Launching a Private Members Club: Cut Startup Costs! đź’°

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Private member clubs have seen an increase in popularity in recent years. According to a survey released by the Association of Private Clubs, the number of private clubs in the United States and Canada has increased by 20% in the last decade! From upscale bars to golf courses, the private members club has become an increasingly popular way for people to connect and have fun. But starting a private members club can be a daunting task. That’s why we’re here to help. In this blog post, we’ll cover some of the most important considerations—obtaining licenses and permits— investing in necessary equipment —when starting a private members club.

start-up costs

The cost of starting a private members club can range from a few thousand dollars to hundreds of thousands depending on the scale and amenities of the venue.

The following is a list of average costs for starting a private members club:

Article Cost (USD)
Lease of property / location ,000 – ,000 per month
Licenses and permits 0 – ,000
Interior decoration and furniture ,000 – ,000
Membership management platform – 0 per month
Security and surveillance systems ,000 – ,000
Personnel management systems – 0 per month
social media management software – 0 per month
Audiovisual equipment 0 – ,000
Marketing and Advertising 0 – ,000 or more
Total ,080 – 4,700

All of these do not include the cost of general supplies, service charges and utilities which may include electricity, air conditioning and janitorial services. To get an accurate cost estimate, it is best to consult a local industry expert or accountant.

Lease of property / location

One of the biggest costs associated with starting a private members club is renting space for the club. The amount of renting a space costs depends on the location, size and amenities of the space. It’s best to speak to commercial real estate agents in the area to find the best space for your needs and determine the associated costs.

In general, the average cost of a commercial lease is .50 per square foot . However, this rate can vary widely depending on the city. For example, In New York, the average cost of a commercial lease ranged from to per square foot in 2019 . Other areas may have more affordable rates like in San Francisco, where the average rate was .16 per square foot .

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In addition to the monthly cost of a commercial lease, there are usually other associated costs. Many landlords will require tenants to pay their proportionate share of operating and other expenses such as security, taxes, insurance premiums and utilities. These operational and other expenses are typically allocated to tenants through a process called “common space maintenance” (CAMS). It is important to consider all of these costs when budgeting for a space to start a private members club.

Additionally, some landlords require a security deposit in addition to rent, which is used to protect against potential damage to the space and unpaid rent, and this deposit is applied to last month’s rent if all other terms of the lease are respected when the tenant leaves the property. The size of the security deposit varies but is usually equal to two months rent .

Licenses and permits

Opening a private members club will invariably require a number of licenses and permits from several government agencies. Depending on the location and nature of the club, this could include federal, state, and local licenses and permits. Depending on the type of businesses the club provides for its members, more licenses and permits may be required. Depending on the type of services offered by the club, businesses such as restaurants, bars or entertainment venues, additional licenses may be required for these activities.

The costs associated with obtaining licenses and permits to open a private members club will vary depending on the type of business and the city or county in which it is located. Generally speaking, business license fees can range from around 0 to upwards of 0. Businesses may also need to obtain a special license from the state liquor control board, which will usually cost around 0. Depending on the location of the club, the business may need to obtain some form of liability insurance. The average cost of liability insurance for a private members club is around ,000 to ,000 per year.

In addition to the cost of licenses and permits, businesses must also consider potential costs associated with zoning regulations. When forming a membership club, most business owners probably need a conditional use license. These permits cover all commercial activities and establishments that require specific approval from the local Planning Commission. The cost of the Conditional Use Permit will vary greatly depending on location and zoning district. On average, conditional use licenses cost over ,000.

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Interior decoration and furniture

When starting a private members club, interior decor and furniture cost are an important part of the budget. Depending on club size and reach, can be extended. According to the latest statistical information in USD, a high-end salon and bar can spend an average of ,000-,000 on interior furniture and decor. Depending on the quality and type of furniture desired and the size of the area, costs can increase significantly to over ,000. This does not include the cost of outdoor furniture, if any.

Quality furniture, flooring and decor are expensive. Other items that need to be added to the list are:

  • tables : Depending on the number of guests, tables can vary between 0 and ,000 per table.
  • Chairs : Good quality chairs can range between and 0 per chair.
  • Bars : Bars can cost around ,000 to ,000 depending on size, material, and structure.
  • Lighting : Chandeliers, light fixtures and accent lighting can range between 0 and ,000.
  • Wall art : A beautiful piece of contemporary art can cost anywhere from 0 to ,000 per piece.
  • Floors : Floors can range from to per square foot for hardwood or stone tile.

Although interior design and furniture costs can be high, they have the potential to attract and retain members. Investing in good quality furniture and decor can boost the aesthetics and overall comfort of the club. Quality furniture, art and lighting can make a club more welcoming and inspiring for its members.

Membership management platform

A Membership Management Platform (MMP) is an essential part of any private members club offering. It sets the rules of who is allowed to join and who can access club amenities. The MMP provides the digital infrastructure that makes the club profitable, secure and attractive to potential members.

Cost overview
The exact cost of launching an MMP largely depends on the features and customization required from the club. Generally speaking, a basic feature set and functionality of MMP usually ranges from ,000 to ,000 with some vendors charging prices up to ,000 for a premium solution with full customization.

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The annual cost for maintaining the MMP ranges from approximately ,500 to ,500 per year, depending on the number of members, complexity of services, and additional features.

Ongoing costs
In addition to the initial setup and annual MMP costs, clubs should consider the cost of managing their membership. This can be done manually or by using third-party software. A software solution, such as a digital membership management platform, can provide a club with stability and cost savings, allowing them to quickly respond to inquiries and requests, manage wait lists, and track payments.

The cost of manual management, with administrative staff and resources dedicated to membership management, varies depending on the size of the club and the needs of the facility, but the total cost can quickly run into the thousands of dollars. , both in configuration and in progress.

Of course, it’s important to understand that the cost of a membership management platform is a one-time investment, with potential long-term returns. By using an MMP, clubs can reduce administrative costs, improve efficiency and scale their operations, creating a more dynamic and successful membership.

Security and surveillance systems

The cost of implementing a security and surveillance system can vary greatly depending on the functionality desired. The cost usually involves the purchase and maintenance of hardware such as cameras, computers and other associated equipment. The overall cost of this system can range from ,000 to over ,000.

Hardware costs : Cameras, for example, can range from 0 for a basic unit to several thousand for a professional-grade model. A CCTV system (closed circuit television) can run from ,000 to ,000 and that does not include installation costs.

Software costs : Software and maintenance costs can range from a few hundred dollars to several thousand dollars per year. This includes the cost of the software and its installation.

Training and support : Staff members must be trained in the use of this system and there may be additional costs for ongoing training and support. It can range from a few hundred dollars to over a thousand dollars a year.

Statistical information in USD : According to the US Department of Justice, the average cost of a security and surveillance system can range from ,000 to ,000. The National Institute of Standards and Technology reports that the cost of all the components needed for a system can total ,000 to ,000,000 or more. The Federal Communications Commission estimates that the average cost for a medium-sized system can be around ,000 to ,000.

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Personnel management systems

When considering the costs associated with opening a private members club, it is important to consider the costs of the personnel management system. According to recent statistics, the average cost of a personnel management system ranges from ,000 to ,000. Depending on the size and complexity of the private members club, you may need to implement a more expensive system.

When selecting a staff management system for your private members club, you’ll want to make sure the system can meet all the needs and requirements you have for your business. This includes features such as tracking employees or members, managing calendars, communicating staff or members, managing payroll and invoicing and, if necessary, setting up access control to doors.

An important factor to consider when looking for a staff management system is that the system should be easily customized and tailored to the specific needs of your private members club. If a personnel management system isn’t flexible and can’t be adapted, it can end up costing you more money in the long run.

In addition to the cost of the actual software, you will also need to budget for additional costs such as installation and training, customization, and technical or technical support after system implementation. Be sure to consider these additional costs as well as the cost of the actual system before making a final decision.

social media management software

Opening a private members club can be a great way to generate revenue and build a loyal customer base. But how much does it cost to start or launch such a club? There are several different factors to consider, from the initial costs of building or renovating the physical space, to long-term costs like marketing and advertising. Another important factor is the cost of social media management software.

Social media management software is used to create, manage and measure online presence. It includes tools for scheduling, automating, and analyzing posts, followers, trends, and more. It can be used to track influencers or monitor customer engagement on social media. According to Statista , the 2020 average market price of social media management software was .42 per user per month.

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In addition to monthly user fees, there are usually one-time setup costs that vary depending on the features you need and the scope of your project. There may also be additional fees charged for support, training, and additional features such as enhanced analytics or custom integration with other software. It is important to do your research and get quotes from different suppliers to find the best fit for your club.

The cost of social media management software can be a significant part of any private membership club’s budget. The investment can be worth it, as social media can be a powerful tool for keeping customers engaged and boosting brand visibility. Good social media management software can help you maximize the impact of your online presence and make sure everything is running smoothly.

Audiovisual equipment

When opening or launching a private members club, audio/visual equipment is a necessary cost to ensure your club meets your members’ standards and remains competitive. This can include displays, sound systems, sound processors, amplifiers and speakers, as well as projectors and other hardware.

Statistically speaking, the majority of club owners spend between ,000-,000 on audio/visual equipment. Depending on the size and scale of your private members club, the exact costs may vary. A smaller scale club may only require some basic equipment, while a more ambitious club may need to invest in more advanced and expensive equipment.

In addition to the initial equipment costs, member club owners should also consider the costs associated with ongoing maintenance and replacement. Audio/visual equipment can be subject to wear and tear, and as technology changes, existing equipment may need to be replaced or upgraded. In order to keep up with the latest technology and ensure your membership club remains competitive, membership club owners should factor in a budget for the regular maintenance and replacement of audio/visual equipment.

When budgeting for audio/visual equipment, it is important to consider the cost of installation, training, and repair services, as well as any warranties or warranties that may be available. Professional installation and extensive training can be critical to the success of a private members club, so researching these services in advance can help determine overall member club equipment costs. in audio/visual equipment.

Marketing and Advertising

Marketing and advertising are key to the success of a private members club. Without them, it is difficult to generate visibility and interest from potential members, and growth can be very limited.

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According to statistics from Statista, the average cost of advertising in 2019 was .64 billion in the United States alone. This was a 9.5% increase in spend over 2018. The average cost per ad was estimated at .94 .

When it comes to creating a marketing and advertising budget for your private members club, consider the following:

  • Paid search and online advertising: Paid search and online advertising, including Google ads and social media ads, can help generate buzz and attention for your club in a very cost effective way. It’s important to think about your budget, like setting a daily or monthly spending limit.
  • Traditional Advertising: Traditional advertising such as television, radio and print advertising involves higher upfront costs and creative fees. However, it can be very effective for large campaigns.
  • Content Marketing: Content marketing is an effective way to generate interest in your private members club with well-written articles, blog posts, and videos. It can also be profitable and is often cheaper than paid advertising.
  • Public Relations: Public relations involves building relationships with the media and creating press releases, which can be a powerful form of marketing. It is important to strike the right balance of costs and expected results when engaging a public relations firm.

Overall, marketing and advertising costs can vary depending on the methods chosen. If you need help deciding which approach is best for your private members club, consider consulting a professional who specializes in marketing and advertising.


Starting a private members club is a big undertaking, but can be made easier with the right planning. From obtaining licenses and permits to investing in security, interior design, and audio/visual equipment, proper preparation and budgeting are essential for a successful club launch. Choosing the right property and negotiating a good lease makes all the difference, as does creating a membership management platform and other software to use to run the club.

With the right resources, a lot of determination and creativity, opening a private members club can be a rewarding experience. Investing in the necessary equipment, licenses and permits, as well as setting up a membership platform, can help make your private members club a successful business.