Hookah lounges like Pharaoh’s Hookah Lounge in Hurst, Tx, are trendy since they offer a one-of-a-kind experience. These lounges provide people amusement and relaxation. According to recent business studies, hookah lounges are some of the most profitable entertainment ventures in the US.
The average startup cost for a hookah lounge is approximately $40,000. This cost varies depending on the retail space, furniture, licensing, insurance, equipment, and how many hookahs and shishas you’ll offer.
Usually, the best hookah lounges near me carry between 10 and 30 hookahs. The estimated cost for each hookah is $150.
You also should budget costs such as employees, taxes, legal expenses, supplies, and renovations.
Keep in mind the cost can be lower if you’re not serving alcohol or if you can get furniture and serving equipment at affordable prices.
Fortunately, you can recover your initial cost once people start noticing your lounge. That’s why it’s vital to provide premium shisha products, fun, great music, and relaxation to become famous.
According to the best hookah lounge DFW owner, you can have a successful nightlife venture if you have a business idea and take the necessary steps.
5 Steps to Start a Hookah Lounge
- Develop a Hookah Lounge Strategic Plan
The first step is to develop a hookah lounge business plan. Here you must include essential elements like:
Start-up capital and funding
Business mission, vision, and objectives
Permits and licenses
The above aspects are some of the details of an effective business plan. A strategic plan must push you to achieve your goals and develop a straightforward daily operation module.
- Determine the Hookah Lounge Legal Structure
It’s imperative to determine your business or legal entity. This refers to how your lounge will be legally structured to operate. It’s possible to opt from different business structures, including:
Limited Liability Company (LLC)
Make sure to request legal advice to see which entity best suits your needs. Remember, each legal structure has different benefits and cons, including liability exposure, administrative requirements, and costs.
- Licenses and Permits
Opening a hookah lounge involves multiple licenses and permits, such as:
Fire safety certificate
Additionally, you must consider the laws on your location regarding smoking. It’s essential only to use hookah’s permissible ingredients. If you offer restaurant services, make sure to separate them from the smoking zone.
- Name your Hookah Lounge
Naming your hookah lounge is a crucial and challenging step. We recommend brainstorming names. There is online software that can help you generate different name ideas.
If you’re the sole proprietorship of the lounge, it’s wise to run under a business name other than your name.
Please don’t forget to register your name and secure your domain name before someone else does.
- Set Up a Business Bank Account
According to Pharaoh’s Hookah Lounge in Hurst, Tx, opening a business with banking and credit accounts is imperative. This step is vital to protect your personal assets.
When you own a business, it’s best to avoid mixing your personal and business accounts. If your hookah lounge is sued, your personal assets are at risk if you don’t have different bank and credit accounts.
Besides, having business credit is an effective way to build better relationships with financial entities, allowing you to get better interest rates, higher lines of credit, and more. Plus, it’s easier for accounting and tax obligations.
Hookah lounges are one of the most moneymaking nightlife businesses in the US. However, it’s crucial to provide people with a one-of-a-kind experience to become successful. The average startup costs depend on several factors, but it’s possible to start as low as $40,000.
Follow the above steps if you want to open the best hookah lounge near me!