Liquid Gold Airbrush Tanning is a mobile spray tan company offering customizable, affordable tanning services and related products to a diverse clientele, primarily women aged 20-45. The market for sunless tanning is expanding, and the company plans effective marketing through collaborations with dermatologists and online presence, aiming to establish a loyal customer base while managing low startup costs. Financial projections indicate a break-even point of approximately 272 tans, with potential for significant profit through product sales and a variety of future services.

1. Jillian Rice
Entrepreneurship
Business Plan
1. General company and product description
Liquid Gold Airbrush Tanning is a mobile spray tan company that offers an
affordable airbrush or spray tan to our clients, as well as selling pre- and
post-tan products such as exfoliating scrub, lotion, body wash, and tan
extender. The sunless tan market is booming right now as many tan-loving
customers fear cancer and skin aging that comes with exposure to UV rays.
What differentiates Liquid Gold from other spray tanning companies is our
ability to customize every tan to every client, so it’s a fun and unique
experience that will keep them coming back. Mission statement: Our mission
at Liquid Gold Airbrush Tanning is to provide our clients with a unique
airbrush tan that is customized specifically for them. It is long-lasting, natural
looking, and affordable.
2. Customers
The Regular Customer
Regulars at Liquid Gold include females ranging from 20 to 45: they’re
conscious of their appearance, work hard to maintain their youth, and want a
year-round golden glow. Other regulars also include those with skin issues:
uneven skin tone, albinism, and vitiligo clients come in regularly to cover up
their problem areas with a nice airbrush tan.These clients are older, from 30
to 65 years of age. Regular customers will benefit most from packages and
monthly specials.
The Seasonal Customer
The seasonal customer is one who comes in during the fall and winter
months to look tan when they can’t go outside to do it. Once again, females
aged 20 to 45 fall under this category.
The Occasional Customer
The occasional customer gets an airbrush tan before a specific event or at
random. Events include weddings, vacations, proms, or parties. Some
occasional airbrush tanners try this in replace of using a tanning bed.
Females as well as some males will get an airbrush tan occasionally.
Occasional customers will benefit most from certain specials such as“one-day
only” lower priced tans or the refer-a-friend program.
Reaching Customers
I will advertise with brochures/ads in doctor’s offices, dermatology clinics,
hair and nail salons, and work on joint discounts/deals with makeup artists
and/or hair stylists. Social media will also help reach our target markets,
since most customers will be on either Facebook, Tumblr, or Twitter.
3. Market Research & Competition
Self-tanning is becoming an incredibly popular trend, so my company
definitely will benefit from more people wanting a fake tan instead of a real

2. one. Research shows that one in every three
women has tried some kind of self-tanner, and
the sunless tanning market is expected to reach $758 million by the year
2015! It will continue to grow, which is good news for sunless tanning
businesses like Liquid Gold. Over the past 15 or so years, sunless tanning has
advanced from the yellowy-orange colors of spray tans to very natural
looking golden brown hues, so people are taking advantage of getting a tan
without the harm of UV rays.There are essentially no barriers to entry, as
startup costs are incredibly cheap and can be made back quickly. Since Liquid
Gold is a mobile company, there is no overhead for rent and utilities that
come with a physical store. There is definitely potential for growth: once the
clientele base has grown and business increases, I can add more mobile
spray tanners to my company, and perhaps eventually open a physical store.
Once in a physical store, I can add other services to the salon, such as spray
tanning booths, red light therapy beds, body wraps, waxing, and/or eyelash
extensions. I could also possibly create my own line of sunless tanning
products that can create a great tan at home.
4. Marketing
Since our customers are conscious of their health and appearance, promoting
airbrush tanning at dermatology clinics and salons will reach a lot of our
target customers. Most newspaper readers are in their mid-twenties and up,
so placing ads for Liquid Gold in the paper will reach the older demographics
of our target market, while the younger target market will be reached
through social media like Twitter and Facebook. Since it’s a mobile service,
the company’s logo, phone number, and website will be on a decal on my
car.We will also offer coupons or promotions that coincide with services
from other companies (i.e. “Save 25% off your total when you get your nails
done at [salon] and an airbrush tan at Liquid Gold!”), which allows clientele
from those companies to perhaps become our clientele as well.Also, part of
our customer base includes those who get a spray tan for an event like the
prom, and these customers will most likely want to get their hair and nails
done too. There will also be a “Refer-a-Friend” program that gives both
clients a $10 discount. Projected expenses are detailed under the financials
section, but in short, a year’s worth of marketing will cost about $300
between business cards, flyers/brochures, and advertisements in the paper.
5. Pricing
The average airbrush or spray tan costs between $40 and $60 in the Chicago
area. For mobile companies, the price can be as expensive as $80 per tan.
Charging $45 per tan at Liquid Gold still yields a great profit ($40), while
being considerably cheaper than mobile competitors and in line with other
tanning companies. There are plenty of spray tan-loving clients who find
mobile companies to be too expensive, and since Liquid Gold is cheaper, they
will be more prone to tan with us. Also, being a new company, it is important

3. to get as many clients as possible that can
become loyal to us and will continue coming
back. Profit projection is explained in section 8.
6. Sales & Distribution
Services from Liquid Gold will be done by visiting clients in their homes.
When business picks up, new airbrush technicians can be hired and paid
hourly as well as receiving tips. However, right now I will work alone and
will not have to worry about salaries for others. Products will be sold inperson as well as online. While there are other mobile spray tanning
companies in the area, Liquid Gold stands out because we cater to the
individual client’s needs rather than giving everyone the same treatment, and
we are considerably cheaper than the competition.
7. Operations
Supplies will be purchased from a tanning distributor called SunTan Supply
at wholesale costs. SunTan Supply is a website that sends catalogs to tanning
businesses, so it’s easily available. It’s possible to negotiate a deal on pricing
once we become a regular customer from this distributor. Trying out
different brands of supplies and seeing which customersmost prefer will help
keep customers satisfied, rather than simply purchasing the same product
repeatedly. We will test products for durability (the spray machines, foot
pads, and spray tent), and test various aspects for the tanning solution (color,
how long it lasts, the smell, ease of application, etc.).Once business picks up,
we will be able to purchase a variety of solutions, which will allow the
company to expand its menu of services.
8. Financials
Materials
One-time purchases (will probably repurchase in 2-5 years)
Airbrush tan machine $100
Spray tan machine $200
Pop-up spray tent 2 at $50 each; $100
Total one-time material costs: $400
Recurring purchases (monthly)
Hair nets 100 at $10
Foot pads 100 pair at $30
Tanning solution4 liters at $70 each; $280
Extra solutions (pH balancing solution and moisture seal solution) 4
liters at $30 each; $120
Tan-extending lotions: 30 at $5 each; $150
Exfoliating scrub: 30 at $2.50 each; $75
Body wash: 30 at $2.50 each; $75
Total monthly material costs: $740
Total material costs for first year: $8,880

4. Marketing
Business cards: 250 for $10; $60 yearly
(will repurchase every 2 months)
Flyers/brochures250 for $10; $60 yearly (will repurchase every 2
months)
Newspaper ads 12 at $15 each; $180 (one per month for a year)
Car decal: $20
Social media: free
Total marketing costs: $320
Other Costs
Gas: $30/every 2 weeks; $60 per month; $720 per year
Website startup:
o Domain name registry: $50
o Web developer to make website: $500
Total other costs: $1270
Total costs for first year: $10,870
Sales/Profit Projection
For one liter of tanning solution, it costs approximately $70. One tanning
session usually uses 2 ounces of solution, costing about $4.38 ($70/32 oz=
$2.19 per oz x 2 oz= $4.38). One airbrush tan costs $45 per person, which
yields a profit of about $40 per tan.
$40 per tan
Upon startup, expected tans per week: 15. 15 x 40= $600/week profit;
$28,800 first-year profit.
Product
Purchase Price
Selling Price Quantity
Tan Extending Lotion
$5.00
$15.00
30
Exfoliating Scrub
$2.50
$10.00
30
Body Wash
$2.50
$7.00
30
If all products sell, Liquid Gold will make a profit of $660 per month on just
products.
Profit
$300
$225
$135
If Liquid Gold continues to tan 15 customers per week as well as selling 90 products
per month, we can yield a profit of $36,720 in the first year. However, this is a profit
projection that does not account for discounts such as the $10 off refer-a-friend
program, or if we decide to sell other products.
Break-Even Analysis
Break-even point = Fixed costs/(Unit selling prices – variable costs)
Fixed costs: $10,870 between materials, marketing, and other costs
Unit selling price: $45 per airbrush tan
Variable costs: costs $5 per airbrush tan
271.75= (10,870/40)

5. It will take about 272 airbrush tans to make back the
total costs for the year, but this doesn’t include sales
from side products.
9. Project Timeline
In order to become a functioning business, Liquid Gold Mobile Airbrush
Tanning must complete the following steps to open the business by the
summer of 2014. Some steps will be completed sooner, while others can wait
until closer to the opening date.
1. Purchase spray tanning and airbrush tanning machines, as well as
solution and spray tent. Complete by May 16th 2013.
It’s important to start practicing as soon as possible and make sure I am
used to the machines. This way, I will have over a year’s worth of
experience before the business officially opens.
2. Complete an airbrush tanning certification course. Sign up for one by
June 1st 2013.
This will ensure I am able to provide the best quality airbrush tans and
fully understand the techniques involved. Being certified also looks more
appealing and customers tend to trust certified airbrush technicians
more.
3. Register the name “Liquid Gold Mobile Airbrush Tanning” for the
business. Complete by July 1st 2013.
4. Purchase domain name for website. Complete by July 14th 2013.
5. Hire a web designer to create Liquid Gold’s website. Website should be
complete by August 1st 2013.
6. Create pages/accounts on social media sites. Complete when website is
complete, at latest August 1st 2013.
Utilizing Facebook, Twitter, and Tumblr will help raise awareness of the
company, even though it won’t open for close to a year. This way, the
business has the chance to offer complimentary tans to those on social
media sites, and hopefully they’ll come back once the business opens.
7. Apply for and obtain a business license. Complete by January of 2014.
Since business licenses must be renewed semi-annually, there is no point
in getting one until the year I plan to open the business.
8. Create business cards, brochures, and flyers. Distribute to dermatology
clinics, hair and nail salons, doctor’s offices, and freelance makeup artists
to network. Complete by February 2014.
Waiting for the website to be created firstensures that the correct link is
listed on the business cards, brochures, and flyers.
9. Apply for a loan. Apply by March 2014.
Taking out $11,000 will cover all expenses for the first year. These
expenses can be kept separately from my other expenses to differentiate
payments in home and in work.
10. Purchase all other materials, and create inventory lists. Complete by May
2014.

6. This will help prevent any materials and
products from going missing, and it will
help keep track of how many products are being sold. Purchasing only
one month prior to opening helps keep the products fresh and they won’t
expire.
11. Create work hours of operation. Complete by May 2014.
It’s important to figure out what hours the business will be open as well
as what days of the week (if any) the business is closed. Figuring out a
year-round schedule is good too, so clients will know which holidays
Liquid Gold will not be open for business.
12. Promote opening day by May 2014.
Once we figure out when Liquid Gold will officially open, it will be posted
on social media sites as well as our website.
13. Create advertisement for newspaper ad, and determine which
newspaper to have it posted in. Have posted June 1st.
Including website, phone number, price, and opening day show potential
customers when and how much they will spend for an airbrush tan.
14. Open the business! June 5th is opening day.
15. Research spray tanning events during business’s first day off.
Networking and promoting the business at these events can help expand
the customer base.

7. Liquid Gold’s menu of services, packages, and add-ons. Logo is listed in the corner of the menu page.