Dance Studio Business Plan Template
If you want to start a Dance Studio business or expand your current Dance Studio business, you need a business plan.
The following Dance Studio business plan template gives you the key elements to starting a Dance Studio business plan.
Dance Studio Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a dance studio located in [City, State]. It is a place that provides the community with a comfortable, friendly environment to learn different dance forms. It will cater people of all ages, abilities and backgrounds and will serve to provide an avenue for people who are looking for creative self expression, exercise and/or social opportunities through dance. We are dedicated to providing the highest quality of professional instruction in a safe and creative non-competitive environment.
Services Offered
Below are [Company Name]’s service offerings:
- Group Classes
- Private Lessons
- Practice Dances
- Facility Rental
Customer Focus
[Company Name] will primarily serve the residents within a 5 mile radius of our location. The demographics of these customers are as follows:
- 29,897 residents
- Average income of $94,700
- 61% married
- 44% in Mgt./Professional occupations
- Median age: 36 years
In addition to this prime adult demographic for a dance studio, there are two large high schools and four middle schools in the area. Students from these schools will be sure to patronize [Company Name].
Management Team
[Company Name] is led by [Founder’s Name] who has been in the dance industry for [x] years. [Founder] spent most of his adult life choreographing dances for different groups. As such he has an in-depth knowledge of the dance business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
- The management team has a track record of success in the dance business.
- The dance studio business is a proven business and has succeeded in communities throughout the United States.
- Local competitors leave a large gap in the market—there are low-cost providers ($20-30/month), and an ultra-luxury options ($120+/month), but nothing in between.
Financial Highlights
[Company Name] is currently seeking $200,000 to launch. This will be used towards property acquisition, renovations and repairs, along with equipment. Moreover, there are several fees needed to be covered in regards to legal and professional services, website development, and business licenses. Lastly, the funds will be used to cover the first six months of operating costs.
Topline projections over the next five years are as follows:
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Average customers/day | 20 | 22 | 23 | 25 | 27 |
| Number of orders | 3,600 | 7,776 | 8,398 | 9,070 | 9,796 |
II. Company Overview
Who is [Company Name]?
[Company Name] is conveniently located in [City, State]. It is a place to learn, enhance and to better the knowledge of the dance basics and foundation. We will provide the community with a comfortable, friendly environment to learn the different dance forms. Developing talents, nurturing abilities, and instilling self-confidence and dance appreciation are the main mission of [Company Name].
Serving people of all ages, abilities and backgrounds, we want to provide an avenue for people who are looking for creative self expression, exercise and/or social opportunities through dance. We are dedicated to providing the highest quality of professional instruction in a safe and creative non-competitive environment.
[Company Name]’s History
[Founder’s Name] started[Company Name] as a one-room ballet studio in [location]. It was first opened to offer summer hip-hop dance class to kids; [Founder’s Name]’s diversion from his regular work as a writer. As more people found out about the dance class, the students grew from [x] to [x] students and [Founder’s Name] started organizing classes of other dance forms like Tap, Jazz, Contemporary, and Acro by hiring new dance teachers. As new classes are offered, [Founder’s Name] decided to open up his dance studio for other dance groups who need a space to practice.
Since incorporation, [Company Name] has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
Below are [Company Name]’s service offerings:
Group Classes
This is the main service of [Company Name] where a specific form of dance is taught for each class. It provides the students an experience to work with different partners and groups. It promotes comfort and camaraderie. These classes are available every week at every level, from basic beginner through advanced competitive styling.
Private Lessons
An instructor works one-on-one with the students and gives personalized training and dance routines according to the student’s needs. This is usually done at the studio on a fixed schedule or at the student’s home if requested.
Practice Dances
A monthly performance showcase is organized for students to be able to practice dancing in front of a crowd. This prepares them for final performances and allows them to
Facility Rental
[Company Name] is open to be rented by dance groups, other dance teachers or yoga instructors with no studio of their own yet, and other personalities needing a space for events like parties, weddings, receptions, musical events, etc.
III. Industry Analysis
The Dance Studios industry has experienced growth over the past five years, with industry revenue increasing at an annualized rate of 3.8%.
Over the five years, enrollment in dance classes has grown substantially among young millennial females who are increasingly choosing dance over more traditional fitness routines. Consequently, the number of fitness-oriented dance classes has increased, including new forms such as cardio dance, pole dancing, Bollywood dance, and barre method.
The industry has benefited from an expanding US economy, as rising disposable income and decreasing national unemployment have enabled individuals to spend more on sports and leisure activities, including dance instruction. These favorable conditions have expanded customer demand and increased the profitability of industry operators during the period.
Improving economic conditions are expected to lead to greater per capita disposable income growth, fostering more spending on recreational activities, such as dance. Furthermore, growing disposable income will likely boost demand for more lucrative private classes and high-profit merchandise sales. Additionally, the baby-boomer generation is anticipated to contribute to revenue growth over the next five years, particularly for ballroom dancing classes.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by the upper-middle class; as a result, they have the means to pay for dance classes and other dance related services.
The precise demographics of the town in which our retail location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Soccer/stay-at-home moms: The town has a large population of stay-at-home moms who are active in the school and community. These moms seek fitness services on a regular basis as well as extra-curricular activities for their children during the weekends or in summer. Winning the loyalty of a mother often includes winning the business of her children and husband as well. These women are well connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
- Professionals: [Company name] is located along a well-traveled commute route. By offering convenient location and exceptional service to the customer, [Company name] will draw in working men and women who want to stay fit and are looking for activities that would divert them from their usual office routines.
- Students: There are multiple high schools and middle schools located in the surrounding area. These students still live on their parents’ income and can therefore afford to pay for services.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 5 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Dance Academy
Dance Academy is a dance studio in the heart of the city. The studio was established in 1994 and offers the following types of dance instruction: ballet, pointe, tap, jazz, hip-hop, acrobatics, contemporary, creative movement, lyrical, and musical theater. Dance Academy offers both recreational dance instruction and competitive dance instruction. Recreational and competitive tuition fees are the same price points and are based on the number of instructional hours per week.
The dance studio is owned and directed by Melissa Sturch who received her dance training at Xavier College.
Stevens Dance Studio
Located just outside the city, Stevens Dance Studio offers a variety of dance options for all skill levels and ages. Classes taught at Stevens Dance Studios include ballet, tap, jazz, tumbling, hip hop, acrobatics, and contemporary. Classes start at the young age of 18 months where the studio holds a parent and tot class to teach toddlers dance basics and to grow motor skills all the way through intermediate classes for children/teenagers between the ages of 12 to 18. Monthly tuition for children/teenagers between the ages of 7 and 18 is based on the number of hours of instruction per week at the studio.
Jo Jo Studios
Jo Jo Studios is a dance studio that specializes in dance lessons of all types for all skill levels. Types of dance instructed at Jo Jo Studios include ballet, tap, creative movement, hip hop, tumbling, acrobatics, jazz, lyrical, technique, and pointe. The dance academy offers classes to children as young as two years old to 19 year olds. In addition, the academy forms competition teams where they compete in a minimum of two regional competitions and a summer national competition each year. Tuition pricing is based on the number of instruction hours per week and is as follows.
Jo Jo Studios is owned and directed by Jo Jo Susie and has been in business for over 35 years.
Competitive Pricing
| Weekly Class | Monthly Class Tuition | |
|---|---|---|
| Dance Academy | $22 | $92 |
| Stevens Dance Studio | $18 | $85 |
| Jo Jo Studios | $21 | $80 |
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and city traffic. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The services offered by [Company Name] are similar in quality to its most premium positioned competitor. [Company Name] will offer these services at a much more affordable price.
- Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Familiar, regular specialists
- Significant personal attention
- Moderate price point
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Major Publications
We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Commute Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. When not actively providing services to customers in the dance studio, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their memberships/services, and (b) remind customers after a certain period of time has passed that they might want a new class or session. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the dance studio.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.
Pre-Opening Events
Before opening the Dance Studio, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be moderate so customers feel they receive great value when patronizing the dance studio. The anticipated price point for a membership will be comparable to the surrounding area dance studios.
VII. Operations Plan
Functional Roles
[Company name] will carry out its day-to-day operations primarily on membership and appointment basis. All classes and personal training sessions will be scheduled in advance, but the dance studio itself will be open 7 days a week from 6am to 10pm.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. The majority of employees will assist in up servicing and selling customers in addition to the primary functions. [Company name] anticipates using the services of X employees, divided into the following roles.
Service Functions
- Dance teachers
- Sales/membership manager
- Maintenance personnel
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Hiring and training staff
- Customer service/front desk functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the dance industry for [x] years.
[Founder] is a choreographer with experience across different dance genres such as jazz, hip-hop, and ballet. He began his career in [19xx] when he received a certification from [School] and began work at [major chain], where he worked for X years.
[Founder] graduated from the University of ABC where he majored in Physical Education.
Hiring Plan
[Founder] will serve as the general manager. In order to launch our dance studio, we need to hire the following personnel:
- Dance teachers (3 to start)
- Assistants (1 to start)
- Receptionist/Front desk (2 to start)
As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:
- Receptionists [Number]
- Assistant Manager
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will primarily be driven through client growth. There will be other initiatives to increase sales as shown below:
- Clients (Packaged Offerings, Camps, and personal classes)
- Online class subscriptions
- Events
- Studio rental
The Company’s largest direct cost will be paying its dance teachers. [Company Name] will focus on bringing experienced and enthusiastic personnel, and thus, will be paying them a large piece of each sale from each class. While teachers’ wage cut will be determined by experience, the Company expects to pay an average of 40 percent of the sales that come in for each class
Other major cost drivers for the company’s operation will consist of:
- Lease
- Marketing Expenditures
- Maintenance
Capital Requirements and Use of Funds
[Company Name] is currently seeking $200,000 to launch. This will be used towards property acquisition, renovations and repairs, along with equipment. Moreover, there are several fees needed to be covered in regards to legal and professional services, website development, and business licenses. Lastly, the funds will be used to cover the first six months of operating costs.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of customers per day | Per location |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Average class price | $35 |
| Annual increase in order price | 6.00% |
| Annual Lease ( per location) | $50,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
