Revenue in the Strip Clubs industry that gentlemenโs 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 Adultยฎ 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 โ $750.
- Legal expenses for obtaining licenses and permits โ $7,300.
- Marketing, Branding and Promotions โ $5,000.
- Business Consultant Fee โ $2,500.
- Insurance โ $5,400.
- Rent/Lease โ $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) โ $40,000
- start-up inventory โ $15,000
- Counter area equipment (countertop, sink, ice machine, etc.) โ $9,500
- Store Equipment (cash register, security, ventilation, signage) โ $4,750
- Furnishing and Equipping โ $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) โ $65,000 per year
- Club (Bar Manager) โ $50,500 per year
- Bartender (Baristas) โ $25,580 per year
- Accountants (Cashiers) โ $35,000 per year
- Disc Jockey (DJ) โ $31,990 per year
- Strippers โ $32,000
- Greeters/Customer Service Agent/Table Attendant โ $23,396 per year
- Cleaners โ $18,000 per year
- Security Officers โ $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 Adultยฎ 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 Profitย
Crystal Adultยฎ 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.