Get That Funded: The Ultimate Tan Pitch Guide

Issue

While many people enjoy the glow of a perfect tan, few are aware of the risks associated with UV radiation. Take Jane, for example. She’s a middle-aged professional who loves sunbathing. Every Tuesday, she heads to her local tanning salon to maintain her golden brown skin. She doesn’t know that regular tanning sessions can cause skin cancer and premature aging. As a result, Jane puts her health at risk.

The Problem Our tanning salon addresses the lack of awareness of the potential health risks of tanning. Our goal is to educate people like Jane about the risks associated with tanning while providing a service that meets their need for that perfect golden glow.

It’s relevant Because skin cancer is currently the most common type of cancer worldwide. According to the American Academy of Dermatology, more than 9,500 people in the United States are diagnosed with skin cancer every day. Additionally, the tanning industry generates billions of dollars in revenue each year, indicating that people are unaware of the risks associated with tanning.

The current solution for this problem is to avoid tanning altogether. However, many people still want that perfect golden tan, leading them to continue with risky tanning practices or using self-tanners. Although self-tanners do not pose the same health risks as tanning, they do not offer the same results as tanning. As a result, people continue to take the risk.

The reason why the problem exists is that the tanning industry does not do enough to educate people about the risks associated with tanning. There is a general perception that tanning is safe and a necessary part of beauty routines. By raising awareness of the risks of tanning and offering an alternative that provides the same results, our tanning salon hopes to change these misperceptions.

Solution / value proposition

Our tanning salon seeks to revolutionize the industry by providing an innovative experience for our customers. We understand that traditional tanning methods often carry health risks, but our salon offers a safer and healthier alternative with our organic tanning services. Our solution makes tanning accessible to everyone without sacrificing health, convenience or affordability, providing a one-of-a-kind tanning experience.

Additionally, we are committed to providing an atmosphere that empowers our customers. Our salon is more than just a place to get a tan – it’s a community that promotes self-care and confidence. Our clients never feel judged or aware of their bodies. Instead, they feel empowered and confident in their own skin, regardless of the time of year.

Our solution also includes state-of-the-art technology that ensures our customers get the best possible result. Our spray tan booths are equipped with a proprietary system that guarantees even coverage and a natural-looking tan with no orange tones or streaks. This technology produces a beautiful, glowing tan that enhances our customers’ natural beauty in a safe and healthy way.

Our clients will feel confident, healthy and beautiful after each session and will be thrilled to return to our salon. We understand the importance of customer satisfaction, which is why we go above and beyond to ensure that every aspect of our solution exceeds our customer’s expectations.

In summary, our solution solves the problem of traditional tanning methods that come with health risks, lack of a community, and inconsistent results. Our approach provides safe, affordable and convenient services supported by cutting-edge technology and a powerful community that fosters self-care and trust. Our solution is not only amazing, but also revolutionizing the tanning industry.

Market validation

The tanning industry has grown steadily over the past decade, with an estimated value of billion in the United States alone. The global tanning industry is expected to reach a value of .4 billion by 2026, with a compound annual growth rate of 6.5%.

Our target market is young adults between the ages of 18 and 35. This demographic spends an average of ,530 per year on tanning services. In addition, we have identified a trend towards organic and natural tanning products, giving us the opportunity to differentiate ourselves from traditional tanning salons.

Starting a tanning salon is now a good idea as the industry is expected to continue to grow, and the organic/natural tanning sector is still relatively untapped. Our market research has indicated a demand for a more natural and organic option for tanning, and we believe we can meet that demand.

The market is indeed growing, supported by changing attitudes towards tanning and an increase in disposable income. Customers are willing to pay a premium for organic and natural products. In fact, our surveys show that our target market is willing to pay up to 30% more for natural tanning solutions compared to traditional tanning products.

• TAM: billion in the United States and .4 billion worldwide
• Demographic: young adults aged 18-35
• Market trend: moving towards organic and natural products
• Market Growth: Forecasting growth at 6.5% CAGR
• Customer’s willingness to pay: up to 30% bonus for organic and natural tanning solutions

Based on our market research, we believe there is significant untapped potential for an organic and natural tanning salon. Our goal is to provide high quality, organic/natural tanning solutions to our target market and to differentiate ourselves from traditional tanning salons.

business model

Our tanning salon operates on a subscription-based model, supplemented by sales resistant complementary products and services. Our primary source of revenue will be through monthly subscriptions, with different tiers available to suit different needs and budgets.

How will you generate income?

• We will generate revenue through our subscription-based model, where we offer different levels of packages to suit different needs and budgets.
• We will also generate revenue through the upselling of products, such as tanning lotions and skincare products.
• We plan to offer additional services such as spray tanning and teeth whitening, which will provide additional revenue streams.

What is the total amount of income?

• Our projected revenues for the first year are 0,000, with the potential to reach million in the second year.
• We aim to increase revenue by introducing new products, in-store promotions and discounts for loyal customers.

What products will generate revenue?

• Our main product is our Tanning Membership, which includes unlimited tanning sessions for a monthly fee. We offer different levels of membership to suit different budgets and preferences.
• We also offer products such as tanning lotions, skincare products and accessories, which will provide additional sources of income.
• Our complementary services such as spray heap and teeth whitening will also generate revenue.

Overall, our business model is designed to provide recurring revenue through our subscription-based model, while introducing additional sources of revenue through complementary products and services. We believe that our focus on customer experience and variety of offerings will enable us to generate sustainable revenue and grow our business.

Competition

Our market research has identified several major competitors in the tanning salon industry including:

• Blue Crush Tanning: A chain of tanning salons with multiple locations in our area. They offer different types of tanning beds, spray tans, and skin care products.
• Tanez-vous: A local tanning salon with a loyal clientele. They offer competitive prices and personalized services.
• Tan Linez: A mobile tanning service that offers in-home tanning sessions. They provide a convenient option for customers who cannot come to the salon.

These competitors all have their strengths and weaknesses. Blue Crush Tanning has a strong brand and many locations, but their prices are higher than average. Tan It Up has a loyal following, but their lounge is small and can feel crowded during peak hours. Tan Linez offers convenience, but their services are more expensive than traditional tanning salon services.

What sets us apart from these competitors is our focus on providing a premium tanning experience at an affordable price. We offer the latest in tanning technology, including UV and spray tanning options, as well as a range of skincare products to help customers achieve the perfect tan.

Our competitive advantages include:

• Affordable Pricing: We offer competitive pricing for our services, making them accessible to clients of all income levels.
• State-of-the-art equipment: We invest in the latest tanning technology to provide customers with the most effective tanning options available.
• Personalized Service: Our staff is dedicated to providing personalized service to every customer, ensuring they have a positive experience every time they visit.

We anticipate that our biggest competition will come from the Blue Crush tan, due to their strong brand presence and multiple locations. However, we are confident that our focus on affordability and customer service will set us apart from our competitors and make us a top choice for tanning salon customers in our area.

Founding team

Our founding team is comprised of experienced professionals with a passion for the beauty industry and a history of delivering successful businesses.

John Doe is our CEO and holds a degree in business administration from Harvard University. He has over 20 years experience in managing salons and spas and has led successful business expansions in the past. His expertise in strategy, marketing and operations is invaluable in guiding our show to success.

Jane Smith is our creative director and a licensed esthetician with a degree in art and design. She has worked in the beauty industry for over 15 years and has won several awards for her innovative approach to skincare . Her creative vision and passion for aesthetics drive our salon’s unique offerings.

David Lee is our Chief Financial Officer and brings a wealth of experience in Finance and Accounting . He has a finance degree from the University of Chicago and has worked for several Fortune 500 companies. His background in fundraising, finance management and forecasting is crucial to keeping our salon profitable.

Our team aim is to provide a high quality tanning experience in a safe and welcoming environment. We believe everyone deserves to feel confident in their own skin and we aim to provide the tools and expertise to make that happen.

We have identified areas where our competence could be improved, such as social media marketing and staff training. However, we have already started bringing in experts in these areas to compensate for the skills gaps in our team.

We believe that as a team we are the right people for the challenge of creating and growing a successful tanning salon. Our experience, passion and commitment to excellence make us a formidable force in the beauty industry.

Traction / Milestones

Our tanning salon has achieved significant traction over the past year, with steady growth in sales and customer satisfaction.

• Sales Growth: Our monthly revenue has increased 30% since our launch last year, with an average monthly revenue of ,000 . This growth is significantly higher than the industry average of 10%.
• Customer Satisfaction: Our customer satisfaction rate has always been above 90% . We regularly solicit feedback from our customers and have used this feedback to make improvements to our services and facilities.
• Market share: Our salon holds a 20% market share in our region, which includes three other tanning salons. We have also extended our reach to neighboring areas with a growing customer base.
• Product Market Fit: We have achieved product market fit by offering a wide variety of services and packages that meet different customer needs and preferences. Our customers are loyal and return frequently for our services.
• Customer Retention: Our customer retention rate is 85% , which is above the industry average of 75%. We offer discounts and promotions to our loyal customers and have a rewards program that incentivizes multiple visits.

The positive steps we have achieved demonstrate the viability and scalability of our business. We are confident that our growth will continue as we further establish our brand and expand our services. We are committed to maintaining high levels of customer satisfaction and continually improving our business model.

Fund raising

We are delighted to share our investment opportunity with you. Our tanning salon is seeking million in funding to complete our product development and release a beta version. We believe our innovative approach to tanning will revolutionize the industry, and we are confident that our investors will share our vision.

The funds we raise will be spent on three key areas:

• Product Development: 40% of funds will be allocated to finalizing our product and ensuring it meets our high standards for quality and innovation.
• Marketing: 30% of funds will be used to promote our brand, create awareness and attract new customers through digital and traditional marketing channels.
• New Employees: 30% of funds will be used to hire talented staff members who share our passion for tanning and customer service. We believe that our talented team will be the foundation of our success.

With these funds and our dedicated team, we plan to achieve several milestones, including:

• Release our beta version to a select group of customers for testing and feedback
• Cross our customer base and build brand awareness in the target market
• Securing our first major commercial contracts to accelerate our growth
• Hire additional staff members to expand our product offerings and improve customer service

We believe our tanning salon has a unique value proposition, and we are excited to have the opportunity to expand our business. With your investment, we believe we can achieve our goals and become a leading player in the tanning industry.