Small cocktail lounge

Local adults looking for a place to unwind after work, date nights, friend groups and people hosting small private gatherings.

Drinks and food sold at the venue, with higher margins on cocktails and wine. Extra income can come from private bookings, themed nights and ticketed events.

• Hospitality and customer service
• Managing staff and schedules
• Cost control on stock and pricing
• Creating a welcoming atmosphere

• Liquor license rules vary a lot by state and city; in some places licenses are limited or expensive, so check early
• Zoning, certificate of occupancy and fire capacity limits for your chosen space; check with your city or county
• Liquor liability and general liability insurance, plus workers' compensation once you hire
• Health department permit if you serve food, and any alcohol server training your state or city requires
• Music licensing if you play recorded or live music; check what applies
• Long hours, late nights and a lease commitment before you earn anything

Estimates typically put startup costs at around $150,000 to $500,000, depending on your space, fit-out, licensing and opening stock. Liquor license costs vary a lot by state and city, so check early.

Monthly revenue is typically estimated at around $25,000 to $100,000, depending on location, opening hours, pricing and how quickly you build a loyal local crowd. You also commit to a lease before earning anything.

Check liquor license rules in your state and city, zoning, certificate of occupancy and fire capacity limits. Also check liquor and general liability insurance, health permits if serving food, alcohol server training and music licensing.