Start a private-room karaoke lounge

Friend groups, birthday and bachelorette parties, office teams, students and date-night couples.

Hourly room rates that vary by room size and time of day, plus food and drink sales and party packages. Weeknight discounts help fill slow hours.

• Customer service and hosting
• Scheduling and online booking
• Managing a small team of part-time staff
• Local marketing and social media

• Zoning, occupancy limits and fire code approvals for enclosed rooms, check with your city or county
• Commercial licensing for karaoke tracks and public performance music, check with your content provider and licensing bodies
• If you serve alcohol, state and local liquor license rules vary widely and can be slow and costly
• A health department permit may be needed if you prepare or serve food beyond packaged snacks
• General liability insurance and workers' compensation once you hire
• Lease terms, build-out costs and noise complaints from neighbors

Estimates suggest startup costs typically around $40,000 to $200,000, depending on the size of the space, the number of rooms, build-out and your sound and screen equipment. Lease terms and build-out costs are worth checking early.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on how many rooms you run, how often they are booked and what you sell in snacks and drinks. This is revenue before costs.

Check zoning, occupancy limits and fire code approvals for enclosed rooms, plus licensing for karaoke tracks and public performance music. If you serve alcohol, check liquor license rules, and ask about a health permit for food beyond packaged snacks.