FabJob Guide to Become a Dance Studio · PDF fileDance Studio Owner Visit ... 4.4.3 A Sample Business Plan ... , including modern dance, ballet, round dancing, tap, jazz, ethnic or

Open your own dance studio!

Barbara Lightner

FabJob Guide to

Become a Dance Studio

Owner

Visit www.FabJob.com

ContentsAbout the Author .............................................................................9

1. Introduction ..........................................................................................11

1.1 Owning a Dance Studio ...............................................................12

1.2 A Growth Industry .......................................................................13

1.2.1 The Dance Studio Market ..................................................13

1.2.2 Dance Trends .......................................................................13

1.3 BenefitsofBeingaDanceStudioOwner ..................................14

1.4 Inside This Guide .........................................................................17

2. Dance Studio Basics ............................................................................19

2.1 Dance Styles ..................................................................................20

2.2 Dance Studio Customers .............................................................22

2.2.1 Deciding Who You Want to Teach ....................................22

2.2.2 Student Motivation .............................................................23

2.3 TypesofDanceClasses ................................................................23

2.3.1 Open Classes .......................................................................24

2.3.2 Registration Classes ...........................................................24

2.4 Related Services and Products ...................................................25

2.5 Dance Studio Personnel ...............................................................27

2.5.1 Your Role as Owner ............................................................27

2.5.2 Employee Roles ...................................................................28

3. GettingReady .......................................................................................33

3.1 Skills and Knowledge You Will Need .......................................33

3.1.1 Dance Skills and Knowledge ............................................33

3.1.2 Teaching Skills .....................................................................34

3.1.3 Interpersonal Skills .............................................................35

3.1.4 Business Skills .....................................................................37

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3.2 Learning by Doing .......................................................................40

3.2.1 Work in a Dance Studio .....................................................40

3.2.2 Teach Dance at a Community Facility .............................41

3.2.3 Give Private Dance Lessons ..............................................42

3.2.4 Volunteer in an Outreach Program ..................................43

3.3 Be Your Own “Mystery Shopper” .............................................44

3.4 Learn From Other Dance Studio Owners .................................52

3.4.1 Talk to Dance Studio Owners ...........................................52

3.4.2 Join an Association .............................................................55

3.5 Educational Programs .................................................................59

3.5.1 DanceTeacherCertificationPrograms ............................60

3.5.2 Dance Training Courses .....................................................61

3.5.3 Business Courses ................................................................62

3.6 ResourcesforSelf-Study ..............................................................63

3.6.1 Videos ...................................................................................63

3.6.2 Books ....................................................................................64

3.6.3 Magazines ............................................................................65

4. StartingYourDanceStudioBusiness ..............................................67

4.1 Your Niche .....................................................................................69

4.1.1 Choosing Your Niche .........................................................69

4.1.2 Popular Dance Studio Specializations .............................70

4.2 OptionsforStartingaDanceStudio ..........................................76

4.2.1 Buying an Established Dance Studio ...............................76

4.2.2 Franchising ..........................................................................83

4.2.3 Opening a New Dance Studio ..........................................88

4.3 Your Dance Studio Name ............................................................88

4.4 Your Business Plan .......................................................................90

4.4.1 What to Include in a Business Plan ..................................91




4.4.2 Start-UpFinancialPlanning ............................................100

4.4.3 A Sample Business Plan ...................................................109

4.4.4 Business Plan Resources ..................................................126

4.5 Start-UpFinancing .....................................................................127

4.5.1 GettingPrepared ...............................................................128

4.5.2 Equity vs. Debt Financing ...............................................129

4.5.3 Borrowing Money .............................................................131

4.5.4 Finding Investors ..............................................................133

4.5.5 Government Programs ....................................................135

4.6 LegalMatters ...............................................................................137

4.6.1 Your Business Legal Structure ........................................137

4.6.2 Business Licenses ..............................................................144

4.6.3 Taxes ...................................................................................145

4.6.4 Insurance ............................................................................147

4.6.5 UsingCopyrightedMusicinYourDanceStudio ........150

5. SettingupYourDanceStudio .........................................................152

5.1 Finding a Location ......................................................................152

5.1.1 Possible Locations .............................................................152

5.1.2 Points to Consider ............................................................156

5.1.3 Signing a Lease ..................................................................160

5.2 Dance Studio Design ..................................................................172

5.2.1 Outside the Dance Studio ................................................173

5.2.2 Inside the Dance Studio ...................................................176

5.2.3 DanceFloorSurfaces ........................................................179

5.2.4 Dance Studio Security ......................................................182

5.3 Equipment and Supplies ...........................................................182

5.3.1 Dance Studio Equipment and Supplies You’ll Need ...182

5.3.2 Other Supplies and Equipment You’ll Need ................185




5.3.3 Dance Studio Equipment Suppliers ...............................190

5.4 Dance Studio Retail Product Suppliers ...................................192

5.4.1 How Much Retail Inventory Should You Buy? ............192

5.4.2 Finding Dance Merchandise Suppliers .........................193

5.5 SettingUpYourClasses .............................................................194

5.5.1 Creating a Studio Calendar .............................................194

5.5.2 Creating a Class Schedule ...............................................197

5.5.3 SettingStudioPolicies ......................................................198

6. RunningYourDanceStudio ............................................................207

6.1 Dance Studio Operations ..........................................................207

6.1.1 Developing an Operations Manual ................................207

6.1.2 AreasofOperationsChecklists ......................................211

6.1.3 SettingYourHoursofOperation ....................................212

6.2 Hygiene and Cleanliness ...........................................................212

6.3 StudioManagementSoftware ..................................................214

6.4 Pricing Your Services and Products .........................................216

6.4.1 Pricing Your Dance Classes .............................................216

6.4.2 Pricing Guidelines ............................................................218

6.4.3 Product Pricing Formulas ...............................................219

6.4.4 ProfitMarginvs.PercentageMarkup............................220

6.5 GettingPaid .................................................................................222

6.5.1 Accepting Debit Cards .....................................................223

6.5.2 Accepting Credit Cards ...................................................223

6.5.3 Accepting Payment Online .............................................225

6.5.4 Accepting Checks .............................................................225

6.6 Financial Management ..............................................................226

6.6.1 Bookkeeping ......................................................................227

6.6.2 Financial Statements and Reports ..................................229




6.6.3 Building Wealth ................................................................238

6.7 WorkingwithSupportStaff ......................................................241

6.7.1 Employees versus Contractors .......................................242

6.7.2 BeforeYouHire .................................................................243

6.7.3 RecruitingStaff .................................................................247

6.7.4 The Hiring Process ...........................................................251

6.7.5 PayingYourStaff ..............................................................255

6.7.6 New Employees ................................................................258

7. GettingandKeepingCustomers ....................................................266

7.1 Marketing Techniques ...............................................................266

7.1.1 Your Grand Opening ........................................................266

7.1.2 Advertising ........................................................................271

7.1.3 Free Publicity .....................................................................277

7.1.4 NetworkingandReferrals ...............................................281

7.2 Marketing Tools ..........................................................................282

7.2.1 Printed Materials ..............................................................283

7.2.2 Your Website ......................................................................289

7.2.3 Social Media .....................................................................293

7.3 Customer Service ........................................................................297

7.3.1 Greeting Students and Parents .......................................298

7.3.2 SigningUpNewStudents ...............................................299

7.3.3 GettingRepeatBusiness ..................................................301

7.4 Growing Your Business .............................................................303

7.4.1 Expanding Your Current Location .................................304

7.4.2 Opening Additional Locations .......................................305






1. IntroductionCongratulationsontakingthefirststeptowardsstartingupyourowndancestudio,astepintothefast-paced,ever-changing,excitingworldofdanceinstruction.You’reabouttospendyourdayssurroundedbymusic, dancers, and the people who enjoy the joys dancing brings to their lives.

People have danced since the beginning of time—to expressthemselves,totellstories,toperformrituals,tocelebrateevents,aspartofcourtship,andasaformofrecreationandsocialinteraction.Today,peoplecontinuetodanceformanyofthesamereasons.

Somepeopledanceforartisticreasons,usingtheirbodiestoexecutegracefulleapsordaringfeats.Othersdanceforrecreationalreasons,forthesheerpleasurethatmovingtheirbodiesbrings.Othersdanceforthehealthbenefitsthatdancingbrings,otherstocelebratetheircultureandpassalongitstraditions.Andmanypeopledanceforacombinationofthesereasons,andthepleasuretheygetsharingtheirpastimewithothers.Dancestudiosprovideaplaceforallofthesepeopletolearnand develop as dancers.




1.1 OwningaDanceStudioMostpeoplewhoareinterestedintheideaofowningadancestudiohave certain things in common, so we think we might already know alittlebitaboutyou.Doyouhaveapassionfordance?Doyoulovelearning new dances and teaching them to others? Do you get a thrill outofseeingothersastheymasternewdancestepsandtechniques?Ifso,youprobablyhavealreadyspentalotoftimeindancestudiosandknow what you like and don’t like about them.

Perhapsyou’readancestudentwithyearsofdancetrainingandyoufindyourselfwonderingifyoucouldownyourownstudio.Perhapsyou’readanceteacherwithyearsofexperienceworkinginsomeoneelse’s studio and you’re ready to strike out on your own. Or maybe you’readanceprofessionalwindingdownacareerasaperformerandlookingforawaytostayinvolvedindance.Ormaybeyou’renoneoftheabovebutyouhaveastrongpassionfordanceandthedesiretoshare your delight in it with others.

Chances are you’ve spent some time in dance studios and you might possiblyhaveworkedinoneortwo.Whileitcanbefunandrewardingto work in someone else’s studio, nothing quite compares to the satisfactionofrunningyourownbusiness,andtakingcreditforyourown ideas.

Todaytherearehundredsofdancesteps,routines,andstyles.Youroptionsforselectingwhattypeofdancestudiotoopenareenormous.Youcanchoosefromavarietyofstyles,includingmoderndance,ballet,rounddancing,tap,jazz,ethnicorfolkdances,freestyle,hiphop,orbellydancing,justtonameafew.Youcanofferopen,ordrop-in,classes,whereanyoneisfreetojoinaclasswithoutpriorregistration,orscheduledclasses,wherestudentssignupinadvanceandmeetforacertainnumberofclassesoveraperiodoftime.

Youcanopenastudiothatprovidesformaltrainingfortheseriousdance student or one thatprovides less formal instruction forrecreational dancers. Your dance studio can target certain markets, such aspreschoolchildrenorfuturebridesandgroomspreparingfortheirwedding dances, or it can target the general population. You can add services, such as private lessons or tutorials, recitals, summer camps, anddancecompaniesthatperformatevents.




Oneofthebiggestadvantagesofthiscareeristhatyoucanstartsmall and grow once you determine your desired scope and your community’sneedsandpreferences.Owningadancestudiooffersflexibility,butitalsorequiresadaptability.Asyourstudiodevelopsa reputation, your enrollment and customers will grow, but it will benecessarytostayabreastofnewdancestylesandtrendstostaycompetitive.

1.2 AGrowthIndustry

1.2.1 The Dance Studio MarketAccording to CNN (http://ireport.cnn.com/docs/DOC-978828), the dance studios industry expected to realize over $2 billion in revenue in theUnitedStatesin2013,andenjoyedfairlysteadygrowthevenduringthe recession that began in 2008. According to the 2007 Economic Census,98.9%ofdancestudiosoperateatonlyonelocation.Withover8000studios—mostindependentlyownedandoperated—andover50,000employees,onlyabout10%oftotalrevenueisgeneratedbythetopfourcompanies(includingfranchisessuchasArthurMurrayandFred Astaire). So the dance studio business may be characterized as a lively market dominated by small studios, meaning the barriers to your entry are not high.

In a January 2013 press release (published at www.prweb.com/releases/2013/1/prweb10305419.htm), IBISWorld stated:

[Industryrevenueprojectionof$2.1billion]representsaverageannualrevenuegrowthof1.2%overthepastfiveyears,includingexpectedgrowthof2.4%in2013.TheDanceStudiosindustryhasbeenpositivelyimpactedoverthepastfiveyearsbythepopularizationofdance-inspiredtelevisionshows,aswellasrisinginterestindanceasanalternateformofexerciseandphysicalfitness.Inparticular,dancestudiosofferingLatin-inspired,fusionandballroomdanceclasseshavebenefitedfromrisingconsumerdemand…Overthenextfiveyears to 2018, the Dance Studios industry is expected to post positive average annual revenue growth. Improving economic conditions willresultingreaterpercapitadisposableincomegrowth,fosteringgreater spending on recreational activities such as dance. Furthermore, risingincomewillboostdemandformorelucrativeprivateclassesandhigh-profitmerchandisesales,benefitingrevenuegrowthfordance studio owners. The baby boomer generation is expected to be a


http://ireport.cnn.com/docs/DOC-978828

http://www.prweb.com/releases/2013/1/prweb10305419.htm

http://www.prweb.com/releases/2013/1/prweb10305419.htm



sourceofgrowthfortheindustryoverthenextfiveyears,particularlyforballroomdancingclasses.

AccordingtotheU.S.DepartmentofLabor’sBureauofLaborStatistics(quoted at www.referenceforbusiness.com/industries/Service/Dance-Studios-Schools-Halls.html):

3,630 people were employed by dance schools, studios, and halls in 2001.Managementoccupationsaccountedforjustover3.5percentwithgeneralandoperationsmanagersaccountingfor910ofthe1,240 total management positions and reported a mean annual salary of$46,140.Forthemere40chiefexecutiveofficerslisted,themeanannualsalarywas$61,460.Self-enrichmenteducationteachers,withameanannualsalaryof$33,180,accountedfornearly30percentofthe industry’s jobs, and choreographers, with a mean annual salary of$32,080,accountedforanotherthirdofjobs.Dancersnumbered2,360,or7percentofthejobs,withameanannualsalaryof$27,040.Officeandadministrativesupportpositionstotaled12.5percentoftheindustry’s jobs.

In Canada, there were over 17,000 establishments that provided arts, entertainment, and recreation services in 2007, according to Statistics Canada,whichdoesnotbreakdownfiguresbytypeofschools.LikeschoolsintheUnitedStates,themajorityaresmall,independentlyrunschools with a sole proprietor.

1.2.2 Dance TrendsDance trends vary based on geographic location, demographics, and othermarketpreferences,butinterestremainshighinsocialandrecreational dancing such as ballroom dance. It probably doesn’t surprise you that television shows are one trend driver. While people havealwaysdanced,anincreasingnumberofpeoplewanttolearnhowto dance thanks to popular television shows such as So You Think You Can Dance and Dancing With the Stars.

Insomeareas,Latindanceisimmenselypopularamongstudentsofall age levels. Interest generally is highest among adults, but even youngchildrenenjoyit,withclassesofferedtopreschoolersin“BabySamba”andcha-cha.TeensoftentakeclassesinLatin-inspireddances,orLatinfusionclasses,suchasZumba,whichcombinesLatindanceand aerobics.


http://www.referenceforbusiness.com/industries/Service/Dance-Studios-Schools-Halls.html

http://www.referenceforbusiness.com/industries/Service/Dance-Studios-Schools-Halls.html



Othertrendsaredancesthatcombineelementsfromoneormoredancestyles.Oftencalledfusion,thesedancesareknownbynamessomeasFunkFusion,AfroFusion,or,anewname,suchasZumba.Somedanceinstructorscreatetheirownstylesofdancebycombiningmovementsandtechniquesfromdifferentdancestyles.

RenukaSrinivasan,ownerofTalaShrutiSchoolofDance,says,“Theemergingtrendistocombineorfusetwoormoreformsofdancetogether. Any aspiring dancer or teacher would do well to train in a new form,otherthanthedanceformtheyareexpertsin.”ThisispreciselywhatRenukaisdoing.AtrainedexponentofBharatanatyamfromSouthern India, Renuka started learning Western dance three years ago and has gone on to win awards in Western dance. “My desire is tocombinethetwoformsofdancetocreatesomethinguniqueandcontemporary.”

1.3 BenefitsofBeingaDanceStudioOwnerOwningadancestudiocanbeafulfillingandrewardingcareer.Inadditiontothebenefitsofworkingforyourself,itoffersthepossibilitytoshapethesizeandtypeofyourbusinessaccordingtoyourownpreferencesandpersonalambitions.Youcanworktoestablishastudiothatturnsaprofitandprovidesafairincomeorexpandintoamuchlargerstudioonceyouhavebecomeestablishedandprofitable.Youcanofferthedanceclassesyouwant,createtheenvironmentyouwant,andoffertheservicesyouwant—it’salluptoyouandyourownpersonalgoals and ambitions.

ShareYourPassionforDance

For dance studio owners who are also dancers, owning a studio gives themtheopportunitytopursueoneoftheirstrongestinterestsandtostayinvolvedintheworldofdance.Thestudioallowsthemtosharethe joy, the passion, the excitement, and the thrill that dancing brings to them.

Thisbenefitisperhapsuniversalasitwasmentionedbymanyofthepeopleweinterviewedforthisbook.ElizaMinden,authorofThe Ballet CompanionandfounderofGaynorMinden,describesitsuccinctly as “Knowing that you are bringing joy to people’s lives.”




MarieSunderland,directorandchoreographerofRedDesertDanceCompany,says,“Weoftendanceatseniorcitizenshomesandforveterans and the joy that it brings them is such a huge reward, nothing beats that.”

MargotT.McCrayGough,founderandartisticdirectorofMTMDanceFactory,describesoneofthemomentsinherstudiothatmakesitallworthwhile:“Thereisnothingmoreexhilaratingthenthefeelingofbeing in the spotlight, accomplishing your goals, overcoming your fearsandmakingyourdreamsareality.Itisjustlikewhenyouwere 7yearsoldreadytodanceinyourfirstrecital…therearebutterfliesinyourstomachandarushofenergyinyourfingertipsandtoes.ItfeelslikeyourfeetarenottouchingthegroundandyouthinkhowamI going to remember the choreography, but not only do you survive it but you get an enormous response. This is just like seeing the results ofallthehardworkandtimeputintoyourdancestudio.Asastudioowneryougettoseetheprogressofyourdancersandyouknowyouare instrumental in that.”

HelpOthersDevelopasDancers

Many dance studio owners get started in this business because they wanttosharetheirknowledgeofdanceandhelpothersdeveloptheirdancing ability. Knowing they have nurtured an interest in dance and helpedothersbecomeskillfuldancersisoneoftheirgreatestbenefits.Infact,severalofthedanceexpertsweinterviewedforthisbookemphasized how important this was to them.

RenukaSrinivasan,ownerofTalaShrutiSchoolofDance,said,“Iamespeciallygratefulfortheopportunitytobeabletoinspiretheyoungergeneration,aswellasmotivatethemandtransmitimportantaspectsofthe culture to them. When I see the result in an exceptionally talented dancer,myheartfillswithpride.”PatGeorgeMitchell,ownerofPatGeorgeMitchell’sStudioofCreativeArts,toldus,“Themostrewardingaspectofmycareerhasbeendevelopingachild’sabilityindanceandnurturingtheirvesselfromearlychildhoodthruageeighteenoruntilIcangetthemtoalevelwherebytheycanbeacceptedtoaprofessionalschool to develop their dance career.”

RaisaBersten,ownerofTheMagicBallroom,pointsoutanothercloselyrelatedbenefit.Sheopenedupherdancestudio“togetthe




best instructors to come and teach my kids.” For parents who want to providehigh-qualitydanceinstructionfortheirownchildrenandareunable to provide it themselves, opening up a studio is one way to get it,especiallyinareaswithlimitedstudiosorthatlackthetypeofdanceinstruction desired.

BeaRespectedMemberoftheArtsCommunity

Manydancestudioownershavebecomerespectedmemberofthearts community. Just think about names like Arthur Millar or Fred Astaire,bothofwhomownedtheirowndancestudios.Notonlythat,but they also taught many celebrities to dance. Whether it’s your own localartscommunitywhoseekyououtforyourdanceprofessionalismandknowledge,orit’sthewiderworldofdancingfameandfortune,owning a dance studio gives you the chance to become well respected andperhapsevenfamousyourself.

FinancialRewards

Whilemoneyisn’teverything—notasingledancestudioownersurveyedgavefinancialrewardsasthemainreasonforopeningastudio—makingaprofitisessentialinordertostayinbusiness.Studioownerscaneasilyearnprofitsfromthelow$20,000sto$200,000ormoreayear.Profitsdependonthesizeofthestudio,thetargetmarket,servicesoffered,andreputation.

1.4 Inside This GuideThe FabJob Guide to Become a Dance Studio Owner is organized to help takeyoustep-by-stepthroughthebasicsyouwillneedtoopenandoperateyourownstudio.Thechaptersareorganizedasfollows:

Chapter 2 (“Dance Studio Basics”)describesthedifferenttypesofdancestudiosandthetypesofdanceinstructionofferedinboth.Itdescribesthevarietyofdancestyles,thereasonspeopleobtaindanceinstruction,andthedifferenttypesofdancestudentsaswellasadditionalservicesandproductsyoucanoffer.Italsoexplainstherolesperformedbydance studio personnel.




Chapter 3 (“Getting Ready”) explains how to learn the skills you willneedasadancestudioowner.Itcoverswaysoflearningfromexperts and through observation. You will also discover ways you can communicateandlearnfromdancestudioownersaroundtheworld.You’llfindnumerousresourcesforlearningmore—aboutrunningabusiness and running a dance studio.

Chapter 4 (“Starting Your Dance Studio”) will help you decide what kind ofdancestudioyoushouldopen.Thischapterdiscusseshowtoselectyour niche and will help you decide whether to buy an existing studio, operateafranchise,oropenanewstudio.Italsoexplainswhatyouneedtogetstarted,includingyourbusinessplan,start-upfinancing,studioname,andotherimportantmatters.

Chapter 5 (“Setting Up Your Dance Studio”)offerstheinformationyouneed to actually set up your dance studio. It gives advice on how to choose a location, arrange your studio, and discover what equipment andsuppliesyouwillneed.Italsoexplainshowtogetstartedsettingup your classes by creating a studio calendar, class schedule, and studio policies.

Chapter 6 (“Running Your Business”)takesyouintotheday-to-daychallengeofrunningyourdancestudioonceit’sopen.Itexplainshowtodevelopanoperationsmanual,managepayments,keepfinancialrecords, and manage and hire your employees.

Chapter 7 (“Getting and Keeping Customers”)givesyoutipsandtoolsformarketing your business, providing exceptional customer service, and growingyourbusiness.You’lllearnabouteffectivemarketingtools,ways to keep customers coming back, and much more.

Byfollowingthestepsinthisguide,youwillbewellonyourwaytolivingyourdreamofopeningyourownsuccessfuldancestudio.

YouhavereachedtheendofthefreesampleoftheFabJob Guide to Become a Dance Studio Owner.Toorderanddownloadthecompleteguidegotohttps://fabjob.com/program/become-dance-studio-own-er/.


https://fabjob.com/program/become-dance-studio-owner/

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Documents

FabJob Guide to Become a Dance Studio · PDF fileDance Studio Owner Visit ... 4.4.3 A Sample Business Plan ... , including modern dance, ballet, round dancing, tap, jazz, ethnic or