Dance Studio: New Baltimore Dance Academy

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Editor: Michelle Lee
Date: 2013
Business Plans Handbook
From: Business Plans Handbook(Vol. 25. )
Publisher: Gale, a Cengage Company
Document Type: Topic overview
Pages: 8
Content Level: (Level 5)

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Page 33

Dance Studio: New Baltimore Dance Academy

12345 Washington Street
New Baltimore, MI 48047

Zuzu Enterprises

Elizabeth Nowak is opening a dance studio in her hometown of New Baltimore, Michigan. The city has grown significantly in recent years, and the population growth among college-educated parents with young children will provide a more than adequate market to support the new venture.

EXECUTIVE SUMMARY

Elizabeth Nowak is opening a dance studio in her hometown of New Baltimore, Michigan. The city has grown significantly in recent years, and the population growth among college-educated parents with young children will provide a more than adequate market to support the new venture.

FACILITY

The studio is located at 12345 Washington Street in New Baltimore, Michigan. The facility has 2,300 square feet divided among two separate studios, small office, unisex bathroom, locker room, storage space, and a waiting room for parents. The waiting room features comfortable seating, flat-screen television, and free Wi-Fi along with a snack machine, beverage machine, and water cooler.

All rooms have been freshly painted and decorated. The dance studios feature a professional-grade floating dance floor, two mirrored walls, a ballet barre, and a corner cabinet that houses a state-of-the-art sound system and other supplies.

A 3-year rental agreement has been signed for the facility. Committing to a multi-year lease enabled us to negotiate and lock in a very reasonable monthly rental rate of $5 per square foot, or $958/month. Other comparable spaces ranged from $6-$12 per square foot.

STAFF

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Owner/Instructor

Elizabeth Nowak began her dance career at age 2. She quickly determined that she loved dancing above all other activities and devoted much of her childhood to taking every dance class available and learning all the various dancing styles and techniques. She danced competitively and studied dance at Eastern Page 34  |  Top of ArticleMichigan University. She decided to open her own studio in her hometown so that she could pass along her love and passion for dance to the children of her beloved community.

Instructors

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Katie Reid

Katie Reid has 25 years of dance experience. She started dancing when she was only 3 years old at her aunt's dance studio in Emmett, Michigan. She participated in competitive dance and won countless first place and platinum awards. She attended Macomb County Community College, earning a degree in early childhood education. She would like to combine her love of children and her love of dance to instruct our youngest dancers.

Becky Bergeon

Becky Bergeon has nearly 15 years dance experience, focusing mainly on ballet and pointe. She attended the Geiger Ballet Academy and has performed with the Michigan Classic Ballet Company. She is currently attending Oakland University and is available to teach classes in the evenings and weekends.

Office Staff

Genevieve Simmons is a childhood friend of Elizabeth. She was formerly an office manager for a local women's health clinic but became a stay-at-home mom with the birth of her daughter 4 years ago. She has agreed to staff the office, process registrations and payments, etc., in exchange for free unlimited classes for her daughter. She will also receive photo packages and costumes at cost.

CLASS DESCRIPTIONS

The instructors have a wide variety of dance experience and expertise, so they are able to provide instruction on all dance styles. Specifically, the following classes will be offered:

  • Ballet
  • Tap
  • Jazz
  • Hip Hop
  • Lyrical
  • Poms/Acro
  • Musical theater
  • Pointe
  • Clogging

Other classes may be offered in the future as demand warrants, including Ballroom, Modern, Hawaiian, Salsa, and Production.

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Class Levels

Each class will be offered several times a week for each of these different age categories:

  • Tot: ages 2-4
  • Junior: ages 5-7
  • Beginning: ages 7-9
  • Intermediate: ages 10-14 Page 35  |  Top of Article
  • Advanced: ages 12 and up
  • Adult

Students with advanced skills may be placed into a class one level higher than their appropriate age category.

SCHEDULE—FALL

  Monday Tuesday Wednesday Thursday Friday Saturday
Studio A Studio B Studio A Studio B Studio A Studio B Studio A Studio B Studio A Studio B Studio A Studio B
09:00                     Tot Jazz Jr. Tap
10:00             Tot Ballet       Tot Poms Jr. Jazz
10:30             Tot Tap       Tot Tap Jr. Ballet
11:00             Tot Jazz       Tot Ballet Beg. Tap
11:30             Tot Poms       Beg. Ballet Beg. Jazz
03:00 Jr. Jazz Beginning Tap Pointe Int. Lyrical Beg. Hip Hop Adv. Jazz Jr. Lyrical Int. Hip Hop        
04:00 Jr. Poms Beginning Ballet Solo Int. Jazz Adv. Tap Adv. Poms Jr. Tap Int. Ballet        
05:00 Jr. Ballet Beginning Jazz Pointe Int. Poms Adv. Hip Hop Adv. Ballet Beginning Hip Hop Adv. Hip Hop        
06:00 Jr. Theater Beginning Lyrical Duo/Trio Int. Theater Adv. Lyrica Adv. Theater Beginning Theater Adv. Tap        
07:00 Jr. Hip Hop Beginning Poms Solo Int. Tap Solo Clogging Duo/Trio Adv. Lyrical        
08:00 Adult Jazz Adult Tap Duo/Trio Solo Adult Hip Hop Adult Ballet Solo Duo/Trio        
09:00                        


Dance Studio: New Baltimore Dance Academy

SCHEDULE—SUMMER

  Monday Tuesday Wednesday Thursday Friday Saturday
Studio A Studio B Studio A Studio B Studio A Studio B Studio A Studio B Studio A Studio B Studio A Studio B
09:00             Tot Ballet Beginning Tap Beginning Jazz Tot Jazz    
10:00             Tot Tap Beginning Ballet Beg. Hip Hop Tot Poms    
11:00             Int. Lyrical Jr. Jazz Beginning Poms Int. Poms    
12:00             Int. Jazz Jr. Poms Jr. Tap Int. Hip Hop    
01:00             Int. Ballet Jr. Ballet Jr. Hip Hop Adv. Lyrical    
02:00             Int. Tap Adv. Ballet Jr. Lyrical Adv. Tap    
03:00             Adv. Hip Hop Adv. Jazz Adv. Jazz Tot Jazz    
04:00                        
05:00                        
06:00                        
07:00                        
08:00                        
09:00                        


Dance Studio: New Baltimore Dance Academy

TARGET MARKET

The population of New Baltimore has increased by more than 60% since 2000; the number of households with children has risen nearly 80% during this same time period. A majority of residents (67%) have some college or hold college degrees and the median household income is nearly $84,000 a year.

COMPETITION

There is only one other dance studio in the city of New Baltimore. There are at least 4 other studios within a 25 mile radius, but these are not direct competitors because of the distance. Parents of young children are interested in the social aspects of class, i.e. meeting other children and parents, making Page 36  |  Top of Articlefriends, etc., in addition to the actual instruction. Parents of school-age children are often shuffling many kids between several different activities; having the activities close to home eases the commuting time and kids are more likely to be in classes with their friends and thus more likely to be able to share rides when necessary.

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Strengths:

  • Experienced and approachable staff
  • Renovated facility
  • Local, convenient location
  • 2,300 square feet of professional-grade floating dance floor
  • Competitive prices
  • Family and multiple class discounts
  • Smaller class sizes
  • Family atmosphere
  • Age appropriate and affordable costumes
  • Age appropriate music and movements
  • Holiday program
  • End-of-year recital

Weaknesses:

  • New business—we have to prove ourselves

MARKETING AND ADVERTISING

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Website/Social Media

A website will be created and advertised to do the following: profile the business, provide contact information, post schedules, calendars, and registration forms, and add customer notifications of upcoming events, deadlines, unexpected closures, and the like. We will also utilize social media including Facebook, Twitter, and Foursquare.

Flyers

Flyers advertising our classes, schedule, and instructors will be created using Microsoft Publisher and printed on glossy paper. Approximately 1,000 flyers will be printed and distributed to the following locations:

  • Daycare center
  • Library
  • Schools and preschools
  • City recreation department

Sign

A portable sign will be placed in front of the building publicizing registration and featured classes. A significant amount of traffic passes by the building on a daily basis, making this type of advertising extremely effective.

Page 37  |  Top of Article

Word-of-Mouth

Word-of-mouth advertising will be a very important to our business. In a small community, word travels fast among residents about both positive and negative experiences. It is essential that all customers be treated respectfully and great pains are made to insure all customers are completely satisfied with their experience. Children, especially, should be cared for; if they have a fun, rewarding learning experience, they will likely have a lifelong love of dance. Bad experiences may damage their self-esteem and turn them off dance for good.

FINANCIAL INFORMATION

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Registration Fees

Each student will be charged a registration fee in the amount of $10 per session (Fall, Winter, and Summer), regardless of the number of classes for which they sign up.

Class Fees

    Each additional class Student max (6 classes) Family max (10 classes)
30-minute class $33/month $28 $150/month $250/month
45-minute class $40/month $30 $175/month $275/month
60-minute class $43/month $33 $200/month $300/month
Solo lesson $65/month      
Duo/Trio lesson $35/month      


Dance Studio: New Baltimore Dance Academy

Other Sources of Income

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Apparel/Shoes

The studio's official colors are electric blue and lime green. Studio sweatshirts, warm-up jackets, t-shirts, drawstring bags, bottle cap necklaces, and automobile decals will be sold to all dancers and their families. This merchandise will be marked up 20% from the actual cost (rather than the standard 50-100%) to keep items reasonable and encourage families to purchase them. All of these items serve as walking advertisements for the business.

An order form will be sent home in late September/early October with delivery of items in late October/early November, perfect for holiday gift-giving. A small assortment of items in various sizes will be ordered at this time and kept on hand for future sales.

Appropriate dance apparel and shoes will also be available for purchase. Again, a large order will be placed at the start of classes in September, and a small assortment of items will be kept on hand for customers to purchase as the session continues.

Photos

Class and individual photos will be done in April. A local studio has agreed to come in to the studio on a predetermined Saturday and Sunday to photograph every class and those individuals/family members who would like to have custom photos taken.

Picture delivery will be the weekend before Mother's Day, perfect for gift-giving to Mothers and Grandmothers.

A percentage of all photo sales will be earned by the studio, with a percentage increasing at specific sales targets; the minimum guaranteed is $500.

Costumes

All students participating in the holiday show and spring recital will be required to purchase costumes. Costumes will be chosen to coordinate with the theme of the song and choreography. They will be Page 38  |  Top of Articlepurchased through various online dance retailers and costume prices will be marked up an average of 50% above the wholesale or bulk prices.

Makeup and hair accessories will also be purchased and marked up an average of 50%.

Holiday Show

The holiday show will take place in mid-December. This show is smaller than the spring recital and is meant to celebrate the season. Tickets will cost $5 apiece and many tickets will be given away free of charge to local retirement communities and other charitable causes.

Spring Recital

The spring recital will take place in late May or early June. Tickets will be sold for $10 apiece, with approximately 450 available seats. Other sources of income at the spring recital include the following:

  • Program Ads and Family Messages
  • Flowers
  • Snacks

Practice CDs

Students wishing to purchase practice CDs will be able to do so. A licensing fee of $1.29 per song is included in this cost, as well as the physical CD itself. The song will be the same version as the dance routine and will be cut as needed. The cost to students is $5.00 per CD.

Locker Rentals

The locker room features 200 lockers and bench seating. This space is especially useful for students who take multiple classes and those who require a place to change into their dance apparel before class. Students may rent lockers on a monthly basis and include the cost in their monthly class fees payment.

YEAR-ONE PROJECTED INCOME

Item Cost
Registration fees $  1,150
Class fees $64,900
Studio apparel $  1,500
Dance apparel/shoes $     500
Photos $     500
Costumes $  2,250
Holiday show tickets $  1,500
Spring recital tickets $  4,500
Program ads and family messages $  2,000
Flowers $     300
Snacks (recitals and machines) $  1,000
Practice CDs $     100
Locker rentals $  1,000
    Total Y1 income $81,200


Dance Studio: New Baltimore Dance Academy

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YEAR-ONE INCOME STATEMENT

Total Y1 income $81,200
Start up costs ($  8,616)
Yearly costs ($72,580)
Income $          4


Dance Studio: New Baltimore Dance Academy

COSTS

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Start-up Costs

Item Cost
Legal fees $   500
Rental deposit $1,916
Utility activation $   200
Advertising $1,000
Building improvements $5,000
    Total start up costs $8,616


Dance Studio: New Baltimore Dance Academy

Monthly Costs

Item Cost
Rent $     958
Utilities $     400
Salaries $  5,700
Advertising $     100
Phone service $     100
    Total monthly costs $  7,258
    Total yearly costs $72,580


Dance Studio: New Baltimore Dance Academy

GROWTH PLAN

Year One: 40 summer students, 75 fall students

Year Two: 60 summer students; 150 fall students

Year Three: 80 summer students; 225 fall students. Begin competitive dance classes and enter at least 3 competitions in the spring.

Year Four: 100 summer students; 300 fall students. Expand competitive dance options.

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Appendix A–Registration Form Appendix A–Registration Form

Source Citation

Source Citation   

Gale Document Number: GALE|CX1921700012