New business help?

mummyofboys

Hi

I was wondering if anybody could offer some advice. I have 7 years of experience working within the spray tanning industry I have been employed as a spray therapist but am currently starting uni in September. The company I work for offers sprays for £20.00 or two for £35.00.

I was thinking about doing this part time whilst at uni to help make some extra money, even though I know people have them done alot I worry would I make enough to warrant doing it mobile.

I would have starting up costs of

£250 kit including liquid, machine, hair nets, knickers and sticky feet flip flops

£60 been quoted for public and product liability insurance.

I have people who refuse to have other girls spray them at my place now, and when I went on holiday they didnt come in.

On going costs would be

Spray liquid £60.00 which is enough liquid for 15 sprays ( £4 per spray)

spray knickers £12.99 for 100 free post = =0.1299 per 1

sticky feet £17.95 100 free post = 0.1795 per 1

hair nets £4.25 + £2.50 post 100 = 0.0675p per 1

Advertising? Cheap printed leaflets and posting through doors? My son goes to a dance academy where the girls have them done alot could advertise there? Facebook?

Plus my petrol. I was thinking though would I have to go cheaper because I wouldnt be a salon or would people pay the same as its the comfort of their own home? I was thinking maybe cheaper if they have a spray "party" all girls getting ready for a night out maybe a deal of some sort? Proms , wedding partys, hen dos ect?

Or would I have to charge £12.00- £15.00 per spray in order to be competative?

Most of the places in my area charge £20- £25 but do go cheaper if you buy in bulk. I would be using the same product, would It be wrong to suggest some clients follow me from current salon or just start ahead?

Would I register my business for vat / tax and how do I do this? I am not very clued up on these things!

Any help or advise wanted even if you think there is no money to be made here! Thank you all

chalkie99

Starting at the bottom of your post first -

You must register with HMRC as self employed for tax and National insurance purposes.

You would not register for VAT as you will be trading under the limit of £73,000 per year turnover and your customers will be the public and won't want to be charged VAT. On a £20 sale you would be claiming back pennies on your materials but paying the Vatman £3.33, so no point for you.

On the pricing front I would be tempted to charge the going rate if people like your service. Maybe you could organise a party plan type offer where you give the host a freebie if they have, say, 5 guests attending.

Leaflets might work but generally have a very low success rate.

Don't know about spray tanning otherwise but is there a risk of damage to furnishings where you operate?

I am sure others will have more help.

mummyofboys

Yes I would be traveling to the clients house... I would be using a spray tent for example http://www.ebay.co.uk/itm/spray-tan-tent-/110719769722?pt=UK_HealthBeauty_Other_RL&hash=item19c7699c7a so no worry about damage to furnishings. Would I have to pay tax though? I am assuming I wouldnt be under the threshold as working part time and a full time student? Do you still register if your under the threshold?

steve1980

Yes, even if you earn 1p you still register.

You have a tax allowance of £7570 for 2011/2012. The best way to do it is to keep back 28% of any money you make for your tax bill at the end, although you would be better getting in touch with an accountant as they will show you ways to save money and the correct calculations for claiming back expenses on your car etc.

mummyofboys

I feel really nervous about doing it... I feel like all this tax/ ni malarky will hold me back as I am so cluless.. I worry I will not know what I have to pay and end up adding to my already significant debt!

So hard to make a living these days..

paddyrg

What extra services can make you unique? Can you offer evening parties when shops are closed? Maybe try to get a monthly thing going (assuming a tan would need a top-up by then) offering one girl (or guy?!) a free spray in their home if they host a spray party for at least 5 of their friends every month - £100 including a couple of bottles of wine?

mummyofboys

Its weekly to be honest... alot of the girls come in the salon every week as its highly addictive! lol But yeah is good to get parties together. The wine is a great idea.. I was thinking of maybe asking my friend to come along as she does fake eyelashes ect and she can do hers seperate but it would feel more like a pamper package?

paddyrg

Making a package of it is a great idea - work out a package price, maybe including wine and posh juice (for non-drinkers), bring a few girly DVD's along, help them make a night of it. Once you're established and doing weekly/fortnightly/monthly regular parties for regular income, you can also look at doing hen party bookings and maybe selling some fun wigs, make-up and tiaras as a sideline (or whatever girls like, I'm just guessing here!)...

pitkin2020

Your £12-£15 per spray isn't viable unless you can do 2 per hour without much travel. Your costs are roughly £5 per spray leaving you £7-£10 profit per spray, which you will have to take your travel costs out of, any advertising, insurance, stationary etc. You would be better off working for someone on an hourly rate without the hassle as your only going to be a little more than NMW. Add in your travel time and you could well be earning under the NMW for the hassle. At a guess its going to take roughly an hour to spray 1 person at home, travelling there, set up spray.

The idea of a party where you have a group of people is more viable, 1 lot of travel time and expenses multiple income.

Also don't try to focus on what the salons are charging, you are offering a service far more convenient and by the sounds of it you are in demand, that alone can command a higher premium. You could also try and get in with avon/ann summers reps and maybe offer a tan before/after the rep??

mummyofboys

It takes 20 to be sprayed and dried so a lot less than an hour but do get what your saying ideally groups of people would be my Target audience ? I'm getting excited now ! How would I start advertise coming soon ect or just go ahead and buy the stuff and start ? I love the idea of getting in with an Avon rep ect sounds great , was thinking of getting my brother to sign write my car ? Free lol

What would be the first steps plan plan plan or sink or swim lol

pitkin2020

fail to prepare, prepare to fail!!!

Start working out your target market and how you can reach them as cheaply as possible. If your target is going to be groups of women, then I expect you have plenty on facebook so start a group, get all your friends in and get them to pass it on their friends etc etc. Zero cost!! On your page offer a party package whatever you decide and do say 6 people X amount (each additional person X amount) book today etc