Networking, getting to know people in the industry, going to tattoo conventions, and talking to other owners may provide you with some valuable connections. Having a general interest in learning and wanting to improve the industry where you’re living will also go a long way to ensuring you receive proper information from associates. Know where your information is coming from and back it up with your own research. A caveat: It is not unheard of for existing shops to attempt to sabotage new shops at start-up.
4. Be Prepared Financially
The most negative aspect to opening your own studio is the risk. For example, the risk of losing all your hard-earned investment (i.e., bankruptcy), and having wasted hours of time and effort only to be left with nothing and still owing money. For some individuals this can cause serious mental and physical setbacks, and deepening of the financial loss over time.
Another negative aspect is the unpredictability of income; basically how money will come in and when. When you cannot determine your cash flow, making a budget or just paying the bills can be difficult and extremely stressful.
Determining start-up costs is a difficult task; it is a good idea to have at least three to six months of money to carry you if minimal money comes in. Also note the unpaid hours you spend to start up a business will reach into the hundreds.
Unless you are independently wealthy you will probably have to make some lifestyle adjustments, meaning cutbacks to your personal spending from the start, until clients are gained and revenue starts coming in. Statistics have proven time and time again that the failure rate of new businesses is much higher than for existing ones. Lack of staff at the beginning can be difficult if you become ill or need time off, because there will be no one to cover for you if you cannot afford to close the business for that time.
It is almost impossible to dedicate the time needed to open a new studio if you have a current full-time job. But if your new business is not making money, how do you pay the bills at the business and at home?
One of the last hurdles to consider is the amount of effort and sheer number of things that need to be completed in a timely manner to open; it is intense to say the least. Costs will quickly add up and so will the pressure to do everything right.
See Chapters 3 and 4 for more information on business planning and financials.
5. Have a Support System
In starting a new business you must have the support of your partner or spouse if you have one, as this endeavor will also change his or her life. The extremely long hours spent in the first few years are intense, as are the many stressful situations that will be encountered, not to mention the financial stress at the start. Without your partner truly supporting you, failure of your business or relationship could be possible.
Having someone listen to you vent about the business, or give you advice and help you solve problems may be what you need to keep you motivated and moving forward in your plans. Also, having someone there to celebrate and remind you of the small and big rewards of a job well done can be a great way to keep you going when times are tough.
2
Finding a Good Location
Finding a good location may be one of the biggest challenges you will face when opening your studio. Even though tattoos and piercings have become more accepted by society there are still places that will not be rented to you because landlords or neighbors perceive this type of industry negatively. The city you want to set up shop in may also have strict zoning regulations that will prevent you from opening your business in the most ideal location for your chosen clientele.
When Kurtis opened his studio almost a decade ago, he was turned down by eight potential locations because of the type of business he wanted to open. For example, he had found the perfect storefront (also known as a bay), with a good location for the clients he wanted to target. The landlord was willing to rent it to him, but the landlord’s tenants beside the bay had been there for years and said they would move their businesses if a tattoo and piercing studio moved in beside them. In another instance Kurtis found a good bay, and while the existing neighboring businesses had no problem with a tattoo studio, the landlord did.
The city Kurtis’ studio is currently in has three shopping malls; the biggest, newest, and most popular of the three will never let a tattoo and piercing studio rent a bay in their mall as the owners feel it will drive away families and attract an unwelcome element. If you think you’ve found the perfect location, keep in mind that you might not be accepted or even considered.
1. Research the Market
The first step to finding a good location is to research the market. Obtain population statistics from the city you are considering — all the research has been done by the government so all you have to do is access it. It is a general rule of thumb that you should have at least 20,000 residents per studio, so in a city of 100,000 five studios would be okay, but any more studios would mean less money is made by the existing studios, or somebody will go out of business. This, of course, is a general number and can fluctuate, but the fluctuation happens mostly in tourist towns where it is not unusual to find two or three studios per 20,000 residents. Another situation in which more studios can exist is in university and college towns where huge population jumps occur; also note this segment of the population is a main demographic for tattoo and piercing studios.
If you are planning on opening in an area that has more than one studio per 20,000 residents, you will want to make sure that your studio is going to offer something different than the others. Can you fill a niche market? If you are already a tattooist or a piercer, do you have enough clients willing to follow you to your new studio? If you feel that you do have enough clients, take the total number of clients you tattoo or pierce and subtract approximately 25 percent from this number because this percentage of clients will stay with the current studio as opposed to following the artist to a new location.
Visit all the studios in the area, or as many as you can before opening. This will give you great insight into what is offered by the other studios. Deciding what type of studio to open in terms of design and the clients desired may depend on what is offered or not offered by other studios. The popularity of tattoo and piercing studios has been steadily climbing for the last 20 years with women being the highest contributors to this number. About six years ago the tattoo and piercing industry was in the top ten fastest growing industries and it is still continuing to expand and grow.
Research the city in which you wish to be located and its demographics. If there is a high population of seniors, you might want to make sure that you will have enough business from your target market as seniors do not generally frequent tattoo and piercing studios. Also, if you are locating in a tourist town, consider what type of tourism exists. For example, is it seasonal? If so, will you be able to make enough money to make it through the “dead” season? Almost all landlords, even in tourist locations, will not rent for only the summer or busy months; the lease on the building will be applied for a year or more.
State and provincial governments offer excellent statistics on spending patterns of the residents in certain areas as well as demographics and population trends, which is very useful information when you are considering a location for your studio. Since tattooing and piercing are not necessities and are considered luxury items, researching the disposable income in the area is very beneficial. Get as many statistics as you can because this will remove some of the guesswork for forecasting revenue and expenses.
2. Things to Consider When Choosing a Location