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In this industry, especially in today’s age, you may find yourself presented with the option of buying an established tattoo and piercing studio. With so many studios opening, closing, and going up for sale, you may have the choice to buy or start a new one. In considering an established studio, the most important question to ask is: What is the reputation for this studio in the community?

When a tattoo and piercing studio develops a bad reputation, it is almost impossible to erase this image from the public’s mind, no matter what amount is spent on advertising. New ownership or just doing an excellent or innovative job will not be enough to rid the public of this perception or erase the damage of the previous owner.

If the studio you are considering passes the reputation question and has a good or excellent reputation within the community, you will need to consider some important questions, such as how long it's been in business? What is its reputation in the community? What equipment, medical supplies, and furniture will come with the studio? Will current artists stay on when you take over? Do the financial statements appear to be in order? Does the business have a client list (how many clients)? Is it on good terms with vendors? Is it in a good location? Is there adequate parking? Does it have health-board approval? Why is the current owner selling?

Take the price of the studio and compare this to what your start-up costs might be along with the time and stress involved in starting your business. Among the other things you've thought about so far, something the price of the studio will be based is something called “good will.” Good will is the price that has been calculated for things such as effort and time invested, risks that were taken, and the money that had been invested to gain clients. This can be calculated by professionals that specialize in this and an accurate picture can be gained into whether the price reflects the profits generated and the current customer base.

The following list includes some of the pros of buying an established tattoo and piercing studio:

• An existing client base means immediate revenue.

• No major health-code compliances should need to be met through improvements or renovations, which translates into lower start-up costs.

• The business might exist in a good location.

• Money, time, and energy can be directed into operations of the business rather than one time start-up costs such as major advertising campaigns, major renovations, or the purchasing of equipment.

• Less competition as you are buying an established operational business rather than opening in the same area and being in direct competition with other studios.

• A tattoo and piercing studio with a good or an excellent reputation can basically eliminate your advertising expenses.

• A list of vendors, if provided, can be useful because many companies offer discounts for years of ordering or for spending a certain amount of money. These discounts can go up to 25 percent so this should not be overlooked.

• If a business has existed more than five years, there are statistics that prove the chance of failure is significantly reduced as compared to a business that is at less than the five-year mark.

• Economic downturns affect an established business less than a new one.

The following list includes some of the cons of buying an established business:

• The previous studio may have had bad relations with vendors such as unpaid bills, so you could risk being billed for the previous owner’s debt or the vendors might not sell to your business.

• The clients of tattoos and piercings require extensive aftercare and check-ups. Will the clients of the previous studio owner expect you to pay for and take time out of your day to check and maintain their body modifications at no charge? More than likely they will, since they have already paid the previous studio owner.

• Will the clients continue to frequent your establishment or will they follow the previous artist or owner? In the tattoo and piercing industry many clients will select the studio for a particular artist.

• If the studio has ever had a poor health-inspection report, has the public forgotten about it or will they carry that perception to your studio?

• There could be pending or future lawsuits as a result of the previous owner’s actions. As well you could be legally responsible for outstanding bills, unused gift certificates, etc. If you do not pay the bills, you could develop bad credit and relations with your vendors. If you do not honor the gift certificates, you could lose clients.

• If you are keeping existing artists (staff), they may not agree with your methods and quit, which could make life difficult for you and you could lose clients.

• Is the current location beginning a negative economic transition or is an undesired element being planned for the area in the future, such as a major freeway, which will make access to your business difficult? For situations like this, check with City Hall to see future plans for the area.

The final downside to buying an established studio is the personal loss in satisfaction from not starting the business from the beginning and the lingering question, “Is the studio successful or not successful because of my leadership, or is it because of the previous owner?”

The greatest pro to starting your own studio as opposed to buying an established business is the complete control and satisfaction of creating something new and watching it grow and change. It is your own, something you created, your vision, your dream. There is no preconceived notion either positive or negative by the public, and you create the type of image you want. The sense of achievement is much greater when success is reached than when you buy an established studio. There are no clients that have prepaid work you must honor, no unpaid vendors, and no disgruntled clients.

The cost difference between starting your own business and buying an established one will not be that different. The average costs for starting your own studio would be in the range of $20,000 to $70,000 depending on the area and type of studio. Buying an established studio could cost anywhere from $20,000 up to $120,000 for a high-end studio in a great location with an established clientele and at least five years in operation. These figures do not reflect the purchase of land or a building, only leasing options.