It is important to note that businesses in the strip club industry operate adult entertainment venues in which striptease or other erotic or exotic dance is regularly performed for males, females or a mixed audience. Most of them may also serve food and beverages or give their patrons the chance to bring their own beverages. It has been analyzed that the Strip Clubs industry is in a mature stage of its economic life cycle.

Another factor to consider when starting your strip club is the location where the strip club will be located in. Even though it isn’t compulsory that your strip club be located in a highbrow area; however most successful strip clubs are those that are located in highbrow areas where social life is at its peak, and properties in these areas can be expensive. Your location should pass security and fire code before you open to the public.

The Estimated Cost Breakdown for Opening a Strip Club Business

When it comes to starting a strip club business, the major areas that you look towards spending the bulk of your cash is in of course renting or leasing a standard facility and converting it into a strip club and equipping the strip club with the needed gadgets and furniture. Aside from that, you are expected to pay your employees, pay utility bills and stock up with inventory.

These are the key areas where you are expected to spend your startup capital on;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of the strip club in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring a business consultant including writing a business plan – $2,500.
  • The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium (initial / first premium) – $2,400.
  • The cost for renting or leasing a space or warehouse that will be converted into the strip club and that can accommodate the number of customers that will come to watch live performance of strippers and to purchase drinks and food for at least 12 months (Re – construction of the facility inclusive) will cost – $180,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,800).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for Start-up inventory (stocking with a wide range of liquors, wines, beers, tobaccos and small chops et al) – $15,000
  • The cost for the purchase of storage hardware (bins, rack, shelves, food case) – $3,720
  • The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
  • The cost for serving area equipment (plates, ash trays, glasses, flatware) – $3,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $4,750
  • The cost of purchase and installation of CCTVs: $2,000
  • Equipping the strip club (Flat Screen TVs, sound system, DVD players, Pianos, Satellite dish and decoder, furniture (table, stools and sofas), telephones, filing cabinets) will cost – $40,000
  • The cost of launching a website: $600
  • The cost for our opening party: $3,000
  • Miscellaneous: $2,000

From the rough estimate as listed above, you would need a minimum of three hundred and eighteen thousand nine hundred USD ($318,900) to establish a medium – scale but standard strip club business in any city in the United States of America. Please note that this amount includes the salaries of all staff for the first three months of operation.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a strip club to go to the market or directly contact wholesalers and suppliers of the types of flat screen TVs, sound system and satellite decoders they want to have in their strip club in order to get real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.