I. Executive Summary
This Section's Contents
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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 |
