THE VAULT · Startup Budget
Last updated: 2026-07-28 Status: Planning
Overview
Two real estate paths are modeled below. Scenario A is the recommended path. It limits Taj’s initial equity exposure and preserves optionality for a future buy.
- Scenario A: Lease flagship (preferred)
- Scenario B: Acquire building (stretch, contingent on institutional capital)
All figures are Charlotte, NC cost basis. Luxury spec interior at 15,000 to 20,000 sq ft.
Scenario A: Lease Path
Section 1 · Pre-Opening Costs
| # | Line Item | Low | High | Notes |
|---|---|---|---|---|
| 1.01 | Entity formation + legal (LLC, operating agreement, IP) | $8,000 | $15,000 | NC LLC + Charlotte counsel |
| 1.02 | Business plan + financial model finalization | $5,000 | $10,000 | Advisors/consultants |
| 1.03 | Site selection + broker fees | $0 | $25,000 | Tenant rep typically landlord-paid; budget contingency |
| 1.04 | LOI and lease negotiation legal | $8,000 | $18,000 | Commercial real estate attorney |
| 1.05 | Architectural design + space planning | $75,000 | $150,000 | Luxury spec; 15K-20K sq ft |
| 1.06 | Permits + inspections + city approvals | $20,000 | $45,000 | Charlotte-Mecklenburg |
| 1.07 | Branding, identity, pre-launch marketing | $50,000 | $100,000 | Identity system, photography, site |
| 1.08 | Pre-sale membership campaign + CRM setup | $25,000 | $50,000 | Founding member acquisition |
| 1.09 | Technology stack (POS, booking, app, access control) | $40,000 | $80,000 | Mindbody/custom + hardware |
| 1.10 | Insurance (general liability, property, D&O, workers comp) | $18,000 | $30,000 | Annual premium, first year upfront |
| 1.11 | Key hires pre-open (GM, head instructor, ops lead) | $80,000 | $120,000 | 3-4 mos salary pre-revenue |
| 1.12 | Travel, site visits, due diligence | $10,000 | $20,000 | |
| Pre-Open Subtotal | $339,000 | $663,000 |
Section 2 · Buildout + FF&E (Tenant Improvement)
| # | Line Item | Low | High | Notes |
|---|---|---|---|---|
| 2.01 | General contractor (core buildout) | $800,000 | $1,500,000 | $53-$100/sq ft at 15K sq ft |
| 2.02 | Specialty pole studio (rigging, flooring, mirrors, lighting) | $150,000 | $300,000 | 4-6 poles, pro spec |
| 2.03 | Dance studio (sprung floor, mirrors, sound) | $80,000 | $160,000 | 1-2 rooms |
| 2.04 | Gym floor (equipment, rubber, functional training) | $200,000 | $400,000 | Commercial luxury grade |
| 2.05 | Recovery suite (sauna, cold plunge, contrast therapy) | $120,000 | $250,000 | Custom sauna + medical-grade cold plunge |
| 2.06 | Private studios (4-6 rooms, soundproofing, AV) | $80,000 | $180,000 | $15-30K per room |
| 2.07 | Broadcast-ready main floor (lighting grid, AV, streaming rig) | $150,000 | $300,000 | Vault Invitational-ready |
| 2.08 | Café buildout + commercial kitchen equipment | $100,000 | $200,000 | Health-forward menu |
| 2.09 | Retail micro-boutique (fixtures, display, POS) | $30,000 | $60,000 | |
| 2.10 | Locker rooms, showers, luxury finishes | $200,000 | $400,000 | Differentiator; spa-grade materials |
| 2.11 | HVAC, electrical, plumbing upgrades | $150,000 | $300,000 | Specialty systems for recovery suite |
| 2.12 | Signage + exterior brand installation | $30,000 | $60,000 | |
| 2.13 | Contingency (10%) | $219,000 | $411,000 | Hard construction contingency |
| Buildout + FF&E Subtotal | $2,309,000 | $4,521,000 |
Landlord TI Allowance (offset): Negotiate $40-$60/sq ft TI from landlord on a 10-year NNN lease = $600,000 to $1,200,000 offset. Shown separately in capital stack.
Net Buildout Cost to Tenant (after TI): $1,109,000 to $3,321,000
Section 3 · Lease Costs (Pre-Open Period)
| # | Line Item | Low | High | Notes |
|---|---|---|---|---|
| 3.01 | Base rent during buildout (6-9 months free rent negotiated) | $0 | $135,000 | Target: free rent through CO |
| 3.02 | First + last + security deposit | $175,000 | $300,000 | $35-$60/sq ft NNN; 2-3 mos deposit |
| 3.03 | NNN charges during buildout (CAM, taxes, insurance) | $30,000 | $60,000 | $2-4/sq ft/mo |
| Lease Pre-Open Subtotal | $205,000 | $495,000 |
Section 4 · Working Capital Reserve
| # | Line Item | Low | High | Notes |
|---|---|---|---|---|
| 4.01 | 12-month operating reserve (opex floor) | $900,000 | $1,200,000 | See cashflow model; 12-mo minimum required |
| 4.02 | Additional 6-month buffer (recommended) | $450,000 | $600,000 | Ramp risk cushion |
| Working Capital Subtotal | $1,350,000 | $1,800,000 |
Scenario A Total (Lease Path)
| Bucket | Low | High |
|---|---|---|
| Pre-open costs | $339,000 | $663,000 |
| Buildout + FF&E (net of TI) | $1,109,000 | $3,321,000 |
| Lease pre-open | $205,000 | $495,000 |
| Working capital reserve | $1,350,000 | $1,800,000 |
| TOTAL SCENARIO A | $3,003,000 | $6,279,000 |
Target raise: $4M to $6M for lease path at luxury spec.
Scenario B: Acquisition Path
Scenario B layers real estate acquisition on top of Scenario A buildout costs.
| # | Line Item | Low | High | Notes |
|---|---|---|---|---|
| B.01 | Property acquisition (15K-20K sq ft commercial) | $4,000,000 | $10,000,000 | Charlotte industrial-to-adaptive reuse or retail |
| B.02 | Down payment (25-30% of acquisition) | $1,000,000 | $3,000,000 | Conventional commercial mortgage |
| B.03 | Acquisition closing costs (3-5%) | $120,000 | $500,000 | |
| B.04 | Full buildout + FF&E (no TI offset) | $2,309,000 | $4,521,000 | No landlord contribution |
| B.05 | Pre-open + working capital (same as A) | $1,894,000 | $2,958,000 | |
| TOTAL SCENARIO B | $5,323,000 | $10,979,000 |
Scenario B raises: $10M to $17M all-in. Requires institutional capital partners or CRE debt + equity stack. Not recommended for launch.
Notes on Taj Capital Protection
- Scenario A limits Taj’s personal equity contribution to under $1.5M if TI negotiation succeeds and outside capital covers the balance.
- Under no scenario should Taj deplete liquid reserves below 24 months personal runway.
- Working capital reserve must be funded before opening day. Non-negotiable.
- TI negotiation is the single highest-leverage pre-signing action. Every $100K of additional TI reduces the raise by $100K.
Key Assumptions
- Charlotte labor and material cost index: 1.0x national average (comparable to Nashville)
- Construction timeline: 8-12 months from permit to CO
- Free rent window: targeting 6 months; floor is 3 months
- No personal guarantees on equipment leases where avoidable
- Soft costs (arch, permits, legal) are capitalized and included in raise