STUDIO NOIR · Startup Budget
Phase 1. $84,000 cash from Taj (launch + reserves), augmented by roughly $50,000 in landlord tenant improvement (TI) allowance and $11,000 in equipment financing.
Effective build pool: ~$145,000 base case. This doc traces every dollar of the $84K cash. Non-cash levers (TI, equipment lease) covered in [[capital-stack]].
If a line goes over, another line has to give. The reserve is 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 | $15,000 | Getting the doors we’re going to open (rent ~$5,000/mo) |
| 3. Cash buildout (portion not covered by TI or equipment lease) | $15,000 | Finishing touches, custom millwork, brand-critical spend |
| 4. Signage + soft-launch marketing | $5,000 | People knowing we exist by opening day |
| 5. Cash reserve (~5 months of new fixed opex) | $44,000 | Not going bankrupt before members ramp |
| Total cash | $84,000 |
Plus non-cash buildout capital: ~$50,000 landlord TI + ~$11,000 equipment lease = ~$61,000 paid for outside of Taj’s cash.
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 + TI language review before signing | $1,500 | Must include pole rigging language + TI amortization terms. 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 ($15,000)
Assumes new lease rent of approximately $5,000 per month all-in (base rent + common area + tax pass-through + ~$1,000 TI amortization) for an 1,800 to 2,000 sqft South End, Camp North End, or Optimist Park space.
| Line | Cost |
|---|---|
| First month rent | $5,000 |
| Last month rent | $5,000 |
| Security deposit (1 month standard) | $5,000 |
| Subtotal | $15,000 |
If rent runs higher than $5,000/mo all-in: either the TI ask is too aggressive (renegotiate) or the space is too big (walk). If landlord requires more than 1 month security deposit: negotiate. If they will not budge and the TI package is otherwise strong, we accept up to 2 months and adjust reserve down accordingly.
Bucket 3: Cash buildout ($15,000)
Landlord TI covers most of the buildout: sprung floor + marley, mirror wall, HVAC upgrade, restroom refresh, paint, signage, base electrical. Equipment lease covers poles, sound, lighting fixtures. What is left for cash:
| Line | Cost | Notes |
|---|---|---|
| Reception + concierge desk custom millwork | $3,500 | Signature palette, brand-critical, better as tenant-owned. |
| Concierge station appointments (prosecco chiller, glassware, tea vessels, small floral) | $1,500 | Signature amenities from day 1. |
| Signature scent diffuser + first quarter refills | $800 | Aera unit, brand-critical. |
| Sound treatment (acoustic panels beyond base HVAC) | $2,000 | Warm room acoustics for pole music. |
| 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 | The pieces that TI-supplied fixtures cannot deliver. |
| Signage: interior wall vinyl + oak-plate brass wordmark for the entry | $1,500 | Elements TI base signage will not cover. |
| Buildout contingency | $1,700 | For the surprises. |
| Subtotal | $15,000 |
TI-funded buildout (paid by landlord, ~$50,000): sprung floor ($8K), mirror wall ($4.5K), HVAC upgrade ($5K), restroom refresh ($4K), paint ($2.5K), base signage ($2K), base lighting ($2K), electrical + plumbing upgrades (~$22K worth of scope the landlord captures at lease end).
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).
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 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.
Bucket 5: Cash reserve ($44,000)
Untouchable. Held in a separate business savings account named “STUDIO NOIR RESERVE — DO NOT TOUCH.”
Covers approximately 5 months of fixed operating costs while memberships ramp:
| Line | Monthly | 4 months | 5 months |
|---|---|---|---|
| Rent (includes TI amortization) | $5,000 | $20,000 | $25,000 |
| 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 | $7,900 | $31,600 | $39,500 |
Reserve covers 5.5 months at $7,900/mo of fixed opex. After 5 months, if member revenue is not covering opex, hard decision: cut costs further or wind down cleanly and return equipment + surrender lease.
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 5 onward and the reserve is banked, not drawn.
Non-cash capital (TI + equipment lease)
These do not show up in the $84,000 cash budget. They show up on the monthly P&L as rent (higher) and equipment lease line (new). Full detail in [[capital-stack]].
| Non-cash source | Amount | Monthly impact |
|---|---|---|
| Landlord TI allowance | ~$50,000 | +$1,000/mo rent for 5-year term |
| Equipment lease (poles, sound, lighting) | ~$11,000 | +$400/mo for 36 months |
| Non-cash Phase 1 capital deployed | ~$61,000 | +$1,400/mo in fixed costs |
Break-even effect: monthly break-even members shift from 40 (cash-only plan) to 46 (two-lever plan). Real cost. Detailed in [[break-even]].
The rules for spending
- The reserve is untouchable. It stays in the savings account until member revenue has been covering fixed opex for 3 consecutive months.
- Buildout overruns come out of buildout scope. Not out of reserve. Not out of marketing.
- 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. No exceptions. See [[cashflow-forecast]].
- TI drawdowns require landlord sign-off and photo documentation. Landlord pays contractors directly or reimburses on invoice + inspection.
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 to Taj.
- Equipment lease principal payoff or buyout. At month 36, the equipment can be bought out for roughly 10% of original value or the lease renews. 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. That budget gets rebuilt in 2028 against real Phase 1 numbers, real RDU flagship rent quotes, and real capital raise conversations. Notes preserved in this dossier for reference only, do not treat them as current commitments.