cigar lounge business plan

Cigar Lounge Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a cigar lounge ? If YES, here’s a complete sample smoke shop business plan template & feasibility report you can use for FREE to raise money .

A cigar lounge or cigar bar is a place where smokers go to buy their preferred cigar and smoke freely without the fear of being embarrassed, arrested or fined.

In recent times, you might agree that it is now illegal to smoke in public places. The World Health Organization (WHO), in conjunction with Governments of various Countries are clamping down on smoking in public places just in a bid to protect non-smokers from the harmful effect of smoking.

Right there in the Airports, Cinemas, Shopping Malls and Public places in general, you might have noticed the “ Smoking Not Allowed ” signs hung at various spots informing the general public that the area is a no smoking zone.

However, if you took your time to make enquiry, you would find that there are cigar lounges just around the corner. The truth is that banning smoking in public places is actually a blessing in disguise for people with the intention of starting a cigar lounge.

Little wonder we have cigar lounges being positioned in strategic places like airports, shopping malls, cinemas, et al. Although not all cigar lounge is opened to the general public. In some cigar lounges, you would be required to sign up as a member before you can have access.

A Sample Smoke Shop (Cigar Lounge) Business Plan Template

1. industry overview.

The Cigar Lounges (Smoke Shop) industry comprises businesses known as smoke shop, cigar bars or lounges, where patrons can purchase and smoke cigars freely with fear or breaking the law of a country or city. Businesses in this industry usually provide limited food and alcohol services as a means of increasing their revenue generation.

In recent time, the Cigar Lounges industry has made a strong comeback in the united states over the last five years as a large increase in cigar consumption has boosted the demand for cigar lounges (smoke shops). In the face of regulatory hurdles in obtaining exemption from state indoor smoking bans, both industry participation and revenue have grown at rapid rates since 2010.

No doubt, as the economy continues to grow and improve over the next five years, more consumers will likely indulge in premium cigars at high-end smoke shops , helping the industry sustain its growth and widen profit margins. So also, with the United States recent steps toward normalization of relations with Cuba will definitely expand access to the country’s high-end cigars, providing an opportunity for the industry to maximize profits.

The Cigar Lounges industry is indeed a thriving industry in the United States, Canada and in most countries in Europe, Statistics has it that the Cigar Lounges industry in the United States of America, is worth $2 billion, with an estimated growth rate of 11.0 percent.

There are about 7,684 legally registered and licensed cigar lounges / smoke shops businesses scattered across the United States of America and they are responsible for employing about 17,980 people. The industry is an open industry hence a low level of market share concentration.

In order to invest wisely, you need to carry out a research on the industry or line of business you intend investing in. if you are opening a cigar lounge for the first time, it is important you conduct a thorough research so that you can be well informed and guided when making the choices of what you want from the array of options that are available to you.

Researching will open you up to the various opportunities you can leverage on and how you can access them. It’s not compulsory that you must be the one to carry out the research; you can pay professionals to help you garner the needed information.

Any entrepreneur who wants to start a smoke shop business in the US would definitely be confronted with tough competition out there.

The truth is that, you will not only compete with smoke shops / cigar lounges in your location or city, but you would be competing with every other entertainment options such as wine bars, night clubs, restaurants, casinos et al where cigars are retailed and can be freely smoked.

For instance, people go to bars to drink, smoke and socialize and they tend to get more when they go to night clubs or other entertainment hub. In night clubs, people do not only drink, smoke and socialize, but they also dance if they choose to and get entertained.

Lastly, it is important to state that as much as starting a smoke shop business can be profitable and rewarding; the success of any smoke shop / cigar lounge business in the United States is not automatic. The chances of new wine smoke shops to struggle within the first 6 months of launching can’t be ruled out.

As a matter of fact, it can take between two to five years before most cigar lounge and similar businesses can recover their initial investment. In order words, just like loads of new businesses, the statistics for cigar lounges do not favor the startups, you just have to have a long term investment plan if you intend starting your bar business.

2. Executive Summary

Sleek Cigar Lounge®, LLC is a neighborhood smoke shop / cigar lounge that will be located on the ground floor of one of the busiest airport facility in the United States of America – The Los Angeles International Airport, California. We have been able to secure a one-year lease of a vacant shop within the airport’s facility.

We are fortunate to secure a facility with an option of renewal for 5 years at an agreed rate. We are going to be involved in the sale of cigars, sale of tobacco-related accessories, sale of other tobacco products, sale of food and drink, mass marketing cigars and cigarillos, sale of premium cigars, providing a cigar-friendly smoking environment.

We will also be involved in the sale of assorted red and white wines, sale of beer and liquor, sale of distilled spirits, martinis and tobacco et al to the people of Los Angeles and visitors in a conducive environment that is specifically designed for socializing and networking and free from all forms of violence.

Sleek Cigar Lounge®, LLC is designed and constructed to meet both the health and safety standard as recommended by the local authority.

Our customers are going to be treated with good music at all times. We have made provision for live band, karaoke, country side music and jazz et al.  This will be played at the background to create the ambience that our customers will cherish.

We are in business to make profits at the same to give our customers value for their money; we want to give people the opportunity to choose from the wide range of assorted cigars, tobaccos and drinks that are manufactured both in the United States of America and overseas.

Sleek Cigar Lounge®, LLC will go all the way to make available in our cigar lounge most of the cigar brands produced in the United States of America and in other parts of the world especially in countries like Cuba and Italy.

We aware that cigar lounges easily attract intellectuals and business people and we know that the airport is one of the places where we can easily tie down these people especially when they have to wait for their flights et al that is the reason why we have decided to start the first outlet of our smoke shop in Los Angeles International Airport which happens to be the second busiest airports in the whole of the United States of America.

We will ensure that all our employees are selected from a pool of qualified and customer centric people in and around Los Angeles – California and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

Sleek Cigar Lounge®, LLC is owned by Sleek Davenport and his family. Sleek Davenport has managed several smoke shops, bars and nightclubs in Los Angeles and Las Vegas prior to opening his own smoke shop.

He has the magic wand to attract people who go to cigar lounges and bars on a regular basis. The business will be co – managed by his trusted associate for many years, Moore Sam who coincidentally was recruited and trained by him 5 years ago in downtown Las Vegas.

3. Our Products and Services

Sleek Cigar Lounge®, LLC is going to operate a standard smoke shop that will make available most of the cigar products and accessories that can be found in a standard cigar lounge or bar in the United States. We will also ensure that we go all the way to make available assorted wines and alcoholic drinks in our smoke shop.

These are some of our product and service offerings;

• Sales of cigars
• Sales of tobacco-related accessories
• Sales of other tobacco products
• Sales of food and drink
• Mass market cigars and cigarillos
• Premium cigars
• Providing a cigar-friendly smoking environment
• Assorted red and white wines
• Beer and liquor
• Distilled spirits
• Sale of E – Cigars

4. Our Mission and Vision Statement

• Our vision is to establish a standard and secured smoke shop in Los Angeles, CA that will be the melting pot of all lovers of cigars, tobaccos, wine, alcoholic and non – alcoholic drinks.
• Our mission is to establish a smoke shop business that will make available all the brands of cigars, tobaccos, wine, and alcoholic drinks in the United States and other parts of the world at every given time to our highly esteemed customers and a place where people can network and socialize.

Our Business Structure

Sleek Cigar Lounge®, LLC is a business that is established to be a pacesetter when it comes to how standard smoke shop should be run in Los Angeles and even in the United States of America.

We have the goal of assembling a team of dedicated workforce who will give our customers excellent customer service at all times, a team that will ensure that we will continue to have repeated customers and a team that will indeed make us the melting pot for smokers and socialites in Los Angeles.

In view of the above, we have been able to follow suits on what is obtainable in standard cigar lounge in the United States and perhaps improve on the structure with time when the need arises. We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time.

Below is the business structure that we will build Sleek Cigar Lounge®, LLC;

• Chief Executive Officer (Owner)
• Smoke Shop Manager
• Bartender / Baristas
• Accountants / Cashiers
• Procurement Officer

Greeters / Customer Service Agent / Table Attendant

Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for providing direction for thee business
• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Design job descriptions with KPI to drive performance management for clients
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Smoke Shop Manager:

• Responsible for managing the daily activities in the cigar lounge
• Ensure that the facility is in tip top shape and conducive enough to welcome customers
• Interfaces with vendors
• Reports to the Chief Executive Officer
• Attends to Customers complaints and enquiries
• Prepares budget and reports for the organization
• Responsible for Training and Development in the organization
• Responsible for procuring of supplies and equipment
• Handle any other duty as assigned by the CEO

Bartender / Baristas:

• Interact with customers; take orders for cigars, tobaccos, drinks and snacks.
• Plan and present bar menu to clients
• Check identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
• Mix ingredients to prepare cocktails and other drinks.
• Mix drinks, cocktails and other bar beverages as ordered and in compliance with standard drink recipes.
• Prepare alcohol or non-alcohol beverages.
• Service Wine and Beer to guests.
• Arrange bottles and glasses to make attractive displays .
• Assess customers’ needs and preferences and make recommendations
• Make lists of supplies in conjunction with the smoke shop manager / management
• Prepare inventory or purchase requisitions as needed to replenish supplies.
• Ensure that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Disc Jockey (DJ)

• Ensures that customers are entertained with the best of music per time
• Manage the sound system for the bar
• In charge of music collections
• Providing music at events.
• Responsible for developing music playlists.
• Interacting with public at parties.
• Responsible for mixing music tracks.
• Open door and welcome customers
• Ensures that customers feel relaxed and at home
• Handle customers enquiries
• Ability to sell or influence others for up selling and suggestive selling.
• Provide recommendations and suggestions to guest for choosing Drinks and Snacks.
• Serve customers in a friendly and helpful manner.
• Determine when a customer has had too much cigar and alcohol and if required refusing any further serving on a polite way.
• Demonstrate a thorough knowledge of cigar and alcoholic products, menus and Promotions
• Handle any other duty as assigned by the smoke shop manager
• Handle and move objects, such as glasses and bottles, using hands and arms.
• Clean up after customers and clean work area.
• Clear ashtrays as and when required.
• Wash glassware and utensils after each use.
• Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensure that toiletries and supplies don’t run out of stock
• Handle any other duty as assigned by the smoke shop manager.
• Ensure that the facility is secured at all time
• Control traffic and organize parking
• Give security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports weekly
• Any other duty as assigned by the smoke shop manager

6. SWOT Analysis

Sleek Cigar Lounge®, LLC is established with the aim of becoming the melting point for smokers and socialites in Los Angles which is why we have taken our time to critically analyze and conduct SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.

No investor would want to invest his or hard earned money without assessing the risks involved in the venture and also his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.

In view of that, Sleek Cigar Lounge®, LLC hired a business consultant / specialist to help her conduct SWOT analysis for the business and below is a summary of the result that was generated;

Our strength as a company is, excellence and detailed customer service. Wide range of assorted cigars, tobaccos, and alcoholic drinks both from the United States and other parts of the world. Excellent facility, excellent ambience and perfect location for a cigar lounge in metropolitan city like Los Angeles.

Our perceived weakness could be that we are new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

• Opportunities:

There are unlimited business opportunities available to smoke chop businesses in busy cities like Los Angeles; Los Angeles is one of the cities in the world where social life is at its peak.

Besides the airport facility where our cigar lounge is located is one of the busiest in the United States and it is open to loads of opportunities due to the influx of travelers via the airport. Another opportunity that we stand to leverage on is the fact that we can easily order any brand of cigar, tobacco, wine and drinks directly from the manufacturer with little or no stress.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cigar lounge or wine bar in same facility or within same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

Despite the fact that the cigar lounges industry has long existed in the United States, it is starting to fall back into fashion.

Innovative flavors and different varieties of cigars have increased demand over the last five years. Recent data from the Centers for Disease Control and Prevention (CDC) clearly indicated that 40.0 percent of people who try smoking try flavored cigarettes or cigarillos. Consequently, this industry has jumped back into a growth phase.

In the early part of the millennium, cigar lounges especially e – cigar lounges became very popular and started popping up in many metropolitan neighborhoods across major cities in the United States of America. Cigar lounges now compete with the local hangouts such as wine bars, coffee shops and local bars.

The wine bar sensation offers the taste before you buy philosophy. No doubt, the Cigar Lounges industry will continue to improvise on ways to increase sales. They seek to remove the association of cigar with high – end clientele and overwhelming cigar lists and replace it with a more casual and relaxing atmosphere.

Many of these cigar lounges are furnished with nooks and cozy booths encased in rich colors and plush surroundings in hopes their guests will linger.

Cigar lounges look to embrace the intellectual stimulation linked to cigar and tobacco and offer an alternative to the smoke shop scene. The phlegmatic environment lends itself to a good socializing setting with a less crowded feel and more intimate appeal.

In recent time, smoke shops / cigar lounges have begun to incorporate a larger variety of alcoholic drinks and food choices as part of their product offerings. It is obvious that adding these product offerings help in creating alternate source of generating sales and increasing their overall income even if they struggle to sell their cigars and tobaccos.

8. Our Target Market

Before starting our cigar lounge business in Los Angeles – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our cigar lounge on a regular basis.

In view of that, we have created strategies that will enable us reach out to various groups of people who are likely going to become our loyal customer. Below is our target market;

• Corporate Executives
• Politicians
• Celebrities
• Taxi Drivers
• Business People
• Sports Men and Women
• Government Officials
• College Students

Our Competitive Advantage

We are mindful of the fact that there is stiffer competition in the cigar lounges industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Part of what is going to be our selling point in Los Angeles is the fact that we operate a standard smoke shop, in a perfect location ( one of the busiest airport facilities in the United States ) for the kind of business that we run and also the fact that our cigar lounge facility is highly secured.

Another factor that will give Sleek Cigar Lounge®, LLC competitive edge is that we have enough packing space to accommodate the numbers of customers our cigar lounge can contain per time. We are not ruling out the fact that we have a dedicated and customer centric workforce that are willing to go the extra mile to give our customers full value for their money and time whenever the patronize our cigar lounge.

We are not ignoring the fact that we are among the few neighborhood cigar lounge in downtown Los Angeles that sells almost all the brands of cigar, tobacco, and alcoholic drinks available in the United States of America, crafted beers, distilled spirits, liquors et al and obviously, that will surely count towards our advantage in the market place and also the robust experience of our CEO and the smoke shop manager is also a positive for Sleek Cigar Lounge®, LLC.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups smoke shops, wine bars and nightclub businesses in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Sleek Cigar Lounge®, LLC is established with the aim of maximizing profits in the cigar lounges industry and we are going to go all the way to ensure that we do all it takes to attract our target market. The sources of income for Sleek Cigar Lounge®, LLC are stated below;

• Sale of assorted red and white wines
• Sale of beer and liquor
• Sale of distilled spirits
• Sale of martinis
• Sale of tobacco
• Sale of e – Cigars

10. Sales Forecast

One thing is certain when it comes to cigar lounge business, if your cigar lounge is cozy, relaxing, well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Los Angeles California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the cigar lounge market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – CA.

Below is the sales projection for Crespo and Tina® Wine Bar, it is based on the location of our business and other factors as it relates to wine bars startups in the United States;

• First Fiscal Year-: $75,000
• Second Fiscal Year-: $200,000
• Third Fiscal Year-: $500,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Top of the list on our marketing and sale strategy document is generating a buzz for our cigar lounge via word-of-mouth and leveraging on road show.

Despite the fact that our first outlet is located inside Los Angeles Airport, the model of cigar lounge we intend running is a neighborhood bar hence we are not going to rely only on the conventional ways of marketing. We don’t have the plans to run paid adverts on Local TV stations, local radio stations or even local newspaper but we will sure maximize every other available means to promote our business.

Our unique selling proposition is that we have a collections of almost all the brand cigars and tobaccos produced in The United States in our cigar lounge, we also have assorted alcoholic drinks et al. In view of that, we are going to adopt the following marketing strategies to ensure that we do not only attract customers but generate repeated sales from them;

Part of the marketing and sales strategies that we will adopt are;

• Open our cigar lounge in a grand style with a party for all.
• Introduce our cigar lounge by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Los Angeles – California
• Ensure that we have a wide range of cigars, tobaccos, wines, beers, liquors, distilled spirits, martinis and non-alcoholic drinks at all times.
• Make use of attractive handbills to create awareness and also to give direction to our cigar lounge
• Position our signage / flexi banners at strategic places all around Los Angeles
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our cigar lounge.

11. Publicity and Advertising Strategy

Sleek Cigar Lounge®, LLC is a neighborhood bar and we will ensure that we create the buzz that will make people in our area know about us and what we do.

We are quite aware that one of the effective ways of promoting our cigar lounge is to create special internal promotions which in turn will help us achieve our aim of leveraging on word of mouth publicity. Here are the platforms we intend leveraging on to promote and advertise Sleek Cigar Lounge®, LLC;

• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat,  Badoo, Google+  and other platforms (music online forums) to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, airport workers, business people, households, landlord associations and political parties by calling them up and informing them of Sleek Cigar Lounge®, LLC and the products we sell
• Advertise our cigar lounge business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

The prices of our cigars, tobaccos, wines, beers, and other alcoholic drinks et al will be what is obtainable in the market. In fact we will try as much as we can to sell below the industry’s average so as to attract loads of customers. We also have plans in place to discount our products once in a while and also to reward our loyal customers.

• Payment Options

At Sleek Cigar Lounge®, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a cigar lounge business; it might differ in other countries due to the value of their money. This is what it would cost us to start Sleek Cigar Lounge®, LLC in the United of America;

• The Total Fee for Registering the Business in Los Angeles, CA – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost of accounting software, CRM software and Payroll Software – $15,000
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of – $105,600.
• Cost for facility remodeling – $25,000.
• Other start-up expenses including stationery – $500
• Phone and utility deposits – ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory – $16,027
• Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment ( glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Office equipment and furniture – $3,600
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $5,000
• Miscellaneous – $2,500

We would need an estimate of $250,000 to successfully launch our cigar lounge in downtown Los Angeles, CA. This amount includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funding / Startup Capital for Sleek Cigar Lounge®, LLC

Sleek Cigar Lounge®, LLC is a private business that is owned by Mr. Sleek Davenport and his family and they intend to finance the business alone. Although they have plans to make the bar manager part owner of the business after 5 or 7 years of services, but that does not stop him from reserving well over 80 percent stake of the business for himself and his family.

Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;

• Generate part of the start – up capital from his personal savings and sale of his stocks
• Source for soft loans from family members and friends
• Apply for loan from my Banks

N.B: Mr. Sleek Davenport and his family have been able to generate $100,000 the breakdown shows that they generated $75,000 from their personal savings and sale of their stocks and they generated $25,000 soft loans from their family members and friends. The balance of $150,000 will be generated as loan facility from the bank.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Sleek Cigar Lounge®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to properly position our cigar lounge, ensure adequate security, availability of various brand of cigars, tobaccos, alcoholic drinks and excellent customer service et al.

Sleek Cigar Lounge®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Renting of facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories: In Progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed cigars, wine, alcoholic and non – alcoholic drinks, tobacco and small chops et al: In Progress

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Cigar Lounge Business Plan Template & Guidebook

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• List of the Best Marketing Ideas For Your Cigar Lounge Business:

How to Write a Cigar Lounge Business Plan in 7 Steps:

1. describe the purpose of your cigar lounge business..

The first step to writing your business plan is to describe the purpose of your cigar lounge business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a cigar lounge business:

At our cigar lounge, our mission is to provide a luxurious and relaxing atmosphere for our guests to enjoy premium cigars and spirits. We are committed to offering a diverse selection of the finest cigars, as well as expert advice and pairing recommendations to enhance our guests' cigar-smoking experience. We strive to be a destination for cigar connoisseurs and enthusiasts, and to provide a space where they can connect with like-minded individuals and savor the pleasures of a well-crafted cigar.

2. Products & Services Offered by Your Cigar Lounge Business.

The next step is to outline your products and services for your cigar lounge business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your cigar lounge business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your cigar lounge business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your cigar lounge business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a cigar lounge business?

To run a cigar lounge, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:

• A physical location for your cigar lounge, such as a standalone building or a space within an existing retail or hospitality location
• A supply of cigars, in a range of sizes, flavors, and price points
• A humidor or other storage solution for keeping cigars fresh
• Smoking accessories, such as lighters and ashtrays
• Furniture and other amenities, such as couches, chairs, and tables, for customers to relax and enjoy their cigars in
• Depending on your location and the services you offer, you may need to obtain a business license and other permits, such as a permit to operate a cigar lounge or a permit to serve alcohol.

Overall, running a cigar lounge requires a mix of equipment, supplies, and permits to ensure that you can provide a comfortable and enjoyable atmosphere for customers to enjoy their cigars in.

5. Management & Organization of Your Cigar Lounge Business.

The second part of your cigar lounge business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your cigar lounge business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Cigar Lounge Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a cigar lounge business varies based on many different variables, but below are a few different types of startup costs for a cigar lounge business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your cigar lounge business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your cigar lounge business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your cigar lounge business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Cigar Lounge Business Plans:

Why do you need a business plan for a cigar lounge business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your cigar lounge business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your cigar lounge business?)

To build a business plan for your cigar lounge business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written cigar lounge business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a cigar lounge business plan yourself?

Yes, you can write a cigar lounge business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Back to All Business Ideas

How to Start a Cigar Shop

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 11, 2023 Updated on May 8, 2024

Investment range

$63,900 - $114,000

Revenue potential

$273,750 - $547,500 p.a.

Time to build

Profit potential

$82,125 - $164,250 p.a.

Industry trend

Cigar lovers are a passionate group, often hitting the cigar lounge or shop on a regular basis to pick up a few and to chat with others who share their stogie passion. That’s why the cigar industry is worth nearly $13 billion in 2023 and is still growing. 

If you are in that group, you could start your own cigar shop and get a share of that market.

But before you do, you’ll need some business savvy. Lucky for you, this step-by-step guide has you covered with all the information you need to start a lucrative cigar shop.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

• Build a cigar community in your neighborhood
• Excellent profit potential
• Follow your passion
• High startup costs
• Health risks if you make your shop a cigar lounge business

Cigar shop industry trends

Industry size and growth.

• Industry size and past growth – The U.S. cigar industry is worth $12.7 billion in 2023.(( https://www.statista.com/outlook/cmo/tobacco-products/cigars/united-states ))
• Growth forecast – The U.S. cigar industry is projected to grow 4.54% annually through 2027.

Trends and challenges

• Cigar smoking is expected to grow in popularity with millennials.
• Cigar smokers are increasingly purchasing high quality and uniquely flavored cigars.
• Regulations on tobacco products are constantly tightening which could threaten cigar shops in the future.
• Cigar shops are facing increased competition from online cigar sales.

How much does it cost to start a cigar shop business?

Startup costs for a cigar shop range from $60,000 to $115,000. Costs include space rental and preparation, inventory, and an operating budget. 

You’ll need a handful of items to successfully launch your cigar shop business, including: 

• Checkout counter
• Lounge furniture (optional)
• Cutters and lighters (optional)

How much can you earn from a cigar shop business?

What you charge for cigars and other items will vary based on the types. These calculations will assume and average sale per customer of $30. Your profit margin should be about 30% after all costs.

In your first year or two, you might get 25 customers a day, bringing in $273,750 in revenue. This would mean $82,125 in profit, assuming that 30% margin. 

As you gain traction, you might get 50 customers a day. With annual revenue of $547,500, you’d make a tidy profit of $164,250.

What barriers to entry are there?

There are a few barriers to entry for a cigar shop. Your biggest challenges will be:

• Funding the startup costs
• Competing with online cigar sellers

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Step 2: hone your idea.

Now that you know what’s involved in starting a cigar shop, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research cigar shops in your area to examine their products, price points, and customer reviews.

• Make a list of cigar shops that offer similar products. 
• Review your competitors’ products – their features, pricing, and quality – and marketing strategies
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a cigar shop that sells a particular cigar or rare cigars, or a cigar lounge that hosts cigar clubs.

You might consider targeting a niche, such as premium cigars. This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products

In addition to cigars, you could offer cigarettes, cigar related items, bags of tobacco , or even anything that you can find in a full blown smoke shop. 

How much should you charge for cigars?

Prices should be based on market prices, but also on your costs to purchase the cigars. 

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Cigar smokers tend to be millennials and older, so you should focus your marketing on Instagram and Facebook. 

Where? Choose a cigar shop location

You’ll need to rent out a storefront. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Cigar Shop Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “cigar shop” or “tobacco shop”, boosts SEO
• Name should allow for expansion, for ex: “SmokeExpand Emporium” and “LegacyLeaf Collections” over “HavanaHaven Boutique” and “StogieSanctuary”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Cigar Shop Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize the vision and mission of your cigar shop, highlighting its unique offerings and target market.
• Business Overview: Provide a concise description of your cigar shop, including its location, the types of cigars and related products you’ll sell, and the ambiance of your store.
• Product and Services: Detail the range of cigars and related products you’ll offer, such as premium cigars, accessories, cigar lounges, and expert recommendations.
• Market Analysis: Analyze the demand for cigars in your area, considering factors like demographics, local preferences, and trends in the tobacco industry.
• Competitive Analysis: Identify competitors in the cigar retail market and emphasize what sets your shop apart, such as exclusive cigar selections or exceptional customer service.
• Sales and Marketing: Outline your sales strategies, including pricing, promotions, and marketing efforts to attract cigar enthusiasts and build a loyal customer base.
• Management Team: Introduce key team members with expertise in the tobacco industry, highlighting their knowledge of cigars and customer service skills.
• Operations Plan: Describe the day-to-day operations of your cigar shop, including inventory management, customer interactions, and any events or tastings you plan to host.
• Financial Plan: Present financial projections, including startup costs, revenue forecasts, expenses, and profitability estimates for your cigar shop.
• Appendix: Include images of your cigar selection, testimonials from satisfied customers, and any partnerships with cigar manufacturers or distributors that enhance your credibility.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cigar shops. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cigar shop will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a cigar shop business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Cigar Shop Business Licenses and Permits

Starting a cigar shop business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You’ll need a tobacco license and may be required to have other industry specific licenses at the state and local levels. 

You may also need other state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cigar shop business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Bepoz , LINGA , or KORONA , to manage your inventory, purchases, and sales. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now” or “Order”. This can sharply increase purchases. 

Here are some powerful marketing strategies for your future business:

• Curated Events and Tastings: Host cigar events and tastings to create a unique experience for customers, allowing them to sample new products, learn about cigar pairings, and build a sense of community around your shop.
• Loyalty Programs: Implement a loyalty program that rewards customers for repeat business, offering discounts, exclusive access to limited editions, or free accessories based on their purchase history.
• Social Media Engagement: Leverage social media platforms to showcase your products, share cigar-related content, and engage with your audience. Create visually appealing posts that highlight the craftsmanship and atmosphere of your shop.
• Educational Content: Develop informative content through blogs, videos, or workshops that educate customers on the art of cigar smoking, different blends, and proper storage techniques, positioning your shop as an authority in the industry.
• Strategic Partnerships: Collaborate with local businesses such as restaurants, bars, or whiskey distilleries for cross-promotional opportunities, expanding your reach and attracting diverse clientele.
• Cigar of the Month Club: Launch a subscription service that delivers a carefully curated selection of cigars to customers’ doors each month, creating a steady stream of income and encouraging long-term customer relationships.
• Themed Nights: Host themed nights or evenings, such as poker nights or live music events, to provide entertainment and give customers a reason to visit your shop regularly.
• Influencer Collaborations: Partner with influencers or local personalities who appreciate cigars to promote your shop. Their endorsement can significantly boost your shop’s credibility and attract a broader audience.
• VIP Memberships: Introduce VIP memberships that offer exclusive perks, such as access to private events, early product releases, and personalized recommendations, creating a sense of exclusivity and enhancing customer loyalty.
• Window Displays and Aesthetic Appeal: Invest in eye-catching window displays and create an inviting in-store atmosphere that reflects the sophistication and uniqueness of your cigar offerings, enticing passersby to step inside.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your cigar shop meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cigar shop business could be: 

• Premium cigars at the best prices
• Lounge with fellow cigar aficionados and smoke premium cigars
• Looking for rare cigars? We have what you’re looking for

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a cigar shop business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in cigar shops for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in cigar shops. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

You will likely need workers to fill various roles. Potential positions for a cigar shop business include:

• Store Clerks – customer service, make sales
• Marketing Lead – create and implement marketing strategies
• General Manager – accounting, scheduling, inventory management

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Cigar Shop – Start Making Money!

The popularity of cigars is growing, as is the size of the cigar industry. Cigar shops are great places for cigar aficionados to unite, and your own shop could be very profitable for you. It takes an investment to get started, but you should earn a healthy return on that investment over time.

You’ve got the business savvy now, so you’re ready to light up your community with your own successful cigar shop!

• Cigar Shop Business FAQs

A cigar shop can be very profitable. You need a convenient location, good product offerings, and a marketing strategy to be successful.

You can grow your revenue by adding new products to sell. You can also expand to new locations, or even franchise your shop.

A cigar shop is considered a tobacco shop which is NAICS code 453991. In more general terms, it’s a retail business.

If you have limited hours, you can have a cigar shop as a side hustle, but you probably wouldn’t make much money. It’s better to run a cigar shop as a full-time business.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Cigar Shop Name
• Create a Cigar Shop Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Cigar Shop Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Cigar Shop - Start Making Money!

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Cigars POS Blog » Latest Articles

Table of Contents

• Is Opening a Cigar Lounge Profitable?
• Step 1: Research and Business Plan
• Step 2: Legal Requirements and Permits
• Step 3: Location and Lease
• Step 4: Interior Design and Setup

Step 5: Inventory and Suppliers

• Step 6: Compliance and Regulations
• Step 7: Marketing and Promotion
• The Key to Opening a Cigar Lounge Successfully

7-Step Guide to Opening a Cigar Lounge

Do you dream of creating a haven where fellow tobacco enthusiasts can savor the finest cigars, connect, and unwind in a sophisticated ambiance? 

Picture this: Premium cigar smoke fills the air as your guests immerse themselves in conversations, laughter, and shared passions. A well-designed cigar lounge is more than just a place to smoke; it transforms your business into a thriving community. And that journey starts right now. 

This post walks you through the seven steps you need to take to open a cigar lounge successfully. We’ll cover all the basics, giving you everything you need to get the ball rolling and begin planning and opening the cigar lounge of your dreams! 

Is Opening a Cigar Lounge Profitable?  

Before we dive into the nitty-gritty of how to open your very own cigar lounge, let's tackle the big question: Is it a sound investment? Well, the profitability of a cigar lounge isn't a one-size-fits-all answer. It's more like a puzzle with several pieces that need to fit just right.

Location is an enormous piece of this puzzle. A cigar lounge situated in a prime spot with a consistent flow of foot traffic can be a goldmine. Think bustling downtown areas, upscale neighborhoods, or business districts. However, if you're tucked away in a remote corner with minimal visibility, you might find it harder to attract customers and turn a profit.

Related Read: 6 Important POS Features for an All-In-One Smoke Shop

Next up is your product selection. Your cigar lounge's inventory needs to strike a balance between popular, high-quality cigars that attract aficionados and more affordable options for those just dipping their toes into the cigar world. A well-curated selection can attract new customers and boost your profit margins .

Step 1: Research and Business Plan  

You’ll want to begin your journey into cigar lounge ownership by conducting thorough research into your market. What is the demand for a cigar lounge in your desired area? Are there enough cigar enthusiasts to sustain your business?

Delve into the preferences of your target audience, whether they're seasoned cigar aficionados or newcomers looking for a comfortable space to explore. Don't forget to size up the competition, examining what other cigar lounges in your area offer — and what sets you apart. 

Armed with these insights, craft a comprehensive business plan that serves as your roadmap. Outline your unique concept, define your target market, create a budget, develop a marketing strategy, and project your financials. 

Step 2: Legal Requirements and Permits  

Next, you must establish the permits and licenses you’ll need to operate your business legally. Start by registering your business officially and selecting a suitable legal structure, whether it's a sole proprietorship, partnership, or LLC. 

With your business license, you can register for the appropriate permits you need to open your doors. These documents are more than just bureaucratic hurdles; they ensure your venture complies with local and state regulations for operating a cigar lounge.

Related Read: How To Open a Business Credit Card in 4 Easy Steps

Appropriate permits in your area may include business licenses, tobacco retailers' licenses, health permits, and zoning approvals. Crossing these legal T's and dotting the i's is essential to ensure your cigar lounge is solid legal ground.

Step 3: Location and Lease  

Of all the decisions that can impact the success of your business, selecting the right location is one of the most critical. Hunt down a location that ticks all the boxes: Think foot traffic, visibility, parking availability, and proximity to your target audience. 

Once you've identified the ideal spot, it's time to put your negotiation skills to the test. Negotiate and sign a lease agreement for the chosen location. This contract isn't just about the price; it defines the terms and conditions of your rental, including the lease duration and any special provisions related to your cigar lounge. Securing the right location and lease agreement lays a solid foundation for your business to thrive.

Step 4: Interior Design and Setup  

If you want to draw in the right audience and encourage them to spend time — and money — in your cigar lounge, you must put thought and effort into crafting the right ambiance. Start by carefully planning the layout of your space. You want your customers to feel comfortable and invited to stay a while. Comfortable seating, soft lighting, and well-chosen decor can make all the difference. Think about what experience you want your patrons to have when they enter your doors.

Related Read: How To Start a Smoke Shop: Your 10-Step Guide to Success

Next, it's time to purchase furniture, fixtures, and equipment to bring your vision to life. Comfortable chairs and sofas are essential. You’ll also need ashtrays, top-quality humidors to keep cigars fresh, and a good ventilation system to ensure a pleasant atmosphere. 

An often overlooked but crucial aspect of your cigar lounge’s success is your point of sale (POS) system. Invest in a top-quality solution like Cigars POS that's designed specifically for tobacco shops and cigar lounges. Remember that your POS system is not just about processing transactions; it helps you manage your inventory efficiently, verify the age of your customers, manage customer loyalty programs, and more. 

Now, let's talk about the heart of your cigar lounge — the cigars themselves. To offer an exceptional experience, source premium cigars from reputable suppliers and manufacturers, and consider offering a diverse selection of cigars to cater to different tastes, from mild to bold. 

Building relationships with tobacco wholesalers and distributors is essential to ensure a steady supply of products. A well-curated inventory will attract customers and keep them coming back for more. It's the cornerstone of your business, so choose your suppliers wisely and closely monitor trends and customer preferences.

Step 6: Compliance and Regulations  

Running a cigar lounge comes with a host of compliance and regulation requirements. Take steps to ensure you and your staff are prepared to adhere to all tobacco laws and regulations. But remember, compliance doesn't stop at tobacco laws; you'll also need to comply with smoke-free workplace laws and any other relevant regulations specific to your area. 

Keep in mind that states and localities may have varying degrees of strictness regarding smoking and tobacco sales. Being on top of these regulations isn't just about staying out of legal trouble; it's about creating a safe and responsible environment for your customers and employees. Ensure your staff is well-trained in your state and locality’s laws and that you stay up to date with any changes in the law.

Step 7: Marketing and Promotion  

Once you get your cigar lounge up and running, it’s time to spread the word. The last step of opening your cigar lounge is to develop a marketing strategy to promote your lounge to your target audience. 

Use channels like social media, local advertising, and local events to attract customers. Consider organizing special events, sampling events, and tobacco promotions to increase foot traffic and engage with your customers. 

Beyond marketing, focus on providing exceptional customer service and creating a memorable experience for your patrons. A comfortable and relaxing environment and excellent service can turn first-time visitors into loyal customers. Don't forget to review your business performance and seek feedback from customers regularly. It's a dynamic process that will help you fine-tune your offerings and grow your cigar lounge over time.

The Key to Opening a Cigar Lounge Successfully  

Following these seven steps, you have everything you need to build your plan and move toward a bright future as a cigar lounge owner! However, preparing to open your new business is only the beginning of another, much longer journey.

If you want to open a cigar lounge designed to operate at peak efficiency, maximize profits, and minimize costs, you must invest in the right point of sale system from the outset.

Cigars POS offers a point of sale solution designed specifically for cigar lounge owners and smoke shops. Our solution offers features every cigar lounge operator needs, like age verification, scan data reporting, carton-pack inventory features, and more.

Schedule a free demo of our software today to see if Cigars POS is the right point of sale solution for your growing business.

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Cigar Lounges: Your Guide to Turning Your Passion into Profitable Business

Related blogs.

• Lighting Up your Profit: Uncovering the True Profitability of Cigar Lounges
• Light Up Your Investment: Why Opening a Cigar Lounge is a Lucrative Business Opportunity in the Booming Industry
• Unlocking Success in Cigar Lounges: The Top 7 KPI Metrics You Need to Know

1. Develop a business plan. A comprehensive business plan includes an analysis of the industry, competitors, market opportunities, company mission, sales, marketing, financing and operational plans.

2. Find an appropriate location. Location is key when opening a cigar lounge business. Make sure to choose a place that is accessible and visible to potential customers. Factors such as parking availability, local demographics, security level, night-time traffic, and local laws should all be considered.

3. Establish a financial model. Consider the best way to fund your cigar lounge business –whether it is a loan or private investors. Assess the break-even point of the business and make sure you are financially prepared to cover initial and recurring expenses.

4. Obtain necessary permits and licenses. Conduct research to identify the necessary permits in your area and make sure to obtain the appropriate license in order to legally operate your business.

5. Hire professional staff. You will need to hire staff with experience in the cigar business – such as servers, bartenders and managers. Make sure to conduct detailed interviews to assess each candidate’s knowledge and professional experience.

6. Establish a website. In today’s world, having a website is essential for any business. This is the first impression many customers will have of your cigar lounge business. Hire a professional web developer or use a template to create an intuitive website.

7. Secure adequate funding. Establish the necessary funding for your cigar lounge business – whether it is through loans, private investors or your own savings. Make sure to create a clear budget and track expenses.

8. Market the business. Create an effective marketing strategy for your cigar lounge business. Think about the methods you are going to use to reach potential customers and create content or promotions that make them interested in your business –such as a engaging website, social media campaigns, or promotional events.

9. Establish set policies and procedures. Create and enforce policies and procedures that must be followed in your cigar lounge business. Make sure your staff is aware of these policies and can follow them consistently.

10. Track and evaluate progress. Keep track of your progress and measure the effectiveness of your marketing and operational strategies. Periodically assess if your business is heading in the right direction and if there is anything that needs to be improved.

1. Develop A Business Plan

Creating a business plan should always be one of the first steps when thinking of starting a cigar lounge. It serves as a roadmap that guides business owners in understanding their target market, setting and reaching goals, and focusing on day-to-day operations. There are seven components of a business plan:

• Executive Summary
• Company Description
• Market Analysis
• Organization and Management
• Product or Service Line
• Marketing and Sales

A professional business consulting firm can help individuals develop a business plan for a cigar lounge. A comprehensive business plan should provide the following information:

• Estimates of startup costs, including furniture, fixtures, and equipment
• Financial projections for the first five years of business, including projected income statements, cash flow statements, and balance sheets
• Location ideas and a discussion of industry and competitor analysis
• Business model assumptions and analysis, including marketing and operations strategies
• Details for obtaining financing, such as loan applications for equipment or leasing, as needed

The business plan should also include future growth strategies in order for the business to stay competitive in the cigar industry.

However, it is important to note that the business plan should remain a 'living document' that is revisited and modified as the cigar lounge business evolves.

Tips & Tricks

• Establish a timeline. Once the business plan is created, set a timeline for accomplishing the goals and objectives.
• Module 1: Self-assessment. Before starting the cigar lounge business, consider conducting a self-assessment to determine what skills and resources you lack and what strengths you can contribute to the venture.
• Seek out professional help early. It is beneficial to contact attorneys, accountants, and financial planners early in the process to assess all the options and costs.

2. Find Appropriate Location

One of the most important considerations when you are starting a cigar lounge business is the location. Make sure that the area is conducive to the atmosphere you are trying to create in your business. You should also check that the local zoning regulations, taxes, and other expenses are within your budget and acceptable to you.

Do thorough research to make sure your area has potential visitors who can be attracted to your lounge and that the crowd you want to cater to will be able to make it to your location. Consider safety, demographic, traffic density, number of competitors, access to public transport to reach the site, parking facilities, and other factors relevant to the space.

You may also consider renting a smaller space first, to get a feel for what kind of up-keep and cost is associated with each area. Before you commit to a space, strike a deal that allows you to test the waters to see if it is a good fit for your business.

Tips & Tricks:

• Check if the local laws allow for the kind of cigar lounge business you want to open in that location.
• Consider renting out a smaller space first, to get a feel for what kind of up-keep cost is associated with each area.
• Check the demographic, traffic density, number of competitors, access to public transport to reach the site, parking facilities, and other factors relevant to the space.

3. Establish Financial Model

The financial model is one of the most important steps for setting up a cigar lounge business. Having a precise financial model is essential in order to ensure that you get the most out of your investment and make sure that you can cover all your operating costs.

Before you can start working on your financial model, you must first determine the fixed costs associated with your cigar lounge. Fixed costs are expenses that have to be paid regardless of the number of customers. These costs include rent, utilities, salary costs and the cost of setting up the lounge. All of these costs need to be considered when setting up the financial model.

In addition to fixed costs, you also need to consider the variable costs associated with your business. Variable costs are those costs that can change based on the number of customers you receive. These costs usually include supplies, inventory, advertising and any other costs associated with running the cigar lounge. Once you have identified all of the costs associated with running the cigar lounge, you can then go about creating a financial model.

The financial model should include a budget for each month and a plan for how the funds will be allocated. You should also include a sales forecast and financial projection for the cigar lounge. With these tools, you should be able to develop a realistic estimate of potential profits and losses for the lounge. You should also consider what operating costs might escalate over time and what provisions you need to put in place in order to cover them.

Finally, it is also important to consider the tax implications of running a cigar lounge business. Depending on the laws in your locality, there may be additional taxes or other regulations to consider. It is important to be aware of all of these potential costs and make sure that your financial model accounts for them.

• Do Your Homework: Before creating a financial model, it is important to do your homework and familiarize yourself with all the costs associated with running a cigar lounge business.
• include a budget for each month: When creating a financial model, it is essential to include a budget for each month and a plan for how the funds will be allocated.
• Consider the Tax Implications: It is also important to consider all potential taxes and regulations that might apply when running a cigar lounge business.

4. Obtain Necessary Permits & Licenses

Launching a business requires dealing with regulations and paperwork. The same goes for a cigar lounge, as you'll need to obtain the proper permits and licenses in order to legally open the business. The exact permits and licenses you'll need to obtain depend on the city and state in which you're opening the cigar lounge.

Failing to obtain the necessary permits and licenses is a punishable offence. As such, you should thoroughly research the laws in your locality before commencing any further steps. Your local Small Business Administration (SBA) Office or Local Chamber of Commerce can provide guidance in regards to what permits and licenses are needed.

• Check the official website of your local government authority to find out what permits and licenses are needed and applicable fees.
• In order to provide alcoholic beverages at your cigar lounge, you'll need to obtain an Alcoholic Beverage Control (ABC) Permit.
• Apply for a business license in the city and state in which you’re opening the cigar lounge.
• Depending on local ordinances, you may need to obtain specific permits such as zoning permits.
• You will also need federal, state and local tax Registrations before launching the business. Keep in mind that you may be required to apply for an Employer Identification Number (EIN)
• The local authorities may require you to have a fire inspection and an occupancy license before launching the business.

Tips & Trics

• Keep in mind that applications for various permits and licenses may take several weeks or months to be processed.
• Make sure to obtain the necessary permits and licenses prior to the opening of your cigar lounge.
• Strictly adhere to all rules and regulations associated with the permits and licenses.

5. Hire Professional Staff

Your cigar lounge business won't be able to launch and stay open unless you add in the right personnel necessary to keep the operations running efficiently. Here are a couple of personnel areas that you should consider hiring.

• An office manager to help with file keeping, paperwork, accounts receivables and payroll, to name a few.
• Front desk staff to manage visitors, take reservations and coordinate hosting services.
• Security staff personnel to ensure your customers are safe while visiting your business.
• Marketing staff to promote your business. Such as web designers, SEO strategists, social media marketers, advertising etc.
• Sales staff to take phone orders and manage relationships with distributors.
• Wait staff to welcome and serve your customers.
• Culinary staff to cater to the in-house needs of your customers, such as a chef.
• Maintenance staff to look after the general upkeep of the cigar lounge.
• Always get a background check done on every employee you are considering to hire.
• Hold a series of interviews with candidates and ask the right questions prior to making hiring decisions.
• Provide training and development opportunities for your staff.

6. Establish A Website

To ensure that your cigar lounge business is visible to potential customers, you should have a website. A website is a key marketing tool for all businesses, both large and small. A website allows customers to find you online and it also creates credibility for your business. You should consider having a professional design a website for you that is SEO-friendly and mobile responsive.

To successfully establish your website, keep in mind the following steps.

• Choose a platform: You will need to select a platform that your website can be built on. Popular options include WordPress, Wix, Squarespace, and Weebly. Each platform offers different features, so research each one in detail and find the best option.
• Hire a designer: Once you have chosen the platform for your website, you should hire a web designer to help create the look, functionality, and layout of the website. They can also assist with setting up hosting, content management, and ensuring SEO and mobile responsivity.
• Design the logo and brand: A logo and other branding elements are integral to making your website attractive and professional. Designers can help create logos, colors, fonts, and other design elements that will make your website stand out.
• Create valuable content: Your website should be filled with content that potential customers will find valuable. Content should include visuals, products or services offered, contact information, any promotions or discounts, and more.
• Optimize for SEO: After the website is completed, you should ensure that it is optimized for SEO to help potential customers easily find your cigar lounge business. This includes using keywords, optimizing images, and backlinks.
• Make sure the website is user-friendly: Ensure that all of the website’s elements are easy for visitors to navigate and understand.
• Update the website regularly: In order to keep customers engaged and informed, make sure to update the website regularly with fresh content.
• Advertise your website: Advertise your website on various social media platforms, in local publications, or even on television or radio.

7. Secure Adequate Funding

Securing the necessary funding to open a cigar lounge business is essential to its success. You’ll need to consider the cost of rent, inventory, employees, taxes, supplies, and other overhead expenses. To cover these costs, you may need to secure a loan from a local bank, credit union, or other financial institution. To enhance your chances when applying for an loan, you should put together a detailed business plan with your financial projections.

You may also consider using private investors and crowdfunding platforms like Kickstarter and IndieGoGo. Shopping your idea around to friends, family, and acquaintances may also be an effective way to find potential investors.

• Take the time to create a solid business plan, as potential lenders and investors will scrutinize its content.
• Cultivate relationships with investors and lenders to better understand the process and requirements of securing financing.
• Do not underestimate start-up loan options such as SBA loans and the Small Business Administration.

8. Market The Business

Marketing the business is essential to ensure success. After the legal work is taken care of and the business model is established, it’s time to market the cigar lounge business and take it to the next level. Here are a few ways to market a cigar lounge business.

• Social media platforms like LinkedIn, Facebook, Twitter, and Instagram should be utilized to advertise the business’s unique features and offerings.
• Online presence is essential for future success so having a website and getting good reviews is important.
• Utilizing influencers, radio or television advertisements, and print advertisements like in newspapers or magazines will also be helpful.
• Partnering with different organisations like cigar clubs, other local businesses, and event venues to create mutually beneficial relationships.
• Creating interactive events where customers can meet different cigar enthusiasts and learn about the different types of cigars.
• Offering special discounts, deals, and rewards for loyal customers.
• Hosting cigar dinners and other special events as a way to draw attention and create a good impression.
• Involving and engaging customers on social media by responding to their comments and answering their questions.
• Sharing stories and content through press releases, interviews, and podcasts to publicise the business.
• Using industry-specific publications to write articles that promote the business.
• Offering media tours to interested press.
• Reaching out to cigar aficionados, cigar-related bloggers, and cigar-focused magazines can be good sources of creating awareness.
• Use the 'word of mouth' marketing to let people know about your cigar lounge.
• Incentivise customers to refer friends and family by offering discounts and referral rewards.

Step 9. Establish Set Policies & Procedures

Before opening the doors to your newly built cigar lounge, you need to have set policies and procedures in place. This will be beneficial to both you and your customers. It will let them know exactly what is expected of them while inside, and it will make sure that your lounge remains a safe and welcoming atmosphere.

The procedures that you choose to implement will depend on the type of lounge and atmosphere that you want to create. For instance, you will want to consider whether or not smoking is allowed in the lounge, if the sale of alcoholic beverages is allowed, and the type of dress code that you wish to enforce.

It is also important to think about the types of activities that you want customers to engage in when they are inside your lounge. Will you allow gaming or gambling? Will you be providing entertainment? Will you be able to accommodate large groups? All of these questions should be addressed in your policies and procedures.

It is also a good idea to have a plan for any disciplinary action that you may need to take. What will be the repercussions for breaking rules and regulations? Additionally, you should have a clear return and refund policy, as well as a way to handle customer complaints and disputes.

• Be sure to clearly state your policies and procedures in a visible location in your cigar lounge.
• Have a set plan for disciplinary action if necessary.
• Have a clear return and refund policy.

10. Track & Evaluate Progress

In any business, it is essential to track your progress, and a cigar lounge business is no different. By tracking your progress regularly, you can identify areas that need creative solutions and keep the business running smoothly. It is important to determine the factors that need to be monitored – which can include sales figures, profit margins, customer feedback, and employee satisfaction.

Most importantly, you should establish a process for tracking and evaluating progress. This will involve making sure the team has the necessary resources and technology they need to measure the initiative and any related data. To make it easier to evaluate progress and make decisions, all progress should be tracked in the same place and visualized in an easy-to-read format.

Your cigar lounge business should have regular meetings to review progress, key performance indicators (KPIs), and customer feedback. These meetings should be succinct and progress-driven, such as five-minute daily meetings to review relevant information and strategy.

Key Tips & Tricks

• Make sure the team has the necessary resources and technology to measure progress.
• Track progress in the same place and visualize the data in an easy-to-read format.
• Have regular meetings to review progress, KPIs, and customer feedback.

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• Call Us At (888) 300 3090

Are you passionate about cigars and looking to start a cigar lounge business? There are a very wide range of cigar lounges, including giant cigar store chains, as well as independent cigar lounges. A cigar lounge typically depends upon having a wide selection of rare and exclusive cigars, and good sales people. A cigar lounge should also have a nice atmosphere and store layout. If you are looking to start a cigar lounge business (and/or need to raise capital), you will need a comprehensive cigar lounge business plan and financial plan.

The Cigar Lounges industry has had a resurgence United States over the past five years. The U.S. and Cuba’s relations have been improving and this has increased the popularity of cigars in the U.S. Demand for premium cigars is even greater than demand for other tobacco products because cigars aren’t deemed to be as harmful.

The following are a few questions to consider when developing a cigar lounge business plan:

• What is the Company address?
• What cigars will the Company sell?
• How large will the lounge be?
• What is the growth strategy?
• How much capital are you looking to raise?

If you need help developing a cigar lounge business plan, Capital West Advisors can develop a high quality business plan and financial plan for you. Call us at (888) 300-3090 for more information.

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Home » Retail

How to Start a Profitable Cigar Shop [Business Plan]

A cigar shop or smoke shop is a retail outlet where smokers go to buy their preferred cigar brand and smoke freely without the fear of being embarrassed, arrested, or fined. Note that not all cigar shops are open to the general public, some cigar shops will require you to sign up as a member before you can have access. The global cigar and cigarillos market was estimated at USD 17.45 billion in 2019 and is expected to reach USD 17.96 billion in 2020.

The revenue forecast in 2025 is put at USD 21.02 billion. Statistics have it that the Cigar Lounges industry in the United States of America is worth $2 billion, with an estimated growth rate of 11.0 percent. There are about 7,684 legally registered and licensed cigar lounges/smoke shops scattered across the United States of America and they are responsible for employing about 17,980 people.

Steps to Start a Cigar Shop Business

Conduct market research.

The first step in the market research process for your cigar shop is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source information that will help you maximize your business, and also help you operate your cigar shop with less stress, and of course, build the business to profitability.

a. Who is the Target Market for Cigar Shop?

If you are thinking of opening a cigar shop business then you should make your target demographics all-encompassing. It should include corporate executives, socialites, entrepreneurs, business people, celebrities, military men and women, sportsmen and women, and every adult in the neighborhood where your cigar lounge will be located.

b. Is Cigar Shop a Profitable Business?

Yes, the cigar shop business is profitable and statistics show that the industry generates an average of $2,109 monthly sales with monthly gross profit at $728 on a gross profit margin of 34.5 percent.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to cigar shops because the cigar shop business is a subset of the cigar industry.

d. Who are the Major Competitors?

• Fox Cigar Bar Scottsdale
• Cigar Republic USA
• Karma Cigar Bar
• Sunset Cigar Lounge
• Smoking Jacket Cigar Lounge
• Ashton Cigar Bar
• Bo’s Cigar Lounge
• The Cigar Bar & Grill
• Occidental Cigar Club
• Casa de Montecristo by Cigar Inn
• Little Havana Cigar Factory
• Gran Havana Cigar & Hookah Lounge
• West Coast Cigars
• Key West Cigar City USA
• Posh Hookah And Cigar Lounge
• Royal Hookah & Cigar Lounge
• Good Ol’ Times Cigars & Lounge
• The Charles P Stanley Cigar Company and Lounge
• SMoKE Manayunk – Cigar & Hookah Lounge
• The Cigar Lounge at Chamberlain’s Steak and Chop House

e. Are There County or State Regulations or Zoning Laws for a Cigar shop?

Yes, the FDA regulates all tobacco products, including; hookah, e-cigarettes, dissolvables, smokeless tobacco, cigarettes, all cigars, roll-your-own tobacco, pipe tobacco, and future tobacco products that meet the statutory definition of a tobacco product.

Please note that there are county or state regulations and zoning laws for cigar shops, and players in this industry are expected to work with the existing regulations governing such business in the county or state where the business is domiciled.

f. Is There a Franchise for Cigar Shop?

Yes, there are franchise opportunities for the cigar shop business, and here are some of them;

• Gateway Cigar Store/Newstands Franchise
• Puff City Franchise
• Casa de Montecristo

g. What Do You Need to Start a Cigar Shop?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Suppliers of cigars and related products
• Startup Capital

Memorable Business Name ideas for Cigar Shop

• The Lords© Cigar Shop, Inc.
• Boston Connect® Cigar Shop, LLC
• Smoke© Cigar Shop, Inc.
• Smoke Solutions® Cigar Shop, Inc.
• Melting Pot™ Cigar Shop, Inc.
• Jerry Benson™ Smoke Shop, LLC.
• Drill Blaze© Cigar Store, LLC
• Jonny Moore® Cigar Shop, Inc.
• Green Leaf© Cigar Shop, Inc.
• Martins© Cigar Shop, Inc.
• Sleek® Cigar Shop, LLC
• Coast Line® Cigar Store & Bar, LLC
• Free World™ Cigar Shop & Hookah Bar, LLC
• Thomas Gusto© Cigar Shop, Inc.
• The Don’s Place® Cigar Store, Inc.
• Santos Marcos™ Cigar Lounge & Hookah Bar, Inc.
• Greenish Wrap™ Cigar Shop & Hookah Bar, Inc.
• Cuban Guys© Cigar Shop and Bar, Inc.
• One Stop® Cigar Shop & Hookah Bar, LLC
• Friendly Colony™ Smoke Shop, Inc.

Register Your Business

A. what type of business structure is best for cigar shop.

Even though there are several options when it comes to the cigar shop business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Cigar Shop?

• General Business License
• Health and Safety Permit
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections

d. What Type of Certification is Needed to Open a Cigar Shop?

You don’t need any certification to open a cigar shop.

e. What Documents are Needed to Open a Cigar Shop?

These are some of the basic legal documents you are expected to have in place if you want to legally run a cigar shop business in the United States of America;

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a cigar shop business, you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a cigar shop business.

To be truthful, the cost required to open a cigar lounge can vary significantly. Lionel Melendi who owns a cigar shop in Brooklyn, recommends that business owners have at least $500,000 in funding. Savvy business owners, however, may be able to open a shop for a little less than that.

b. What are the Costs Involved in Starting a Cigar Shop Business

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
• The cost for hiring a business consultant (writing of business plans inclusive) – $2,500.
• Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
• The cost of accounting software, CRM software, and Payroll Software – $1,500
• The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of – $35,600.
• The cost for shop/facility remodeling – $25,000.
• Other start-up expenses including stationery – $500
• Phone and utility deposits will cost – ($2,500)
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
• The cost for start-up inventory (a wide range of cigars and other tobacco products, electronic cigarette products, E-liquid, vape pen, replacement coils and juice may cost you as little as $50 for the first month, while a full-featured box mod paired with an MTL tank, coils and juice may go up to $120. After that, you should expect an average of $30-60 per month for coils and juice, drinks and small chops et al) – $16,027
• Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
• The cost for store equipment (cash register, security, ventilation, signage) – $3,150
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
• The cost of launching an official website – $600
• The cost for our grand opening party – $3,000
• Miscellaneous – $2,500

c. What Factors Determine the Cost of Opening a Cigar shop?

• The size of the cigar shop business
• The choice of location
• The required licenses and permits
• The type of facility
• The brands of cigar and accessories related in the shop and additional services offerings
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the cigar shop
• The cost for furnishing and equipping the cigar shop – facility
• The cost for insurance policy cover
• The cost for registering the business
• Supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the cigar shop

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your cigar shop, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will allow you to come up with a facility that will fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Cigar Shop Business?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Shop Manager (Owner) – $45,000 Per Year
• Cigar Rollers – $29,630 Per Year
• Sales Boys and Sales Girls – $26,100 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Cigar Shop?

• Raise money from personal savings and sale of personal stocks and properties
• Raise money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Apply for business grants and seed funding from the government, donor organizations, and angel investors
• Source soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

Our cigar shop will be located in a fast-growing community in San Antonio, Texas. We have been able to secure a one-year lease of a vacant shop within the city’s largest shopping mall. We are fortunate to secure a facility with an option of renewal for 5 years at a rate that is favorable to us.

Our customers are going to be treated to good music at all times. We have made provisions for a live band, karaoke, countryside music, jazz et al. which will be played in the background to create the ambiance our customers will cherish.

b. Products and Service

• Tobacco-related accessories
• Tobacco products
• Mass market cigars and cigarillos
• Providing a cigar-friendly smoking environment

c. Mission Statement

Our mission is to establish a cigar shop business that will make available all brands of cigars, tobacco products, electronic cigarettes, and accessories in the United States at every given time to our customers, and a place where people can freely smoke, network, and socialize.

Vision Statement

Our vision is to establish a secured cigar shop in San Antonio, Texas that will be the melting pot of all lovers of cigars and other tobacco products.

d. Goals and Objectives

The goals and objectives of a cigar shop are to provide a retail outlet where smokers can go to buy their preferred cigar brand and smoke freely without the fear of being embarrassed, arrested, or fined.

e. Organizational Structure

• Shop Manager (Owner)
• Cigar Rollers
• Sales Boys and Sales Girls
• Security Guard

Marketing Plan

A. swot analysis.

Our strengths as a company are excellent and detailed customer service, a wide range of cigarettes, tobacco, and cigar accessories, excellent facility, ambiance, and a perfect location for a vape shop in a metropolitan city like San Antonio.

A major weakness that is obvious to us is the lack of economies of scale which may slightly affect the prices of our products.

Opportunities:

There are unlimited business opportunities available to cigar shop businesses in busy cities like San Antonio. San Antonio is one of the cities in the world where social life is at its peak. Besides, the shopping mall where our cigar shop is located is one of the busiest in the United States and it is open to loads of opportunities due to the influx of shoppers.

Major threats we have in the business include; unfavorable government policies, bad press and publicity for cigars and tobacco-related products, and of course, vape shops.

b. How Do Cigar Shops Make Money?

Cigar shops make money by selling the following products;

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your cigar shop by sending introductory letters alongside your brochure to corporate organizations, transport companies, households, sports organizations, gyms, schools, socialites, and other key stakeholders throughout the city where your cigar shop is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your products.
• Join local cigar shop business associations for industry trends and tips
• Provide discount days for your customers
• Advertise our 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)

Financial Projection

A. how much should you charge for your product/service.

Fine cigars cost anywhere from $2 to over $50 apiece and Cuban cigars can range anywhere from $7 or $8 to hundreds of dollars apiece. Please note that most premium handmade cigars range in price from $4 or $5 to $25 and up. We will follow the industry’s price range when retailing or products.

b. How Much Profit Do Cigar Shop Business Owners Make a Year?

It depends, but the available report shows that cigar shop owner makes over $45,000 annually.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the cigar shop business
• The types of products retailed in the shop
• The location the cigar business is covering
• The management style of the business
• The business approach of the cigar shop
• The advertising and marketing strategies adopted by the cigar shop
• The number of years the cigar shop is in business

d. What is the Profit Margin of a Cigar Shop Business?

The profit margin of a cigar shop business is not fixed; it usually depends on factors that are unique to your location. It could range from 75 percent to 100 percent depending on the type and brand of cigar and other tobacco products retailed in the shop.

e. What is the Sales Forecast?

Below is the sales forecast for a cigar shop business. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year: $120,000

Second Fiscal Year:   $200,000

Third Fiscal Year: $240,000

Set Up your Shop/Office

A. how do you choose a perfect location for cigar shop business.

• The demography of the location especially as it relates to people that smoke cigars
• The demand for cigars and related tobacco products
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of cigar shops, vape shops, and cigar lounges in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City is Best to Open a Cigar Shop?

• Las Vegas, Nevada
• Los Angeles, California
• Brattleboro, Vermont
• Tucson, Arizona
• Silver Spring, Maryland
• Rowland Heights, California
• Portland, Oregon
• Richmond, Virginia
• Green Bay, Wisconsin
• Plano, Texas

c. What Equipment is Needed to Operate a Cigar Shop?

You should purchase cigarette holders, cases, shelves and racks, cigar accessories, receipt issuing machines, Sound System (For playing music), Point of Sale Machines (POS Machines), CCTV Cameras, and Flat Screen TVs. You will also need computers or laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others, and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard cigar shop, you should make plans to hire a competent shop manager (owner), cigar rollers, salespeople, and security guard.

Launch the Business Proper

In recent times, no cigar shop opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the cigar business, you will be able to officially inform people that your cigar shop is open for business.

a. What Makes a Cigar Shop Business Successful?

• Choose a good location and shop facility to launch the business
• Make sure your shop is stocked with different brands of cigar, tobacco, and cigar accessories
• Throw a grand party before officially opening the cigar shop
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your cigar shop
• Leverage on all available online and offline platforms to promote your cigar shop

b. What Happens During a Typical Day at a Cigar Shop Business?

• The shop is open for the day’s work
• Goods are properly arranged
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Cigar Shop Business?

• Customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a retail shop environment
• Experience in managing people
• Experience in business administration
• Experience in handling cigar and tobacco-related products.

More on Retail

Cigar Lounge Business Plan

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Resources On Cigar Lounge

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model

Marketing Plan

• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

The Cigar Lounge is solving the problem of a lack of luxury and exclusive spaces for cigar enthusiasts and individuals looking to relax and socialize. Many existing cigar lounges do not provide a high-end experience, and there is a significant need for a space that offers premium cigars, top-shelf spirits, and comfortable seating. As there is a growing interest in cigars and luxury experiences, our business is filling a gap in the market by providing a personalized and exclusive cigar lounge experience for our members.

The Platinum Cigar Lounge will address the problem of the lack of a high-end, exclusive cigar lounge in select metropolitan areas such as New York City or Los Angeles. The lounge will provide a unique, personalized experience for cigar enthusiasts and individuals looking for a luxurious and comfortable space to relax and socialize. Our primary products and services offered will be premium cigars and top-shelf spirits complemented by a welcoming lounge and personal customer service. With our membership-based model, we will be able to provide exclusive access to rare cigar blends and spirits and host memorable events and activities for our members. By offering a space where customers can enjoy premium cigars and top-shelf spirits, mixed with exceptional customer service, we will provide a unique and exclusive experience for our customers.

Target Market

The Platinum Cigar Lounge will focus on catering to a defined customer base consisting of cigar enthusiasts, occasional social smokers, and individuals who are looking for a luxurious and comfortable space to relax and socialize. Our target market will be individuals who appreciate premium cigars and top-shelf spirits and value a personalized, attentive customer service experience.

We will primarily target individuals in metropolitan areas with a high concentration of potential customers such as New York City or Los Angeles. Our marketing efforts will focus on social media and word of mouth to attract potential members who align with our brand and value proposition.

Our target customer base will most likely purchase our premium cigars and top-shelf spirits to enjoy at our lounge while socializing and relaxing. We will focus on creating a welcoming and comfortable space that caters to the specific needs and preferences of our members, fostering a sense of community and exclusivity.

Competition

While there are a few cigar lounges in the area, they do not offer the level of exclusivity and attention to customer service that The Platinum Cigar Lounge will provide. There are also a number of bars and nightlife spots available, but they do not cater to cigar enthusiasts or offer premium cigars and spirits. The Platinum Cigar Lounge sets itself apart by providing a unique and personalized experience for members, with the highest quality products and exceptional customer service. By creating a luxurious and comfortable space for customers to relax and socialize, combined with rare and exclusive cigar blends and top-shelf spirits, we are confident in our ability to stand out in the market and attract a loyal customer base.

Financial Summary

Our financial plan is aimed at ensuring profitability and sustainability right from the start. Here are the key highlights:

• We anticipate startup costs of approximately $250,000, covering initial capital expenses such as lounge space, furniture, interiors, branding, cigar stocks, and liquor inventory.
• Monthly fixed costs, including rent, salaries, and utilities, are forecasted to be around $60,000.
• We anticipate membership fees of $250 per month, offering customers unlimited access to our lounge space and member-only discounts on cigars and spirits. Sales from premium cigars and top-shelf spirits will make up the bulk of our revenue streams.
• Based on our market research and projections, we anticipate a steady increase in membership of 20% per quarter with an average spending of $150 per member on cigars and spirits monthly. We also expect to host lucrative events and experiences, further adding to our revenue streams in the future.
• Our financial projections show a break-even point within the first year of operations and substantial profits from the second year onwards. We anticipate a net profit of $500,000 per year, with a return on investment of 60% within the first three years of operations.

Funding Requirements

Starting a business requires adequate funding to cover essential components. For our Cigar Lounge startup, we estimate the following funding needs to jumpstart our business:

• $200,000 for space rental and furnishings
• $100,000 for cigar and liquor procurement
• $50,000 for marketing efforts
• $150,000 for staff salaries

The total estimated funding requirement to commence operations is $500,000. This amount will cover the critical aspects of the business and ensure we offer quality services to customers. We intend to raise funds through investors as we seek to build a sustainable and profitable Cigar Lounge in the US. With a well-structured business plan, we are confident of attracting investors and securing funding for our startup.

Milestones and Traction

As a startup in the cigar lounge business, we understand the challenges that come with launching a new venture. However, we have a roadmap in place to ensure we achieve success. Our plan includes the following milestones:

We understand the importance of hitting these milestones and will work tirelessly towards achieving our goals. With your support, we are confident that we will reach our full potential and become a successful cigar lounge business in the US.

Problem Worth Solving

The Cigar Lounge business aims to address the need for a luxurious and comfortable space where cigar enthusiasts, social smokers, and individuals can relax and socialize while enjoying premium cigars and top-shelf spirits. Currently, there is a lack of such a space that offers personalized customer service, rare cigar blends, and exclusive access to top-shelf spirits in a comfortable setting. Also, most public cigar lounges can be crowded, noisy, and uncomfortable, which does not provide an ideal environment for individuals to enjoy their cigars.

Our Cigar Lounge business solves this problem by providing a membership-based luxury lounge that caters to the clientele's needs. The lounge will be designed to ensure privacy, comfort, and relaxation, with customized seating arrangements that cater to the members' preferences. We will also provide impeccable customer service that provides a welcoming and memorable experience for customers.

Additionally, our Cigar Lounge business will carefully source premium cigars from top-rated producers worldwide, which will appeal to cigar enthusiasts and social smokers alike. Our selection of top-shelf spirits complements the cigar experience, providing members with the ultimate relaxation experience. By solving this problem, our Cigar Lounge aims to create a unique, enjoyable, and exclusive experience for our members.

Our Solution

At our Cigar Lounge, we offer a unique and exclusive experience for cigar enthusiasts and individuals who seek a luxurious and comfortable space to relax and socialize. We provide a membership-based cigar lounge that offers a variety of premium cigars, top-shelf spirits, and comfortable seating for our customers to enjoy. Our lounge is designed to provide a comfortable and welcoming atmosphere where our customers can unwind and connect with like-minded individuals.

We understand that our customer base seeks more than just a place to smoke cigars and drink spirits. They want a place where they can relax and socialize with their peers while still enjoying their preferred cigar blends and spirits. Our Cigar Lounge offers a solution to this problem by providing exclusive access to rare, premium cigar blends and top-shelf spirits, complemented by personalized customer service.

Our lounge space is designed to create an inviting and relaxing atmosphere, ensuring that our customers feel comfortable and satisfied with each visit. We host events and activities that cater to our customers' interests, providing them with a memorable experience that keeps them coming back for more.

We firmly believe that our membership-based cigar lounge offers a unique and valuable solution for cigar enthusiasts and individuals seeking a luxurious and comfortable space to socialize. Our dedication to providing premium cigars, top-shelf spirits, personal customer service, and exclusive access to rare products guarantees that our customers will enjoy a unique and unforgettable experience every time they visit our Cigar Lounge.

Validation of Problem and Solution - Products & Services

Product overview.

The Platinum Cigar Lounge offers a unique, exclusive experience for cigar enthusiasts and individuals looking for a luxurious and comfortable space to relax and socialize. Our primary products are premium cigars, hand-selected by our expert team of cigar connoisseurs to ensure the highest quality for our customers. We also offer a variety of top-shelf spirits to complement the rich flavors of our cigars, creating a truly elevated sensory experience.

Our lounge space is designed to provide the utmost comfort and luxury to our members. We offer a variety of seating options, from plush leather armchairs to cozy booths, all arranged in a way that encourages socializing and community-building. Our expert staff provides personal and attentive customer service, ensuring that our members feel welcomed and valued every time they visit.

At The Platinum Cigar Lounge, we believe that our products and services benefit our customers by providing a unique, exclusive experience that cannot be found anywhere else. Our members have access to rare cigar blends and spirits, as well as personalized recommendations and guidance from our expert team. Our events and activities, such as cigar tastings and pairing workshops, offer a fun and educational experience that can deepen our members' appreciation for cigars and spirits.

Currently, there are a few high-end cigar lounges in the metropolitan New York City and Los Angeles areas, such as Davidoff of Geneva and The Grand Havana Room. However, the Platinum Cigar Lounge sets itself apart from the competition by offering a unique, personalized experience to its members. Not only does Platinum offer a variety of premium cigars and top-shelf spirits, but it also provides a comfortable and welcoming space for customers to relax and socialize. Our focus on attentive customer service and exclusive access to rare cigar blends and spirits also differentiates us from other lounges in the area. We aim to establish ourselves as the premier destination for cigar enthusiasts and individuals looking for a luxurious and personalized lounge experience. Through social media and word of mouth, we plan to reach our target audience and build a loyal following for our brand.

Roadmap: Products & Services

We plan to take on the remaining steps in order after the roadmap's completion in the following weeks. Moreover, we will continuously analyze, evaluate, and expand our products and services to optimize customer satisfaction and engagement. Our long-term goal is to become the go-to cigar lounge in the US and offer a luxurious and comfortable space for cigar enthusiasts and social smokers to relax, socialize, and enjoy premium products and unique experiences.

Market Segmentation

This cigar lounge targets several customer segments who share specific characteristics. These segments include:

The potential market for this cigar lounge is high due to the popularity of premium cigars and the increasing demand for comfortable spaces to socialize in.

Target Market Segment Strategy

Our ideal customer is the cigar enthusiast who appreciates the finer things in life and enjoys the experience of smoking a premium cigar in a comfortable and luxurious environment. Additionally, we cater to social smokers and individuals who are looking for a space to relax and socialize with like-minded individuals. We will focus our marketing efforts towards this target market to ensure our business is appealing to those who would most benefit from our services.

Key Customers

Our ideal customer archetype is a cigar aficionado who appreciates the finer things in life, enjoys socializing with like-minded individuals, and is willing to invest in a premium experience. This customer is not just a smoker, but also an advocate for our business, sharing their positive experience and word of mouth with friends and family. We aim to create a community of loyal members who value the relaxed and upscale atmosphere, top-quality cigars, and exceptional service that our lounge provides.

Future Markets

Based on the market analysis, the potential market for the membership-based cigar lounge includes cigar enthusiasts, social smokers, and individuals seeking a luxurious and comfortable space to relax and socialize. Our business strategy caters to these segments by providing access to a variety of premium cigars and top-shelf spirits in a welcoming and comfortable lounge space. In the future, we plan to expand our services by offering private events and exclusive membership benefits to further attract and retain customers.

Here is a table of potential competitors in the area:

While these businesses offer similar products and services, our focus on personal and attentive customer service, as well as a membership-based model, sets us apart.

Marketing and Sales Plan

Our marketing and advertising strategy includes a combination of online and offline channels. We will reach out to our target audience through social media platforms such as Facebook, Instagram, and Twitter to promote our membership-based cigar lounge. We will also leverage word-of-mouth marketing by incentivizing our members to refer their friends and family to our lounge.

Our advertising goals are to increase our membership base and drive sales of premium cigars and top-shelf spirits. To achieve these goals, we will allocate a significant portion of our marketing budget towards social media advertising and email marketing campaigns. We will also explore traditional advertising methods such as print and outdoor advertising in high-traffic areas to reach potential customers.

Location and Facilities

The Platinum Cigar Lounge will be located in the heart of New York City or Los Angeles, depending on the most profitable and feasible option for the business. The rental costs for the selected space will vary according to location and the size of the facility. Our ideal layout will include a spacious lounge area, private membership rooms, a fully stocked bar, and a humidor room that features a variety of rare and exclusive cigar blends.

We recognize that the physical location and design of the lounge can play a significant role in attracting customers and creating a memorable experience for members. As such, we will invest in high-quality furnishings, atmospheric lighting, and a state-of-the-art ventilation system to ensure optimal customer comfort. We will also prioritize cleanliness and maintenance to keep the lounge in excellent condition at all times.

In terms of location promotion, we will have a strong online presence, utilizing channels such as social media and the company website to highlight the lounge and its features. We will also advertise on relevant platforms such as local and national cigar publications and work closely with premium cigar suppliers to promote and advertise special deals on rare blends and exclusive bottles of top-shelf spirits.

Equipment and Tools

The Cigar Lounge will require certain equipment and tools to provide customers with a comfortable and high-quality experience. The following is an outline of the required equipment or tools and the cost associated with purchasing them:

These expenses will be included in the start-up budget and will be necessary to create a high-end atmosphere that matches the premium cigars and spirits on offer. Regular maintenance and upgrades will be required to maintain the quality of the equipment and ensure customers continue to have a top-level experience.

Management and Organization

Organizational structure.

Our organizational structure at the Cigar Lounge is designed to provide exceptional customer service and a comfortable environment for our clientele. Below is an overview of our structure in an HTML table layout:

Our team communicates closely to ensure an exceptional experience for our customers. The General Manager oversees all levels of the organization and communicates regularly with the Lounge Manager, Cigar Sommelier, Bartender, and Servers to ensure efficient operations and exceptional service.

Management Team

As the owner and founder of this membership-based cigar lounge, I am committed to assembling a strong management team to ensure the success of the business. I have identified potential candidates who possess the necessary skills and experience to take on high-level management roles within the company. These candidates have a proven track record in the hospitality industry and a passion for cigars and spirits.

My vision for this business is to offer a premium cigar lounge experience for our customers, and I am confident that my management team will be instrumental in achieving that goal. I will work closely with each member of the team to provide guidance and support as needed, and to ensure that the business is operating effectively and efficiently.

Together, we will cultivate a strong corporate culture based on professionalism, customer service, and a commitment to excellence. Our goal is to become the go-to destination for cigar enthusiasts and social smokers alike, and with the right team in place, I am confident that we can achieve that goal.

Management Team Gaps

At this time, our management team has identified a gap in expertise in the areas of marketing and events planning. While we have knowledgeable staff ready to manage the day-to-day operations of the lounge, we do not currently have candidates ready to fill these specialized roles. We plan to address this gap by conducting a thorough search for qualified individuals with experience in marketing and event planning, and by providing training and support to help them succeed in their role within our team.

Personnel Plan

In order to run our cigar lounge business effectively, we expect to require the following personnel:

We aim to hire highly skilled personnel with excellent customer service skills and extensive knowledge of cigars and top-shelf spirits.

Company History and Ownership

The Platinum Cigar Lounge is a new business venture founded by [Founder/Owner's name] with a passion for premium cigars and top-shelf spirits. [Founder/Owner's name] has extensive experience in the hospitality industry, having previously worked in luxury hotels and restaurants for the last 10 years. With an eye for detail, [Founder/Owner's name] has always envisioned opening a cigar lounge that provides a unique experience for customers while delivering top-notch customer service.

The Platinum Cigar Lounge is a privately owned business with [Founder/Owner's name] being the sole owner. The business will be incorporated as a limited liability company (LLC), offering protection for personal assets and limited liability in case of unforeseen circumstances. [Founder/Owner's name] will lead the management team as well as oversee all operations to ensure the success of the business.

Planning for Platinum Cigar Lounge began in 2020, with extensive research on the cigar and hospitality industry to identify market gaps and opportunities. This research helped guide the development of our business model canvas and operational plans. The business plan was developed in consultation with a business consultant to ensure it is thorough, realistic, and adaptable to changing market conditions. We aim to provide an exceptional experience to our customers and be the top choice for cigar enthusiasts and individuals looking for a luxurious and comfortable space to relax and socialize.

As part of our management and organization plan, we have developed a detailed roadmap of specific goals and objectives that will help us steer our business towards success.

Key Metrics

As with any business, it is important to track key performance indicators (KPIs) that help you gauge the overall performance and health of your cigar lounge. Some important metrics to track include:

• Membership retention rate
• Revenue generated from cigar and liquor sales
• Average spend per customer per visit
• Customer satisfaction ratings
• Attendance at events and activities

By regularly monitoring these metrics, you can identify areas of strength and weakness within your business and make informed decisions to improve overall performance and customer experience.

Financial Plan and Metrics

Sales forecast.

Our projected sales for the first three years (2023-2025) are broken down by product categories shown in the table below:

We expect our revenue streams to grow as our membership base increases and through marketing efforts. Our sales forecast will be monitored and adjusted accordingly to ensure the growth and success of the Cigar Lounge.

The following tables outline the expected or incurred costs necessary to start and operate our membership-based cigar lounge:

Startup Costs

Operational expenses.

Note that these figures are based on our estimates and are subject to change based on market and business conditions.

Projected Profit and Loss

Our revenue streams will come from membership fees, sales of premium cigars, and top-shelf spirits. We anticipate a steady increase in sales as our membership base grows through word of mouth and social media promotions. Below is a profit and loss statement for three years (2023, 2024, 2025):

Based on our financial projections, we expect to be profitable in our first year of operation and see significant growth in the following years. We will constantly monitor our financial performance and adjust our business strategies as needed to ensure the financial success of our Cigar Lounge.

Projected Cash Flow

Here is a table detailing the projected cash flow for our Cigar Lounge business plan over the next three years:

Inflow includes revenue from membership fees, sales of premium cigars, and top-shelf spirits. Outflows consist of costs associated with rent, cigar and liquor procurement, and staff salaries. The net cash flow represents the difference between inflow and outflow, while the cumulative net cash flow shows the total cash remaining at the end of each year.

Projected Balance Sheet

Our projected balance sheet shows a steady growth in assets, which primarily consists of our inventory of premium cigars and liquor, as well as our lounge space and furnishings. The liabilities column represents our ongoing expenses such as rent and procurement costs. Our equity is projected to increase as our membership base grows and sales continue to rise over the years.

Our cigar lounge will require a team of knowledgeable and experienced staff to provide exceptional customer service. We plan to hire a lounge manager, bartenders, cigar experts, and servers. All employees will be trained in serving cigars and spirits, and we will provide ongoing education to ensure they stay up-to-date with the latest trends and products in the industry.

Compensation for employees will be competitive and based on experience and performance. We believe that providing fair compensation and benefits will help us attract and retain top talent. All employees will play a vital role in our business operations, ensuring a welcoming and enjoyable experience for our customers.

Use of Funds

Below is a table outlining the projected use of funds for the startup of The Platinum Cigar Lounge:

These funds will help get our business up and running smoothly, allowing us to provide top-notch service to our members and build a strong reputation in the market, leading to sustainable success.

Exit Strategy

In the event that we decide to exit the business, our primary goal will be to ensure that our members can continue to enjoy a high-quality cigar lounge experience. We may explore the possibility of selling the business to a buyer who can maintain the standards we have set, or consider passing the business along to a family member or employee who shares our passion for cigars and commitment to customer service.

Our exit strategy will be driven by our desire to preserve the legacy of the business and our dedication to the satisfaction of our loyal members.

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Cigar Lounge Business Plan

Written by Elma Steven | Updated on May, 2024

How to Write a Cigar Lounge Business Plan?

Cigar Lounge Business Plan  is an outline of your overall business. The business plan should include a  5 year financial projection, marketing plan, industry analysis, organizational overview, operational overview and finally an executive summary.  Remember to write your executive summary at the end as it is considered as a snapshot of the overall plan. You need to be careful while writing the plan as you need to consider various factors that can impact the business’s success. Read the sample business plan in order to have a clear understanding of the process.

Table of Contents

Executive summary.

Overview: We’re in the middle of the city and our lounge has a mix of old-school and new-school charm. Haven is different from other others in exciting ways. Our bar is in a busy area but still feels like a friendly neighborhood. It adds a touch of luxury to the everyday chaos. We have a carefully chosen range of fine wines and spirits unlike most bars that only serve the product. This makes us a great place for people who want to relax and feel sophisticated at the same time. Our walk-in humidor is filled with a unique selection of hand-rolled cigars from all over the world so every puff is fresh and smells great. We’re not just about smoking at Haven; we’re also building a community where fans and newbies can meet, share stories, and enjoy the better things in life. This means that whenever you come into our store you can relax and enjoy in style!

Mission: Our mission at Haven is to provide a distinguished and relaxing experience for our guests. We are dedicated to fostering an atmosphere of refinement and enjoyment. Our approach to hospitality centers on making a positive impact in the lives of those we interact with daily. We achieve this in a setting that respects diversity and values each individual’s contributions. By delivering our services with speed and precision, we ensure outstanding results and satisfaction for our patrons.

Vision: The vision of Haven is to establish itself as an esteemed and globally recognized brand in the sector. We are committed to building lasting relationships with our clients by offering unparalleled service and enhancing their overall smoking experience. We take pride in creating an inviting atmosphere that caters to the desires and comforts of our guests. Additionally, we are dedicated to operating in an environmentally conscious manner, respecting and preserving the world around us.

Check out this guide on how to write an executive summary? If you don’t have the time to write on then you can use this custom Executive Summary Writer to save Hrs. of your precious time.

Financial Highlights

Earnings & profitability.

Break-Even Analysis

Business Description

Business Name:  Embers & Oak Cigar Haven

Founder : Alexander Belmont

Management Team:

Legal Structure:  LLC

Location:  

Goals: 

• Achieve a reputation as a trusted and respected service provider
• Increase retention rate to over 85% within the next year.
• Continuously review and improve our business processes to increase customer satisfaction and retention.
• Hand-rolled Cigars: Premium selections from renowned regions like Cuba, Nicaragua, and the Dominican Republic.
• Machine-made Cigars: For those seeking a more casual or budget-friendly smoking experience.
• Limited Edition Cigars: Offer exclusive products for collectors and enthusiasts.
• Samplers: Curated collections that allow customers to explore different flavors and brands.
• Humidors: From small, personal-sized to large, walk-in humidors for proper storage.
• Cutters: Offer a variety of styles, including guillotine, V-cut, and punch cutters.
• Lighters: High-quality torch lighters.
• Ashtrays: Stylish options made from materials like crystal, metal, or ceramic.
• Cases: Leather cases for transporting the product safely and stylishly.
• Rests: Allow customers to rest their products elegantly when not in use.

Business Model Canvas

Check out 100 samples of business model canvas .

Check out the 100 SWOT samples which will give you a better idea on SWOT writing process.

Organizational Overview

Alexander Belmont is the founder and CEO of Embers & Oak Cigar Haven, a company known for its high-class bars. He got into this business because he was naturally interested in the industry’s allure and the skill that goes into making each luxury cigar. Because of this, he created a haven for cigar lovers, where the culture of smoking cigars is recognized in a setting that is both elegant and comfortable like no other.

Alexander carefully put together his understanding of running a business and his love of the product to start Embers & Oak Haven. He knows a lot about high-end service. A lot of great business projects at his job taught him the skills he needed to work in this tough field. Alexander is certified in two areas: hotel management and wine training with a focus on tobacco. He also has a degree in business administration.

Alexander has been a part of Embers & Oak from the very beginning. He helped plan the store’s layout, pick out products, and train staff, among other things. He does things by paying close attention to details and truly appreciating the past of smoking. Alexander believes the mood is a key part of having the best time. The fact that each bar is tastefully and warmly designed and that each guest is treated as an individual demonstrate this.

As time goes on, Alexander Belmont wants to expand Embers & Oak Haven so that more people can have the unique experience he has created while still keeping the high standards he has set. It’s his dream to bring together people from all over the world who love good products and the stylish but friendly atmosphere of his bars. Alexander’s history with Embers & Oak shows how much he loves his job and wants cigar lovers all over the world to have a great time.

Industry Analysis

In-depth analysis of the business setting is given in the market study part. It points out problems and opens up new opportunities in the sector, defines the target audience to find specific buyer groups, estimates the market’s growth potential, and looks closely at the most important sector trends. This in-depth look is necessary for coming up with strategy initiatives, making sure that goals are in line with changes in the industry, and giving the setup a competitive edge.

Through this in-depth market study, business owners can make sure that their products meet the specific needs of the bar area and reach the right types of customers. This part also helps the business understand the competition, which lets it set itself apart through special events, better service, or a wider range of smokes.

The industry is going through a time of big changes and growth, which is caused by changing customer tastes and market trends. The world market for the product is growing quickly and is expected to reach more than $21.41 billion by 2027. There are more and more people who love the product, and by 2020, there will be 13.9 million product users in the United States alone. The attraction comes from the fact that they provide a unique social experience by mixing rest with networking in a classy setting.

Lounges are becoming more and more popular places to hang out with friends. Cigar lovers can enjoy a variety of the product in a cozy and fancy setting. A lot of bars have special contracts that give people access to secret rooms, parties, and rare cigar types, as well as other perks. This concept of participation has worked well to build a loyal customer base and bring the product lovers together as a group.

Source: Swiss Cuban Cigars

The predicted value of the worldwide market in 2023 was USD 48.55 billion (mordorintelligence). This market is anticipated to undergo substantial expansion in the years to come, with a predicted revenue of $23.4 billion in 2024 and an anticipated climb to $88.28 billion by 2029, representing a CAGR of 10.48%. When it comes to market share, the US takes over 45%, followed by Western Europe and Asia. Due to rising demand from both sexes, the market is poised for substantial expansion; however, the market for male smokers is anticipated to have the most substantial increase. In 2023, the industry in the US is projected to be worth 17.6 billion USD, according to 360researchreports. Statistics Canada predicts that this market will reach a volume of $15.8 billion in 2028, thanks to a growth rate of 4.28% from 2024 to 2028.

Industry Problems & Opportunities

Uncovering opportunities within niche segments and enhanced experiences.

Nonetheless, the industry is presented with significant growth opportunities by focusing on its unique market position. By targeting affluent segments and enhancing the quality of services, lounges can establish themselves as exclusive community centers. Adopting an experience-led business approach, emphasizing distinctive and opulent offerings, aligns with the increasing consumer preference for experiential shopping. Hosting specialized events, tastings, and informative sessions can draw in a varied customer base, fortifying the lounge’s position in a competitive landscape.

Following chart indicates market growth in South Korea:

Source: Mordor Intelligence

Tourism, Partnerships, and Digital Integration

Tourism and themed events offer additional opportunities, especially in nightlife-rich cities. Collaborations with local businesses, alcohol brands, and manufacturers can expand the customer base and create unique offerings. Embracing digital marketing strategies and e-commerce also plays a critical role in extending the lounge’s reach and engaging with a broader audience ( Statista ).

Adaptation and Diversification

Lastly, adapting to health-conscious trends and diversifying the business model are crucial strategies. Offering lower-risk alternatives or non-tobacco products, and focusing on responsible enjoyment, can attract a wider audience. Diversifying into related products and services, such as offering food, alcohol, or accessories, and providing exclusive membership options can create additional revenue streams.

In summary, the industry in the USA while navigating through its unique challenges, also possesses numerous opportunities for growth and innovation. The key lies in balancing traditional lounge elements with modern business strategies to remain competitive in a changing market ( Stellarmr ).

Competitive Landscape Analysis

Club macanudo in new york city.

A prominent landmark in the middle of Manhattan is this chic and modern club. Notable features include a wide variety of quality beverages, a classy atmosphere, and a large product selection. A lot of famous people and successful business people frequent the club because of its classy ambiance.

Corona Cigar Company in Florida

It offers a one-of-a-kind “cigar bar” experience and a wide variety of products at its several Florida sites, such as Tampa and Orlando. tobacco connoisseurs go there for the huge walk-in humidor and wide selection of tobacco accessories ( straitsresearch ).

The Grand Havana Room in Beverly Hills and New York City

The opulence and seclusion of this members-only club set it apart. Guests may enjoy first-rate service, delectable cuisine, and a breathtaking panorama of the metropolitan skyline at its Beverly Hills location. Famous people, businesspeople, and true fans all frequent this establishment.

Casa Fuente in Las Vegas

Casa Fuente, located at the Forum Shops at Caesars Palace in Las Vegas, is well-known for its assortment of unique beverages and trademark Casa Fuente. Tourists and cigar connoisseurs alike are drawn to the club by its lively atmosphere.

Davidoff of Geneva in Multiple Locations

Davidoff of Geneva is a byword for opulence, having lounges in major cities including Tampa, New York, and Las Vegas. The Davidoff brand, famous for its premium products, provides a high-end smoking experience with its attention to detail and dedication to quality.

Shelly’s Back Room in Washington D.C.

This lounge in the nation’s capital offers a sophisticated but laid-back atmosphere with touches of modernity. Both residents and tourists in the nation’s capital frequent this bar for its welcoming atmosphere and extensive selection.

Each of these lounges brings a unique flavor to the industry, showcasing the diversity and richness of the lounge culture in the United States.

Target Market Segmentation

In the industry, target market segmentation is a vital aspect of business strategy, allowing for tailored marketing and service delivery to meet diverse customer needs. Here’s a breakdown of market segmentation:

Geographic Segmentation

Lounges in cities often draw a different crowd than those in the suburbs or the country, so targeting certain geographic locations is essential. Whereas suburban lounges may target locals, metropolitan ones tend to attract visitors and businesspeople. Lounges in popular tourist areas may also personalize their services to cater to those looking for something really local.

Demographic Segmentation

It is crucial to divide the market into segments based on age and income. Lounges with a more contemporary, energetic vibe tend to attract younger folks, while those with more mature tastes tend to choose more classic, laid-back spots. Furthermore, one’s financial level does affect their choices; those with more disposable money tend to frequent more posh lounges that provide premium experiences, while those with more moderate incomes like to frequent more affordable lounges that cater to a wider spectrum of people.

Psychographic Segmentation

This necessitates dividing the market into subsets defined by demographics such as income level, occupation, and interests. Some patrons choose exclusive, members-only venues since lounging is a lifestyle choice and a status symbol for them. Some people may prefer a less formal setting when they want to meet new people. Those who like cigars and are curious about their complexities may enjoy lounges that provide seminars and other instructional events.

Behavioral Segmentation

Customization of services may be facilitated by gaining insight on client behavior in relation to the event for which they attend. Equally important is acknowledging and compensating loyal customers. This demographic may be successfully catered to via the introduction of memberships or loyalty programs.

Benefits Sought

Recognizing clients according to the advantages they want is crucial. While those who prioritize convenience place a premium on features like online booking and pre-order services, those who want experiences seek for comprehensive offerings like gourmet cuisine, beverages, and entertainment.

Target market segmentation allows lounges to effectively cater to the varied needs and preferences of their clientele, enhancing customer satisfaction and loyalty and contributing to the overall success of the business.

Marketing Plan

The marketing plan concisely focuses on customer engagement & competitive strategies, incorporating a marketing budget, promotional channels, brand management and a go-to-market approach. It requires understanding the target audience and competition, setting defined marketing goals and developing a strategy that blends these elements. This approach ensures efficient budget use, leverages appropriate channels for promotion, maintains brand integrity and executes a solid market entry strategy.

Content Marketing : Create a blog on your website on what you has to offer to prospective customers.

Discounts : Provide multiple rewards or incentives to frequent customers, you’ll be more likely to attract them. Create a member referral scheme, for example, where members get a discount if they successfully recommend someone.

Social Media: Engage and promote on Twitter, publish news on Facebook, and utilize Instagram to promote curated photos of your business.

SEO (Search Engine Optimization) Local SEO makes it easier for local consumers to find out what you have to offer and creates trust with potential members seeking for what your clinic has to offer. Email Marketing: send automated in-product and website communications to reach out to consumers at the right time. Remember that if your client or target views your email to be really important, they are more likely to forward it or share it with others, so be sure to include social media share.

The financial model and statements act as a blueprint for the lounge’s financial health. These elements break down the expected earnings, costs, cash flow and overall profitability. They’re crucial for showcasing potential and viability of the lounge. 

A solid financial model details the lounge’s budget including initial expenses, sources of income and regular costs providing a clear path to profit. It helps spot financial risks and opportunities allowing for smarter business strategies.

Financial statements such as income statements, balance sheets and cash flow statements offer a clear view of the lounge’s finances at any given time. They track money movement, ensure the business keeps up with financial rules and maintain investor trust by showing where the money goes.

Investment & Capital Expenditure

Cost of Goods Sold

Operating Expenditure

Income Statement

Cash flow statement, balance sheet.

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A Complete Business Plan for a Cigar Bar

Cigar Bar Business Plan

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1.0 Executive Summary

The purpose of this business plan is to raise $115,000 for the development of a cigar bar and lounge while showcasing the expected financials and operations over the next three years. Cigar Bar, Inc. (“the Company”) is a New York based corporation that will provide sales of cigars and other related products to customers in its targeted market. Customers will be free to smoke cigars in the lounge areas of the shop along with enjoying alcoholic beverages. The Company was founded by John Doe.

1.1 The Products

The primary revenue centers for the Company will come from the sale of cigars, specialty cigarettes, and related items. Mr. Doe is currently sourcing a number of wholesalers and manufacturers that will be able to provide the Company with an extensive line of products for sale to the Company’s targeted demographic of people. As stated above, customers will be free to enjoy tobacco products directly at the location.  The Company will also maintain an expansive online sales platform to make sales of cigar products (where online sales of tobacco products are permitted).

The Cigar Bar will feature approximately 1,500 square feet of space. The facility will have a full bar that will serve spirits, wine, and beer.

The Company will also enact strict policies regarding underage drinking, and the business will comply with all state regulations regarding the sale of alcohol to the general public. Mr. Doe is currently in the process of obtaining the liquor license for the Cigar Bar.

The third section of the business plan will further describe the services offered by the Cigar Bar.

1.2 Financing

Mr. Doe is seeking to raise $115,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 7 year loan with a 6% fixed interest rate. The financing will be used for the following:

• Development of the Company’s Cigar Bar location.
• Financing for the first six months of operation.
• Capital to purchase inventories of cigars and accessories.

Mr. Doe will contribute $20,000 to the venture.

1.3 Mission Statement

Cigar Bar’s mission is to become the recognized leader in its targeted market for providing an extensive line of domestic and imported cigars.

1.4 Management Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the bar and nighttime entertainment industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Cigar Bar, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Cigar Bar requires $115,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Cigar Bar, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Cigar Bar. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Operations

Below is a description of the products offered by the Cigar Bar:

3.1 Sales of Cigars and Accessories

As stated in the executive summary, the Company intends to acquire a substantial amount of retail sale of cigars and related accessories which it will sell through its retail store and online sales platform. Management expects that the business will generate gross margins of 80% on each item sold by the Company.

One of the primary differentiating factors for the business will come from the fact that the Cigar Bar will allow customers to enjoy tobacco products directly at the location. The business will seek to obtain a liquor license (see below) so that customers can enjoy alcoholic beverages while smoking cigars at the facility.

3.2 Alcohol Sales

The Cigar Bar will offer a wide variety of liquors and alcoholic beverages that are available on the menu. The lounge will maintain a full bar including liquors, spirits, several vintages and types of wine, as well as an extensive number of bottled and draught beers.

At all times, the Cigar Bar will comply with all state and municipal regulations regarding the sale of alcohol. For each patron, a valid ID will be required to ensure that the patron is 21 or older. For very busy evenings, Mr. Doe will hire a part time door bouncer to check identifications as customers enter the bar. Additionally, Management will keep all liquor licenses up to date, and will file the appropriate documentation and fees on a quarterly basis.

3.3 Online Sales of Products

In addition to the retail facility, Management intends to develop an online platform which would allow the business to aggressively sell its products on the Internet. As many people now use the internet to purchase specialized tobacco goods, Mr. Doe sees a significant opportunity to develop a secondary sales channel that is not overly expensive to maintain. Once the retail operations of the business are functional, Management will hire a web development firm to develop the online ordering platform.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the cigar bar/lounge industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic climate is uncertain. The pandemic stemming from COVID-19 has created a substantial amount of turmoil within the capital markets. It is expected that a prolonged economic recession will occur given that numerous businesses are being forced to remain closed for an indefinite period of time (while concurrently having their respective employees remain at home). It should be noted that central banks around the world have taken aggressive steps in order to ensure the free flow of capital into financial institutions. This is expected to greatly blunt the economic issues that will arise from this public health matter.

However, the current economic climate should have a minimal impact on the Company’s ability to generate revenues. As the economy is reopening, more people are eager to resume their normal lifestyles (including going to venues such as cigar bars). This will further ensure that the business will operate profitably and with a positive cash flow at all times.

4.2 Industry Analysis

Tobacco Sales

The aggregate sale of cigars in the United States is a $2 billion a year business. As of the last economic census, the industry employed more than 18,000 people working among 2,000 retail establishments.

This is a mature industry, and the excepted future growth rate of the industry will remain in lockstep with that of the general economy.

Alcohol Sales

There is a plethora of bars and drinking establishments in the United States. A U.S. Economic census report indicates that there are over 60,000 individual establishments in the country. This number is expected to continue as bars (including cigar lounges) remain a popular form of entertainment among people under forty. Each year the industry generates more than $24 billion dollars of revenue. The industry also employs more than 360,000 people nationwide.

4.3 Customer Profile

The Cigar Bar’s average client will be a middle to upper middle class person living in the Company’s target market. Common traits among clients will include:

• Annual household income exceeding $50,000
• Lives or works no more than 15 miles from the Company’s location.
• Will spend $25 per visit to the Cigar Bar
• Ages 25 to 45

Target Market Size

• 2 Miles (Red) – 30,000 People
• 5 Miles (Blue) – 100,000 People
• 10 Miles (Green) – 325,000 People

4.4 Competition

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Cigar Bar intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the business.

5.1 Marketing Objectives

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Maintain an expansive presence via social media platforms including the potential use of social media influencers to boost the visibility of the Cigar Bar.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.

5.2 Sales Overview

5.3 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow the Cigar Bar to easily target people within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet.

In addition to the high visibility location, the Company will also use direct mail, flyers, and other forms of local advertisement to promote traffic to the Cigar Bar. During the one month grand opening period, the Company will offer extended “happy hours”, discounts on tobacco products/drinks, and other promotions that will draw patrons to the location. Management feels that this will solidify a repeat customer base that will regularly frequent Cigar Bar.

The business will also use an expansive online marketing strategy in order to further drive traffic to the location while also making the general public aware of the Company’s cigar bar and lounge. The business will develop an expansive website that showcases the operations of the business, the cigar inventories, the drink menu, pricing information, and contact information. The website will be mobile friendly and search engine optimized. The website will be ecommerce enabled so that people from anywhere in the country can purchase cigars (where permitted).  

Beyond the Company’s proprietary website, Cigar Bar, Inc. will maintain profiles on popular social media platforms including Facebook, Twitter, Instagram, and YouTube. The Company’s website will feature links to all social media platforms. Beyond social media sites, the business will also have profiles on Yelp.com.

Most importantly, Management expects that the business will benefit greatly from the positive reviews that will be on these sites from customers (which will further boost the Cigar Bar brand while concurrently contributing a substantial benefit for the Company’s search engine optimization strategies).

Moving forward, the business may seek to further promote Cigar Bar, Inc. by hiring a social media influencer that lives within 20 miles of the Company’s location. This individual (with a major online following) would have their experience at the location filmed, and they will distribute it through their respective social media channels. This can be a very high impact method of increasing awareness of the Cigar Bar brand.

5.4 Pricing

For cigar and tobacco products, each unit is expected to have a sales price of $5 to $20 (with gross profits of 80%). For alcoholic beverage sales, Management anticipates gross margins of 85% (with an average price of $7 per beverage).

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Personnel Budget

7.0 Financial Plan

7.1 Underlying Assumptions

The Company has based its proforma financial statements on the following:

• The Cigar Bar will have an annual revenue growth rate of 8% per year.
• The Owner will acquire $115,000 of debt funds to develop the business.
• The loan will have a 7 year term with a 6% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. Cigars are non-essential items, and as such, customers will have less discretionary income to purchase these goods in an economic recession. However, the high gross margins generated from sales (both retail and online) will ensure that the Cigar Bar can remain profitable and cash flow positive in any economic climate.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statement

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 Breakeven Analysis

7.9 Business Ratios

SWOT Analysis

• Many tobacco and alcohol products available through one business.
• Efficient back office support for managing the expansive inventory of Cigar Bar, Inc.
• High gross margins on all sales made through the Company’s location.
• Low set up costs for new product lines.
• The ability to offer customers the ability to enjoy their tobacco products at the Company’s location in a lounge atmosphere.
• Motivated and experienced Founder/CEO, John Doe.
• Adverse market conditions can impact revenue.
• Transportation costs can suddenly increase (limited risk).
• Several competitors operating in targeted New York metropolitan area markets.
• Moderate barriers to entry.

Opportunities

• Expansion into several facets of the nighttime entertainment and tobacco retailing industry.
• Development of multiple retail locations throughout greater New York metropolitan area.
• Develop expanded relationships with tobacco and alcohol wholesalers. 
• Decreases in the general output of the economy can impact the business’s ability to generate sales.

Petersburg Biz Buzz: Restaurant, cigar lounge, plus size boutique, academy for children

'i came from nothing, and all of my life, it has been a goal of mine to contribute, help and assist others. i wasn't born with a gold spoon in my mouth' — faris al-sanabani.

PETERSBURG — The new venue Griffin Lounge and Restaurant will open soon in the former Trailways Bus Station. Griffin Estate LLC purchased the historic landmark built in 1946 from the city of Petersburg in August 2019 for $135,000. The building is an example of Streamlined Moderne design, which is an offshoot of Art Deco design. The developer has faith it will become a destination for food, shopping, networking, fun, cigars and fellowship.

"Everything is moving right along for our restaurant and cigar lounge. We've submitted the drawing for the sprinkler system for the kitchen. After it's been approved, installed and inspected, we're ready to go," Faris Al-Sanabani, Griffin Lounge and Restaurant owner, said. "We're hoping to be open by early May."

Al-Sanabani and his new crew plan to host community events. Local vendors will have an opportunity to set up in the parking lot to sell their wares or provide information about their business or organization. They will open up opportunities for community engagement.

A sweet, little, old lady who makes delicious, chocolate cakes with a secret recipe would be a perfect vendor, according to Al-Sanabani. He also would like to see a nonprofit organization participate who collects prom dresses to provide to girls who can't afford to buy one.

"It is part of my mission to empower the city and the people through our progress and our success," Al-Sanabani shared. "I came from nothing, and all of my life, it has been a goal of mine to contribute, help and assist others. I wasn't born with a gold spoon in my mouth. I had to walk barefoot to school for hours and days. Community outreach is very important to me."

Griffin Lounge and Restaurant: What's on the menu?

"We usually go by what the people want," Al-Sanabani said. "From experience, I find that, depending on the area, people tend to enjoy different food. Our cook will test to see what they like. We will definitely have burgers and fried chicken. We'll try steak and seafood to see if diners are interested in that. We're not a big chain so we're flexible. We'll move toward whatever our clients and customers enjoy."

Al-Sanabani is confident Griffin Lounge and Restaurant will become a brunch destination. Diners may sit outside and listen to music while vendors sell art or share positive messages with the community.

"Our brunches on Friday, Saturday and Sunday will be a big deal for sure," Al-Sanabani said.

Al-Sanabani has owned and operated Griffin Cigar in Richmond for a decade. It will remain open, but, according to him, it does not have the beauty and history that the Petersburg location does. He can't wait for the community to see the amount of work accomplished to preserve it the same way that it was built in the '40s.

The former bus station was desegregated in August of 1960 following a series of sit-ins held by local civil rights leader Wyatt Tee Walker, the former chief-of-staff to Dr. Martin Luther King Jr. At 108 E. Washington St. in Petersburg, Griffin Lounge and Restaurant will be a future destination for all individuals looking to have conversation, a business meeting over a cigar, or to break bread together in a premium environment.

Petersburg: Readers 2 Leaders Academy

Readers 2 Leaders Academy in Petersburg opened on January 8. Poria Burleigh Nzoko's new biz offers daytime early education, nighttime care for children of parents who work overnight, and infant care. The inspiration to open Readers 2 Leaders Academy stemmed from Nzoko's passion for nurturing and empowering young minds, and by the joy and wonder that children bring to every moment.

"Witnessing the pivotal role that quality early education plays in shaping a child's future, I wanted to create a safe space where children could thrive in social, emotional and creative development," Nzoko said.

Readers 2 Leaders Academy is dedicated to fostering a love for learning, nurturing curiosity and instilling lifelong skills for success.

A proud resident of Petersburg, Nzoko graduated from Virginia Commonwealth University with a BA in Theatre and a BS in Psychology. She is a mother to a genius seven-year-old. In her spare time, she loves to read, write, go to the theatre, travel and spend time with family and friends. She has a big personality and loves to meet new people.

"I love to learn new things from art to cultures to skills," Nzoko said. She is committed to making a positive impact on the lives of children and families in the community for today’s readers and tomorrow’s leaders.

Readers 2 Leaders Academy is open Sunday from 9 p.m. - 12 a.m., 24 hours on Monday-Thursday and on Friday from 9 p.m.-6 a.m. Women-owned, Minority-owned, LGBTQ+ owned, Black-owned, Readers 2 Leaders Academy is located at 603 S. Sycamore St. in Petersburg. Visit r2la.org for more information.

Petersburg: Beauti Curve Boutique

Prince George resident Neshanta Harris, Beauti Curve Boutique owner, opened a storefront in Petersburg in January. Her biz specializes in plus size women and men apparel in sizes ranging from large through 4X.

"We offer plus size women clothing and accessories, men clothing and accessories, designer bags and accessories, select children apparel and now plus size wedding gowns," Harris said. "We have a great employee that is always available to assist you. J’Mai is a wonderful asset of Beauti Curve Boutique."

Harris was inspired to operate her boutique by her late sister Virgie Taylor Williams who died in 2019 from cancer.

"I have always loved fashion and became a fashionista. I understand the hardships of finding trendy yet stylish clothing because I was a curvy woman. I want to give plus size women and curvy women a place where they can feel confident and dress classy. At Beauti Curve Boutique, we don’t follow trends, we’re building them," Harris said.

Harris, a Surry County native, loves Petersburg and worships at New Divine Worship Center. The mother to three adults and grandmother to one boy was persuaded to be a part of this historic area of Petersburg because she loves the area and knows that her business will be a great aspect of what the community needs.

"I started Beauti Curve Boutique in 2019 by selling clothing to customers from the trunk of my car. I have been a stylish coach for many women and veteran customers over the years," Harris shared.

The brand Harris built was sold in more than 21 states last year, and she is confident that number will increase. She aims to keep inspiring women to embrace their inner strength and find confidence in their life. She makes it her mission to always make sure to have a lasting relationship with each of her customers.

Beauti Curve Boutique located at 849 S. Sycamore Street in Suite D is open Monday-Friday 10 a.m. - 6 p.m. and Saturday 10 a.m. - 5 p.m. Follow on Instagram @beauti_curve_boutique and Facebook at Beauti Curve Boutique.

Mad Italian fans mourn great loss Petersburg icon dies: Chris Skordas served food, kindness to friends, family for 49 years

'Virginia is for Lovers' Dinwiddie: 'Light the Community' held in elegant barn raises $130K for families in need

Kristi K. Higgins aka The Social Butterfly, an award-winning columnist, is the trending topics and food Q&A reporter at The Progress-Index voted the 2022 Tri-Cities Best of the Best Social Media Personality. Have a news tip on local trends or businesses? Contact Kristi (she, her) at [email protected], follow  @KHiggins_PI  on X and @socialbutterflykristi  on Instagram.  

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Corona Cigar Company

Review Highlights

“ If you want to dress in flip flops, T-shirts and ball caps for a night out, there's plenty of other places to go, but stay away from here. ” in 2 reviews

“ Moved from Tampa a few years ago and I've been waiting for a spot like this. ” in 2 reviews

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22 N Lemon Ave

Sarasota, FL 34236

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Todd L. said "Gotta say, I wanted to not like this place, but don't let the thought of middle aged men in khaki sansabelts stop you from coming here. I'm glad I didn't. We stopped here for a mid-afternoon snack and cocktail on the second floor…" read more

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Rich B. said "Tried this place after reading reviews on Yelp. Our experience from start to finish was 5 stars. Great service and even better food . We had appetizers and all tried a different meal . All 4 of us walked away saying best meal we…" read more

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About the Business

Enjoy 'The Ultimate Cigar Experience'! We have over 2 million cigars to choose from and the best selection of premium spirits …

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• 1 star rating Not good
• 2 star rating Could’ve been better
• 3 star rating OK
• 4 star rating Good
• 5 star rating Great

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Overall rating

Nice place Excellent cigar selection Good drinks. Friendly staff Conveniently located in downtown Sarasota

This place is first class. Great selection Awesome bar Knowledgeable staff A must for cigars enthusiasts

Beautiful spot to relax and have a cigar and a drink. The place is beautiful with seating inside and out. The staff is extremely helpful with picking out that perfect smoke

Downstairs Bar

Awesome Gem in downtown SRQ. My buddies & I go most every Sunday night. Great way to end a week...& start a new one. Wonderful cigar & libation selection. Attentive staff. Glad they changed music genres from Latin to adult contemporary. Here's long white ashes to all...

Wow visit, great selection and very nice location. I'll be back! I took about six of my friends last time I visited and we had great service, fine cigars, and plenty of libations to choose from.

I work a few blocks away and was so excited for its opening. Walking in the door you're greeted by a friendly staff and a beautiful use of natural light, comfortable leather chairs in an array of settings, TVs are all around and a HUGE wall of spirits behind a spectacular bar. Behind the greeting desk is four aisles of most all of the cigars I enjoy m, as well as new adventures to try. After reading complaints of dress code after 6pm. I made it a point to tell them to please keep it. If you want to dress in flip flops, T-shirts and ball caps for a night out, there's plenty of other places to go, but stay away from here. People are part of the atmosphere and can add or subtract from your overall experience. Personally, I love the dress code. There's only a snack menu, so don't plan on eating a meal, but the charcuterie board was elegantly done and enough for the four of us to snack.(sorry, no photo this time in)

Went for a cigar and cocktail to watch football. Nice clean ambience. Joseph greeted me and helped me find my cigar of choice. Bar service was good/efficient. I was wearing shorts and a polo shirt with no problems. I would go back next time I'm in town.

Terrible, we had a huge group to go and socialize this evening and one of us was kicked out for wearing jeans. However, shorts are allowed . makes no sense. Terrible management.

Great cigars and friendly staff. If you love cigars, good atmosphere and a wide selection of Bourbon I recommend trying one of their many locations for a solo afternoon or with a group of friends, it's a fun experience!

Ive been waiting for this place to open for years and it was worth the wait. Usually I go to the Tampa location and have nothing but good to say about it. Sarasota Corona carries on in the same tradition. Excellent selection of smokes, great seating and huge choice of drinks are nothing compared to the friendliness of the staff. The owner was there and was very respectful and welcoming. I've got nothing but good to say about this place and the people. Oh and I wore jeans... not sure what is up with a few of these bad review here but I'm glad I didn't take them seriously before going. Will be making a weekly stop of it here, thank you!

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Julio S. said "Went to twin peaks on Tuesday night with a few friends and we had the pleasure of being assisted by Talía. Please talk to the manager to give girls like her more tables during her shift to make more money. Please fix the greeting…" read more

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