How to Launch a Fun Karaoke Business Side Hustle

In today’s world, especially with all the inflation, having multiple sources of income is becoming a necessity. Whether you’re saving for a big goal, paying off debts, or achieving financial freedom, having a side hustle can be the answer. But where do you start?

Do you like singing and partying? How about karaoke? Great! Did you know that you can start a karaoke business as a side gig? Yes, you can! Here’s a guide to help you start your karaoke business.

Why a Karaoke Business?

A karaoke business is a good idea, whether you’re a karaoke enthusiast or not, for good reasons.

High Demand

According to a study, the karaoke market is projected to grow by USD 442 million from 2025 to 2029, with a CAGR (Compound Annual Growth Rate) of  4.3%. This, of course, includes different regions such as APAC, North America, Europe, the Middle East, Africa, and South America. The karaoke market in the USA alone is estimated to grow by a CAGR of 3.7% from 2024 to 2033.

You can’t go wrong with a karaoke business. There’s always going to be a demand for it as long as you know your market. 

• Birthday parties
• Holidays like Christmas, 4th of July, etc.
• Weddings
• Corporate events such as year-end parties, team building, etc.
• Local bar nights
• Or even just a regular Tuesday night

Fun Factor

When you hear karaoke, don’t you immediately think of a fun time? You wouldn’t just be doing a side hustle, you will also be providing fun to your customers. If you enjoy music and social events, this would barely feel like work. Plus, you can always use your karaoke machines by “testing” them, right? Wink wink, nudge nudge. You always have to make sure that your karaoke machines are working properly, so a song or two to test it out whenever you have a side gig wouldn’t hurt.

Flexibility

You would often operate during evenings or weekends because that’s when people usually book parties. If you have a regular 9-to-5 job, this is perfect because you can operate this side gig around your regular schedule.

Scalability

One of the great things about a karaoke business as a side hustle is its growth that comes with demand. You can start with basic equipment and then gradually upgrade as you book more customers.

Relatively Mobile

You don’t need to rent or buy a permanent store because you can just bring your equipment to where the party’s at. You would just need to invest in how to transport your equipment. Of course, having a permanent place can still be an option. If you want to have your own karaoke bar, that’s great too!

How to Get Started on Your Karaoke Business

It can be overwhelming to start a business from scratch, even if it’s just a side hustle. Don’t worry, we’re here to guide you on how to get started.

What Kind of Karaoke Business Do You Want to Do?

Karaoke Jock (KJ)

Are you great at getting the party started and hosting events? If you have a knack for arranging music sets, facilitating the karaoke queue, and getting the party started, then why not try being a KJ?

Karaoke Bar

If you have the budget for a place and love the noise, then you can start a karaoke bar. This might require a bigger capital, though, because you’d have to pay for the place (buy or rent), staff, food, liquor, sound/karaoke system, and utilities.

KTV or Karaoke Rooms

KTVs are somewhat similar to karaoke bars. While both offer the same purpose- karaoke and fun- KTVs have private rooms for your customers to rent. This is perfect for those who may feel conscious with other people around. With a private room, they can enjoy their concerts with confidence.

Mobile Karaoke Services

If you’re not into hosting anything, that’s ok too. You can just rent out your karaoke system for events. This is a more flexible option and requires less capital than the other options. You can also just book customers that fit your free time. If you’re planning on sticking with making this just as your side gig for extra income, then this is the best route.

Online Karaoke Store

If you’re into e-commerce and marketing, you can also run an online karaoke store like 101 Karaoke. An online karaoke store is also a great option for a side gig if you have a full-time job. Although it would still require time and effort to grow your online karaoke business, you can also just do this in your free time.

101 Karaoke has different karaoke machines for your needs. If you’re still starting out and want to start with smaller equipment, there’s the All In One Portable Touch Screen Karaoke System with 2 Mics set. 

Or you can also get the Ultimate Professional Karaoke Machine Bundle if you want a bigger karaoke system for bigger crowds.

But if you’re a professional, you can also get the Bundled Luxury Professional Karaoke System Set so you can give the full karaoke party experience. 

Interested in getting your own karaoke machine? Check out 101 Karaoke’s different karaoke sets to find the right one for you!

Of course, 101 Karaoke isn’t the only karaoke machine business in the scene. There are other places you can take inspiration from.

• Best Buy: Best Buy is widely known for selling electronics, so you can definitely find karaoke machines here.

• Amazon: We all know Amazon has everything from A to Z, and a karaoke machine is one of them.

• Walmart: Walmart is also widely known for having different products, including electronics. Karaoke machines are not an exception. You can visit a physical Walmart store in your area or order online.

• Ace Karaoke: Ace Karaoke is like 101 Karaoke. They offer different types of karaoke machines, accessories, and karaoke songs.

• Ikarao: Ikarao boasts itself with aesthetically portable karaoke machines.

• Singing Machine: Singing Machine also offers different karaoke machines, from classic to smart karaoke and even kids' karaoke for your little ones.

Research Your Local Market

Who Are Your Potential Customers?

Are you going to be able to book regular customers in and around your area? Are there high schools or colleges nearby? Or perhaps you live near workplaces? Then you have the chance to get booked for Friday Night hangouts. Or maybe you live in a neighborhood where people love to host, say, birthday parties or weekend barbecues, then you can also offer your karaoke business to make their social gatherings more lively.

REMINDER: You have to adjust your service pricing based on your market. For example, if your target market will be students, they probably have a limited budget, so they’ll look for cheaper options where they can get the most value for their money.

Who Are Your Potential Competitors?

Check what other KJs or karaoke machine providers in your area offer (services, products, etc.) and how much they charge. You have to think about what makes you different from these businesses and why customers should pick you.

What Do You Offer?

Outline your products (karaoke machine with microphones and speakers, etc.) and services (3-hour party package, etc.).

Build Your Business Plan

Once you’ve figured out everything above, it’s time to put them all together for your business plan. You might think, hmm, business plan? Is that important? Yes. In your business plan, you will put what you plan to offer or sell, who your target market will be, and what your allotted capital will be. You have to outline all the costs to start your business to know if your capital is enough.

Always Go The Legal Route

When starting your karaoke business, even if it’s just your side hustle, don’t forget the legal side.

• Register Your Business: Are you going to be the only one operating it? You can go for the Sole Proprietorship route. An LLC (Limited Liability Company) is used when you have partners.
• Permits: Make sure that you get proper permits to open your business. For example, if you’re opening a karaoke bar, you have to secure a performing license for the songs, a liquor permit if you’re serving alcoholic beverages, a building permit if you’re building your own or renovating the place, and you have to meet the health and safety standards.
• Bank Account: It’s best to set up a different bank account for your business. Never mix your personal money with business money to avoid any problems in the future.
• Taxes: Remember to pay your taxes to avoid any penalties or, worse, lawsuits. If you’re not confident with bookkeeping (which is totally fine, btw), you can hire an accountant to do that for you.
• Insurance: Don’t forget to insure your business/property against any accidents.

NOTE: Remember to double-check the legal requirements in your local area. This list only serves as a guide and provides standard requirements.

Things to Remember When Starting a Karaoke Business Side 

• You Won’t Earn in Just a Snap: Earning from a side hustle doesn’t happen overnight. It will take time and so much effort to turn your side hustle into a source of income.
• Be Reliable and Professional: Always be on time. If you’re booked for a certain time, make sure to arrive early since you’d still have to do sound checks. If you have a bar, make sure to anticipate rushes or when there will be a lot of customers. If you’re an online shop, make sure that shipping is done on time. Your customers will be paying you, so it’s only reasonable for them to expect excellent service.
• Invest in Quality Equipment and Have Backups: Investing in quality equipment might be expensive, but it is better than buying cheap ones and spending more on repairs or replacements. Make sure to also have backups for mics, wires, or even music. It’s better to be prepared than lose your customers’ trust.
• Stay Legal: Don’t forget to update your permits, especially your performance license.

Ready to Rock the House?

Starting a karaoke business, especially as a side hustle, is a process. It can be a longer process if you have a 9-to-5 job. Starting your side hustle will take time, effort, and money. You’d have to be patient and smart. But don’t be scared to take the chance, too. You only live once, so turn your passion into an income. If you love music, singing, or partying, start your karaoke business now and manage it as a side gig. Take the first step: build your business plan, and then take the next steps from there. You don’t have to rush, but as they say, “time is money”. So, if you’re ready, go ahead and get the party started.