Start & Run a Tattoo and Body Piercing Studio. Kurtis Mueller

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СКАЧАТЬ 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 renovations and advertising dollars spent on this location will not be in vain. When you sign a commercial lease agreement most landlords will offer something called leasehold improvements, which means the landlord will grant you X amount of dollars to improve the space in lieu of paying rent. The standard is three months of rent for this type of agreement. This can be a huge advantage when starting your business and money is tight.

      Take this step of the process seriously and have the contract reviewed by a registered lawyer before signing; most agreements are more than 20 pages of legal jargon so they can be hard to understand.

      4. Pros and Cons of Buying an Established Tattoo and Piercing Studio

      In this industry, especially in today’s age, you may find yourself presented with the option of buying an established tattoo and piercing studio. With so many studios opening, closing, and going up for sale, you may have the choice to buy or start a new one. In considering an established studio, the most important question to ask is: What is the reputation for this studio in the community?

      When a tattoo and piercing studio develops a bad reputation, it is almost impossible to erase this image from the public’s mind, no matter what amount is spent on advertising. New ownership or just doing an excellent or innovative job will not be enough to rid the public of this perception or erase the damage of the previous owner.

      If the studio you are considering passes the reputation question and has a good or excellent reputation within the community, you will need to consider some important questions, such as how long it's been in business? What is its reputation in the community? What equipment, medical supplies, and furniture will come with the studio? Will current artists stay on when you take over? Do the financial statements appear to be in order? Does the business have a client list (how many clients)? Is it on good terms with vendors? Is it in a good location? Is there adequate parking? Does it have health-board approval? Why is the current owner selling?

      Take the price of the studio and compare this to what your start-up costs might be along with the time and stress involved in starting your business. Among the other things you've thought about so far, something the price of the studio will be based is something called “good will.” Good will is the price that has been calculated for things such as effort and time invested, risks that were taken, and the money that had been invested to gain clients. This can be calculated by professionals that specialize in this and an accurate picture can be gained into whether the price reflects the profits generated and the current customer base.

      The following list includes some of the pros of buying an established tattoo and piercing studio:

      • An existing client base means immediate revenue.

      • No major health-code compliances should need to be met through improvements or renovations, which translates into lower start-up costs.

      • The business might exist in a good location.

      • Money, time, and energy can be directed into operations of the business rather than one time start-up costs such as major advertising campaigns, major renovations, or the purchasing of equipment.

      • Less competition as you are buying an established operational business rather than opening in the same area and being in direct competition with other studios.

      • A tattoo and piercing studio with a good or an excellent reputation can basically eliminate your advertising expenses.

      • A list of vendors, if provided, can be useful because many companies offer discounts for years of ordering or for spending a certain amount of money. These discounts can go up to 25 percent so this should not be overlooked.

      • If a business has existed more than five years, there are statistics that prove the chance of failure is significantly reduced as compared to a business that is at less than the five-year mark.

      • Economic downturns affect an established business less than a new one.

      The following list includes some of the cons of buying an established business:

      • The previous studio may have had bad relations with vendors such as unpaid bills, so you could risk being billed for the previous owner’s debt or the vendors might not sell to your business.

      • The clients of tattoos and piercings require extensive aftercare and check-ups. Will the clients of the previous studio owner expect you to pay for and take time out of your day to check and maintain their body modifications at no charge? More than likely they will, since they have already paid the previous studio owner.

      • Will the clients continue to frequent your establishment or will they follow the previous artist or owner? In the tattoo and piercing industry many clients will select the studio for a particular artist.

      • If the studio has ever had a poor health-inspection report, has the public forgotten about it or will they carry that perception to your studio?

      • There could be pending or future lawsuits as a result of the previous owner’s actions. As well you could be legally responsible for outstanding bills, unused gift certificates, etc. If you do not pay the bills, you could develop bad credit and relations with your vendors. If you do not honor the gift certificates, you could lose clients.

      • If you are keeping existing artists (staff), they may not agree with your methods and quit, which could make life difficult for you and you could lose clients.

      • Is the current location beginning a negative economic transition or is an undesired element being planned for the area in the future, such as a major freeway, which will make access to your business difficult? For situations like this, check СКАЧАТЬ