How to Start a Billiards Hall Business

Start a Billiards Hall Business by following these 10 steps:

1. Plan your Billiards Hall Business
2. Form your Billiards Hall Business into a Legal Entity
3. Register your Billiards Hall Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Billiards Hall Business
6. Get the Necessary Permits & Licenses for your Billiards Hall Business
7. Get Billiards Hall Business Insurance
8. Define your Billiards Hall Business Brand
9. Create your Billiards Hall Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Billiards Hall Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Billiards Hall Business?

A single pool table designed for use in a pool hall costs an average of $3,000 - $4,000. That’s one major reason why starting a pool hall requires significant capital. You need multiple tables, as well as a rental space, a bar, beverage inventory, furniture, and more to serve customers. You can expect to spend $50,000+ to open up your billiard hall business.

What are the ongoing expenses for a Billiards Hall Business?

There are multiple ongoing expenses that you need to prepare for in the billiards business. Table maintenance is a big expense. Pool tables can last 25 years in the right conditions. But in a pool hall setting, you will need to repair/replace felt regularly, and you can expect other parts – like rail rubber and pockets – to require repairs as well. Maintenance costs can be several thousand dollars a year.

Who is the target market?

The target market for billiard halls is typically men who are under the age of 35. There are of course exceptions – and you could always attempt to reach a different market using creative marketing efforts – but generally, younger men are your target market.

How does a Billiards Hall Business make money?

Billiard halls make money from pool table rental fees and alcohol sales. Billiard tables require a large upfront investment, but as long as you have steady patrons, they will generate solid income hour after hour, year after year. Alcohol sales are also an excellent source of income because you can generally mark up your beverages significantly.

How much can you charge customers?

Most billiard halls charge between $10 to $15 an hour for table rentals. The bar section of the business charges the going rate for beverages in the area – although the bar is generally focused on more affordable drinks like beers and basic cocktails instead of high-end drinks.

How much profit can a Billiards Hall Business make?

According to Entrepreneur, a billiard hall with 10 tables could generate as much as $200,000 a year. It will take time to get to that point, though. Much of your first few year’s profits will go towards paying off debt, maintenance, and other costs. Eventually, though, you can expect to earn good money from your billiard hall business.

How can you make your business more profitable?

You can make your business more profitable by attracting more customers. If you operate a clean, comfortable, professionally-managed billiard hall, you can build a good reputation in your area. You may have competitors, but you can often set yourself apart simply by paying careful attention to the quality of the experience you offer customers. If customers know that your tables are always in good condition, your cues are straight, and the customer service is reliable, they will keep coming back for more.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Billiards Hall Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is right for entrepreneurs who love billiards and the nightlife. It’s also a good fit for those that enjoy socializing. Billiards has been around in one form or another since the 15th century, so you will be operating a classic gaming hall combined with a bar – which means you should probably have a passion for both.

What happens during a typical day at a Billiards Hall Business?

Billiard halls are usually open in the late afternoon until midnight or later. Much like other bars, operating a billiard hall requires working late nights. A typical day may start in the late morning, with general cleanup, billiards table maintenance, and replenishing inventory. When you open your doors for business, you will juggle bartending and billiard rental duties. At the end of the night, you will break down the bar, cash out the till, and lock up until the next day’s business begins.

What are some skills and experiences that will help you build a successful Billiards Hall Business?

You don’t have to be an expert pool player to own a successful pool hall – but the more experience with the game you have, the easier it will be to operate your business. If you have experience with billiards, it will be easier to choose the right tables and equipment, answer customer questions, and perform maintenance as needed.

Having bar and/or hospitality experience will also be helpful. Many people assume operating a bar is easy, but it takes hard work and attention to detail to smoothly run this type of business.

What is the growth potential for a Billiards Hall Business?

The market for pool and billiard hall equipment is expected to grow at a CAGR of nearly 3% from 2023-2028. While seemingly not a large growth prospect, market researchers predict a large increase in people's interest in learning, playing, and competing in cue sports activities.