2.1 Proximity to the competition
The proximity of tattoo and piercing studios varies from city to city. Usually you will find that the majority of tattoo studios try to spread themselves out from each other, covering a variety of areas throughout the city to reach different clients. This rule is broken in tourist towns where the studios will be clustered together in trendy shopping districts or on popular streets where there could be upward of four studios within a three-block radius.
Having a healthy distance between you and your competition is generally beneficial as this will somewhat prevent price checking, which is when clients go to a few studios with the same drawing and then pick the least expensive studio. This practice by clients is made more difficult when the studios are spread apart and driving is required. (See Chapter 7 for more information on pricing your services.)
2.2 Consider your clientele
The most beneficial location for your studio depends on what type of clients you are targeting. If you want to attract families, pick a safe location that families frequent such as big-box store areas, neighborhood strip malls with a grocery store, or other businesses frequented by families. If you want to attract younger clients in the 18 to 25 age range, pick a location such as a shopping mall or trendy shopping district. You may want a more adult clientele, so good areas to look at would be a nightclub district or a strip mall with more adult-centered stores.
To a degree, location will also determine the hours your business is open to the public. In a daytime shopping area you might want to keep with business hours in the area and open early and close early. In a nightclub district you will want to open later and close later.
2.3 Availability of parking and transportation
When you consider a location, always check to see what type of parking is available for your clients. Tattoo appointments can be upward of two hours, so parking is very important. If parking is scarce, your clients may not be happy to have to walk long distances to get to your studio, which means potential clients might just keep driving instead. If you can validate parking for your clients, do so because parking is a major issue for everyone that drives.
Another thing to consider is whether your business will be close to transportation such as bus stops or areas with a high volume of taxis. In bigger cities, the trend is going toward a green environment with less people driving personal vehicles. You want to make sure your business is always easy to get to no matter how your clients arrive.
2.4 Zoning regulations
Depending on your location, there might be restrictions in place that allow certain businesses to operate while others are not allowed. For zoning laws in your area, contact your city’s zoning and planning department to find out if any restrictions apply. This can be extremely useful in saving time because you will not need to look at rental bays that you are not allowed to lease due to zoning laws.
Note that some city zoning regulations in the United States do not allow tattoo shops to exist within the city limits, so make sure you talk to your city officials before you rent or buy property for your business.
If you are opening a home-based studio, check the city’s bylaws to make sure the city allows businesses in your residential area; parking will be one of the main determining factors. In most municipalities, to open a home-based business that will have clients coming and going, a certain majority of the residents in that area must approve the business. In our municipality, the approval rate is 70 percent or higher. It is a daunting and near impossible task to achieve this majority in most neighborhoods because of the somewhat remaining perception that the tattoo and piercing industry is undesirable.
2.5 Health and safety regulations
When choosing a location, make sure you find out what the health-board regulations in your area require. Things you may need to consider are the room size, sink placements, ventilation, sterilization room requirements, and flooring. Any alterations to the site will depend on whether you are renting and are able to upgrade the facility in order to meet health codes. Also, consider the costs to do the alterations. When you are just starting a business, major renovations could set you back financially. (See Chapter 6 for more information on health regulations.)
You will never find a restaurant with a tattoo studio located in it. Tattooing and piercing cannot take place on the same premises in which food and beverages are served. To be approved to open a tattoo studio in a nightclub is extremely difficult even if you can find a health board that will permit this. The studio will have to have a separate entrance other than the nightclub entrance and it will have to be enclosed. Absolutely no alcoholic beverages will be allowed in the studio.
3. Negotiating a Commercial Lease
Many people underestimate the complexity of negotiating a commercial lease. If you plan to negotiate the lease yourself, be sure to do your research using the Internet, the library, and bookstores. Also talk to other people that are familiar with negotiating a commercial lease because they may be able to help you by giving you tips on how to negotiate properly, which will result in a better lease contract for you and your business. Self-Counsel Press also publishes a do-it-yourself kit titled Commercial Lease Agreement.
The lease is one of the most important legal documents you will sign, and it will have the most impact if you ever have to close your business. Even if you create the contract yourself, you will need a lawyer to sign the lease agreement before it is valid. It is recommended that you do get legal advice when making the contract. Another method is to hire a commercial real estate agent. This is a good approach to use as it is at no cost to the lessee.
A commercial lease agreement will consist of price per square foot, length of lease in months or years, property tax per year or month that is generally not included in the price per square foot, and will make clear who is responsible for all repairs to the building. Most leases will also require you to carry general business liability insurance. (For more information about insurance see Chapter 5.) All of these factors will vary from city to city and landlord to landlord.
Note that if you lease in a shopping mall, its commercial lease agreement will also include a clause that states something along the lines such as if you are not open at the same time as the mall opens, you will be fined a monetary sum. There are also many other rules the mall may have in place for businesses.
In considering price per square foot, get an average of other comparable storefronts in the area and go from there. It is similar to buying or renting a house so shop around to compare costs and space.
In considering the length of the lease, look at property values as they usually go up, which means that the lease will also go up accordingly. Signing a five- or ten-year lease may seem overwhelming but just remind yourself that if you locked in at X amount of dollars per square foot for ten years, that is the rate you pay even if property values skyrocket. The only downside to this is if you go out of business and you are locked in to a ten-year lease, you will owe for all the remaining months on the lease. Some landlords offer a sublet option to a third party to pay the remainder, but some don’t. You may want to negotiate a sublet option just to protect yourself if things don’t work out. Also consider whether you want to expand your business in the future. You may eventually need more room, which might be a problem in the current location you are considering.
Locking in for a long-term lease also offers security as you will know that the