So are you wanting to do temporary tattoos? Or all over body art? Make up? SFX? What power source will you have at the festivals to run a compressor? Does it need to be a silent compressor, do the festivals have noise restrictions? What size tank will it need to have, are you able to run it constantly while you work? Over what period of time? How long will your hoses need to be? Do you want detail brushes, or cover larger areas or both? Is the 250 in dollars Pounds Euros? If you are wanting reliable, long lasting quality gear to set up as a business then that may not be enough money.
Kits usually contain inferior products that may not be suitable, made with lower grade materials, and poor machining. Or may work ok at first, but won't have the quality of build or materials to last more than a few uses and still maintain the quality of work. You don't need anything fancy if you are only wanting to do tattoos, but they still need to be reliable. The compressors found in cheaper kits, definitely are not likely to be up to the task of prolonged continuous use. The small tank means they will have to run all the time to keep up, and as they are generally oiless will overheat and cut out. You may be better off finding out what you need then buying it individually and getting better quality.
More info will help people give more specific advice, as you've already discovered, there is a world of different equipment out there, so by being more specific, we will be able able to narrow it down to what will meet your needs