Start a small neighborhood nightclub or lounge

Local nightlife customers paying cover and buying drinks, plus groups booking tables, birthdays and private parties.

Mostly drink sales, plus cover charges, table or bottle service, ticketed events and private venue rentals. Weeknight rentals and special events can help fill slow nights.

• Managing staff and shifts
• Marketing and promotion
• Cash and inventory control
• Handling crowds calmly

• Liquor license: requirements, costs and wait times vary widely by state and city, so check with your state alcohol board and local authorities
• Zoning, occupancy limits, fire marshal inspections and any entertainment or late-hours permits your city requires
• Liquor liability (dram shop) and general liability insurance, plus workers' compensation once you hire
• Music licensing for playing recorded or live music, such as ASCAP, BMI, SESAC and GMR, so check what applies
• Security, noise complaints from neighbors and local rules on closing times
• High fixed costs such as rent, staff and insurance, so a few slow months can be hard to survive
• Check lease terms carefully, including whether the landlord allows a nightclub use

Startup costs are typically around $100,000 to $500,000, depending on the venue, fit-out, sound system, licensing and insurance. Fixed costs such as rent, staff and insurance continue even in slow months, so plan for them.

Monthly revenue is typically around $30,000 to $150,000, depending on cover charges, bar sales and private events. These are estimates, not guarantees, and revenue is before rent, staff and insurance costs.

Check liquor license requirements and wait times with your state alcohol board and local authorities. Also check zoning, occupancy limits, fire inspections, entertainment or late-hours permits, music licensing, insurance and whether your lease allows nightclub use.