Starting a Tattoo Cream Removal Business - Case Study Example

The paper "Starting a Tattoo Cream Removal Business" is a perfect example of a case study on business. Tattoos have become the order of the day for most teenagers in the United States. Most of these teenagers rush for tattoos due to peer pressure while still young. After some time, they realize that the tattoos that they adopted in their bodies are no longer important and opt to remove them. Most have resorted to laser tattoo cleaning that tends to be a little bit expensive. It is on this basis that I resorted to introducing a new product in the market. The product is a disappearing tattoo ink that will be applied to the areas with the tattoo leading to its disappearance. Inked options have been working with the help of their engineers to come up with ink that contains some cream and lotion that allows the tattoo to disappear after some two to five years.

Strengths and weaknesses of the competitors

The main competitor for this type of business is the laser tattoo removal business that cleans the tattoo within a short period compared to the time that the cream will take in removing the tattoo completely. The business seems to have attracted a large customer base and most of the potential customers tend to go for the technology compared to the creams. The period that the technology takes to clean the tattoo is much less and efficient though the prices of using the method are so high. The strength of the business is that of their ability to advertise their services and sometimes they make lots of promotions. All these combined efforts tend to attract potential customers to them as compared to any other means used to remove tattoos. The ability of the competitors to come up with new technologies that are more efficient than the cream also acts as a great strength to the business.

The major weakness of the company is only the high prices that they charge for their services. The prices tend to scare away most of the customers thus making it a perfect point to introduce our low priced cream that will serve the same purpose.

Operations and the supplier’s relationship

The business will operate based on the general partnership. There will be partnerships with different parties for the effective operations of the company. The partnership will be equal in that, all the stakeholders will have to contribute cash for the business, sharing of the profits would be equal, each partner will be liable for the debts of the partnership.

For effective operations of the business, there must exist a good relationship with the suppliers who should provide the business with the goods and services that are required for efficiency. When related well, customers tend to provide information that is important in the daily operations of the business. To sustain the proper relationships, there must be regular talks with the suppliers and payment to the customers must be done promptly.

Requirements for the business

To start a tattoo cream removal business, there will be a need for a retail store from where I will sell the products. A stable source of supply from where I will get the cream is also essential in this business. Obtaining the permits needed to run the business is also required and finally a great customer base.

Future Plans and Exit Strategy

With this, the expectations of the business are to expand and have branches all over the country. The ultimate goal is to start a distribution company that will engage in exporting the product to other countries. After some time in the business, the exit plan will be to strike an agreement with the investors and the stakeholders to establish the value of the business. The employees will have to take control of the company since they will have to keep their jobs by buying out the interest of the others. The financial projections for the company in the next five years should be as follows.