A strip club is an adult entertainment venue and a type of nightclub in which stripteases or other erotic or exotic dances are regularly performed. Some strip clubs offer lap dancing, which is a type of sex work that typically involves a female dancer pressing her body against a male customer for a fee.
Available statistics show that the market size, measured by revenue of the strip clubs industry, is put at $7.2 billion in 2023. The market size of the strip clubs industry in the US declined 0.6 percent per year on average between 2016 and 2020, and it is expected to decline by -1.5 percent in 2023.
Steps on How to Write a Strip Business Plan
Table of Content
1. Executive Summary
Crystal Adult® Entertainment Center, Inc. is a chain of strip clubs that will operate in different venues all across the United States, United Kingdom, and Australia. Each club location will be independently owned, operated, and licensed. The company’s worldwide headquarters is in Las Vegas, Nevada. Rowland Adamson is the founder and CEO of Crystal Adult® Entertainment Center, Inc.
a. Our Products and Services
Crystal Adult® Entertainment Center, Inc. will operate adult entertainment venues in which striptease or other erotic or exotic dance is regularly performed for males, females, or mixed audiences. We will also serve food, alcohol, and beverages to our patrons.
Our products and services are designed to entertain our patrons and help them to relax and relieve themselves from stress.
b. Nature of the Business
Our strip clubs will operate essentially as a mall. The dancers (strippers) pay “rent” to work at the club; they are not our employees or contractors. They work like barbers and taxi drivers; they pay a portion of what they earn to the house and keep the rest.
But we will ensure that we give them incentives so as to have as many dancers (strippers) as possible in the house at any given time – the more entertainers in the building the more money the club makes.
c. The Industry
Crystal Adult® Entertainment Center, Inc. will operate under the Strip Clubs and Adult Entertainment industry.
d. Mission Statement
Our mission is to provide a safe and secured facility for maximum adult entertainment.
e. Vision Statement
Our vision is to become the best strip club in the world. Crystal Adult® Entertainment Center, Inc. will continue to set the standard for strip club entertainment in the United States of America.
f. Our Tagline (Slogan)
Crystal Adult® Entertainment Center, Inc. – The Melting Pot of Adult Entertainment!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Crystal Adult® Entertainment Center, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Club (Bar Manager)
- Bartender (Baristas)
- Accountants (Cashiers)
- Disc Jockey (DJ)
- Greeters/Customer Service Agent/Table Attendant
- Security Officers
i. Ownership/Shareholder Structure and Board Members
- Rowland Adamson (Owner and Chairman / Chief Executive Officer) 51 Percent Shares
- Charles Hadaway (Board Member) 14 Percent Shares
- Leo Dickson (Board Member) 10 Percent Shares
- Kinsley Greene (Board Member) 10 Percent Shares
- Jessica Stones (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for Adult Entertainment
- Highly Experienced and Qualified Employees and Management
- Access to Pool of Strippers
- Highly Secured and Clean Facility
- Easy Access to Alcoholic and Non-Alcoholic Beverages and other Supplies
- Budget Limitations
- Lack of Customized Software
- Inability to Attract and Retain the Hottest Strippers in Our City
- Inability to Properly Manage Off-Peak Season
- Lack of Control for Pouring Drinks to Customers (Overpouring may culminate in loss if not properly handled).
- Food sales
- Specialty drink sales
- More local or organic products
- Importing liquor for boosted sales of higher-priced wines and liquors.
- Availability of Mobile apps to help in tracking data
i. How Big is the Industry?
The strip clubs industry is worth over $7 billion in the United States and there are about 3,821 strip clubs with a workforce of 33,655 scattered all across the United States.
ii. Is the Industry Growing or Declining?
Revenue in the Strip Clubs industry is forecast to have decreased 17.4 percent in 2020 and is anticipated to decrease 1.5 percent in 2023. In a non-COVID-19 (coronavirus) environment, the industry would have been forecast to grow.
iii. What are the Future Trends in the Industry
The strip clubs industry is changing, and players in the industry are improvising. No doubt, technology, and social media will change the landscape of the strip club’s industry going forward.
iv. Are There Existing Niches in the Industry?
Yes, there are niche ideas in the strip clubs industry, and here are some of them;
- Online Strip Club
- Drive-Thru Strip Club
- Gentlemen’s Clubs (GC)
- Titty Bars
- Lap Dance Factories
- Sex Emporia
- Women Only Strip Clubs
- LGBT Only Club
v. Can You Sell a Franchise of your Business in the Future?
Crystal Adult® Entertainment Center, Inc. has plans to sell franchises in the nearest future and we will target the United Kingdom, Canada, and Australia.
- Competition from other entertainment hubs such as nightclubs and bars, restaurants, and hotel lounges.
- Community resistance
- Government regulations
- Liability problems
- Consumer Perception of Risk
- Continuously Changing Consumer Demands
i. Who are the Major Competitors?
- Deja Vu Consulting Inc.
- RCI Hospitality Holdings Inc.
- Spearmint Rhino
- MAL Entertainment
ii. Is There a Franchise for Strip Club Business?
- Deja Vu Consulting Inc.
- RCI Hospitality Holdings Inc.
- Spearmint Rhino
- MAL Entertainment
iii. Are There Policies, Regulations, or Zoning Laws Affecting Stripper Club Business?
Yes, and zoning laws require strip club operators to follow specific rules regulations, including some that apply only to players in the strip clubs industry. Please note that in many communities, zoning laws require strip clubs providers to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the striper’s club meets the zoning rules for the community. Permits also ensure that all striper’s clubs are properly licensed with county or state agencies.
a. Who is your target audience?
The target market for Gentlemen’s club facilities are men that are in and around the city where you have your club. They include:
- Military men
- Tourists (men)
- Corporate executives (men)
- Married men
i. Age range
Our target market falls within 18years to 45 years.
ii. Level of Educational
The basic educational qualification for those we are targeting is a minimum of Highschool certificate. But they should be upwardly mobile in their thinking and approach to life.
iii. Income Level
The income level of our target market will be people that earn $25,000 annually and above.
There is no restriction when it comes to the ethnicity of the people we are looking forward to welcoming to our strip club.
There is no restriction when it comes to the language spoken by the people we are looking forward to welcoming to our strip club.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our strip club.
Crystal Adult® Entertainment Center, Inc. will not restrict any patron based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels Into a Resource
- Develop Your Business Directory Profiles
- Build Relationships With Other Businesses in Your Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
- Direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Pay-per-click (PPC).
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Crystal Adult® Entertainment Center, Inc. will make sure it covers premium, skimming, economy or value, and penetration. Our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, wholesalers, distributors, managed service providers, marketplaces, or value-added resellers—to sell products or services.
Crystal Adult® Entertainment Center, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand product or service that is competitively priced and promoted to our customers.
b. Inventory Strategy
Crystal Adult® Entertainment Center, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
Crystal Adult® Entertainment Center, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options for Customers
Here are the payment options that Crystal Adult® Entertainment Center, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
Crystal Adult® Entertainment Center, Inc. will operate a no refund policy hence we will not provide compensation for purchased products or services (membership fees inclusive) that customers paid for in our strip club.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to all our patrons, it will help us to first understand their needs, experiences, and pain points. We will make use of effective CRM software to be able to achieve this.
We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
We plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include procurement, service delivery, and logistics strategies that will help us to boost our service offerings.
a. What Happens During a Typical Day at a Strip Club Business?
- The facility is open for the day
- Administrative work is done concurrently
- The facility is cleaned, drinks, foods, glassware, and other inventories et al are arranged and get ready to welcome patrons
- Patrons come in and they are entertained by strippers, their orders of drinks, foods, and tobaccos et al are taken and they are served
- The stocks are taken and the books are balanced
- The facility is closed for the day.
b. Production Process
There is no production process when it comes to the strip club business.
c. Service Procedure
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.
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 require strippers to give 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.
d. The Supply Chain
Crystal Adult® Entertainment Center, Inc. will rely on trusted agents to supply some of the hottest strippers in our city and we have been able to establish business relationships with wholesale supplies of alcoholic and non-alcoholic beverages, bottled water, vapes, cigars, tobacco products, et al.
e. Sources of Income
- Music and Dance (performance by strippers)
- Hall Rental Services for Parties
- Sale of alcoholic and nonalcoholic drinks, beverages, spirits, tobaccos, cigars, snacks et al.
- Membership fee.
Our Membership fee will cost $50,000 for the start and then a $15,000 annual fee.
a. Amount Needed to Start your Strip Club Business?
Crystal Adult® Entertainment Center, Inc. would need an estimate of $350,000 to successfully set up a strip club in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $180,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- start-up inventory – $15,000
- Counter area equipment (countertop, sink, ice machine, etc.) – $9,500
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $40,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Crystal Adult® Entertainment Center, Inc. will not build a new facility for our strip club; we intend to start with a long-term lease.
d. What are the Ongoing Expenses for Running a Strip Club Business?
- Cost of stocking up supplies such as alcoholic and non-alcoholic drinks, beverages, tobaccos, and cigars et al
- Cost of toiletries
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $65,000 per year
- Club (Bar Manager) – $50,500 per year
- Bartender (Baristas) – $25,580 per year
- Accountants (Cashiers) – $35,000 per year
- Disc Jockey (DJ) – $31,990 per year
- Strippers – $32,000
- Greeters/Customer Service Agent/Table Attendant – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year.
f. How Do You Get Funding to Start a Strip Club Business?
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Apply for a loan from your bank/banks
- Apply for business grants and seed funding from, government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
a. How Much Should You Charge for your Service?
Aside from our membership fee, Crystal Adult® Entertainment Center, Inc. will charge patrons based on the industry standards in the United States. There is often a flat fee of $20 to $150 for a regular day, or say $400 for an event night.
b. Sales Forecast?
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.2 million
c. Estimated Profit You Will Make a Year?
Crystal Adult® Entertainment Center, Inc. are projecting to make;
- First Fiscal Year (FY1): $175,000 (50% of revenue generated)
- Second Fiscal Year (FY2): $337,000 (45% of revenue generated)
- Third Fiscal Year (FY3): $540,000 (45% of revenue generated)
d. Profit Margin of a Strip Club Business
The profit margin of a strip club business is not fixed. It could range from 35 to 65 percent depending on the type and brand of products retailed in the club.
a. How We intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Crystal Adult® Entertainment Center, Inc. will grow by first opening other outlets in key cities in the United States of America, the United Kingdom, and Australia within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where We intend to expand to and why?
Crystal Adult® Entertainment Center, Inc. plans to expand to Portland, Oregon, New Orleans, San Francisco, and Tampa, Florida. The reason we intend to expand to these geographic locations is the fact that Portland boasts of the highest number per capita in the U.S. — one for every 11,286 residents and they are known to patronize strip clubs.
So also, nudity-liberal states like Las Vegas, New Orleans, San Francisco, and even Tampa, Florida, are very welcoming for our kind of business. Internationally, we plan to expand to Canada, the United Kingdom, and Australia.
Crystal Adult® Entertainment Center, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Rowland Adamson is already grooming his son Eden Adamson to take over from him. Eden Adamson is at the moment being groomed to go through the company’s employment process without any bias.