Small rock club with a bar and stage

Music fans buying tickets or paying at the door, bar customers, and promoters or bands renting the room for their own shows.

Ticket or door revenue (often shared with the bands), bar sales, which usually carry most of the profit, and rental fees from outside promoters and private events.

• Booking and building relationships with bands
• Managing a bar and a small team
• Marketing to a local scene
• Budgeting and cash handling

• Liquor license rules and wait times vary by state and city, and some areas cap the number of licenses, so check before signing a lease
• Zoning, certificate of occupancy, fire marshal limits and noise ordinances for the specific building
• General liability and liquor liability insurance, plus workers' compensation once you hire staff
• Music performance licensing: check what you need from performing rights organizations such as ASCAP, BMI, SESAC and GMR
• Thin margins and slow nights, so plan cash reserves for the first months
• Security, crowd safety and your lease terms

Startup costs are typically around $60,000 to $250,000, depending on the building, your lease and how much you spend on the stage, sound system and bar. Monthly revenue is estimated at roughly $15,000 to $70,000, depending on shows and bar sales.

Check liquor license rules and wait times, which vary by state and city, and whether your area caps licenses, before signing a lease. Also check zoning, certificate of occupancy, fire marshal limits, noise ordinances and music performance licensing from ASCAP, BMI, SESAC and GMR.

Plan on typically around 40 hours a week or more. Margins can be thin and slow nights happen, so plan cash reserves for the first months, and check security, crowd safety and your lease terms.