Dancing Divas is located in the Five Points shopping plaza, which also is home to Publix, Anytime Fitness, and Quiznos Subs. It is conveniently located near Hendricks Avenue Elementary School, Julia Landon Middle School, and Douglas Anderson School of the Arts, which have a combined student enrollment of 2,500 students. The retail space needs modifying in order to accommodate a dance studio. The owners would like to divide the space into two large studios, two restrooms, two changing rooms, office, storage area, reception area, and apparel/accessory area.

Dancing Divas will operate as follows:
      Monday-Thursday 12 PM—7 PM
      Friday 2 PM—5 PM

Summer Hours include:
      Tuesday-Thursday 10 AM—4 PM

Regular classes will start in September and end in May of each year. A summer schedule will also be offered, with limited spaces available, for students wishing to continue instruction during the summer.

Class Schedule—Monday

Class Schedule—Tuesday

Class Schedule—Wednesday

Class Schedule—Thursday

Class Schedule—Friday

Summer Schedule (each class is limited to 12 students)

According to the Bureau of Labor Statistics, the job outlook for self-enrichment teachers is expected to increase by 21% from 2010 to 2020. Dance is a popular extracurricular activity that provides children of all ages with a fun form of exercise. Added benefits of dance are learning rhythm, increasing coordination, and boosting self-confidence.

In the beginning, the target market for Dancing Divas will be preschoolers in surrounding neighborhoods and students attending Hendricks Avenue Elementary School, Julia Landon Middle School, and Douglas Anderson School of the Arts, which are in close proximity to the studio.

Eventually, children between the ages of 2 and 18 in the southeastern Jacksonville area will be the future target market for the dance studio. According to CLRSearch.com , in 2010, Jacksonville's youth population consisted of:

Dance studios are generally limited in the number of students that can be accepted due to the fact that most children are enrolled in school and are unable to attend classes before 3:00 p.m. and after 7:00 p.m. The owners have plans to open an additional studio in a few years and would be able to accommodate more of Jacksonville's youth.

Dancing Divas wants to give its students the opportunity to experience a variety of dance types in order to present them with the opportunity to find a type in which they excel. There are currently three dance studios within ten miles of Dancing Divas. All three studios specialize in a specific area of dance.

The company has identified key tactics to support the company's growth strategy.

Initial advertising will include:

Ongoing marketing strategies:

Ms. Jones and Ms. Johnson have secured a space to rent; however, it needs some renovations. The owners have spoken to a contractor who estimates that the renovations will cost $38,000 and will take four to six weeks to complete.

Estimated Start-up Costs

Monthly expenses are expected to remain constant each month.

Monthly Expenses

Estimated Tuition (September to May)

Estimated Tuition (July - August)

According to estimated expenses and income data, the summer months show some profit loss, the greatest loss in June when no classes are in session. The estimated profits for the rest of the year are enough to make up for this loss as shown in the “Annual Profit/Loss” chart.

Monthly profit/loss

Annual profit/loss

Dancing Divas is currently seeking financing in the amount of $85,000. This would cover start-up and operating expenses for two months. Ms. Jones and Ms. Johnson are confident that they will be able to repay this loan in the second year of operation and have approximately $21,320 in cash at the end of the second year as illustrated in the “Repayment Plan” chart.

Repayment plan