How to start a spray tan business from the ground up

Starting a spray tan business is a rewarding venture that combines artistry and customer service with business savvy. The tanning market is a multi-billion dollar industry, with steady demand for that perfect glow for events like weddings, vacations, and proms.

This guide will take you through the practical steps of obtaining necessary licenses, acquiring the right equipment, and building supplier relationships to help you launch a successful spray tan business in the U.S.

Step 1: Create your business plan and validate your idea

Analyze your local competition

Use Google Maps to find every spray tan business nearby. Then, study their Instagram and Facebook pages. Note their branding, the photos they post, and how they talk to customers. This gives you a picture of what works in your market.

Many artists use booking software. Look for links to their booking page to see their full service menu, prices, and availability. A common mistake is to compete only on price. Instead, find a way to offer a better experience or specialize.

Estimate your startup costs

Your initial investment will likely fall between $1,000 and $3,000 for a mobile or home-based setup. While it's tempting to buy the cheapest kit, a poor-quality machine can lead to uneven tans and unhappy clients. Plan for a reliable HVLP system.

• Professional Kit: Expect to spend $400-$800 for a reliable HVLP machine, tent, and initial solution supply.
• Business Fees: Set aside $100-$500 for your business license or LLC registration. Check with your state's board of cosmetology for any specific certification costs.
• Insurance: General liability insurance is a must. Plan for about $300-$600 annually to protect your new business.

Here are 4 immediate steps to take:

• Research the demographics for your city or town.
• List five local competitors and review their services and prices.
• Contact your state's cosmetology board about licensing rules.
• Create a startup budget based on the cost estimates above.

Step 2: Establish your legal structure and licensing

You might want to form a Limited Liability Company (LLC). It separates your personal assets from your business debts, which protects your home and car. Profits pass through to your personal taxes, simplifying your accounting at the start. State filing fees range from $50 to $500.

Navigate federal, state, and local requirements

First, get a free Employer Identification Number (EIN) from the IRS website. You will need this for taxes and to open a business bank account. The online application takes about 15 minutes to complete.

State rules vary widely. Some states require an esthetician or cosmetology license, while others do not regulate spray tanning at all. A frequent misstep is assuming no license is needed. Always check your state's Board of Cosmetology website for the official rules to avoid fines.

You will also likely need a general business license from your city or county clerk. This permit can cost between $50 and $150 annually. If you plan to operate from home, confirm local zoning laws allow it.

Here are 4 immediate steps to take:

• Decide on a business structure, like an LLC, and register it with your state.
• Apply for a free Employer Identification Number (EIN) on the IRS website.
• Visit your state's Board of Cosmetology website to find spray tan regulations.
• Contact your city clerk's office about obtaining a general business license.

Step 3: Protect your business with the right insurance

Understand your coverage needs

Start with general liability insurance, which covers client slips or property damage. A policy with $1 million in coverage typically runs $300 to $600 annually. This is your foundational protection against common accidents.

You also need professional liability insurance. This covers claims related to your service, like an allergic reaction or an unsatisfactory tan. Expect to add $250 to $500 per year for this coverage. Many new artists skip this, but a single claim could be devastating.

If you work from home, your homeowner's policy will not cover business activities. You will need a separate commercial property policy. For a mobile business, you must have commercial auto insurance if you use your vehicle primarily for work.

Find an industry-savvy provider

Work with insurers who understand the beauty industry. General agents may not grasp risks like solution overspray damaging a client's home. Look into providers like Beauty & Bodywork Insurance, Hiscox, or NEXT Insurance for tailored plans.

Here are 4 immediate steps to take:

• Get quotes for both general and professional liability insurance.
• Review your homeowner's or renter's policy to check for business exclusions.
• Contact an insurance provider that specializes in the beauty industry.
• Ask about specific coverage for allergic reactions and property damage from overspray.

Step 4: Choose your location and buy equipment

Find your workspace

For a home-based business, you need a dedicated space of about 100 square feet. Check your local zoning ordinances to confirm home businesses are permitted. A quick call to your city planning office can prevent future issues with regulations.

If you lease a commercial spot, look for a small studio. When you negotiate the lease, you might ask for a 1-2 year term instead of the standard 3-5 years. This gives you flexibility as your business grows. A longer lease can become a burden if you decide to move.

Gather your gear

Your main equipment investment is a high-volume, low-pressure (HVLP) spray system, which costs between $400 and $800. Also, plan for a pop-up tent ($60-$100) and a quality extraction fan ($100-$250) to manage overspray and keep your air clean.

Look at suppliers like Norvell or Sjolie for your tanning solution. Most let you buy single 8-ounce or 32-ounce bottles to start. It is a good idea to test a few brands before you commit to buying solution by the gallon.

Here are 4 immediate steps to take:

• Call your city planning office to ask about home business zoning rules.
• Research two HVLP spray systems within your budget.
• Request solution samples from a supplier like Norvell or Sjolie.
• Create a shopping list for your tent and an extraction fan.

Step 5: Set up your payment system

Choose your payment processor

Most clients expect to pay with a card, so you need a reliable way to accept payments. You should also have a clear deposit policy for group bookings, like wedding parties. A non-refundable deposit of 25-50% protects you from last-minute cancellations.

When you review payment solutions, look at the fees. Many processors charge 2.5% to 3.5% per transaction, and some add monthly fees or require you to buy hardware. These costs can add up, especially when you are new.

For a spray tan business that needs to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done.

At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for mobile appointments. You can take payment immediately after the service without carrying a card reader.

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.

Here are 3 immediate steps to take:

• Establish a deposit amount for group bookings of three or more people.
• Compare the transaction fees of two different payment processors.
• Download the JIM app to explore its features on your phone.

Step 6: Secure funding and manage your finances

Find your startup capital

An SBA Microloan can be a good fit, offering up to $50,000 with interest rates typically between 8% and 13%. For equipment, you might use a business credit card with a 0% introductory APR. This gives you some breathing room on initial purchases.

Also, look into grants like the Amber Grant, which supports women in business and does not require repayment. Many new owners make the mistake of mixing personal and business funds. To avoid this, open a separate business bank account as soon as your LLC is approved.

Plan your first six months

Once you have your initial funding, think about working capital. You should plan for at least $1,500 to $2,500 to cover your first six months of expenses. This buffer pays for insurance, marketing, and solution before client income becomes consistent.

Here are 4 immediate steps to take:

• Open a dedicated business checking account.
• Research SBA Microloan program requirements online.
• Calculate your working capital needs for the first six months.
• Find a business credit card with a 0% introductory APR.

Step 7: Build your team and streamline operations

Hire your first spray tan artist

Once you are booked two to three weeks in advance, it is time to hire. Your first employee will likely be a Spray Tan Artist. Their duties include performing tans, consulting with clients on shade selection, and keeping equipment clean.

A common pay structure is a 40-50% commission on each service, plus tips. Another option is an hourly wage between $15 and $20. Many artists prefer commission because their income grows as they build a client base.

Some new owners hire friends to save money, but this can cause issues if they lack professional training. You might want to look for candidates with certifications from brands like Norvell or Sjolie, even if your state does not require a license.

Set up your business operations

As you grow, you need software to manage appointments. Systems like Acuity Scheduling, Square Appointments, or Vagaro let clients book online and send automatic reminders. This reduces no-shows and frees up your time.

Most of these platforms offer a free plan for single users. Plans that support multiple staff members typically cost between $25 and $50 per month. This investment pays for itself by preventing double bookings and simplifying payroll.

Here are 4 immediate steps to take:

• Draft a job description for a Spray Tan Artist with a clear commission rate.
• Check your state's cosmetology board for artist licensing requirements.
• Compare the team features of Acuity Scheduling and Vagaro.
• Outline a one-page training guide for your specific client process.

Step 8: Market your business and get clients

Build your online presence

Instagram is your best marketing channel. Post high-quality before-and-after photos daily. Use a ring light for consistent, flattering images. Many new artists hurt their brand with inconsistent colors and styles. Pick a visual theme and stick to it.

You should also create a simple website on a platform like Squarespace. Your site needs to feature your services, prices, and a direct link to your booking software. This lets clients book appointments 24/7 without calling you.

Use local marketing strategies

Partner with local businesses that share your clientele. Think bridal shops, hair salons, and gyms. You can offer a 10% commission for each referral they send your way. This builds a steady stream of new clients.

Also, get professional business cards printed to leave at your partner locations. Make sure your Instagram handle and booking website are clearly visible on the card for easy access.

Launch with an introductory offer

Attract your first clients with a special deal. You might offer the first tan for a reduced price, like $35, or a package deal. This helps you build a portfolio and gather testimonials quickly.

After each appointment, ask happy clients to leave a review on your Google Business Profile. Positive reviews are powerful social proof and help you rank higher in local search results.

Here are 4 immediate steps to take:

• Create an Instagram business profile and plan your first five posts.
• Contact three local businesses about a referral partnership.
• Design a business card with your booking link and Instagram handle.
• Set up your free Google Business Profile to start collecting reviews.

Step 9: Set your pricing strategy

Revisit the competitor research from Step 1. Look at their booking sites to see their full service menus and prices. Your goal is not to be the cheapest in town. Instead, price your services based on the premium experience and results you provide.

First, calculate your cost per tan. Add up the price of about two ounces of solution plus disposable items like sticky feet and hair caps. This number usually lands between $2 and $5. Your final price must cover this cost, your time, and business overhead.

Create your service menu

Most artists set a standard, single tan price between $45 and $75. You can also create packages to encourage repeat business. Many new owners only offer single sessions, but this misses an opportunity for guaranteed future income from loyal clients.

• Single Classic Tan: $55
• Package of 3 Tans: $135 (a $30 savings)
• Rapid Rinse Tan: Add $10-$15 for this premium solution.

Consider offering small add-ons. A finishing powder application for $5 or a CBD infusion for $10 can increase your revenue per client with minimal extra effort.

Here are 4 immediate steps to take:

• List the prices of three local competitors for a standard tan.
• Calculate your cost per tan, including solution and disposables.
• Draft a service menu with prices for single tans, packages, and add-ons.
• Decide on a price for your introductory offer to attract new clients.

Step 10: Maintain quality and scale your business

Maintain service quality

To measure quality, track your client retention rate. You might want to aim for a 60-70% return rate within three months. Also, monitor your Google Business Profile for new reviews. A steady stream of 4- and 5-star ratings shows you are on the right track.

Many artists lose consistency as they get busier. To avoid this, standardize your client consultation. Create a simple one-page guide that lists questions about skin type, desired shade, and event timing. This ensures every client gets the same thorough service.

Know when to grow

Once your schedule is consistently 80% full for a month, it is time to scale. You have two main options: raise your prices by 10-15% or hire another artist. Raising prices can increase revenue without adding more work hours.

If you decide to hire, revisit the team plans for booking software like Acuity or Vagaro. These plans let you manage multiple staff calendars and payroll. This investment prevents the scheduling headaches that come with a larger team.

Here are 4 immediate steps to take:

• Calculate your client retention rate over the last 90 days.
• Create a one-page guide for your standard client consultation.
• Review your booking calendar to determine your capacity percentage.
• Compare the pricing for multi-user plans on Acuity or Vagaro.

You have the roadmap to launch your spray tan business. Remember that your artistry and the client experience are what create loyalty beyond just a good price. Now you have the steps, go build the business you have envisioned.

A smooth payment process is part of that great experience. JIM turns your phone into a card reader, so you can accept payments anywhere with a flat 1.99% fee and no extra hardware. Start smart from your very first client. Download JIM.