How to start a exotic dancer business
How To Start A Strip Club Business in 15 Steps
Are you looking to create a strip club business? That is a great idea, however, it is not as easy as you may think.
There involves a lot of know-how and knowledge to create a strip club business that thrives. But need not worry cause we have got you covered.
Here in this article, we will discuss everything you need to know to create a strip club that will surely succeed.
By the end of this article you will be able to:
- Learn how to create a strip club
- Know about the strip club business licensing and permits you to need to take care of
- Get the best strip club business branding techniques from the pros
- Find out the advantages of creating a strip club
Let’s dive straight in!
To successfully create a strip club business try not to skip any of the steps below.
Step 1. Chalk Out A Business Plan And Think Ahead
Planning for the present and future is the first step as you should do as a strip club owner.
This means you need to assess what you want from the business.
These are some of the questions you should be asking yourself.
- How much capital do you want to invest?
- Which city are you thinking of?
- How much time are you willing to devote?
- What do you want your daily expenditure to look like?
We advise you to write down the answers to the above because it will help you as we move along.
Don’t worry we shall be discussing these in great detail here.
You might get a lot of great ideas and suggestions of your own as you are reading along, you should write them down as well.
Step2. Understand the Market
Before you invest your time and money into any business it is important to learn about its present statistics along with growth opportunities. Starting a strip club or an exotic dancer business is no different – you will have to conduct a comprehensive market survey in the area where you are living in.
Know about the present state of the strip club industry, what are their profit margins, their demand, etc.
It is not enough to know about the present market situation. You will also have to research its future prospects and growing ability.
The US for example has seen stagnation in the strip club industry for a couple of years. But the market is expected to rise and current profits are said to double in the next 5 years. These are country-wise numbers, be mindful that the numbers in your city might be completely different.
Step 3. Strip Club Business Market Research And Analysis
Go to a strip joint in the city you are planning to create a strip club.
Examine how they run and whether or not they’ve filled the place to capacity.
Make a list of the strip club’s finest practices, keep this as a reference point as it will aid you in running your business smoothly in the future.
Check out the area properly, and find out where there is a market opportunity. Consider all of the information you’ve gathered and assess the benefits and drawbacks.
There are books that can assist you in this aspect as well, so make a point of going to a library if needed.
On the other hand, the all-powerful internet is always there to assist.
You should begin drafting a business strategy for your strip club once you feel you have collected sufficient knowledge.
Step 4. Know Your Target Audience
Now, the next step you’ll have to do is to figure out who you want to target at your strip club.
Gather all of the information from your market study and determine which requirement needs to be met the most.
These facts will assist you in determining the niche in which you should concentrate your efforts.
Your strip club will appeal to a certain demographic. You have to find out which one.
There are strip clubs for men, women, LGBT people, and so on.
To assure the profitability of the strip club business, make sure you have a targeted audience that you can satisfy.
If your neighborhood has too many male stripper clubs, you should concentrate on a different type. Make an informed decision and really go for it.
Step 5. Look For A Suitable Location
Next thing is to consider when you are going to create a strip or a gentleman’s club is the site or region where it will be located.
Is there a sufficient number of customers or requests to enable you to pack your strip club every night?
Here’s when your market research and analysis come in handy.
Have you found out where the most happening places are? Is it legal to create a strip club business there?
When you are pouring in your hard-earned investments, you must ensure that they will be worthwhile.
An excellent idea for you is to look for a location near roads and junctions.
Hotels, casinos, and theme parks are all good venues to create a strip club.
These are prime areas for you because your strip club will have exposure to an already developed market.
Step 6. Decide If You Want A Franchise Or Start from Scratch
Many renowned strip club businesses or gentlemen’s club businesses have built a solid basis in the market, which the franchise may benefit from.
This is an excellent choice for you if you don’t want to create a strip club of your own.
They’ll set up seminars and workshops for you and walk you through the entire process.
It’s worth noting that after you’ve purchased a franchise, you won’t be able to start immediately away.
You must be acquainted with the operations of this strip club chain.
Although you have the ability to add to or alter anything since you have paid for the franchise.
You must still adhere to and respect their normal operating practices in accordance with the contract’s terms and conditions.
If you are entering the deal, make sure you read the terms and conditions well.
Step 7. Choose A Trademarked Name, Logo & Slogan
When you are going to create a strip club business or a gentlemen’s club business, choosing an attractive name and logo for your company is extremely important.
It could even make or break your – yes it is that important.
Firstly, you will have to have a name that hasn’t been used by any other business.
If you have a name in mind, search for it on your government website which deals with trade and commerce.
If the name is available then trademark it, else you have to choose a different one.
You can’t think of a name then check out our article on Best Strip Club Business Name Suggestions to get many ideas and tips.
The strip club will also need a logo and slogan to go along to help make your strip club more appealing and enticing (more on that below).
Step 8. Arrange The Funds
A crucial step during the creation of your strip club business is to finalize the source of funds. This can be done in a lot of ways, the easiest method is to apply for a bank loan.
All you have to do is to submit your business plan along with other necessary details and apply for a business loan. If you have all the documents in the correct order you shall get a loan pretty quickly.
Another way is to partner with other people who have the capital and are willing to invest.
Draft an agreement that will state the role and position in the business of your partner. This will avoid future misunderstandings.
If you find that the capital required is still too high, then you will have to back and rethink the scale of your strip club business.
Step 9. Register Your Strip Club Business
Now it is time to register your strip club. There are many different business forms in which you can register your business.
However, the most common entity type for registration of new strip club businesses is Limited Liability Companies (LLC).
In this way, you will not be individually responsible for the strip club business’s activities.
This implies that your assets such as their houses, vehicles, bank accounts, and investments are shielded from creditors and business losses.
Although the basic documentation and expenses of establishing an LLC are generally low, states impose a broad range of fees and taxes.
The procedure is straightforward enough for you to undertake without specialized knowledge, still it is a good idea to get legal advice.
Step 10. Get Insurance For Your Strip Club Business
Getting your strip club insured is the next crucial step for you.
You must secure your strip club business in the same way that you protect your family, home, and vehicles.
To safeguard your strip club business’s building and infrastructure from unanticipated catastrophes, you should consider purchasing insurance.
This will save your business money in the future.
Insurance will cover for interruptions that may occur if your strip club business experiences a drop in income due to an external event over which you have no immediate control.
For example, if there is a fire at the strip club, it will take some time for it to restart.
In this case, you can file claims for lost profits under your business insurance coverage.
Learn More: Advantages & Benefits of Business Insurance
Step 11. Apply For Strip Club Business Licenses and Permits
Before you can open strip clubs must get permissions, certifications, tax obligations, and food and beverage approvals.
As a result, you must understand the local legislation in the area where you intend to operate your strip club.
This is because certain governments have stringent regulations prohibiting such actions.
You face the danger of being prohibited when you don’t know what the country’s laws are.
Alcohol is crucial in this instance since it is one of the instruments that will aid your strip club’s profitability.
As a result, you’ll need to get a license for it as well.
Before you open, double-check that you have all legal matters resolved so you don’t have any problems afterward.
Step 12. Keep An Experienced Lawyer Handy
Engage the services of a personal lawyer to guide you through this process and verify that you’re following the correct procedures with your legal paperwork.
All this government paperwork can be tricky and can be easily missed by you, which might lead you into trouble.
As a result, double-check everything with a lawyer.
You should consider hiring him full-time because you will not know when his services will be required.
This is in case residents in the area where your strip club is located or someone in your club makes allegations against you.
You also have the peace of mind that a lawyer is available to you at all times and have your back.
This should be a lawyer that is experienced with a gentlemen’s club or exotic dancer sort of business and can adequately safeguard you.
Step 13. Hire Staff, Bouncers, And Girls For Your Strip Club Business
When it comes to recruitments – you must recruit a skilled manager (you can fill this position), an administrative and resource manager, a marketing and sales manager, a bookkeeper, a Dj, some bouncers, and, obviously, strippers.
A stripper has to be advertised for either online or offline. When you get the females, make sure they are appropriately paid.
Additionally, make certain that you employ the most professional strippers for your strip club to have your customers coming back.
They are the most important workers you will need to get started.
To create a strip club business or even an exotic dancer business that is small-scale yet entertaining, you’ll need at least 8 to 12 employees.
If you can do a good job with these, you will notice that the strip club will grow fast.
Step 14. Create a Marketing Plan
Developing your strip club marketing plan must not be overlooked.
Because you are just getting started in this sector, you must make your strip club/gentlemen’s club business well-known so that you can attract a large number of prospective clients.
It should be of top concern – since if you want your strip club business to be popular and grow fast, you need to advertise it properly.
Inadequate advertising might lead to the demise of your business.
As a result, be sure to implement some highly effective branding strategies that will help you advertise your business to people who enjoy going to strip clubs/gentlemen’s clubs.
The internet may help you promote your company as well.
We are discussing more what your strip club branding strategy should be down below.
Step 15. Apply Strip Club Business Branding Strategies
To set up your strip club, gentlemen’s club, or exotic dancer business for success, you will need to impress and lure your target audience as much as possible.
You can only do this with a well-thought-out strip club or gentlemen’s club business branding strategy.
Here is a guide to help you with it.
a) Choose A Catchy Name
Choosing a catchy strip club business name or exotic dancer business name has the potential to instantly impress your target customer before they even enter it.
It is so because the name of your exotic dancer business is the first thing anyone will notice.
Try to keep the name short, simple, and descriptive.
Also while choosing, make sure it is SEO friendly to boost your online presence easily.
Here is a guide to help you create an SEO-friendly business name in 10 easy steps.
b) Design A Logo
It is important to design an eye-catching logo. It should also be one that will compliment the name of your strip club.
If it is not the name, it should be the logo that will lure most of your customers.
And if the logo is striking and catchy, you will give the best chance to your business to gain profits.
We recommend you check out the article on how to create the perfect business logo for your benefit.
c) Create A Website
Having an online presence is needed in today’s world. And If you are going to create a strip club business, it is a must-have.
This website will be your own space on the internet where you will be able to market your strip club business, gentlemen’s club business, or exotic dancer business to your heart’s desire.
You can hire a web developer to help you set it up or buy ready-made websites.
Make sure the website has the same name as that of your strip club/gentlemen’s club/exotic dancer business name and logo for optimal SEO performance.
d) Use Social Media Marketing
Having a website alone will not bring in more customers. You will need social media accounts that will be able to influence people.
Start with creating groups and pages on Facebook and Instagram, you can expand to youtube as well.
Make sure the name of the social media accounts is the same as that of the business name for consistency.
Be active and try to engage as much as possible with prospective customers.
You can also promote your strip club by providing lucrative pictures along with discounts and offers.
e) Create A Slogan
Slogans are short phrases that are paired with the business name and logo.
Because slogans are quickly memorable and catchy, they will help customers remember the name of your strip club business as well as add character to it.
Make sure the slogan is descriptive and such that it highlights the best parts of your strip club business or exotic dancer business.
To help you with this we have an article on how to create a slogan for your business in 10 easy steps which you should check out.
f) Host An On The House Party
One of the branding practices you can use is to host an on-the-house party.
This is a sure way with which you can get a lot of people talking about your strip club quickly or gentlemen’s club business.
People love free food and drinks, if you can provide that at the beginning of your strip club business life, you will be able to create a lot of buzz and generate crowds.
It might be costly early on but it will turn out to be profitable in the long run.
Advantages Of Creating A Strip Club Business?
There are a lot of advantages if you can create a strip club business. We are mentioning some of them here:
Strip Clubs And Gentlemen’s Club Businesses Are Highly Profitable
Strip clubs are one of the most profitable ventures in any industry. Once you have got everything in order the profit margins are extremely high.
Due to the genre not being explored much – strip clubs are mostly full, plus you can charge higher rates than otherwise.
Constant Flow Of Income
As the owner of an established strip club, you will have a consistent flow of income from the generated profit of the business.
Strip clubs are not seasonal and do not have an expiry date so it will keep proving you a reliable source of income.
Opportunity To Grow And Expand
After you know how to create a strip club business once, you can set up newer ones relatively quicker.
When you generate profit from your existing business, there is enough opportunity in the market to produce new strip clubs elsewhere.
You can even expand your existing strip club by including new food items, drinks, and services.
Strip Club And Exotic Dancer Business Gives Freedom Of Creativity
As a strip club business owner, you will be able to work in an area that you are passionate about.
You will also have complete freedom to let your creativity loose and make changes in every aspect of the business.
Learning Opportunity And Personal Satisfaction
You will be active in all parts of the strip club business activities as the business owner.
This circumstance provides several possibilities to obtain a comprehensive knowledge of the various activities.
With the knowledge, you can place your talents and expertise to good use.
You will also receive personal gratification from putting your ideas into action, interacting with clients, and experiencing your strip club grow.
Strip Club And Exotic Dancer Business Provides Freedom of Independence And Lifestyle
You become your boss as a strip club business owner. No one can fire you.
More importantly, you have the flexibility to make key decisions for the strip club business’s growth.
Since you’re the boss, you get to choose when and where you would like to work.
You do not have to request time off if you wish to spend longer on nonwork hobbies or with your family.
Frequently Asked Questions (FAQ)
What Is A Strip Club Business?
Strip clubs are places where adults go for entertainment purposes.
They are generally designed in the form of a nightclub or bar.
A Strip clubs’ success, like that of other businesses, is primarily determined by location and by consumer spending.
They primarily consist of stripteases and other romantic or magnificent dances.
Much like any bar, except that in a strip club and exotic dancer business there are platforms with metal poles. Strippers are the biggest attraction.
How Much Does It Cost To Start A Strip Club Business?
The amount of money you will need to invest will depend on the scale at which you want to start.
For a large-scale strip club business, you will need hundreds of thousands of dollars.
A medium-scale strip club business or gentlemen’s club business can be started with a few thousand dollars.
If you want a small-scale strip club or an exotic dancer business you can start with a few hundred dollars.
How Much Does A Strip Club Owner Make Yearly?
The amount of money you as a strip club owner will make depends on the popularity, location, age, and scale of your business.
When you are starting, if you have chalked out a good strip club business model then in a prime location, no matter at what scale you are operating at, you will see some profit. On average, a successful small strip club owner makes around $2,00,000 to $4,00,000 annually.
Of Course, as your strip club grows more and more popular you will see profits rise.
What Is The Difference Between Strip Club Business And Gentlemen’s Club Business?
Although both strip clubs and gentlemen’s clubs are quite similar in nature of business. There are however some differences:
- In a gentlemen’s club, the interiors and decor are rather sophisticated and posh, they try to bring in wealthier customers from the age group 30 and up.
- In general, the decor is more rustic and the atmosphere is less fancy in a strip club – they are targeting the younger customer base.
- The music is louder and lights are dimmer in strip clubs than in gentlemen’s clubs.
- If you are starting your business, a gentleman’s club will require much more capital and will have a higher recurring expenditure than a strip club business.
- From the view of your customer – a gentlemen’s club is much costlier to go to than a strip club business.
What Is The Difference Between Strip Club Business And Exotic Dancer Business?
Strips club businesses and exotic dancer businesses have some differences between them. They are as follows:
- The biggest point of difference is that strip clubs sell alcohol and have the necessary permits for it.
- On the other hand, exotic dancer businesses generally do not have such permits and even if they are selling alcohol they are doing it illegally.
If you are planning to start an exotic dancer business we do not endorse you selling alcohol without generating government permits and licenses first.
- The quality of decor and finish is of less quality in an exotic dancer business than that of a strip club business.
- If you starting a strip club business the initial investment and recurrent expenditure will be higher than that of starting an exotic dancer business.
- From the customer’s point of view, going to a strip club business is slightly costlier than going to an exotic dancer business.
What Is The Difference Between Exotic Dancer Business And Gentlemens Clubs Business?
There are a lot of differences between an exotic dancer business and a gentlemen’s club business. Some of them are:
- Firstly, a gentlemen’s club provides all the services that the exotic dancer businesses will provide and much more.
- Gentlemen’s clubs have a polished feel to them. They are much more luxurious and have beautifully done interior design when compared to an exotic dancer business.
- It is easier to get government permits and licenses for selling alcohol in a gentlemen’s club than it is in an exotic dancer business.
- Exotic dancer businesses lure a much younger crowd in contrast to gentlemen’s club businesses which attract middle-aged men and above.
- Starting a gentlemen’s club requires much more capital investment and the cost of running your business will also be much higher than exotic dancer businesses.
- On the other hand, from the customer’s standpoint, exotic dancer businesses are much more pocket-friendly.
Where Can You Get Exotic Dancers For A Strip Club Business?
It is not that difficult to get exotic dancers for your strip club business if you know where to look for them.
Even though it might take longer, the easiest place to start is on the internet.
Just set up an ad for the vacancy along with the job description, wage limit, the experience required, etc, and you’re done.
One other way is that you can design a banner along with graphics and advertise it.
You can do it yourself or might need someone to put it up in front of other strip clubs and party hubs in your city.
Conclusion
We have included everything in this article you need to know to create a strip club business, a gentlemen’s club business, and even an exotic dancer business.
Remember that every business needs some time to grow, so do not expect to make profits immediately.
All that you have to do is to plan thoroughly and do everything that you can to the best of your ability.
We hope that you have found this article helpful and enjoyable. Here is us wishing you the best of luck with your upcoming strip club!
99BusinessDesk
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.
How to Start a Strip Club Business in 2022 [20-Step Plan]
Do you want to start a gentleman’s club successfully? If YES, here is a 20-step guide on how to start a strip club business with no money or experience. Sexual preferences differ all over the world. Whilst some folks just can’t be caught with a sex worker, let alone a stripper, yet others wouldn’t even mind to pay heavily to go watch a stripper.
In America, as much as it is in other countries of the world, the strip club business has continued to boom. The history of strip clubs date back to the 1900s when strippers tease kings. These days’ fellas and even women alike go to these clubs to unwind after a long day’s work.
It is for this reason that the industry still witnesses a boom. Another factor to consider when starting your strip club is where the strip club will be located. Even though it isn’t compulsory that your strip club be located in a highbrow area; however most of the successful strip clubs are those that are located in highbrow areas where social life is at its peak.
Your location should be one that will pass security and fire code before you open the club so as not to run foul of the law. You can start your strip club from a small town in the United States and if you are consistent and creative, it won’t be too long before your strip club becomes a nationally recognized strip club.
Table of Content
- 1.
Understand the Industry - 2. Conduct Market Research and Feasibility Studies
- 3. Decide Which Niche to Concentrate On
- 4. Know the Major Competitors in the Industry
- 5. Decide Whether to Buy a Franchise or Start from Scratch
- 6. Know the Possible Threats and Challenges You Will Face
- 7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
- 8. Discuss With an Agent to Know the Best Insurance Policies for You
- 9. Protect your Intellectual Property With Trademark, Copyrights, Patents
- 10. Get the Necessary Professional Certification
- 11. Get the Necessary Legal Documents You Need to Operate
- 12. Raise the Needed Startup Capital
- 13. Choose a Suitable Location for your Business
- 14. Hire Employees for your Technical and Manpower Needs
- 15. Write a Marketing Plan Packed With ideas & Strategies
- 16. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
Understand the IndustryIt is important to note that businesses in the strip club industry operate adult entertainment venues in which striptease or other erotic or exotic dance is regularly performed for males, females or mixed audiences. Most of them may also serve food and beverages or give their patrons the chance to bring their own beverages.
It has been analyzed that the strip clubs industry is in the mature stage of its economic life cycle. The industry value added (IVA), which measures the industry’s contribution to the US economy, is expected to grow at an annualized rate of 0.5 percent annually.
In recent times, the strip club industry experienced relatively constant demand. Even though changes in consumer spending and behavior can create year-to-year fluctuations in strip club revenue, demand for the industry as a whole has persisted over the years.
In spite of recession-induced dips early in the period, experts project the overall revenue for the industry to increase during the next half decade, many thanks to the renewed consumer spending and pent-up demand.
The strip clubs industry is indeed a large industry and pretty much active in all the countries of the world. Statistics has it that in the United States of America alone, there are about 3,979 registered and licensed strip clubs responsible for directly employing about 58,680 people and the industry rakes in a whooping sum of $6 billion annually.
The industry was projected to grow at 1.8 percent annual growth within 2011 and 2016. It is important to state that no strip club has a lion share of the available market share in the industry.
A recent report released by IBIS World reveals that the strip club industry is in the mature stage of its economic life cycle. Over the 10 years to 2022, industry value added (IVA), which measures the industry’s contribution to the US economy, is projected to grow at an annualized rate of 0.5 percent per year.
In comparison, US GDP is forecast to rise at an annualized rate 2.2 percent during the same period. Further cementing the industry in a mature phase is the slow level of technological change as well as widening markets.
The report further stated that technological changes in the strip clubs industry stems from improvements in equipment quality as well as financial management systems.
Some of the factors that encourage entrepreneurs to start their own strip clubs in the united states of America is that the business is a thriving business and most cities in the US enjoy robust social/night life and these are the kind of places highly suitable for businesses such as strip clubs.
The demand for strip clubs is largely driven by the availability of various factors such as social life, security and above all entertainment. Profitability for individual strip clubs depends on controlling costs as well as the availability of complimentary services and products.
2. Conduct Market Research and Feasibility Studies- Demographics and Psychographics
The demographic and psychographic composition of those who attend or need the services of a strip club is not restricted to men only, it cuts across women and men (adults), of different cultures, race and financial and social status, hence the demographic composition for a strip club business is all encompassing as it relates to drug addicts and substance abusers.
So, if you are thinking of opening your own strip club, then you should look beyond marketing your strip club to just men in your city, but also men and women across the United States of America and visitors/tourists who visit the city where your strip club is located.
3. Decide Which Niche to Concentrate OnThere is no niche area of specialization in the strip club business since strip club is a niche area in the adult entertainment industry. Those who run strip clubs basically add other related complimentary services so as to generate more revenue for the business. Some run membership, sell snacks, serve food, and sell alcohol and other beverages. Most of them also operate chalet/brothel.
The Level of Competition in the IndustryThe competitions that exist in the strip club business go beyond competitions amongst strip clubs in your city or country; it is a competition that cuts across all entertainment industry and businesses such as nightclubs and bars et al.
This is so because the average patrons of strip club can as well seek for alternate source of pleasure from other entertainment hubs. So, it will be right to say that the competition in the strip club business is tough.
The truth is that, no matter the level of competition in an industry, if you promote your services or business properly, you will always make headway in the industry. Just ensure you have what it takes to entertain patrons of your strip club and you know how to reach out to your target market.
4. Know the Major Competitors in the IndustryIn every industry, there are always brands who perform better or are better regarded by customers and the general public than others. Some of these brands are those that have been in the industry for a long while and are known for that, while others are best known for the extra cum premium services that they offer.
These are some of the leading strip clubs/brands in the United States of America;
- 4Play – Los Angeles, CA
- 2001 Odyssey – Tampa, FL
- Acropolis Steakhouse – Portland, OR
- The Cheetah Lounge – Atlanta, GA
- Devil’s Point, Portland, OR
- E11even – Miami, FL
- King of Diamonds – Miami, FL
- Great Alaskan Bush Company – Anchorage, AL
- The Lodge – Dallas, TX
- Spearmint Rhino – Las Vegas, NV
- Penthouse Club – New Orleans, LA
- Vivid Cabaret – New York, NY
- Mary’s Club – Portland, OR
- Mons Venus – Tampa, FL
- Scarlett’s Cabaret – Hallandale, FL
- Sapphire – Las Vegas, NV
If you are looking towards successfully launching a business and maximizing profit, then you need to ensure that you get your economic analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.
Before starting a strip club business, you have to be sure that it is a business you are ready for, because apart from making profit like any other business, the primary need you want to serve as it relates to night life/social life is entertainment.
Strip club business is an adult entertainment business and it is not a Green business, as a matter of fact, you will come across several strip clubs all across the United States of America. So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of the required labor, facility and supply of tobacco, alcohol, snacks, food and other beverages needed to successfully run the business.
Over and above, if you are considering starting a strip club business, then your concern should not be limited to the cost of setting up the business, but also on branding and on how to build and effectively compete with other competitors within your market space. The truth is that if you are able to provide premium services for patrons of your strip club, you are sure going to maximize profit in the business.
Even though there are strip clubs that are into franchising, the truth is that, you can hardly find a franchise of a strip club that can best suit your style or business model hence it is advisable to start from the scratch. This is so because the business is indeed a thriving one and aspiring entrepreneurs are coming into the industry with business concepts that will enable them effectively compete with well – established brands.
The truth is that it will pay you to start your strip club business from the scratch. Starting from the scratch will afford you the opportunity to conduct thorough market survey and feasibility studies before choosing a location to launch the business.
Please note that most of the big and successful strip clubs around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success and of course you can build your own strip club brand to become a successful brand with patrons/clients from all across the length and breadth of the United States of America and other countries of the world (tourist and visitors).
If you decide to start your own strip club business today, one of the major challenges you are likely going to face is the presence of well-established strip club brands whose clients cut across the United States and the global market. The only way to avoid this challenge is to create your own market.
So also, just like any other business, other major threats that you are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power and spending for entertainment purposes. Another threat that you may likely face also is the arrival of a new strip club or even night club and bar in same location where yours is located.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)When considering starting a strip club business, the legal entity you choose will go a long way to determine how big the business can grow; some strip clubs design their business and services to carter for a general market, while others prefer strictly by membership et al.
Generally, you have the option of either choosing a general partnership, limited liability company which is commonly called an LLC, or a sole proprietorship for a business such as a strip club. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale strip club business especially if you are just starting out with a moderate start-up capital. But people prefer limited liability Company for obvious reasons.
As a matter of fact, if your intention is to grow the business and have clients /patrons from all across the United States of America and other countries of the world (tourists and visitors) and also to sell franchise or open outlets in key cities within and outside the United States of America, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.
For example, Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk.
It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meeting and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your strip club business; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course taxes.
If you take your time to critically study the various legal entity to use for your strip club business, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your strip club business so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structure.
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your strip club business.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own strip club business in the United States of America;
- General insurance
- Health insurance
- Liability insurance
- Hazard insurance
- Fire Insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
If you are considering starting your own strip club business, usually you may not have any need to file for intellectual property protection/trademark.
This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
On the other hand, if you just want to protect your company’s logo and other documents or software that are unique to you or even operational concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subject to the review of attorneys as required by USPTO.
10. Get the Necessary Professional CertificationAlthough you do not need any special professional certification before you can successfully start your own strip club business, but you will do yourself a whole lot of favor if you study adult entertainment or a related course before starting this this type of business.
It will afford you the opportunity to truly maximize the business; you will be able to have full grasp of the business from start to finish especially as it relates to producing concepts that will help you attract celebrities and other high profile clients to your strip club.
11. Get the Necessary Legal Documents You Need to OperateThe essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentation. If you do, it won’t be too long before the long arm of the law catches up with you.
These are some of the basic legal documents that you are expected to have in place if you want to legally run your own strip club business in the United States of America;
- Certificate of Incorporation
- Business License
- Business Plan
- Security Clearance
- EIN
- DBA
- Non – disclosure Agreement
- Employee Handbook
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Consulting contract documents
- Online Terms of Use
- Online Privacy Policy Document
- Apostille (for those who intend operating or selling franchise beyond the United States of America)
Raise the Needed Startup CapitalStarting a strip club business can be capital intensive especially if you choose to start a standard strip club in a highbrow area with rich night life/social life. Securing a standard and well secured facility is part of what will consume a large chunk of your start–up capital, so, if you choose to start the business on a large scale, you would need to go source for fund to finance the business because it is expensive to start a standard strip club business.
No doubt when it comes to financing a business, one of the first things and perhaps the major factors that you should consider is to write a good strip club business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for start-up capital for your strip club business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell of shares to interested investors
- Applying for loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from government agencies, donor organizations and angel investors
- Source for soft loans from your family members and your friends.
When it comes to choosing a location for your strip club business, the rule of thumb is that you should be guided by the social life in the area, the demand for such services and easy access to labor in the location you so desire to start the business. Of course, if you are able to secure a central location for your strip club business, it will enable your clients to easily locate your facility.
It cannot be overemphasized that the location you chose to open your strip club business is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people (adults) with the required purchasing power and social lifestyle.
It is important to note that a business facility in a good location does not come cheap hence you should be able to allocate enough fund for leasing/renting in your budget. If you are new to the dynamics of choosing a location for a business such as strip club, then you should feel free to talk to a business consultant or a realtor who has a full grasp of the city and perhaps country you intend starting your strip club.
Most importantly, before choosing a location for your strip club, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.
This is why it is very important to gather as much facts and figures before choosing a location to set up your own strip club business. These are some of the key factors that you should consider before choosing a location for your strip club business;
- The demography of the location
- The social lifestyle of residence of the location
- The demand for the services of strip clubs in the location
- The purchasing power of the residence of the location
- Accessibility of the location
- The numbers of strip clubs and other adult entertainment centers in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
Hire Employees for your Technical and Manpower NeedsIf you are considering setting up a strip club business, it means that you should be prepared to purchase equipment and furniture such as chairs, tables, platforms/stages with poles (for pole dancing) filling cabinets, sound system, public address system, computers, bars, serving utensils and entertainment lighting system et al.
These are the basic machines needed to launch the business. If you don’t have enough cash, you can start with fairly used equipment/furniture but if you are financially buoyant, then you should go for brand new ones since they usually have a longer life span.
As regard leasing or outright purchase of a facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location. If things work out as planned, then you go on a long term lease or outright purchase of the property but if not, then move on and source for other ideal locations/facility for such business.
When it comes to hiring employees for a standard strip club, you should make plans to hire a competent Manager (you can occupy this role), Admin and Human Resources Manager, Sales and Marketing Manager, Accountant, Client Services Executive, Disc Jockey (DJ), Security Officers and most importantly, professional strippers. These are some of the key employees that you can work with. On the average, you will need a minimum of 10 t0 15 key staff members to run a small – scale but standard strip club business.
The Service Delivery Process of the BusinessUsually, when a strip club is opened and everything is in place, they will either choose to welcome patrons based on membership, or open their doors to the adult population in the city where the strip club is domiciled.
It is the norm to hear good music in the background, alcoholic drinks, beverages, tobacco, and even snacks being served based on order, while strippers do their thing on the stage with the stage light concentrating only on them while every other place remains dark or partially/poorly lighted.
Other processes involved are customized services that requires strippers giving patrons lap dance/premium services based on demand and at a fee and in some cases having special time alone with strippers in the chalet within or outside the facility.
It is important to state that a strip club may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated strip club business cum services process is not cast on stone.
15. Write a Marketing Plan Packed With ideas & StrategiesGenerally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a strip club business, then you must go all out to employ strategies that will help you attract customers/patrons or else you will likely struggle with the business because there are well known brands determining the market direction for strip clubs or the adult entertainment industry.
These are some of the marketing ideas and strategies that you can adopt for your strip business;
- Introduce your strip club and the services your offer by sending introductory letters alongside your brochure to corporate organizations, campuses/colleges, residence, sport clubs and other key stakeholders throughout the city where your strip club is located.
- Advertise on the internet on entertainment blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across, so that those on the social media or those who read blogs can know where to go when they need to services of a strip club.
- Open your strip club with a party for the general public so as to capture the attention of residents who are your first and potential patrons.
- Creating a basic website for your business, so as to give your business an online presence.
- Directly market your services.
- Join local strip clubs and adult entertainment associations for industry trends and tips.
- Provide discount days for your customers.
- Advertise your business in community based newspapers, local TV and radio stations.
- List your business on yellow pages ads (local directories).
- Encourage the use of word of mouth marketing (referrals)
If you are in business and you are not deliberate about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend fortunes year in and year out to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them.
If your intention of starting a strip club business is to grow the business beyond the city where you are going to be operating from to become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Your corporate identity has a lot to do when it comes to building a business that is profitable and lasts long.
Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your strip club business;
- Place adverts on both print (newspapers and entertainment magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your business
- Install your Bill Boards on strategic locations all around your city or state
- Engage in roadshow from time to time in targeted neighborhoods to create awareness of your strip club
- Open your strip club with a party for the general public so as to capture the attention of residents who are your first and potential patrons
- Distribute your fliers and handbills in target areas
- Contact corporate organizations, campuses/colleges, residence, sport clubs and other key stake holders throughout the city where your strip club is located informing them about your strip club and the services you offer
- List your strip club in local directories/yellow pages
- Advertise your strip club business in your official website and employ strategies that will help you pull traffic to the site.
- Ensure that all your staff members wear your branded shirts and all your vehicles are well branded with your company logo et al.
[INTERVIEW] Former exotic dancer Melanie Fields owns Med-Spa
Every success story is unique. We had the opportunity to speak with prominent Miami business owner and Trinidad native, Melanie Fields , about her commitment to moving from artist to spa owner.
See the full interview with a successful entrepreneur below.
Parle Mag: So let's get down to business. I was very excited when I saw that you were born in Trinidad. This is one of my travel destinations.
Melanie Fields: I need to get back. Here's what I need to do. I was born here. But I need to go back and check it out.
Parle Mag: So you moved here when you were younger and still haven't returned?
Melanie Fields: Yes, I arrived when I was six. And didn't come back because of immigration status.
But now I'm fine. I came here at the end of 92. I never returned. I received the documents two or three years ago. So when I get a chance, I need to go back and check my roots and where I was born.
Parle Mag: Oh, absolutely. One of the things I really liked when I read your biography is that you are not ashamed of your background as an exotic dancer. And I really like that, because a lot of people, after reaching a certain level of success, miss something. I love that you are willing to talk about your journey to owning your own business.
Melanie Fields: Correct.
Parle Mag: So, was being an exotic dancer part of the game plan to launch your business? How did you get into it?
Melanie Fields: I got into this because, as I just told you, I got here at six. And without paperwork, without changes in laws and things like that, I couldn't work anymore. That's what made me go for it. Nobody asks for documents when you want to dance.
Parle Mag: Hey, I can hear you. Shift gear to talk about your business, Flawless Icon. I really love this name. What was the source of inspiration for you?
Melanie Fields: Well, everyone has something they don't like about themselves or would like to fix. Instead of looking at someone else and making [their] icon out of them, this is a place where everyone can look like a "perfect icon". When I just finished someone, I'm like, "Okay, now you're flawless!" Do you know? And they come out feeling like an icon, with their heads held high. Their confidence returned. They look at themselves like, “Okay, she really cleaned my neck. She really got rid of my pimples. She really helped my face."
Parle Mag: Amazing.
Melanie Fields: Just reminding people that they are perfect. This name is behind it. Perfect icon. At the end of the day, we all have flaws and we work to fix them.
And we will feel better once we do.
Parle Mag: What would you say is your biggest accomplishment with Flawless Icon?
Melanie Fields: I would say I was able to leave. This is an achievement. Many people cannot leave. Literally, put your hands up and say, "I'm done with it." And be able to take care of yourself financially. Artists, the best artists make very good money. Your lifestyle is really high. You spend money, you like to look a certain way. You earn a lot of money, so spend it quickly. But to be able to open my own business and still be able to support myself and take care of myself, it was like, “Wow, I did it! I don't have to go back to the club anymore." I went back and forth to the club and then to work. I was able to leave this quick money and my business provides for my family. It's really a big achievement that I finally made it. People know the name. I have a seat at the Sunrise opening. I just signed with Trina, a Miami rapper.
Parle Mag: This is so cool!
Melanie Fields: Trina is about to open a franchise. That too was one of my biggest accomplishments, getting a franchise. Not everyone can franchise their business. So it was a big achievement to be able to walk away and keep yourself and still be in business two years later. Not everyone can open up and create this well-known brand in two years. Celebrities come to my spa. A celebrity opens a branch. This is a big achievement.
Parle Mag: I didn't realize it had only been two years. Did you, so to speak, expect such success so quickly? I know two years may not seem like such a short time to you.
Melanie Fields: A lot of people say, "Wow, you exploded really fast!" I mean, I prayed a lot. I had a good support system, but no, I didn't. I didn't know it would happen so quickly. I prayed and God took care of everything else.
God has placed certain people in my life. I was fortunate to work with my business partner John, a lawyer. He gave me advice and advised me on the franchise. This requires a lot of money. The franchise cost more than one hundred and fifty thousand dollars. I decided to do it, on faith. But no, I didn't think it would. I just always prayed. Got on my knees and thanked God and asked him to guide me and stuff like that. It's still not easy. I'm still growing. I am still looking for other places. When you try to rise up, it will always be a problem. You cannot stay put. If you say, "Okay, I'm comfortable where I am," then you're not challenging yourself. I am growing. I'm moving to the store. Five thousand square feet, we're franchised. It's always something. But I didn't know it would be that big.
Parle Mag: This is amazing. Congratulations on achieving this level of success. I love that you just mentioned constant change and development because many people settle down when they reach this first level.
Melanie Fields: Correct
Parle Mag: And they are happy with what they have and they have no urge to keep pushing themselves. It's great that you have this drive. And faith to know that, in principle, nothing is impossible. Obviously, in order to have such great success, the joy of your customers, constant support and the possibility of franchising, you must have a really good team. How did you put together your team or hire people to come work with you?
Melanie Fields: Um, the hat isn't easy either.
Parle Mag: [laughs] I can't imagine.
Melanie Fields: Having a team is not easy because no one will care about your vision or work hard on it. But like I said, God has put people in my space who are solid... They're not going anywhere. Everyone under that is employees and such, so you might have to deal with someone who might say "I'm not going to work tomorrow.
" But it's your brand, so I have a strong core that I know for a fact that God has placed them in my life. I don't know where they came from other than my business partner. I was able to contact my CEO and everyone else. We are the head nucleus; we are solid. God definitely put these people in a position to help me. We have been cooperating for more than a year, and this has never been an obstacle.
Parle Mag: Tell me about the services you offer? I have seen laser hair removal, skin tightening and teeth whitening. What am I missing?
Melanie Fields: Tattoo removal, cellulite treatment, Botox fillers, spider veins removal, vitamin therapy. We also have some anti-aging products that work very well too. We also do facials.
Parle Mag: So you have a full service spa.
Melanie Fields: Yes, we also do microblading and eyelash extensions. This is a general store where you can stay for three hours.
Pull in your belly. Cut off your legs. Pull out your eyebrows. When we get to our new location, someone can do their hair there and you never have to leave Flawless Icon. [laughs]
Parle Mag: Hello! Do it, you understand? DO THIS. This is a good way to expand the brand. If you build it, they will come. This is what I have learned.
Melanie Fields: Yes, exactly.
A post shared by flawless icon (@lasermepleasemiami) on
Parle Mag: I have seen skincare pills on your website and social media. Talk to me about it.
Melanie Fields: These are some of the most popular at the moment. It is an anti-aging supplement, so it gets rid of free radicals and slows down the aging process. It has vitamin C which helps our immune system.
So this has been one of our most popular items here. We have people who use it for skin lightening. It was boom. And we have been sold several times. These are the celebrities who are best kept a secret about staying young and having beautiful skin.
Parle Mag: I saw it on your Instagram page too. Not only to promote their products, but also to promote good skin care routines. What do we need to know about developing a good routine? And natural things we can do to fight the aging process?
Melanie Fields: Good routine, be sure to wash day and night. Your face produces its own oils. Wash your face with warm water using a good cleanser. Then, when you're done with that, you'll want to close your pores with a cold washcloth. I use ice cubes. It helps to tighten the pores, keeping the skin supple and increasing blood circulation.
Parle Mag: Okay, I'm learning something! I did not know that.
Melanie Fields: Yes, it closes the pores.
Because, guess what? After you need to apply makeup. So after you close your pores, you apply a moisturizer to protect your pores. Use a moisturizer with sunscreen. And then you put on makeup. At the end of the day, you want to make sure you do it all over again: wash your face with cleanser, cover with ice, apply night cream, and so on. Proper skin care is one of the most important things in skin care because cosmetics and other environmental factors that come into contact with our skin can cause aging. A lot of things come through our pores that shouldn't be there and that can be really harmful.
Parle Mag: Thank you, I'm looking forward to it. Is there anything else you want us to know about Flawless Icon and what you've got in store this year?
Melanie Fields: Well, Flawless Icon belongs to the blacks. I am black and a female entrepreneur. It's very hard to find a black owned medical spa with the type of services we provide.
We are suitable for all skin types. If you look on Instagram, we do laser treatments for African Americans and Caucasians. We have Asian clients. We have Spanish clients. We do not discriminate. Because we are black, we have a variety of clients, including celebrities. We work on a franchise, not everyone can say that. You have to be a really big brand and solid to get a franchise. We now have three offices and we are growing. We are moving to a new location that will be the headquarters of Flawless Icon where potential franchisees will come and check on us. This is a general store. And we're trying to get Saks Fifth of Spas to be the new location. You can come in here and you can take the girl with the whip. You will get the best laser girl. It will be news; it will be everywhere!
Parle Mag: This is great. Yes, SPEAK! Talk until you see. Here's how it's done.
Melanie Fields: Yes, absolutely.
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Ballet | Dancers | Moda
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