Start a tanning salon by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your tanning salon. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a tanning salon?
First, you’ll need to decide if you want to have tanning beds or spray tanning available for your clients. This will help in determining the type and size of space you need. Once you’ve secured a space, it’s time to start purchasing supplies.
Spray tan machines cost anywhere from $500-$5,500, while UV tanning beds can cost upwards of $10,000 each. Both can be found used for a moderate price.
Once these important purchases have been made, you’ll just need a few basic items, which will run you approximately $4,000:
- Eye protection
- Timer system for each bed
- Cleaning supplies
- Signs and brochures regarding tanning bed safety and UV ray exposure
- Upgraded electrical for tanning beds
- Cash register and credit card machine
- Marketing products
Read our tanning salon purchasing guide to learn about the materials and equipment you'll need to start a tanning salon, how much to budget, and where to make purchases.
What are the ongoing expenses for a tanning salon?
Your energy bill will be one of your largest ongoing expenses. Salon owners report paying anywhere from $500 - $1500 a month. Exact amount will depend upon the time of year, how many beds you own, and how busy you are. Payroll and payroll taxes are also a major expense, which will fluctuate seasonally with the business.
Budget for at least $200 per month for cleaning and maintaining the beds. Retail products will set you back another $1,000 per month. If you decide to do spray tans rather than tanning beds, your inventory costs will be higher, but can be offset by a lower energy bill.
Who is the target market?
While you will always have a revolving door of first-time clients, most tanning salons thrive from their repeat customers. These individuals are committed to looking their best and maintaining a golden tan is part of that look.
How does a tanning salon make money?
Revenue from a tanning booth is generated on a per client, per visit basis. Many salons have multiple beds and/or spray tan options available and are priced accordingly. Visits last up to 15 minutes per session and will vary based on the client’s specific needs.
How much can you charge customers?
Customers are charged per visit. Tanning bed sessions range anywhere from $5-$20 each, depending upon the length of the visit and the level of tanning bed used. Spray tans are billed the same, with salons charging between $25-$50 per visit.
How much profit can a tanning salon make?
Your business’ profit is directly tied to the number of beds you maintain and how often those rooms are filled. On average, each room should generate between $12,000 - $15,000 annually. Each visit will cost you $6 - $9 in supplies and energy costs. Some salon owners report making upwards of $58,000 in profit, while others claim to have very little left after business and personal expenses. The one item they all agree on - more beds = more profit.
How can you make your business more profitable?
Tanning businesses who have reported higher earnings offer a variety of tanning options and skin care products. If you’re looking to increase your business’ profits, consider including the following in your business strategy:
- Stock your shelves with skincare and tanning products
- Become certified
- Offer both airbrush tan and UV tanning
- Offer a mobile service for spray tanning
- Set up membership options, with each tier offering different incentives
- Offer additional spa services. If customers only have to go one place for multiple services, they’re more likely to return
What will you name your business?
Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your tanning salon is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
Form Your LLC
Read our Guide to Form Your Own LLC
Check out the Top Business Formation Services from our friends at StartupSavant.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: You can get $300 when you open a Chase Total Business Checking® account with qualifying activities. Learn More.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
Legislation is being processed which will restrict tanning booth users to consumers over the age of 18.
State & Local Business Licensing Requirements
Though this varies by state, tanning salons are typically required to provide consumers with warning statements informing them of the risks that accompany UV radiation. Consumers must sign the warning statement after reading it. More information related to tanning business regulations can be found here.
In addition, certain local licensing or regulatory requirements may apply. For more information:
- Check with your town, city or county clerk’s office for information about local permits and licenses.
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
Release of Liability
To avoid liability and potential lawsuits, tanning salon businesses should have their clients sign a release of liability. Here is an example of one such form.
Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your tanning salon when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.
STEP 7: Get Business Insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a tanning salon
Not everyone is a tanner. As a salon owner, it’s important to know and understand your clientele. Focus your marketing efforts on consumers who pride themselves on health and beauty. This could include hair and nail salon customers, gym members, and people preparing for a special event. Many have found success through offering a free initial/consultation visit, which gives you an opportunity to show them why your establishment outshines the rest.
How to keep customers coming back
As with any small business, word of mouth can make your business. Remember, your customers are spending their money on a luxury service. Show them you appreciate them by always giving them a relaxing and enjoyable experience. Your pricing should be transparent and your staff should be energetic and helpful. Most importantly, your workspace should always be immaculate.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Tanning Salon In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Opening your own tanning salon requires good business sense and a commitment to the business. For those who are passionate about helping people maintain that “summer glow,” a tanning booth can be a lucrative business venture.
What happens during a typical day at a tanning salon?
As the owner of a tanning salon, your biggest task will be to interact with clients. Both personally and online, you’ll need to educate consumers regarding a healthy skin care regimen and to dispel any myths regarding tanning bed safety. The tanning beds will need to be maintained and salon product inventory should be kept up. Since the business can be seasonal, you’ll also need to spend part of each day analyzing and tweaking your marketing strategy to ensure you reach your target audience year round.
What are some skills and experiences that will help you build a successful tanning salon?
As the owner of a tanning business, you’ll need strong business skills. Your work will require you to interact with clients and staff regularly, so strong interpersonal skills are critical. Many consumers have been taught that tanning is bad for the skin, so an understanding of the effects, as well as skin care will also be beneficial. The National Tanning Training Institute and Smart Tan offer both educational and networking opportunities that can prove invaluable to your business’ success.
What is the growth potential for a tanning salon?
Typically, tanning salons remain small, serving those in their community. If your goal is to build a larger business, consider starting your own franchise or partnering with a franchised company such as Sun Tan City.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
How and when to build a team
Your team will be an integral part of the business’ success. It’s important to employ individuals who are well-groomed and professional. Many of your customers will turn to your team with questions regarding the risks of using a tanning bed as well as proper protocol.
Read our tanning salon hiring guide to learn about the different roles a tanning salon typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.