A&R Tattoos

Team: Andreescu Andrei and Atanasoaei Raul

Coordonating professor: Adrian Brunello

A&R Tattoos
A&R Tattoo will open a small tattoo parlor in Iasi, where both tattoo
newbies and collectors will be able to work with two established,
talented artists.
The business needs only $22,200 to launch, due to the low capital
requirements of the business;
Sales will exceed $300,000 by the third year based on the full-time
work of the employees.

Objectives
Reach annual revenues ofapproximately $330,000 in year three;
Successfullycreate 5446 tattoos over three years
Earn net profits for the owners, for significant total compensation to
thetwo owners including salaries and dividends

Mission
A&R will create safe, impressive
tattoo art for customers in Iasi area
both through tattoos and through
other products featuring art by the
shop's tattoo artists.

Keys to Success
Encouraging repeat customers (collectors) who return again and
again for full sessions with artists they love;
Making the health and care of customers and tattoos a top priorityto
ensure the safety of the customers, employees, and business;
Working with talented artists and encouraging their expression and
freedom;

Products and Services

Introductory/shop-minimum tattoos
Basic tattoos (1 hour session)
Full sessions (2-6 hour sessions)

Market Analysis
Summary

The market is segmented into:

Tattoo newbies or dabblers (those who get one tattoo)

Tattoo collectors (those who get numerous tattoos)

Marketing Strategy

Print 1,000 flyers advertising the grand opening of the business to

post in the area of the shop, at local establishments and hand out
at events and on the street in the preceding week.

Create a basic website with contact information and directions, the

prices for services, pages with galleries of art of the two artists, and
images of products for sale in the shop and prices

List the website on search engines, local business databases,

tattooshop databasesand the Yellow Pages

The principals and additional artist handing out business cards and
wearing A&R shirts to promote the opening

Running ads in the local papers about the grand opening

Sales Strategy
Sales will be encouraged through word-of-mouth. Clients will be
given a few business cards to hand out to friends when they talk
about their new tattoo and client information will be retained
Beyond in-store sales efforts, the artists will promote their work at
parties, events, and while on the street, by wearing A&R shirts
often and handing out business cards to people they meet.

Sales Forecast
The sales forecast represents an amount of work that is reasonable
for two full-time artists, while allowing time for them to work on flash
art, create designs for other resale items, and manage and market
the business

Financial Plan

The financial plan for A&R is to raise $27,000 from a combination

of personal savings, a long-term loan, and short-term borrowing to
launch the business. The business will achieve cash flowand profit
break-even in the seventh month of operation and net profit will
be achieved in the first year, allowing for dividends to be paid to
the owners beyond their salaries starting in year two.

Start-up Funding

The start-up funding will be primarily from investment by the coowners and founders, Andreescu Andrei and Raul Atanasoaei, who
will each contribute $7,500. They will borrow $2,000 on credit
cards and seek a three-year loan of $10,000 for the remaining
cash, with their home equityas collateral. This will cover the
required $27,000 in funding needed to launch.

Projected Profit and Loss

Gross margins will improve slightly as sales of full sessions
increase relative to other services.