Revenue in the Strip Clubs industry that gentlemen’s club is a part of is forecast to have decreased 17.4 percent in 2020 and is anticipated to decrease 1.5 percent in 2023. In a non-COVID-19 (coronavirus) environment, the industry is forecast to grow.
Table of Content
1. Sources of Income
- Music and Dance (performance by strippers)
- Hall Rental Services for Parties
- Sale of alcoholic and non alcoholic drinks, beverages, spirits, tobaccos, cigars, snacks et al.
- Membership fee.
Our Membership fee will cost $50,000 for the start and then a $15,000 annual fee.
2. Startup Capital for a Strip Club
Crystal Adult® Entertainment Center, Inc. would need an estimate of $350,000 to successfully set up a strip club in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation.
3. Cost Involved
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $180,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- start-up inventory – $15,000
- Counter area equipment (countertop, sink, ice machine, etc.) – $9,500
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $40,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
4. Ongoing Expenses for Running a Strip Club
- Cost of stocking up supplies such as alcoholic and non-alcoholic drinks, beverages, tobaccos, and cigars et al
- Cost of toiletries
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
5. Salary of your Staff Salary
- Chief Executive Officer (Owner) – $65,000 per year
- Club (Bar Manager) – $50,500 per year
- Bartender (Baristas) – $25,580 per year
- Accountants (Cashiers) – $35,000 per year
- Disc Jockey (DJ) – $31,990 per year
- Strippers – $32,000
- Greeters/Customer Service Agent/Table Attendant – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year.
6. Source of Funding
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Apply for a loan from your bank/banks
- Apply for business grants and seed funding from, government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
Financial Projection
1. Our Service Charge
Aside from our membership fee, Crystal Adult® Entertainment Center, Inc. will charge patrons based on the industry standards in the United States. There is often a flat fee of $20 to $150 for a regular day, or say $400 for an event night.
2. Sales Forecast
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.2 million
3. Estimated Profit
Crystal Adult® Entertainment Center, Inc. are projecting to make;
- First Fiscal Year (FY1): $175,000 (50% of revenue generated)
- Second Fiscal Year (FY2): $337,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $540,000 (45% of revenue generated)
4. Estimated Profit Margin
The profit margin of a strip club business is not fixed. It could range from 35 to 65 percent depending on the type and brand of products retailed in the club.
