Hookah Lounge

Starting a Hookah Lounge? Here Are Some Handy Tips!

Call it a hookah lounge or a shisha lounge, what it basically refers to is a destination where people use a water pipe to smoke tobacco. The recent years have witnessed a sharp rise in the popularity of hookah lounges not only in the US but all over the globe. Statistics indicate that the global hookah industry is expected to double by 2030. If you’re a hookah enthusiast, or would like to start an enterprise that (literally) mixes business with pleasure, there’s no match to starting a hookah lounge. 

Think about it, what better way to channelize your affinity towards hookah and also rake in all the moolah in the process? However, before firing up the pipes, you should know and understand the processes involved in business launch thoroughly. Here, we have put together a step-by-step guide to put you on the right path that will guide you through the shisha lounge Dubai business as a beginner. 

A. Make up your mind about the business:

you should weigh the pros and cons of the business before taking the plunge. Here some of the pros and cons of this business:


  1. It promises a fun lifestyle as you’ll get to meet many new people who share your passion for hookah. 
  2. It has a growing market that is likely to double in less than a decade. 
  3. It offers additional revenue opportunities as you can also sell food and alcohol, that will help you make more money. 


  1. Some areas in certain countries have either banned or imposed certain restrictions on hookah lounges
  2. The hookah lounge business involves stringent licensing and regulatory requirements. 

B. Hone your Business Idea:

As a next step of establishing your shisha lounge in Dubai, you need to sharpen your concepts in order to foray into a market that is highly competitive. Research the local shisha lounges in Dubai to analyze their products, price points, customer reviews, and so on. You can consider specializing in a niche aspect of the industry, such as herbal shisha or flavored tobacco. This will boost word-of-mouth marketing and attract clients right away. If you have proper licensing, you can serve liquor, and if you have ample space for a kitchen, you can also serve food. 

If you are looking for shisha outsourcing in Dubai, check out Shisha Art. It also offers home delivery services, and a shisha master will demonstrate the whole procedure to you for your better understanding. 

Next, you should check the prices in your area to ensure that you have an edge over your rivals. You should have a profit margin of about 30% after rent, supplies, and overhead. The price you offer at launch may be subject to change if the market demands. It is also important to identify your target audience, which is mostly likely to be a younger crowd, which means you should focus on TikTok and Instagram. 

It goes without saying that you’ll need to choose a place where you can set up the shisha lounge in Dubai. When it comes to selecting the right commercial space, you should settle for a location that is:

  1. Centrally located and easily accessible via public transport
  2. Ample space, ventilation and natural light
  3. Accompanied by a flexible lease with a scope for extension as and when required
  4. It should be a ready-to-use space without needing any major renovations or repairs

C. Brainstorm a Business Name:

Your business identity depends a lot on your business name, so the latter should be a reflection of your objectives, services, and mission, albeit in a crisp and concise manner. The name of your shisha lounge in Dubai should be short that can be easily remembered, as hookah lounges are expected to get considerable business through word of mouth referrals. 

You can take suggestions from friends, family, colleagues, social media, and so on. It has been observed that names that can be easily pronounced and spelt tend to do better. You should also include keywords such as “hookah” or “shisha lounge” to boost the SEO. It is advisable to avoid location-based names that can hinder future expansion. 

D. Create a Business Plan:

The business plan, irrespective of the type of business, acts like a guidebook that streamlines your launch journey and helps you prioritize your key goals. It also facilitates prospective partners and investors to understand your company and its vision better. 

Before opting for shisha outsourcing in Dubai, you should have a business plan in place, which should ideally cover the following aspects: 

  1. Executive summary
  2. Business overview
  3. Product and services
  4. Market analysis
  5. Competitive analysis
  6. Sales & Marketing
  7. Management Team
  8. Operations Plan
  9. Financial Plan
  10. Appendix

E. Register your Business:

This is absolutely crucial since it is a prerequisite for raising capital, paying taxes, opening a bank account, and many other things along the way. You first need to choose the business location as it can have a considerable impact on your taxes, legal requirements, and revenue. 

Most people prefer registering their business in their state, but if you have expansion plans, you can look elsewhere too. The next major step is to choose a legal structure for your business, which plays a critical role in shaping your taxes, business registration requirements, and personal liability. 

The top options include the following:

  1. Sole proprietorship
  2. General proprietorship
  3. Limited Liability Company (LLC)
  4. C Corp
  5. S Corp

LLC is usually recommended for new business owners as it promises liability protection and pass-through taxation. Additionally, it is simpler to form as compared to a corporation. 

F. Registration for taxes:

You’ll need an Employer Identification Number, or EIN, to be able to pay taxes. After you get your EIN, the next step is choosing your tax year. You can consult an accountant or a similar professional to ensure that you’re filing for your taxes correctly. 

G. Fund Your Business:

The next step is centered around securing financing. You can raise capital in the following ways-

  • Bank loans
  • SBA (Small Business Administration)-guaranteed loans
  • Government grants
  • Friends and family
  • Crowdfunding
  • Self-funding

It is usually believed that when it comes to starting a hookah lounge business, bank loans and SBA are the most preferred options besides friends and family. If you can come up with an innovative concept, you can also consider crowdfunding. 

H. Application for Licenses/Permits:

A hookah lounge business involves obtaining several licenses and permits, not only from local and state governments but also from federal governments. Licenses for tobacco and liquor are mandatory (if you’re serving alcohol). The requirements vary depending on multiple factors, so you should explore more on the websites of your state, city, or country governments. It also helps to get in touch with the concerned person/team for more clarity. 

I. Open a Business Account:

It is never a good idea to mix your business finances with your personal account. On the other hand, separating the two not only makes it easier to file taxes and track the income of your company, but you can also get many benefits, as most banks offer accounts tailor-made for businesses. Check with a few banks to explore their rates and features. Once you’ve selected a bank, you need your EIN, articles of incorporation, and other legal documents to open an account. 

J. Get Business Insurance:

Insurance is highly crucial as it safeguards you from unprecedented events that can take a heavy toll on your business. You can consider the following types of insurance:

  • General liability
  • Business property
  • Equipment breakdown insurance
  • Worker’s compensation
  • Property
  • Commercial auto
  • Professional liability
  • Business owner’s policy (BOP)

What’s Stopping You?

With the hookah market taking off like never before, you’re sure to be in the money in no time! As a hookah lover, if you’re keen to share your passion with fellow hookah enthusiasts, there’s no better way than starting a hookah lounge business. Think about how you’re making the evenings of so many people and also making some profits for yourself! With your business knowledge fired up, wait no more and start getting your hookah lounge off the ground!

Master James

Master James, a versatile wordsmith, possesses an unparalleled ability to delve into the depths of the General Niche, exploring a myriad of topics with finesse. His literary prowess extends across the vast tapestry of the USA, crafting engaging narratives that captivate readers from coast to coast. With a keen eye for detail and a passion for knowledge, Master James weaves together insightful perspectives on a broad spectrum of subjects, creating a literary landscape that mirrors the rich diversity of the American experience.

You May Also Like

More From Author

+ There are no comments

Add yours