NEEDLE INC TATTOO PARLOUR

Group Members

Vaidehi Dave (12)

Swapnil Pacharne (32)

Pintu Rajan (39)

Praful Shettigar (48)

Ajay Yadav (59)

Vision

Needle Inc. seeks to be the most preferred tattoo parlor in the city while ensuring customer
satisfaction.

Mission

We are dedicated to quality work and customer service and the philosophy that every tattoo,
whether a tiny tattoo or a full body art should be an experience worth remembering. Making the
health and care of customers and tattoos a top priority to ensure the safety of the customers,
employees, and business.

Address

Location: Shop no.32, Centrium Mall,

Lokhandwala Complex,

Kandivali (East), Mumbai: - 400101.

Contact no.

+91-22-28493215

Website

www.needleinc.in

Service/Product

 Customized permanent tattoos

 Products for sale:
1. Temporary tattoo stencils
2. Glitter tattoos
3. Anti-scar cream
4. Herbal skin products
Company Summary

Needle Inc., will open a small tattoo parlor in suburban Kandivali, Lokhandwala within a
centrally-located mall, will be launched in 2011. The business will be founded and run by
Swapnil Pacharrne, Praful Shettigar, Ajay Yadav, Pintu Rajan and Vaidehi Dave. Two tattoo
artists will be hired by the company on contract basis. At Needle Inc. both tattoo first-timers and
collectors will be able to work with two established, talented artists. The business will provide
color tattoos both from original designs by the artists and basic public domain designs. It will
also provide small, introductory tattoos from existing designs, basic tattoos that can be executed
in one hour, and full half-day sessions with the artists. The artists can offer extended
consultations and custom design work with the customers as needed. Customers will include
both those new to tattoos and tattoo collectors, all predominantly between the ages of 20 and 40.

The business needs only Rs.10, 00, 000 to launch, due to the low capital requirements of the
business and the intention to use low-cost marketing techniques and direct selling to find initial
customers.
Industry Analysis

With today’s youth increasingly getting body art done for style and self expression, the time
seems right to set up body art studios and organize this industry.

19% of India’s population falling in the 15-24 years age bracket, i.e. the segment of customers
that dominates this business, and with the ever so increasing influence of celebrities on them, the
craze is rapidly rubbing off on to the general public as well. India’s youth is using body art not
only to make a fashion statement but also as a means of self-expression.

With several body art studios for tattoos, temporary tattoos and even henna opening up in the
country, this business is poised to grow. And thanks to the raging demand, and dearth of trained
talent, there is scope for many such chains to be set up across the country.

Tattoos Now and Then

Culturally, body art is not a new phenomenon to us. Most of us have seen our grandparents with
an Om or Trishul tattooed on their hand. Women of that generation were also often seen with
three black dots tattooed on their chin. Tattoos have also been common amongst certain tribes in
India, where they were symbols of group loyalties and held a social importance. It’s a revival of
an old art by Western culture. When this trend went abroad, better products and methods were
introduced. Ink, for example, was black, made out of charcoal and mixed with water. The
Westerners started using fruit and vegetable extracts, mixed it with glycerin and produced
colored dyes.

Taking from these trends, the Indian tattoo industry although still highly unorganized, is
flourishing. When customers see a proper studio, following the correct hygiene and safety
protocols, they feel safe and don’t even mind paying a premium price. Yet, there aren’t many
such parlors, perhaps because there aren’t any proper training schools in India for this art.

There is a lot of interest being generated for the business. However, it is still a nascent industry
and only time will tell who is eventually going to survive in the market.
Legal Requirements:

1. Shop Establishment License

2. Leave and License Specimen

AGREEMENT OF LEAVE AND LICENSE

THIS LEAVE AND LICENSE AGREEMENT is made and executed at Mumbai on this __ Day of _________

Two Thousand and Seven between Mr. _____________ residing at

________________________________________________________________________, hereinafter

called the “LICENSOR” (which the expression unless be repugnant to the context and meaning thereof

be deemed to include her heirs, executors and administrators) of the ONE PART
Initial Capital : Rs. 10 Lakhs

1. Rent of the Shop: Rs.35, 000 per month.

2. Initial Refundable Deposit: Rs.2, 10,000

3. Cost of 2 tattoo kits: Rs.60, 000(Rs. 30000 per kit)

Description of the kit: 

Tattoo Kit Set includes:

2 x Professional stainless steel Tattoo machines (gun) for shader and liner (10 coil wraps)

1 x Top Quality Aluminum Carrying Case with Lock & Keys (Black leather) . Carrying Case Size (mm): 312
* 242 * 113
7 X 10 ml Tattoo Ink

1 x ink holder

100 x ink cups

1 x great quality power supply  ( Available work under 110V or 220V and 230V ,240 V,output 1.2V-14.8V )
1 x Foot switch

1 X Clip Cord

1 X Power Plug ( US Standard )

50 x pre made sterile tattoo needles

50 x needle pad

9 x mixed plastic disposable tips

8 x stainless steel tips

4 x high quality stainless steel grips

50 x o ring

50 x rubber bands
2 x Practice Skins

2 x prevent scar cream

1 X Tool Kits set

1 x Instruction & DIY demo disc

2 X Copier FCC & CE Safety Verification ( Which is not only the safety and quality test verification but also
permission of export by North American & European Union  )

1 X factory ex-works test report

4. Hiring 2 Tattoo Artists on contract basis. (Giving them 40% of the cut)

5. Interiors of the shop including Computers, Air Conditioner, Tattoo Setup etc

Rs. 5, 00,000

Computers: - Rs. 60.000/- [30,000 x 2]

Air conditioner: - Rs. 40,000/-

Name Board: - Rs.30,000

Interiors and furniture:

 Office desk- Rs. 36, 000

 Office chair- Rs. 5, 000
 Sofa- Rs. 10, 000

Advertisement:

 Flyers- Rs. 350 for 1000 flyers

 Business Card- Rs. 950 for 1000 cards
 10 Catalogues- Rs. 300 @ Rs 30/catalogue

6. Cost of Installing a Telephone – Rs. 600/-

7. Cost of Registering a website on net – Rs. 2,000/-

TOTAL EXPENSES : - Rs. 9,90,200/-

The location will be in a mall in Lokhandwala and will feature an open space for
reception, waiting room and two tattoo stations, a sterilization room, a small office space, and
a single bathroom.
Start-up inventory includes the inks and dyes needed to stock the store for launch. Other current
assets include a security deposit for the shop location.

Long-term assets include signage for the exterior of the shop, reception area items (a reception
desk, chair, phone), tattoo station equipment (two tattoo chairs, mirrors, lights, tattoo kit, covered
trash bin) and a sound system.
Financial Plan

The financial plan for Needle Inc. is to raise Rs 10 lakhs from personal savings. The business
will achieve break-even in the third month of operation and net profit will be achieved in the first
year.

Start-up Funding

The start-up funding will be from investment by the co-owners and founders, Praful Shettigar,
Swapnil Pacharne, Pintu Rajan, Ajay Yadav and Vaidehi Dave, who will each contribute Rs. 2
lakhs.

Objectives

1. Achieve sales of 10, 15 and 25 tattoos in the first, second and third months respectively.
2. Achieve Break-even sales of 33 tattoos in the first three months of operation.
3. Achieve an average growth in sales of about 25% per year.
4. To deliver superior value through quality, price and reliability.

Break-even Analysis

Average Revenue / tattoo Rs. 10000

Average variable cost/ tattoo Rs. 7000
Average contribution/tattoo Rs. 3000
Fixed cost Rs. 1,00,000

Break-even volume = Rs.1,00,000/Rs.3000 = 33 tattoos.

Market Segmentation

The market segments in Kandivali, Lokhandwala area include residents of Kandivali and
surrounding Areas like Borivali and Malad who may travel to Needle Inc.

Tattoos first-timers: People who may want to get a tattoo done simply for the experience of
receiving it, to simply say they've done it, to commemorate a specific relationship or affiliation,
or for the danger associated with it. These individuals may be mostly in their late teens or
twenties. The popularity of tattoos among celebrities also further encourages this group to get
tattoos.

Tattoo collectors: This group connects with the lifestyle associated with having tattoos. Many
seek to cover large portions of their body with tattoos. This group will appreciate the work of
specific artists and seek them out again. This group will seek custom designs, simple designs,
and become used to the pain or discomfort involved.

Target Market

Needle Inc.will seek to serve both of these key market segments in order to remain viable.
Serving tattoo collectors alone may not yield a large enough market. Furthermore, it is difficult
to inspire new tattoo collectors in the area without first serving tattoo first-timers with
introductory tattoos. The shop will be appropriate for tattoo collectors, with entertaining music
playing and products available for sale.

Positioning

Needle Inc. will position itself as a value-for-money brand, one that is safe and trustworthy. Its
appeal will be variety, customization and affordability.
Marketing Mix

 Product : Needle Inc. will provide the following services to customers:

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

Introductory tattoos are for those who are new to tattoos. They are basic, small designs by the
artists or standard public-domain designs. Custom designs cannot be provided as an introductory
tattoo. These tattoos can generally be finished in 45 minutes and with a minimum amount of
consultation with the client.

Basic tattoos offer some consultation with the client, a wider number of colors, and about an
hour of work with an artist. These are not generally custom-designed tattoos, but may include
some customization of existing designs.

Full sessions allow creative freedom for the artist to create customization of a design or an
original design for a customer and freedom for the customer to know that there is a ceiling on the
price he or she will pay.

 Price: The price of the tattoo will range from Rs.5000-Rs.15,000. A discount of 10%
will be offered to the customers during the first week of operation.
 Place: Needle Inc. is located in an area mall. Initially we expect to have customers from
Lokhandwala Complex. In the seventh month of operation, we intend to offer our
services to customers in Borivali and Malad.
 Promotion: The basic promotional route will be internet advertising,websites, referrals
and word-of-mouth.
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.
 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, tattoo shop databases and
the Yellow Pages

Competitors

There are some established tattoo parlors in the area from Borivali to Malad like Micky's Tattoo
Yard and Atikk in Borivali (West), Taatau in Malad(West),etc.

Procedure of making a Tattoo

Step 1: Making a 3d image of the tattoo as required by the customer.