Writing a dance studio business plan is a BIG project. But an important one! This plan will lay out your studio’s hopes and dreams, as well as the step-by-step process for getting from Point A to Point B. A few questions to ask yourself as you get started:
Where are you now?
Where do you want to be in three years? In five?
Who will help you get there?
The point of a dance studio business plan is to clearly lay out the aspects of a new company: strengths, challenges, and all of the minor details that will make the business a success. This document is an opportunity for entrepreneurs and hopeful business owners to put all of their ideas on paper, so that colleagues and other advisors can review the plan and offer any advice or criticism before the business is launched.
As an example, TutuTix has created a sample dance studio business plan without financial forecasts for our imaginary dance studio, TIPS (the TutuTix Imaginary Performance Studios).
Feel free to use our guide’s ideas in your own plan, and please send us feedback about ideas we might not have that work particularly well in your studio! You can download the example dance studio business plan for free by completing the form below:
The layout of a business plan follows a logical progression of topics that a company needs to have defined prior to opening for business.
That order of topics should look something like this:
A concise description of your company, that acts as an overview of your goals and values. Keep it short but sweet! Why did you choose to build this kind of company?
Here, you can flesh out your overview and touch on how your business will function. Talk a little about your customer base, marketing goals, and strengths of your company. Why are you the best? Is it because you have the best staff, the most experience, the best rates?
Who are you competing against? How strong is that competition, and why do you think your studio can handle it? How will your business grow in this community over time?
There are lots of talented teachers and dancers who would be great studio owners. But in their current city or location, they would have a really hard time getting into the market and signing up students. That might be because of competition, lack of student interest in the area, or other reasons. How will your studio stand up to these tests?
Products and Services
Which dance classes will you offer? Will you rent out your space? Will you sell any retail items?
This section lists out your business functions: what do you offer, and how much will you charge? All of the items listed here will add up to be your studio’s income.
Marketing Publishing Strategy
How will people find out about your business, and how will you recruit additional students after your first season? What does your brand mean to you, and what do you want it to mean to others?
Operational Plan, Legal, and Startup Expenses
You can’t start a business from scratch: you’ll need funds and some professional consulting to get your company off the ground. How will you pay for your startup costs? Do you have that money already, or will you need to raise money with partners? Is a loan from the bank your best option?
By the time you get to writing this portion, hopefully you’ve talked to colleagues who might be opening the studio with you, or you’ve found a legal and/or financial professional who can advise you on the best way to move forward. Taking on debt to open a business is always risky, so you want to find funds the right way and have a plan to pay that debt back.
Most importantly: don’t be afraid to adapt! After the completion of the business plan, go back through and make adjustments based on information you’ve learned along the way! Ideas can and should evolve when they’re laid out on paper, so be sure to look for guidance from other teachers and business owners when putting together your plan.
Starting a dance studio (or relocating a studio) is certainly not an easy endeavor. It is a decision that should be thoroughly considered, weighed, and understood. Varying personal factors that should be considered are: personality type, business sense, life stability, income requirements, investment resources, personal willingness to commit, and a passion for business and/or dance. Most people would not open a clothing boutique if they did not love fashion, and the same should be said for dance studio entrepreneurs.
In starting a dance studio (or expanding your current studio), you must find your niche location and market. This section of the guide will cover all of the factors involved in choosing and up fitting a space for your current or prospective dance studio. In terms of your success, location is everything!
Finding Your Ideal Property
To begin searching for commercial property, it is a best practice to consult a commercial real estate agent. The agent will represent you and will protect your best interests throughout the process.
In searching for a prospective studio spot, it is important to consider the following items:
How much space (think square footage) do you need for your dance studio? How much space can you support with your anticipated student base and financial resources? Will the studio be a one-room facility, or will it have multiple studio rooms?
In planning for the studio, consider the following spaces:
When looking at spaces and considering prospective floor plans and layouts, as much space as possible should be dedicated to the actual studio areas. This is the primary selling point of your facility and will be the most used, income producing space.
Is the space you are considering zoned for your intended use? A real estate agent or landlord can clarify an area’s intended use and zoning.
Lobby space should be kept to a minimum. The lobby does not need to be a large space for parents to loiter, as that encourages gossip and detracts from studio space.
Office space, bathrooms, and storage should be kept to a minimum, but be sure that they are adequate enough to accommodate your needs.
Does the space have adequate parking to accommodate the number of clients you hope to have at your studio? Be mindful that you will likely need a spot for every person at your studio at any given time, including: students currently taking class, students transitioning to the next class, and staff vehicles.
The bottom line is that you need a spot for every single person that might be in attendance at the studio. Extra parking is always a plus—people will never complain if there are too many spaces, but there will be complaints if there is not enough parking.
You may also consider having a student drop off area, so parents can drop off and pick up students without utilizing a parking space. In considering this option, you want to ensure that someone that may take too long in the drop off area will not interrupt the overall traffic flow.
A well-designed parking/drop off area can be one less thing for parents to stress about when coming to your studio.
Since dance studios frequently involve children, it is absolutely imperative to consider the safety (actual or perceived) of your location. Ask yourself if you would feel comfortable leaving your own child in a particular locale?
You can run the best studio in the world, but if it is not a great, safe location, people will hesitate to bring their children. This could cost you business! And, while the price of a less than desirable location may be appealing, this is not an area to skimp on your budget; rather, you should invest in being in a better part of town.
When considering locations, investigate your neighbors and see if that fits into your ideologies and overall theme. A great place for a primary location might be in an area with a fun park, a children’s preschool, and a music center. You would not want to open your facility in an area that was surrounded by bars or other non-child friendly venues. Be alert, and think of how parents may view your location and presentation.
The cost of a visible location is expensive, and ultimately you will pay more rent. But, you will compensate the cost through blatant marketing. If your location is centered in an area that supports a lot of drive-by traffic, your facility will constantly be on the forefront of your community’s mind.
Keep in mind that convenience is a primary factor for people joining a dance studio (or any extracurricular activity). Make sure your locale is near prospective clients and reflects the mentality of the neighborhood. Some dancers will come to you because you run an excellent program and train great performers. But, the bulk of your students (and, consequently, your income) will result from people that are taking dance because your activity is convenient to their home. Make sure that where you decide to put your studio is near a solid base of prospective clients.
Consider what nearby, prospective clients want in a space. Are you near a country club with high expectations for their children’s extracurricular activities? Be sure that your space reflects the mentality of the neighborhood and fits in with your potential client’s expectations. If a competitor (dance studio, gym or otherwise) has a considerably nicer or more visible facility, how are you planning on competing?
5. Nearby Anchors
As mentioned in the safety segment, knowing the businesses that surround you can greatly impact your business, positively or negatively. Know the resources that will be surrounding you and how you can use them to benefit your business. Being near a popular landmark can help your business when providing directions. Also, if you are near a school or another complimentary business to your target market, this can be highly beneficial. People appreciate surroundings that are familiar.
6. Feasibility of Meeting your Opening Goals / Timeline
It’s important to consult with your landlord/contractor to ensure that they can meet your opening goals with construction permitting, up fits, etc. It’s important to initiate the beginning phases of starting a dance studio with the highest levels of professionalism and organization.
The Bottom Line
Your dance studio’s outward appearance will make a huge impression on your clientele. Take the time to provide the best possible environment and regularly evaluate areas for potential improvement. Make sure your facility is cutting-edge, safe, and the appropriate environment for your dancers to thrive.