If you can reach the industry average of $650,000 in your second year, you’d take in a tidy profit of more than $160,000. Assuming the industry average 25% profit margin, you’d make more than $80,000 in profit. If you open a standard karaoke bar, you might be able to make half the industry’s annual average revenue in your first year of operation. According to IBISWorld, there are 1,540 registered karaoke bars in the United States, generating $1 billion in annual revenue, which translates to $650,000 per business. The amount of money you can generate with a karaoke entertainment business depends on the type of karaoke business you’re operating, target customers, products, and services. How much can you earn from a karaoke business? Other than commercial space, most costs go toward buying equipment and marketing, as broken down below: Start-up CostsĬompany incorporation, licenses, and permitsīar renovation, furniture, decor, crockery, and utensils You’ll likely need the following equipment to get your karaoke business off the ground: Creating a delightful karaoke experience can be difficult without the right equipment. The core of any karaoke service is equipment.

Starting a karaoke business can cost anywhere from $4,000 to $40,000, with an average of about $22,000.

How much does it cost to start a karaoke business? Number of people employed – The industry employs more than 14,000 people.Number of businesses – There are around 1,500 karaoke businesses in the US.Growth forecast – Industry analyst Market Research Future expects the global karaoke industry to see steady 2% annual growth through 2030.Industry size and past growth – Research firm Statista values the US karaoke bar industry at nearly $1.1 billion in 2021.Hope is growing that the sector will recover as the economy starts to open up and bars and clubs gear up to bring customers back, while more and more people welcome big groups of friends and loved ones into their homes again.

Damaged equipment can be expensive to repairĪfter a sharp pandemic-driven downturn in 2020, market analyst IBISWorld expects increased consumer spending to return the US karaoke industry almost all the way back to pre-pandemic levels by the end of 2021.

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