IDEA: Using CUSTOMERS for CAPITAL?

[Phranksizzle]

Let me set the stage for you: I have been in business 6 months and my business is airbrush tanning. (similar to a mystic spray booth but a person does it by hand -- A LOT BETTER plus a lot of other benefits) I am in Texas. Texas is THE BIGGEST UV bed tanning state in the US. So I have to win over every customer one by one. My business is picking up EXTREMELY slow.


So I have been racking my brain trying to figure out how the heck I am going to get funded to make it big. I have Bad Credit. I'm 21. I own nothing. So I figured out that I am going to have to work outside of the box. Well this idea has been in the back of my mind for about a month now but I think it can be a reality. Why not use customers as capital?

Airbrush tanning sells at $50 a session. I would presell yearly memberships at a discounted rate. (A years worth of Airbrush Tanning is worth around $2500). I would sell them at $1,000 a piece. Giving them 3 upgraded airbrush tans a month (adding in a special product to balance the PH level of thier skin as the upgrade) and other member benefits.

To sort of get the word out about this I would partner up with a charity High Class Womens club and donate 10% of the proceeds to a charity. To also create more of an incentive to buy, I would hold (and promote) a "What exactly is airbrush tanning?" event at the local IMAX theatre to educate my potential customers using a video presentation and have existing clientele as testimonials. I would do one every week for about a month to get the most out of the event as well as try to get publicity for the event in the news and newspapers as well as other businesses newsletters and door to door flyers.

I would really love some feedback from other people just to confirm that I am not crazy. But I really think this could work. Even if I get 10 clients thats still $10k. (9k with the donation)

[Doodyps]

Well, if your numbers say that you can still make a profit do that, it seems like a good way to get some momentum. I just wouldnt want to take a loss on too many sales otherwise. Also, and I have no experience with this in business, it seems like door to door canvassing (with a high quality pamphlet and maybe a coupon inside) would be very effective and cheap. If you go to the right neighborhoods and put them on cars or in mailboxes (if this is legal). I've done tons of campaign work in m days, and this is widely used and effective. I don't know why people don't use it in business as much. Also, high schools and other campuses are good places to canvas.