Financial Modelling Tool for Tattoo Studios

Project Setup

• Project name : Tattoo Studio – Urban Ink
• Time period : Monthly (suits tracking appointments, rent, and cash flow)

Income Components

Component: Tattoo Income

Sub-components:

• Walk-in Customers – £150 avg/session × 40 sessions/month = £6,000/month
• Booked Appointments – £200 avg/session × 30 sessions/month = £6,000/month
• Flash Days (special event days) – £100 avg × 50 sessions/year = £400/month (averaged)

Component: Additional Income

Sub-components:

• Merch Sales (T-shirts, prints, aftercare) – £800/month
• Piercing Services – £40 avg × 20 clients/month = £800/month
• Studio Rental (renting a chair to another artist) – £500/month
• Gift Voucher Sales – £200/month (note: may delay revenue recognition)

Expenditure Components

Component: Operational Costs

Sub-components:

• Studio Rent – £1,200/month
• Tattoo Supplies (needles, ink, gloves, wraps) – £1,000/month
• Artist Commission (% to other artists, e.g., 50% of their bookings) – £2,000/month
• Utilities & Internet – £250/month
• Insurance (public liability, contents) – £900/year

Component: Marketing & Admin Costs

Sub-components:

• Website Hosting, Booking Software – £100/month
• Advertising (Instagram, Google Ads, flyers) – £300/month
• Accounting & Legal – £1,200/year
• Subscriptions (design tools, scheduling software) – £50/month

Asset Components

Component: Fixed Assets

Sub-components:

• Studio Fit-Out (booths, sinks, chairs, lighting) – £10,000, depreciated over 5 years
• Tattoo Machines & Power Supplies – £3,000, depreciated over 3 years
• Furniture (sofa, desk, display shelves) – £2,000, depreciated over 5 years

Component: Current Assets

Sub-components:

• Starting Cash Reserves – £5,000
• Inventory (merchandise, piercing items) – £1,000
• Accounts Receivable (for bookings paid in advance) – £1,000-£2,000 (variable)

Funding Components

Component: Business Loan

Sub-components:

• Small Business Startup Loan – £15,000 at 6% interest, repayable over 5 years

Component: Personal Investment

Sub-components:

• Owner Capital Contribution – £10,000

Component: Future Funding (Optional)

Sub-components:

• Equipment Lease or Hire Purchase Agreement – e.g., £2,500 over 24 months

Scenario Planning in Brixx

Appointment Volume Variations :

• Test 20%, 40%, or 60% reduction in bookings due to illness, bad press, or off-season.

Supply Cost Increases :

• Model a 15% rise in consumables like gloves, ink, and needles due to import issues.

Staff Expansion :

• Add a new artist at £2,500/month cost, and simulate income uplift with increased capacity.

Flash Sale Events :

• Model one-off cash injections via flash day promos, merch drops, or voucher campaigns.

Dashboard & Reporting

Cash Flow Report :

• Show monthly tattoo income versus studio costs, highlighting net operating cash flow.

Balance Sheet :

• Track depreciation of equipment and remaining loan balance.

Profit & Loss Statement :

• Show revenue streams by type (appointments, merch, rentals) and expenses (rent, supplies).

Custom KPIs :

• Average Revenue Per Session
• Monthly Profit Margin
• Artist Utilisation Rate (% of available time booked)
• Cost per Tattoo Session