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
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
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.
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 | ||||||||||||
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 | ||||||||||||
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.
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
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.
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
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 |
Other Sources of Income
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 |
YEAR-ONE INCOME STATEMENT
| Total Y1 income | $81,200 |
| Start up costs | ($ 8,616) |
| Yearly costs | ($72,580) |
| Income | $ 4 |
COSTS
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 |
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.
Source Citation
Gale Document Number: GALE|CX1921700012