Choose a reliable and easy-to-use spray tan machine, considering factors such as HVLP (High Volume Low Pressure) or LVLP (Low Volume Low Pressure) technology, noise level, portability, and durability.
  • Tanning Solutions: Stock up on a variety of high-quality tanning solutions with different shades to accommodate various skin tones. Look for solutions that are organic, cruelty-free, or have skin-nourishing ingredients.
  • Tents or Booths: Purchase a well-ventilated tent or booth for your clients to stand in during the spray tan session. This helps to contain the overspray and maintain a clean environment.
  • Disposable Items: Provide disposable items such as hair caps, g-strings, sticky feet pads, and gloves to ensure hygiene and protect clients' personal items from tanning solution.
  • Cleaning Supplies: Have cleaning supplies on hand to maintain your equipment and workspace, including towels, disinfectant sprays, and wipes.
  • Protective Gear: Ensure you have masks and eye protection for both the technician and the client to avoid inhalation of the spray mist.
  • Marketing Materials: Invest in marketing materials like business cards, flyers, and posters to promote your services.

List of Software, Tools and Supplies Needed to Start a Spray Tan Business:

  • Spray tanning machine
  • Spray tanning solution
  • Disposable tanning applicators (e.g. mitts, sponges, etc.)
  • Protective eyewear & nose plugs
  • Ventilation fan
  • Spray tanning tent
  • Antifungal/antibacterial spray
  • Aromatherapy oils
  • Cotton balls
  • Alcohol wipes
  • Disposable underwear
  • Disposable shower cap
  • Towels
  • Gowns
  • Bedding
  • Point of sale system
  • Bookkeeping software
  • Accounting software
  • Website & domain
  • Marketing materials (posters, flyers, etc.)

9. Obtain business insurance for spray tan, if required.

As you move forward with setting up your spray tan business, obtaining the right insurance is a critical step to protect your investment and ensure peace of mind. It's essential to understand the various types of insurance policies available and how they safeguard your business. Follow these guidelines to secure the appropriate coverage:

  • Research different types of business insurance, such as general liability, professional liability, and property insurance, to determine which ones are necessary for your spray tan business.
  • Contact insurance providers to get quotes tailored to the spray tan industry. Compare coverage options and premiums to find the best fit for your business needs and budget.
  • Consider any additional coverages like product liability insurance, especially if you're selling spray tan products, or business interruption insurance for potential unforeseen events that could halt your operations.
  • Ensure that the insurance policy covers any employees or contractors you may have, in addition to your customers and business assets.
  • Review your insurance policy regularly and update it as your business grows or as there are changes in the industry regulations and standards.

10. Begin marketing your spray tan services.

Now that you've set up your spray tan business, it's time to attract clients and build your brand through effective marketing strategies. To turn your business into a sun-kissed success, consider these proven methods that can help spread the word and showcase the quality of your services.

  • Build a Professional Website: Create a user-friendly website showcasing your services, pricing, testimonials, and a portfolio of before-and-after photos. Include an easy booking system to facilitate appointments.
  • Utilize Social Media: Engage with potential clients on platforms like Instagram, Facebook, and Pinterest. Post regular content, such as tips on maintaining a tan, and use local hashtags to increase visibility.
  • Offer Promotions: Attract new customers with introductory offers or bundle deals. Consider a referral program to encourage word-of-mouth marketing.
  • Collaborate with Local Businesses: Partner with local gyms, salons, and clothing stores to offer exclusive discounts to their clientele, or even host pop-up spray tan events.
  • Invest in Paid Advertising: Depending on your budget, use targeted online ads like Google AdWords or sponsored social media posts to reach a specific audience.
  • Attend Community Events: Participate in local fairs, fashion shows, or bridal expos to demonstrate your services and offer mini-sessions or discounted bookings.

What licenses and permits are needed to run a spray tan business?

  • Spray tanning machine
  • Spray tanning solution
  • Disposable tanning applicators (e.g. mitts, sponges, etc.)
  • Protective eyewear & nose plugs
  • Ventilation fan
  • Spray tanning tent
  • Antifungal/antibacterial spray
  • Aromatherapy oils
  • Cotton balls
  • Alcohol wipes
  • Disposable underwear
  • Disposable shower cap
  • Towels
  • Gowns
  • Bedding
  • Point of sale system
  • Bookkeeping software
  • Accounting software
  • Website & domain
  • Marketing materials (posters, flyers, etc.)

11. Expand your spray tan business.

Expanding your spray tan business can be an exciting next step as you establish your brand and build a loyal customer base. To ensure sustainable growth, consider these strategic approaches to take your business to the next level.

  • Offer Mobile Services: Cater to clients who prefer in-home sessions by providing a mobile spray tan option, expanding your reach and convenience.
  • Introduce Loyalty Programs: Encourage repeat business with loyalty cards or membership discounts, rewarding clients for their continued patronage.
  • Partner with Local Businesses: Collaborate with gyms, spas, and salons to offer exclusive deals to their customers, increasing your exposure.
  • Incorporate Retail Products: Sell aftercare products and tanning accessories to complement your services and boost revenue.
  • Utilize Social Media Marketing: Engage with your audience on platforms like Instagram and Facebook to showcase your work and attract new customers.
  • Host Tanning Parties: Offer group discounts for events like bridal showers or birthdays, making tanning a social experience.
  • Invest in Training: Keep up with the latest techniques and trends by investing in professional training for you and your staff.