Open a neighborhood cigar and pipe shop

Local cigar and pipe enthusiasts, people buying gifts, and customers preparing for events like weddings and milestone celebrations.

You buy from distributors and sell at a markup. Accessories and humidors tend to carry higher margins than cigars. Some shops add membership lockers or event nights.

• Product knowledge and honest recommendations
• Customer service and building regulars
• Inventory and cash management
• Checking ID carefully

• Federal law sets 21 as the minimum age to buy tobacco, so set up strict ID checks
• Check your state and local tobacco retail license, tobacco tax rules and any local flavored-product restrictions
• Check zoning rules, including distance requirements from schools, and any indoor smoking laws before planning a lounge
• General liability insurance and coverage for stock loss or humidor failure
• Large upfront stock and lease commitments, plus the cost of keeping stock fresh

Startup costs are typically around $60,000 to $200,000, depending on your opening stock, lease and humidor setup. Large upfront stock and lease commitments are a big part of the cost, plus keeping stock fresh.

Monthly revenue is typically around $15,000 to $60,000, depending on your location, stock range and how many regulars you build. Rent, stock and insurance costs come out of that revenue.

Federal law sets 21 as the minimum age to buy tobacco, so set up strict ID checks. Check your state and local tobacco retail license, tobacco tax rules, flavored-product restrictions, zoning distance rules from schools, and indoor smoking laws before planning a lounge.