How to make a business plan for a hookah parlor and start your own business

The demand for hookah bars is growing every year. They work in large and small cities, are located in residential and central areas, and vary in size, themes, and pricing policy. All this does not affect the popularity of establishments - they are invariably in demand among consumers, so they bring a steady income to the owners.

According to statistics, there are 2.5 thousand hookah bars in our country. Each of the considered establishments accepts about 400 guests per month. The approximate volume of the hookah bar market reaches $128,000,000 a year. And in the foreseeable future, this figure will increase significantly. Consequently, by opening your own hookah bar, you will become the owner of a profitable, steadily developing business.

What you need to open a hookah parlor

A novice entrepreneur who wants to succeed in business needs start-up capital of $16,000 to $18,000. And, if he does everything correctly, the hookah shop will pay for itself in a year and a half. If the entrepreneur wants to save money, he should consider working in a franchise.

It will take 3 to 4 weeks to draw up a business plan, draw up permits, and solve other problems that beginner businessmen have to face. In addition, to open a hookah parlor, it is necessary:

• Find a room with an area of 100 m2, which meets the requirements of fire and sanitary safety;
• purchase a cash register;
• to purchase 10 - 12 hookahs;
• to find reliable suppliers of tobacco, coals, to buy a wholesale shipment of goods;
• Purchase comfortable furniture, equipment, and lighting fixtures;
• Hire a staff (two hookah makers, a bartender, a cleaner).

A novice businessman must obtain a license, confirming the right to retail trade in tobacco products, as well as permits from local authorities, fire inspections, SES, to draw up additional documentation. As for the business plan, you can make it yourself or order it from specialists.

The advantages of opening a hookah bar

Operating a hookah parlor is a promising, profitable, and interesting business. Hookah belongs to the category of high-margin products, which consumers need on special occasions. It brings the entrepreneur 60-70% of profit, thanks to which the costs of tobacco, coals, and hookah workers' salaries are quickly recouped.

The cost of one hookah is about $2 (if you count only tobacco and coals). It is possible to sell it at a price of $8-$10. Consequently, the profit will turn out to be quite high, even if you take into account the costs of paying staff, utilities and rent for the premises.

The average cost of hookah in a place can be different. It depends on the concept of the bar, its location, interior design, entertainment program, the quality of drinks and dishes on the menu. The main thing is to offer your guests several types of product presented in different price categories.

Business plan sections

Before starting a new business, an entrepreneur needs to make a business plan. It must contain the following sections:

• resume;
• service description;
• analysis of the market, competitors;
• marketing strategy;
• organizational plan;
• estimate and financial plan.

It is important to properly monitor the market, analyze competitors, make all the necessary calculations, choose effective advertising tools. Not every beginning entrepreneur is able to do it on their own. Therefore, most inexperienced businessmen order the development of business plans from specialists or seek the services of companies-franchisors. Both options have their advantages and disadvantages, with which it is necessary to get acquainted at the stage of preparing to open a hookah bar.