How to Start a Board Game Lounge

Start a board game lounge by following these 10 steps:

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

We have put together this simple guide to starting your board game lounge. 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 board game lounge?

There are some costs that you can expect when you want to start your board game lounge. First, you will need a space for the cafe, which will require a lease. Second, you will have to purchase furniture and games for the lounge. In an effort to keep your starting costs lower and work on familiarizing yourself with the lounge, you can start with a basic setup. 

What are the ongoing expenses for a board game lounge?

The ongoing expenses for a board game lounge are relatively low. You will have to pay utilities, rent, and employees. You may have to replace games or continue to buy new games. 

Who is the target market?

A board game lounge will attract adults and children. However, your target market may be more geared towards families during the day and adults in the evening. 

How does a board game lounge make money?

The basic way you make money with a board game lounge is by charging customers to play games. You can have your customers pay per visit, per game, or per hour. 

How much can you charge customers?

You are not going to be able to charge your customers a high amount for each visit. In the beginning, make sure prices are enticing enough to keep customers coming back.

How much profit can a board game lounge make?

Even though you charge a low rate per visit, you can make a substantial amount of money per year with this business. The more customers you have in your lounge, the more money you make. If you have an incredibly busy lounge, you could make hundreds of thousands of dollars. The average amount you can expect to make is around $100,000 per year. 

How can you make your business more profitable?

There are a number of ways you can make your lounge more profitable. You can have a private room that you rent to customers for private events. Consider creating a league and hosting board game tournaments during the week. In addition, if you have the resources to hire cooks and bartenders, you can add food and drinks to your lounge to boost revenue. If this is not feasible, consider partnering with a local food truck.

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 board game lounge 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?

A board game lounge business is ideal for someone that has a love for entertaining and enjoys board games. You need to have a deep understanding of how to run an establishment and be able to talk with people in order to build a customer base.

What happens during a typical day at a board game lounge?

A typical day in the board game lounge business means there will be a large amount of interaction with customers. First, you will have to welcome customers and recommend games to them. Next, you will have to explain the rules of the lounge and the games. Then, you hand out and collect games from customers. Finally, you will spend a lot of time organizing the games and making sure all the pieces are there, as well as cleaning the lounge. If your establishment serves food and drinks, you will also have to ensure the kitchen or cafe is staffed and well managed.

What are some skills and experiences that will help you build a successful board game lounge?

A board game lounge is a fairly simple business model, so you do not need specific skills or experiences to successfully run this business. However, you should know how to play the games you offer. You will also need some basic business skills such as experience managing a budget, overseeing finances, and working with employees.

What is the growth potential for a board game lounge?

Typically, as the owner of a board game lounge, you will have just one location and focus all of your efforts there. However, you could consider opening several branches to increase your growth potential.