Do you want to start a cigar lounge business and you want to know the cost? If YES, here is an estimated cost breakdown to build and open a cigar shop. A cigar lounge or cigar bar is a place where smokers go to buy their preferred cigar brand and smoke freely without the fear of being embarrassed, arrested or fined.

You will agree that it is now illegal to smoke in public places. The World Health Organization (WHO), in conjunction with Governments of various countries are clamping down on smoking in public places in a bid to protect non- smokers from the harmful effects of smoking.

The truth is that banning smoking in public places is actually a blessing in disguise for people with the intention of starting a cigar lounge.

Little wonder we have cigar lounges positioned in strategic places like airports, shopping malls, cinemas, et al. Although not all lounges are open to the general public. In some cigar lounges, you would be required to sign up as a member before you can have access.

One good thing about starting a cigar lounge business is that if you are diligent enough and if you have good business/marketing strategies, you can build the business from just one outlet to numerous outlets across different cities in the United States.

Estimated Cost Breakdown to Open a Cigar Shop Business

One of the major areas you should mindful of when considering starting a cigar shop is the total cost for setting up the business. Starting up a cigar shop business may not require pretty huge startup capital, but it needs significant investment capital, solid planning, and attention to detail.

From our market survey and feasibility studies, we have been able to come up with a detailed budget on opening a standard cigar shop in the United States of America and here are the key areas where you are expected to spend your startup capital;

  1. The total fee for registering the business in the united states of America – 0.
  2. Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
  3. Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
  4. The cost for hiring business consultant (writing of business plans inclusive) – $2,500.
  5. Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  6. The cost of accounting software, CRM software and Payroll Software – $1,500
  7. The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $35,600.
  8. The cost for shop/facility remodeling – $25,000.
  9. Other start-up expenses including stationery – $500
  10. Phone and utility deposits will cost – ($2,500)
  11. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
  12. The cost for start-up inventory (a wide range of cigars and other tobacco products, electronic cigarette products, E-liquid (mixture used in vapor products such as e-cigarettes and usually contain propylene glycol, glycerin, nicotine, flavorings, additives, and differing amounts of contaminants), vape pen, replacement coils and juice may cost you as little as $50 for the first month, while a full-featured box mod paired with an MTL tank, coils and juice may go up to $120. After that, you should expect an average of $30-60 per month for coils and juice, drinks and small chops et al) – $16,027
  13. Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
  14. The cost for counter area equipment (counter top, sink, ice machine, etc.) – $6,000
  15. The cost for serving area equipment (glasses, flatware) – $3,000
  16. The cost for store equipment (cash register, security, ventilation, signage) – $3,150
  17. The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
  18. The cost of launching an official website – $600
  19. The cost for our grand opening party – $3,000
  20. Miscellaneous – $2,500

From the rough estimate as listed above, you would need a minimum of one hundred and forty – three thousand USD ($143,000) to establish a medium – scale but standard cigar shop business in any city in the United States of America.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a cigar shop to go to the market or directly contact sellers of the items they would need to get the 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.