Private-Room karaoke studio

Friend groups, birthday and bachelorette parties, college students, and companies booking team outings.

Hourly room rental, with higher rates at peak times like Friday and Saturday nights. Snacks, drinks and party packages add extra per booking.

• Customer service
• Scheduling and booking management
• Basic budgeting and lease negotiation
• Social media marketing

• Zoning, certificate of occupancy and fire code rules for assembly or entertainment use, check with your city or county before signing a lease
• Music licensing: check that your karaoke song provider covers commercial use, and ask about public performance licenses (such as ASCAP, BMI, SESAC)
• Food and drink: check with your local health department about permits, even for packaged snacks, and your state about alcohol licensing if you add drinks
• General liability insurance, and workers' compensation once you hire staff
• Soundproofing and noise complaints from neighbors, plus ADA accessibility requirements
• A large share of the money is tied up before opening (lease, build-out, equipment), so check how long you could cover rent if bookings start slowly

Startup costs are typically around $40,000 to $150,000, depending on your lease, build-out, soundproofing and equipment. A large share is spent before opening, so check how long you could cover rent if bookings start slowly.

Monthly revenue is typically around $6,000 to $30,000, depending on your location, number of rooms and how often they are booked. Groups such as birthday parties, students and company outings are the main customers.

Check zoning, certificate of occupancy and fire code rules with your city or county before signing a lease. Check that your song provider covers commercial use, ask about public performance licenses, and check health department and alcohol rules if you add food or drinks.