Assignment 29A Venture Concept No. 2

Assignment 29A Venture Concept No. 2

Opportunity:

Tattoo regret is a problem for many people in America. While regret is different among those individuals who have the problem (unwanted tattoos), customers would all have the desire or need to have it removed.  I have narrowed my market segment to women between the ages of 34-55 in Central Florida who wish to have their tattoos removed.  These individuals will have a higher disposable income and will likely be concerned with the way they look and be willing to spend money on cosmetic treatments to better their outward appearance.  The nature of the need can differ for potential customers.  Some women will simply want unwanted tattoos removed, where others will want a tattoo removed not because they do not like tattoos, but because they got a tattoo with something that now bothers them. (of the percentage of those who regret their tattoos, the largest percentage is those who got a tattoo with the name of another person) and it causes enough distress for them to have it removed. 

• The forces or changes that create this opportunity can vary but at the top of the list is that the women who thought tattoos were a great idea when they were young are finding they are not as enamored with them now that they are older.  As they matured, their tastes changed and what is appealing when one is young can change as an individuals life priorities change. Another change/force is pregnancy.  It changes a woman's body and a tattoo on a tummy prior to pregnancy never looks the same afterwards.  An external force is employment opportunities.  Tattoos are sometimes referred to as "job stoppers" so tattoos that are visible are a concern and cause individuals to want them removed, especially if one is seeking employment in a professional industry where visible tattoos may violate dress code standards.  
• Customers who have unwanted tattoos can currently satisfy the need to remove their tattoo only partially with dermabrasion and surgical excision but both leave scarring. Another alternative is to conceal them with clothing if possible or there are some cover ups (make-up) on the market that can be used to cover tattoos.  Also, some people wear band-aids on smaller tattoos to conceal them.
• The opportunity for a tattoo removal clinic could be quite significant with the growing number of individuals with tattoos.  According to one study, the demand for tattoo removal grew over 30 percent in since 2017.  If current trends are any indication, I believe the window of opportunity will be open for the foreseeable future. A Pew Research study cited that 38 percent of people 18-29 years old have tattoos.  That is an indicator there will be a percentage of that population who will want to have a regretted tattoo removed. 

Innovation:

• My business will be a "boutique style" laser tattoo removal clinic, namely Inkless Canvas, etc.  This service will include a free consultation followed by the number of prescribed micro tip laser treatments using 2 Joule Pico technology administered by a licensed laser technician.  On average, a smaller tattoo can take several treatments that last about 15 minutes.  The number of treatments is also dependent upon the color of ink used and depth of the ink in the dermis. With the newer technology of the 2 Joule laser, the absorption (delivery efficiency) is higher and there should be 20-30 percent fading per treatment which could minimize the number of treatments needed.  Also, individuals would need to wait 6-8 weeks between treatments.  The cost would be on a per treatment basis and would be contingent on the size and color of the tattoo.  Each session could range between $50-$500 depending on the tattoo.

Venture Concept:

• I think customers will want to use my service because I am offering the newest technology which could reduce the number of treatments needed to remove their unwanted tattoos thus lowering the cost for removal. I do think that I may be initially challenged with convincing customers to switch to my service because my business will be new.  I would absolutely need to rely on my social capital to acquire name recognition in a new industry.
• Competitors: There are a few other laser removal clinics in the Orlando area.  Also, some dermatology offices offer laser treatments along with dermabrasion, chemical peels, and take-home kits with fading creams.  Possible vulnerabilities/weaknesses for laser removal clinics are 1) I researched two of the laser removal clinics for their Better Business Bureau (BBB) rating and one was not listed while the other had a C+ rating. That is an indication they may not have satisfied customers. 2) Some clinics use outdated laser equipment. 
• Packaging:  My business is a service so packaging would refer to a treatment package such as (4 laser treatment sessions for $500)  This could be part of the pricing schedule.
• Price Points: I need to be competitively priced in the market but I will need to cover my costs so this will be crucial to my business surviving.  Pricing will be a range between $50-$500 per treatment.  Size will be the greatest factor in determining price points.
• Customer Service:  Customer service is essential in a service business.  Providing care, empathy, knowledge about the process and what to expect, concern for customers' needs, in an honest and friendly manner will help keep customers loyal to our boutique. The goal is to have a happy and satisfied customer and customer service is part of the entire customer experience.
• Customer Experience:  My boutique will be designed to be warm and inviting with a clean, comfortable and relaxing ambiance.  My customer service team will be chosen based upon their ability to be kind, not just nice.  The intent is to help customers feel at home when they visit our boutique.
• Location:  I think location will also be vital to the boutique's success.  Centrally located in the Orlando area with traffic being a huge consideration, I think perhaps locating near shopping and other salons could be a good choice.

Organizing/Employees: I would want to set up my boutique with a small but efficient/effective staff of 5-6 employees. As part of establishing the operations of the business, I will need to purchase medical malpractice insurance to protect clients and my business.

• Medical director (PA, ARNP)-serve in supervisory capacity for the organization/oversee laser technician and consult with clients
• Licensed laser technician-administer laser treatments and consult with clients
• Treatment liaison-assist laser technician and assist clients before/during/after treatments
• Customer service representative-field client questions and concerns and taking calls from new/existing clients
• Account specialist-handle all client billing and Accounts Receivable/Payable, work with vendors and clients
• Web Designer/digital marketing-create web content and provide digital marketing (offsite) 

Competitive Advantage: My most important resource is my relationship with a highly skilled web designer, SEO expert and digital marketing whiz.  I believe having this resource is my best resource at this point and would give me a competitive advantage since I am a newcomer to the tattoo removal market.

What is next for the venture?  Add skin care products in my boutique.  An additional service could be the addition of other types of cosmetic services like adding an esthetician to perform skin care treatments and reflexology.

What is next for me? I would like to sell my business in the next 5-10 years or offer it to my children to continue running the business. I would possibly continue on as a silent partner.  Next for me would be to get involved in community outreach.  Ideally, I would look toward non profit activities that would allow me to use my skills to help those who are most in need.  I think if I am successful with this venture, I could certainly take the knowledge I gain from this experience and apply it to help.

Feedback

• Since tattoo removal is under the umbrella of skin care, customer base will definitely be interested in purchasing skin care products
• There are a lot of people with tattoos but be sure to target a large group of people to insure your venture's success 
• The idea of starting a “boutique style” laser tattoo clinic is feasible and realistic
• Using the latest technology could help minimize treatments
• Take into consideration liability. What if something goes wrong? How do you handle the situation?

What I changed based on feedback

Most of the feedback I received was positive and the idea of adding skin care products was well received so I included it in the what's next for my venture.  Next, It was recommended that I seek out a lot of people because not everyone will want to remove a tattoo.  I will most assuredly use the latest technology to reduce treatments and cost to the customer. That is listed under innovation. The most important consideration for my venture is to plan for the unsatisfied customer and since laser treatments fall under somewhat of a medical treatment, I need to purchase medical malpractice insurance in order to be prepared if something goes wrong with a treatment. I added this under the organizing/employees section of the venture concept.