When people are trying to start a business, they often seek the counsel of others who have been in their situation. For those that have a business, or even those that went out of business, one of the most important pieces of advice they can give a potential owner is where to build. As the old adage goes, the three most important aspects of opening a new business are location, location, location.
Know Your Audience
Since the indoor tanning industry is patronized primarily by females between the ages of 18 and 49, understanding their spending patterns and the demographics of the area in which the property is located can be important.
Knowing who the salon will sell to is a necessary trick of the trade that can mean the difference between success or failure. Oftentimes equipment manufacturers or local franchise operations will help in creating a demographic survey of the surrounding area, making the decision to locate easier for the salon owner.
Try locating your salon near a customer base that works with your clientele. Since indoor tanning is predominately female in the young to middle age range, locating next to a university or school setting, or even in a downtown location near large office buildings, would be prime location for salons. In addition, business owners should look for the 100-percent corner—or the one location that everyone, from pedestrians to commuters to public transportation, can see from any vantage point.
In addition, try to find an area that is continually seeing both population and economic expansion. Projections generally are available at the census tract or block group (a portion of a census tract) level of geography and include data such as population, households, age and income. Apartment dwellers often are a great customer base for salons, especially those centered near university areas.
Salon Location
The location of your salon is a critical decision. According to industry experts, location is probably the single most important factor in the success or failure of a tanning salon.
For years we’ve all heard about the importance of location. When choosing a location, companies like McDonald’s and Burger King spend enormous amounts of money on studies that provide them with the information they need before a final decision is reached.
In the tanning business, most of us do not have the luxury and cannot spend the money on a study that will help us make a location decision. So how can you actually decide where to open your salon? The answer always depends upon your own situation, goals and objectives; however, there are guidelines that will help you make this important decision.
Keep in mind that your services are appealing to people who want to look better or enhance their image in the eyes of others as well as themselves. For these people, looking good is their top priority. So, the better the salon looks, the more comfortable people feel and the more your clients will feel that they are getting the most for their money.
There are five basic location factors that should be considered when selecting a business site:
Population Density—This refers to how many people in the general population there are and, of that total, how many are actually potential customers.
Population Income—Obviously, a high disposable income among your customer base is very desirable. The more disposable income a person has, the more money (and probably time) they have for enhancing their looks.
Competition—It is highly unlikely you will choose a location next to another tanning salon, but there’s nothing to prevent you or a competitor from opening a few blocks away from each other. As indoor tanning becomes more and more popular, increased competition is inevitable. Your best protection is a well-respected, ongoing business based on exceptional service and outstanding equipment performance.
Proximity to Target Audience—If you want to target an upscale audience, the location should then be in an upscale neighborhood. If you want to set your sights on students, it would be wise to select an area near a local university or several high schools. Make sure you have defined your audience. When you know who your potential clients are, it will be easier to select a site where there is an abundance of these people. This is a key factor in the success of your salon.
Building Selection—In determining the size building you are going to need, consider the amount of money you have to invest and the amount of equipment that it will take to operate profitably. Also, before building or leasing, always check with the proper local offices to verify all zoning ordinances, building codes, etc. Prior to signing a lease, it is wise to seek legal help.
Naming Your Salon
If you’re forging into the tanning business for the first time, you’ll find the adage, “It’s all in the name” is true. The equipment, the services, the prices and the staff may all be first-rate, but how potential customers perceive the salon hinges on what they see headlining its Web site or hanging outside its front door.
Though imperative for a new multisalon company, the name game has higher stakes for smaller tanning businesses—particularly single salons that may rely more on name recognition because they don’t have the budget to support many forms of marketing.
Several consultants weighed in on salon nomenclature. First of all, any name should appeal to the audience, not only the owner. So, an inside joke between friends and family would be lost on your customers. Similarly, experts warn against dated titles that, though popular now, could make your salon less-than-hip before long (think in terms of “groovy”).
Also be mindful of connotations your name might give. You don’t want someone to take a photo of the sign so that late-night comedians can mock your business.
With a lot of successful names already taken off the market by current salons, piracy won’t win you any points, either. Make sure to search the U.S. Patent and Trademark Office (www.uspto.org) to prevent choosing a name that is a copycat version of another salon.
With a bevy of naming “don’ts,” what options are you left with? Plenty. Focus on being original—because there are a lot of salons with very similar names, choosing something unique and fun will set you apart, and people will remember you over the competition.
Overall, keep it simple and memorable, and remember the alphabet. If someone looks up tanning salons in the phone book, they will see the “A”s first, which means “Zebra Tan,” probably wouldn’t get many inquiries. And, once a good name is in place, many experts say it is worth the cost to trademark it.
If you’re stuck, you can always outsource the naming task to a search company or a consultant, who can check the trademark information for you and also craft a creative name. Costs range from $5,000 to $50,000 depending on the size of the company and scope of the naming program.
