Cigar shop with a members' lounge

Regulars who want a place to relax, groups of friends, and event hosts, plus walk-in shoppers buying to take home.

Cigar and accessory sales, plus membership or locker fees and event tickets. Where permitted, some lounges also sell drinks.

• Hosting and customer service
• Inventory buying
• Managing part-time staff
• Event planning

• Indoor smoking laws vary a lot by state and city, and some places exempt tobacco shops or cigar bars while others do not, so check before leasing
• Ventilation upgrades can be costly, and landlords may restrict smoking, so check your lease
• If you sell alcohol, check your state's liquor license rules and whether they can combine with a tobacco lounge
• Check tobacco retail licensing, age verification (federal minimum is 21) and state tobacco taxes
• Get general liability coverage, and ask about liquor liability if you serve drinks
• Workers' compensation insurance once you hire, and check workplace air-quality rules for staff

Startup costs are typically estimated at around $90,000 to $250,000, depending on premises, seating, stock and ventilation. Ventilation upgrades can be costly, and landlords may restrict smoking, so check your lease before you commit.

Monthly revenue is typically estimated at around $25,000 to $90,000, depending on location, memberships, events and walk-in sales. This is revenue before rent, stock, staff and other costs, so budget carefully.

Indoor smoking laws vary a lot by state and city, so check before leasing. Also check tobacco retail licensing, age verification (federal minimum is 21), state tobacco taxes, and liquor license rules if you sell alcohol.