Feasibility Study

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Date Submitted: 11/19/2012 09:55 AM

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Feasibility Study

Lisa Coats-Birchett

OMM 614: Innovation & Entrepreneurship

Dr. Warren St. James

August 6, 2012

Feasibility Study

The purpose of this feasibility study is to look into the business that I would like to personally start and to see if the venture would be a positive one. The business that I am looking at is a tanning salon/gift shop. I hope to be able to provide a service to the people of my community that allows them to shop and to relax at the same time. We already have two of these shops in my town but they do not have very good hours. I plan to work hard and put in the hours to make my business a successful one, as well as, help my husband run his diesel repair business.

In today’s market there is a bigger market for tanning salons. It is no longer used for only cosmetic purposes but it is also used for skin conditions, relaxation, and it can be used for Vitamin D deficiencies if certain bulbs are used in the beds. The name of my business will be Lisa’s Tan and Gift’s. I am in the process of looking at two buildings in the city limits of town. One building is going to be more space than I need as a startup venture and the rent is $1200 a month. It will have to have booths for the beds made into it and I will have to have my beds delivered. The other building is about half that size and it is $800 a month. There are two booths already and I can add one more. My tanning beds are going to be $1199 for two of them and $1699 for one of them.

At this time my husband and I are going to be the only investors. To start in the smaller building might be better due to me not needing the excess space until it is time for me to have enough business to expand which will probably be six months to one year down the road. However, I must look at the fact that I will be available hours that other tanning salons are not open so it is possible that I can build the three booths and I can expand one booth at a time as profit allows. This...