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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on April 21, 2022
Updated on November 24, 2023
Investment range
$2,550 - $9,100
Revenue potential
$50,000 - $125,000 p.a.
Time to build
0 – 3 months
Profit potential
$40,000 - $100,000 p.a.
Industry trend
Growing
Commitment
Flexible
Most people would love to relax on a warm beach every day and turn golden brown from the sun’s rays. But the vast majority of us need to work, besides the fact that too much time in the sun could damage your skin, even cause skin cancer. So instead a lot of people turn to spray tanning to get that sun-kissed look.
The tanning salon market, which includes spray tanning and tanning under UVA lights, has seen rapid growth in the last decade and continues to expand in 2022. The hot new trend in the last few years is mobile spray tanning, which brings the salon to client’s homes and offices. You can start your own spray tanning business, either mobile or traditional, and help people look good while making good money.
But before you buy your equipment, you need to know the process of starting a business. Fortunately, all the information you need to launch a successful spray tanning business is detailed in this handy step-by-step guide.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services.
Starting a spray tanning business has pros and cons to consider before deciding it it’s right for you.
Trends in the tanning salon industry include:
Challenges in the spray tanning industry include:
Startup costs for a mobile spray tanning business range from $2,500 to $9,000. The largest expense is for a complete mobile tanning kit, the cost for which can be anywhere from $1,000 to $5,000.
You’ll need a handful of items to successfully launch your spray tanning business, including:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150 - $200 | $175 |
| Business licenses and permits | $100 - $300 | $200 |
| Insurance | $100-$300 | $200 |
| Business cards and brochures | $200 - $300 | $250 |
| Website setup | $1,000 - $3,000 | $2,000 |
| Mobile spray tanning starter kit | $1,000 - $5,000 | $3,000 |
| Total | $2,550 - $9,100 | $5,825 |
The average price for a single spray tan is $40. Your profit margin for a mobile spray tan business should be about 80%.
In your first year or two, you could do four spray tans a day six days a week, bringing in $50,000 in annual revenue. This would mean $40,000 in profit, assuming that 80% margin. As you begin to get repeat business and referrals, you might do 10 spray tans a day. With annual revenue of $125,000, you’d make an outstanding profit of $100,000.
There are a few barriers to entry for a spray tanning business. Your biggest challenges will be:
Now that you know what’s involved in starting a spray tanning business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research spray tanning businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile tanning business or an airbrush tanning business.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as mobile spray tanning or organic sunless tanning.
This could jumpstart your word-of-mouth marketing and attract clients right away.
As a mobile tanning service, you can do traditional spray tanning or airbrush tanning. If you open a salon, you can also offer tanning beds.
The average price of a spray tan is $40. Your costs as a mobile business will be limited to fuel and tanning solutions, so you should aim for a profit margin of 80%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will be broad, although it may tend to be younger. You can find those people on TikTok and Instagram.
At some point, you may want to switch from a mobile business to a physical salon. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to spray tanning businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your spray tanning business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a spray tanning business.
Starting a spray tanning business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your spray tanning business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as vagaro, Phorest, or appointy, to manage your appointments, client database, and payments.
Developing a website for your spray tanning business is a crucial step in expanding your customer base and enhancing your brand’s online presence. You have two primary options: using a website builder, which is cost-effective and user-friendly, or hiring a professional web developer for a more customized solution. A well-designed website should be optimized for search engines (SEO) to increase visibility, utilizing keywords relevant to spray tanning and your local area.
It’s important to include engaging content, such as services offered, pricing, testimonials, and high-quality images of your work. Additionally, ensure your website has clear call-to-action (CTA) buttons, like ‘Book Now’ or ‘Contact Us’, making it easy for potential clients to engage with your business.
Starting a spray tanning business requires a strategic approach to marketing to attract and retain customers. Here are practical tips and advice:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your spray tanning business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your spray tanning business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a spray tanning business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in spray tanning for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in spray tanning. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a spray tanning business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
The tanning industry is booming and spray tanning is becoming a bigger part of that market as people look for non-UV methods. Demand for mobile spray tanning is also on the rise, making it easier and less expensive to get in on the action. Whether you decide to go into mobile spray tanning or open a salon, you can make a comfortable living.
You’ve got the business aspects down, now it’s time to launch your successful spray tanning business!
Yes, particularly a mobile spray tanning business. You can charge about $40 per spray tan, and your expenses will be very low. The key is to provide great customer service so you get repeat business and referrals.
You can take online tanning courses from the National Tanning Training Institute. They also provide certification. Courses are self-study and exams are required.
To differentiate your spray tanning business from competitors, you can focus on several strategies. Firstly, you can offer personalized consultations and custom spray tan solutions tailored to each client’s skin tone and preferences. Providing exceptional customer service, ensuring a comfortable and clean environment, using high-quality tanning products, staying updated with the latest techniques and trends, and offering competitive pricing or package deals can also help set your business apart.
Spray tans, when done properly, are generally considered safe. However, there are some risks associated with spray tanning. These include allergic reactions or skin irritations caused by the ingredients in the tanning solution, inhalation of the spray mist, or improper application leading to uneven or streaky results.
Spray tans typically use a tanning solution that contains an active ingredient called DHA (dihydroxyacetone). DHA reacts with the amino acids in the top layer of the skin to produce a temporary tan. The solution may also include other ingredients such as moisturizers, bronzers, or skin-nourishing substances to enhance the tanning effect and provide a smooth application.
Firstly, make sure to use high-quality and reputable tanning solutions from trusted suppliers. Educate yourself and your staff on proper application techniques, including the use of protective measures such as goggles, nose plugs, and mouth covers for clients. Maintain strict hygiene standards by cleaning and sanitizing the tanning booth or area between each client. Additionally, provide clear instructions on pre-tan and post-tan care, including exfoliation, moisturizing, and avoiding contact with water immediately after the session.
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