STUDIO NOIR · Startup Budget
Phase 1. $84,000 cash equity from Taj plus a Chase business credit facility (~$75,000 undrawn at open) as a buildout bridge and emergency reserve. No landlord TI is assumed. Equipment lease (~$11,000) covers assets that walk out at lease end.
Base-case planned spend at open: ~$95,000 ($84K cash + $11K equipment lease principal). Credit facility undrawn.
Full capital structure (equity + credit facility + equipment lease + upside from any TI we negotiate) lives in [[capital-stack]].
If a line goes over, another line has to give, OR we tap the Chase LoC and repay from operating revenue. The reserve stays untouchable.
The five cash buckets
| Bucket | Amount | What it buys |
|---|---|---|
| 1. Legal, insurance, trademarks, software setup | $5,000 | Getting the business legally born and running |
| 2. Lease deposit + first and last month rent | $12,000 | Doors we’re going to open (rent ~$4,000/mo all-in without TI amortization) |
| 3. Cash buildout | $30,000 | Full buildout scope, since no landlord TI is assumed |
| 4. Signage + soft-launch marketing | $5,000 | People knowing we exist by opening day |
| 5. Cash reserve (~4.5 months of fixed opex) | $32,000 | Not going bankrupt before members ramp |
| Total cash from Taj | $84,000 |
Plus asset-backed equipment lease: ~$11,000 principal at $400/mo for 36 months (poles, sound, lighting).
Plus available credit facility for overruns / bridge: ~$75,000 (Chase Ink Business Preferred + Chase Business Line of Credit). Undrawn at plan.
Total available at open: ~$170,000. Base-case planned spend: ~$95,000.
Bucket 1: Legal, insurance, trademarks, software setup ($5,000)
| Line | Cost | Notes |
|---|---|---|
| NC LLC filings (OpCo + IP LLC) | $250 | State filing fees. $125 each. |
| Attorney: entity formation + operating agreement | $1,200 | Smith Anderson, Wyrick Robbins, or similar Raleigh mid-market firm. |
| Attorney: lease review before signing | $1,500 | Must include pole rigging language + landlord approval clause. Do not skip. |
| Trademark filing: STUDIO NOIR (2 classes, US) | $1,300 | $800 USPTO filing + $500 attorney flat fee. |
| Booking software setup fee | $500 | Mariana Tek one-time onboarding. |
| Payment processor setup | $250 | Stripe or Square. |
| Subtotal | $5,000 |
Deferred to month 6 (paid from operating cash): - THE NOIR INVITATIONAL trademark filing (~$900). Not urgent Phase 1 since we are not producing the event yet. - Insurance annual premium (paid monthly from operating cash, roughly $550/mo).
Bucket 2: Lease deposit + first and last month rent ($12,000)
Assumes new lease rent of approximately $4,000 per month all-in (base rent + common area + tax pass-through, NO TI amortization since we assume no TI) for a 1,500 to 1,800 sqft second-generation retail space in the outer ring of a target neighborhood.
Rent target moves down vs the prior plan because without TI, we bias toward smaller footprint and second-generation retail (already fit for wellness or already partially built out for a similar tenant). This trades some scale for lower monthly rent and less required buildout.
| Line | Cost |
|---|---|
| First month rent | $4,000 |
| Last month rent | $4,000 |
| Security deposit (1 month standard) | $4,000 |
| Subtotal | $12,000 |
If rent runs higher than $4,000/mo all-in without TI: either the space is too big, the neighborhood is too rich, or we walk. Do not stretch on rent when we have no landlord subsidy. If we negotiate any TI at all: that’s upside. Redirect the corresponding buildout cash to reserve (increase Bucket 5) or apply to a lower monthly rent negotiation.
Bucket 3: Cash buildout ($30,000)
Without landlord TI, this bucket doubles from the prior plan (was $15K when we assumed $50K TI). We now fund the full buildout minus what equipment leasing covers.
Strategy: bias toward second-generation retail already partly built. A former Pilates studio, salon, or wellness space that already has usable HVAC, restrooms, and floor prep costs a fraction of a raw shell.
| Line | Cost | Notes |
|---|---|---|
| Sprung floor + marley (partial coverage on main pole floor only) | $6,000 | Pole floor priority. Other zones stay on existing floor if adequate. |
| Mirror wall (one wall only) | $2,500 | Single wall, floor to ceiling, sourced from local glass shop. |
| Reception + concierge desk custom millwork | $3,500 | Signature palette, brand-critical, tenant-owned. |
| Concierge station appointments (prosecco chiller, glassware, tea vessels, florals) | $1,500 | Signature amenities from day 1. |
| Signature scent diffuser + first quarter refills | $800 | Aera unit, brand-critical. |
| Sound treatment (acoustic panels) | $2,000 | Warm room acoustics for pole music. |
| Paint + patch (full studio, brand palette) | $2,000 | Roller-and-brush; Taj + Trill weekend if needed. |
| Restroom refresh (fixtures + paint, not gut) | $2,500 | Two toilets, one vanity, brass hardware. Keep existing plumbing. |
| Furniture: waiting bench, member library chairs, side tables | $2,500 | Custom or vintage, not retail. |
| Custom lighting: pendant over concierge, sconces in vestibule | $1,500 | Warm 2700K, dimmable. |
| Signage: interior wall vinyl + oak-plate brass wordmark for entry + exterior signage | $2,500 | Exterior wordmark + interior brand moments. |
| Buildout contingency | $2,700 | For the surprises. |
| Subtotal | $30,000 |
Equipment-lease-funded (paid $400/mo for 36 months, ~$11,000 principal): 6 pole rigs and rigging ($6K), sound system ($3.5K), moving lighting fixtures ($1.5K). Sourced through Beacon Funding, Ascentium, or Balboa Capital.
If a landlord DOES offer TI: every dollar of TI reduces this bucket dollar-for-dollar or funds a scope upgrade (e.g. full mirror wall, real HVAC upgrade, proper restroom gut). Any TI + our $30K = a materially better buildout than $30K alone. Upside, not baseline.
Rule: we do not upgrade the buildout scope on the promise of TI. Signed TI in a lease amendment is real; verbal commitments are not.
Bucket 4: Signage + soft-launch marketing ($5,000)
Purpose: 200+ waitlist names before we open, 25 to 30 warm intents converted at soft open, first 30 paying members active by end of month 3.
| Line | Cost |
|---|---|
| Meta + Instagram + Threads ad spend, 90-day pre-launch | $2,500 |
| Content shoot for launch (Tia + in-house) | $1,000 |
| Waitlist landing page (in-house, cost is domain + hosting for year) | $250 |
| Founding member welcome kit (custom, 30 units, physical mail) | $1,250 |
| Subtotal | $5,000 |
Most of the launch traction comes from Taj’s audience and Tia’s cross-brand posting. Paid spend backstops the organic reach, it does not carry it. See [[persona-tiktok-sahm-plan]].
Bucket 5: Cash reserve ($32,000)
Untouchable. Held in a separate Mercury savings sub-account named “STUDIO NOIR RESERVE — DO NOT TOUCH.” See [[bank-setup-runbook]].
Covers approximately 4.5 months of fixed operating costs while memberships ramp. Reserve is shorter than the prior $44K version because we redirected $12K into buildout to compensate for zero TI, and because the Chase credit facility now backstops overruns.
| Line | Monthly | 4 months | 5 months |
|---|---|---|---|
| Rent (no TI amortization) | $4,000 | $16,000 | $20,000 |
| Insurance | $550 | $2,200 | $2,750 |
| Utilities (power, water, internet) | $450 | $1,800 | $2,250 |
| Booking software subscription | $500 | $2,000 | $2,500 |
| Cleaning service | $400 | $1,600 | $2,000 |
| Signature scent + supplies | $200 | $800 | $1,000 |
| Equipment lease payment | $400 | $1,600 | $2,000 |
| Miscellaneous | $400 | $1,600 | $2,000 |
| Monthly fixed total | $6,900 | $27,600 | $34,500 |
Reserve covers 4.6 months at $6,900/mo of fixed opex. After 4 months, if member revenue is not covering opex:
- First: draw the Chase LoC to buy one additional month of runway (not the reserve).
- Second: hard decision on scope cuts or orderly wind-down.
Fixed opex dropped from $7,900/mo (prior TI-plan) to $6,900/mo (this plan) because rent is $1,000/mo lower without TI amortization. This is the operating benefit of not taking TI: lower monthly rent, tighter break-even.
The whole model assumes we hit 30 members by month 3, 50 by month 6. If we do, member revenue starts covering opex from month 4 onward and the reserve is banked, not drawn.
Non-cash capital (equipment lease + credit facility)
These do not show up in the $84,000 cash budget. Detail in [[capital-stack]].
| Source | Amount | Monthly / Draw-triggered impact |
|---|---|---|
| Equipment lease (poles, sound, lighting) | ~$11,000 principal | +$400/mo for 36 months (fixed) |
| Chase Ink Business Preferred credit card | ~$15,000 to $35,000 limit | Interest only if not paid in full monthly; ~$95/yr fee |
| Chase Business Line of Credit | ~$25,000 to $50,000 limit | Interest only when drawn; Prime + 1.5% to 3% |
| Total non-cash available | ~$50,000 to $95,000 |
Break-even effect: monthly break-even members roughly 35 to 38 on this plan (vs 46 on the prior TI + amortized rent plan). Details rebuilt in [[break-even]].
Any landlord TI we negotiate is pure upside. Every $10K of TI negotiated means either $10K less required from Bucket 3 (freed up for reserve refill or scope upgrade), or a scope upgrade of equivalent value. Not modeled here; documented separately if it happens.
The rules for spending
- The $32K cash reserve is untouchable until member revenue has covered fixed opex for 3 consecutive months.
- Chase LoC is the buildout bridge, not the reserve backup. If we overspend Bucket 3, we draw the LoC and pay it back from operating revenue, not the reserve.
- No new spending category gets added without written Trill + Taj approval. No “small” $500 add-ons.
- Every dollar spent gets categorized in the cash tracker within 48 hours. No mystery spending.
- First Monday of every month: Trill + Taj do a 30-minute cash review. See [[cashflow-forecast]].
- Personal capital backstop is never used unless the Chase LoC is exhausted AND we need one final push to reach cashflow. Not part of the operating plan.
- Retained earnings pay down any drawn credit before any distribution to Taj. Cashflow priority: opex → tax reserve → refill cash reserve if drawn → pay down LoC → pay down Ink card balance → distributions to Taj.
What this budget does not include (and where they come from)
- Taj’s personal salary during ramp. Zero for the first 6 months. Once member revenue covers opex plus $5K/mo, Taj can pull the first distribution.
- Contract instructor pay. Paid per class from operating revenue, not from this $84K. Approximately $60 per class, 12 classes per week = $2,880/mo, funded by member revenue.
- Ongoing marketing beyond soft launch. Once we’re open, ongoing paid ads run at $300 to $500/mo, funded by operating revenue.
- The reserve refill. Once we’ve drawn any reserve, first priority for retained earnings is refilling it before any distributions.
- The credit facility repayment. Any drawn balance on Chase LoC or Ink card gets paid down from retained earnings before distributions.
- Equipment lease payoff at month 36. ~$1,100 buyout or lease renewal, decided at the time based on cash position.
Phase 2 budget (kept for reference, rewritten in 2028)
Phase 2 flagship is a different order of magnitude: $3.5M to $5M all-in. Rebuilt in 2028 against real Phase 1 numbers, real RDU flagship rent quotes, and real capital raise conversations. Notes preserved in [[capital-stack]] for reference; do not treat them as current commitments.