Starting a tattoo shop

Savvy_Sue

Oh, another thought about premises: do you need change of use as well as a licence? What were these premises used for previously?

kazzah60

my best friends son has just started a tattoo shop - he currently rents the upstairs of a hairdressers salon for £150 per week
he is doing Ok so far ( gets LOTS of customers coming up from the hairdressers - after he tattoed a couple of the stylists for free) but as yet, he's nowhere near earning £70K

I think the advice about renting space in a salon or beauty salon is quite good advice
Karen

nacider

steve1980 wrote: »

If you are asking questions about the tattoo side then of course they aren't going to be too hot about it.

VAT is payable once you reach a turnover of £76,000 (I think). You can register for VAT (no charge) so you can claim the VAT back on the supplies you buy in BUT you would also have to charge VAT to all customers, for example tattoo cost £50 (no VAT) or if you're VAT regsitered then it would be £60 (£50 plus VAT @ 20% = £60) or £40 plus VAT.

Most lenders will want you to put in at least 33% of your own money if not more. You could alternatively get a personal loan but not really recommended. You'd need a better reason for the loan other than to "keep you tidy".

For the building costs, no one would have a clue. You would need to get a quote from a contractor. There's no standard price.

Is there a market for a tattooist in the area that you are opening a shop? You're basing figures on an expected footfall, but in this day and age, nothing is certain.

If you think you're going to be earning £70k plus then yes, definately get an accountant.

Thanks so much for your help, has made things a bit clearer.

There is only one other tattoo shop in the area and I haven't heard good things about the shop. I even went in the other day and spied, a lot of customers were not happy about prices and the 'pervyness' of the tattooist lol

nacider

musicmaker29 wrote: »

sorry, I just realised that last post was written in a bit of a dismissive way and I didn't mean it to sound like that.

I would ask HMRC - you will need to decide whether to be a sole trader or a limited company (I imagine you will be a sole trader). You would be well advised to get some comprehensive insurance as well - otherwise any claims could come back to your personal assets/credit file.

How did you come to 70k turnover? (Can't remember if VAT threshold is based on turnover or profit). Remember to factor in your rent, bills, rates, insurance, clinical waste collection (including sharps), fitting the shop out, ink, needles etc. Will you use disposable tips or an autoclave for sterilisation?

In summary, I would start by asking your local council about licensing you and your premises (as a tattooist you must already have done this). Then ask HMRC about how to set up and what records you need to keep.

Its okay I understand it must seem optimistic lol. I was just filling out the business plan there and then at the business gateway, so numbers were just basic averages so I guess thats where the 70+ came from. I am doing a plan from scratch this time by myself with realistic figures.
When I wrote the business plan (was sometime before christmas) I wasn't aware of the other things that I would have to pay for, but I feel i've researched everything better this time round which is also why the profits were probably higher.
I've already spoke to the council today and they were helpful, gave me the number for the enviromental health etc. so i've got the council sorted out.
as for the hmrc i will phone them tomorrow and find out everything I need to do on thier end! Thank you :beer:

nacider

paddyrg wrote: »

Premises will be a huge cost, especially if they're sitting empty whilst you try to attract clients. Then adding business rates on top, and your monthly costs will soon exhaust your £2k. Businesses. Tend to fail not because they're unprofitable, but on cashflow - you need to keep every penny of cash you can.

So, how to get started? Can you rent a chair in a barbers shop, or a cupboard from one of those goth and head shops? Get them to agree a trial period whilst you get going, and you already have footfall from your target customers.

Don't worry about VAT until you're busy enough to be considering employing people (not that VAT and employmrnt are related, it's just a crude guide of size, ie when you are turning over £70k+) - the value in your business is all in the time and skill of the artist, not the cost of supplies. If a month's worth of ink costs you £12 instead of £10, who cares? But it means you get to keep all £48 of a £48 fee, not give £8 away in VAT.

But the loan is very unlikely to happen with no security, and so highly geared at a young age, so work on getting those costs riiit down to as low as you can go.

Thats a very good idea! I might do this instead of an actual shop at first.
Work my way to the top, so to speak.
So best to keep away from loans at the moment? I have only £2,000 though I'm not sure that would be enough to rent the back space of a shop. I already have most equipment, I would just need to order a few more needles and one more chair, but it wouldn't cost that much if i were to take the back space of a shop.
I've had 2 loans in the past of £1,000 each for motorcycles. Do you think it would be best to get another personal loan just to keep aside incase anything were to go pear shaped?

nacider

paulwf wrote: »

I can't emphasise strongly enough how good the above advice is! With all due respect OP you have a lot to learn about how the financial and compliance side of business works. This isn't a criticism as we all have to start and learn from somewhere, but I would suggest you don't get tied in to premesis as most of the costs will be fixed and you will have to pay them even if you get zero customers...so a huge risk.

It will be much better to start by renting a chair or something similar so you can learn everything you need to without any ties. That reduces the risk and will allow you to learn the boring financial bits. Then, when it comes to getting premises you will know *exactly* what you require...both in terms of size, amenities and location.

Don't rush into getting the premises you have seen, there will be lots of fantastic properties available for the next few years in most towns, you will be able to pick and choose the perfect location at any time. At 22 there's no rush so nothing to gain from getting premises straight away but everything to gain by starting out small.

On a different note have you considered getting a business mentor or business partner? Being a top class tattoo artist and being a business/financial expert are very different qualities. The good news is to run a tattoo shop being a great tatooist is the main thing, but there is no harm in getting help to cover the boring stuff

Thanks for the advice! This is all helping a lot, you wouldn't believe! I'm glad I didn't just jump in! lol

I do have loads of friends as tattoists but they already are full with artists. Believe me I have asked everyone I can think of! lol.

Don't mean to bang my own drum but I am doing ok with tattoos
(that sounds horrible, but I think my tats are better than other folks lol)

nacider

Savvy_Sue wrote: »

Oh, another thought about premises: do you need change of use as well as a licence? What were these premises used for previously?

I think it was a furniture shop before, does this mean I need to change it do a general licence? or is the furniture under general?

ILW

Do you know how much the rent and rates on this place are?
Is there a premium?
It could be a millstone and rented space in another business should get you safely off the ground.

nacider

ILW wrote: »

Do you know how much the rent and rates on this place are?
Is there a premium?
It could be a millstone and rented space in another business should get you safely off the ground.

its £135 per week, including electricity, water and the music licence

paddyrg

nacider wrote: »

Thats a very good idea! I might do this instead of an actual shop at first.
Work my way to the top, so to speak.
So best to keep away from loans at the moment? I have only £2,000 though I'm not sure that would be enough to rent the back space of a shop. I already have most equipment, I would just need to order a few more needles and one more chair, but it wouldn't cost that much if i were to take the back space of a shop.
I've had 2 loans in the past of £1,000 each for motorcycles. Do you think it would be best to get another personal loan just to keep aside incase anything were to go pear shaped?

It is indeed an awesome idea ;-) You have readymade clients, a premises which already has people around, and if it is at a salon, they can even manage your diary for you too so you can concentrate on the good stuff! I would personally want to see a bit more than a couple of grand startup buffer, but this is a very cost effective way to build a client list and get referrals - then once you're turning over decent cash and are stable look at increasing your risk/commitment to a commercial lease.

Commercial rents are relatively low compared with domestic ones, the back of a shop should be maybe £50/week including their facilities. And just ask the shopkeeper/salon owner to do you a deal - most will be very happy to do so as you will be giving them regular cash, giving their place more services, and when you are attracting your own clients you both benefit from the increased footfall. Start with really cheeky offers and work up, but certainly no need to spend £135/week at this stage.

And good luck to you! I am always heartened by people venturing out and taking a chance, even moreso if they're smart enough to consider advice (whether or not they take it is fine, just asking and considering is exactly the right attitude!!)