15 Mistakes New Tattoo Shop Owners Make (I Made Most of Them)

Opening a tattoo shop is one of those things that seems straightforward until you actually do it. You think, “I’m a good artist, I’ve been at a shop for years, I know how this works.” Then you sign a lease, and suddenly you’re dealing with health inspectors, insurance brokers, plumbers, accountants, and the reality that being a great tattoo artist and being a great business owner are completely different skill sets.

I opened my first shop eight years ago and made damn near every mistake on this list. Some cost me hundreds of dollars. A few cost me thousands. One nearly cost me the entire business. Here’s what I learned so you don’t have to learn it the hard way.

Mistake #1: Underpricing Everything

This is the big one. The mistake that kills more new shops than anything else.

You open your doors and you’re nervous. What if nobody comes? So you set your prices low — $100/hour when the market average is $175/hour. You figure you’ll attract clients with low prices and raise them later when you’re established.

Here’s what actually happens: you attract price-sensitive clients who chose you because you’re cheap. These clients are the most demanding, the most likely to complain, the most likely to no-show, and the LEAST likely to refer friends. Meanwhile, the clients who would have paid $175/hour see your prices and think “must not be very good.”

And raising prices later? Brutal. Every time you increase, you lose a chunk of your existing clients — the ones who only came because you were cheap in the first place.

The fix: Price at market rate from day one. Research what comparable artists in your area charge and price yourself accordingly. If your books are empty, the problem isn’t your price — it’s your marketing.

Mistake #2: Not Having Enough Cash Reserves

The number I hear most often from failed shop owners: “I didn’t realize how long it would take to build a client base.”

Even with a following, it takes 3-6 months to build consistent revenue at a new location. You need enough cash to cover:

• Rent for 6 months ($6,000-18,000)
• Utilities for 6 months ($1,200-3,000)
• Insurance ($1,500-4,000 upfront)
• Personal living expenses for 6 months
• Marketing budget ($1,000-3,000)
• Unexpected costs (there are always unexpected costs)

My rule: Have 6 months of operating expenses plus 3 months of personal living expenses saved before signing a lease. If that number scares you, save longer or find a lower-cost entry point (subleasing a station first).

Mistake #3: Choosing the Wrong Location

I covered this in detail in our location guide, but the short version: don’t pick a space just because the rent is cheap. A $900/month space in the wrong neighborhood will cost you far more in lost revenue than a $1,800/month space in the right one.

The artists I know who struggled the most with location chose spaces based on affordability alone — strip malls, industrial parks, residential areas. The ones who thrived found spaces in arts districts, entertainment areas, or near colleges, even if the rent was higher.

Mistake #4: Skipping Business Structure and Legal Setup

“I’ll figure out the LLC stuff later.” Famous last words.

You need, before you open:

• Business entity (LLC at minimum) — personal liability protection
• Business bank account — separate from personal finances
• Business insurance — general liability and professional liability
• Tattoo license and business license — per your state/city requirements
• Health department permits — inspection and approval
• EIN (Employer Identification Number) from the IRS

Skipping any of these exposes you personally. If someone sues your unincorporated tattoo business, they’re suing YOU. Your personal assets — car, savings, house — are on the line. An LLC takes 20 minutes to file and costs $50-500 depending on the state.

Mistake #5: Not Collecting Deposits

I’m beating this drum again because it’s that important. No deposits = 20-30% no-show rate. That’s $2,000-5,000/month in lost revenue for most shops.

Use online booking software with built-in deposit collection from day one. TattooPro.io ($29/mo) or Porter ($79/mo) handle this automatically. It’s the single highest-ROI investment in your business.

Mistake #6: Hiring the Wrong Artists

Your first hire will probably be wrong. Mine was.

I hired a friend who was a decent artist but terrible at client communication, constantly late, and didn’t clean his station properly. I kept him because he was my friend and I felt guilty. Meanwhile, clients complained, my reputation suffered, and I dreaded going to my own shop.

What to look for beyond artistic skill:

• Reliability (do they show up on time?)
• Professionalism (clean station, proper hygiene, good client communication)
• Existing client base (can they bring bookings?)
• Work ethic (do they hustle or coast?)
• Cultural fit (do they match your shop’s vibe?)

What to watch out for:

• Artists who bad-mouth their previous shop (they’ll bad-mouth yours too)
• Artists with no social media presence (how do they attract clients?)
• Artists who won’t sign a contract or agree to commission terms upfront
• Artists who are “between shops” — find out why

Mistake #7: Ignoring Marketing Until You’re Desperate

“The work speaks for itself.” No, it doesn’t. Not when nobody knows you exist.

I see new shop owners spend months on buildout, equipment, and aesthetics — then on opening day, they post one Instagram photo and wonder why nobody’s booking.

Start marketing 3 months before you open:

• Post consistently on Instagram (your personal artist account, building hype)
• Set up Google Business Profile (so you show up in “tattoo shop near me” searches)
• Announce your opening date and location repeatedly
• Build an email list (even 50 people is a start)
• Connect with local businesses for cross-promotion

After opening:

• Post 4-5 times per week on Instagram
• Maintain your Google Business Profile with weekly posts and new photos
• Ask every client for a Google review
• Send monthly emails to your list (flash drops, availability, updates)

Marketing isn’t optional. It’s how you eat.

Mistake #8: Not Having Written Agreements with Artists

Verbal agreements work great until they don’t. Get everything in writing:

• Commission split (percentage, what counts as revenue, tips)
• Schedule expectations (days, hours, minimum presence)
• Client ownership (who “owns” the client — the artist or the shop?)
• Notice period for leaving (30-60 days is standard)
• Non-compete (if applicable and enforceable in your state)
• Supplies (who provides what — machines, ink, needles?)
• Use of shop name and branding

The client ownership issue is the one that blows up most often. An artist leaves your shop and takes “their” clients. Did they bring those clients or did your shop’s marketing, location, and reputation bring them? This needs to be addressed upfront.

Mistake #9: Spending Too Much on Build-Out

Your shop doesn’t need to look like a high-end salon on day one. I’ve seen new owners spend $50,000+ on buildout — custom millwork, designer lighting, imported tiles — and then struggle to pay rent six months later.

What clients actually care about:

• Clean (spotless, every surface, every time)
• Professional (proper equipment, organized stations)
• Comfortable (decent chairs, climate control, clean bathroom)
• Not sketchy (well-lit, not falling apart)

They do NOT care about:

• Reclaimed barn wood accent walls
• Custom neon signs
• Instagram-worthy interiors
• Expensive artwork on the walls

Spend on functionality first: proper flooring (health dept requirement), good lighting, comfortable chairs, adequate plumbing. Aesthetic upgrades can come later when you’re profitable.

Mistake #10: No Systems or Processes

Running a shop by winging it works for about a month. Then things start falling through the cracks: forgotten appointments, lost consent forms, inconsistent pricing, commission disputes, supply shortages.

Minimum systems from day one:

• Online booking with deposits
• Digital consent forms
• Commission tracking (even a spreadsheet)
• Supply inventory checklist
• Opening/closing procedures
• Cleaning/sterilization protocols
• Cash handling procedures

These don’t need to be complicated. A one-page document for each is fine. But they need to exist and everyone needs to follow them.

Mistake #11: Trying to Do Everything Yourself

You’re an artist, not a:

• Bookkeeper
• Social media manager
• Receptionist
• Janitor
• IT support
• Marketing coordinator

Trying to be all of these while also tattooing is a recipe for burnout. As soon as you can afford it, outsource or automate:

• Booking: Let software handle scheduling (TattooPro $29/mo)
• Accounting: QuickBooks ($20-30/mo) or hire a bookkeeper ($100-300/mo)
• Cleaning: If you can afford it, a cleaning service 2-3 times per week ($200-400/mo)
• Social media: Batch content creation (Sunday afternoon) instead of daily scrambling

Mistake #12: Neglecting Your Own Artistry

The irony of shop ownership: you opened a shop because you love tattooing, and now you spend half your time managing instead of tattooing.

Protect your chair time. Block off tattooing hours that are non-negotiable — admin, meetings, and management work happens before or after those hours. If managing starts eating into your tattooing, you’re losing income AND losing the thing that makes you happy.

Mistake #13: Bad Commission Structures

Setting commissions wrong causes resentment and turnover. Here’s the standard range:

Make sure both parties understand what the shop’s percentage covers: rent, utilities, insurance, supplies, marketing, equipment, admin. When artists understand where that money goes, they’re less resentful about the split.

Mistake #14: No Cancellation or No-Show Policy

I’ve said it elsewhere and I’ll say it again: no deposit + no cancellation policy = losing thousands per month to no-shows. Have a written policy, display it during booking, and enforce it consistently.

Mistake #15: Thinking You Know Everything

The most successful shop owners I know are the ones who ask for help. They join tattoo business groups on Facebook and Reddit. They talk to other shop owners. They hire accountants, lawyers, and consultants when needed. They read and learn continuously.

The ones who fail are the ones who think “I’ve been tattooing for 10 years, I know how to run a business.” Being a great artist doesn’t make you a great business owner. Seek knowledge.

The Good News

For all the mistakes I’ve listed, here’s the encouraging truth: tattoo shops that get the basics right — fair pricing, adequate cash reserves, a decent location, online booking with deposits, and consistent marketing — have very high success rates. The tattoo industry is growing, demand is strong, and margins are healthy when managed well.

You don’t need to be perfect. You just need to avoid the big, obvious mistakes that sink shops in the first two years. This list covers most of them.

Frequently Asked Questions

What is the biggest mistake new tattoo shop owners make?

The #1 mistake is underpricing. New shop owners set prices too low to attract clients, which creates unsustainable economics and attracts price-sensitive clients who don’t value quality. Price based on your skill level and local market.

How many tattoo shops fail in the first year?

Approximately 20-30% of new tattoo studios close within the first two years. The most common reasons are undercapitalization, poor location choice, inability to attract consistent clients, and underpricing.