Dance Studio Business Plan

Dancing is a historical tradition. Ballroom dancing has been present at social functions for centuries, and Swing and Latin are the Waltz and Foxtrot of the past. In recent years, social dance has etched its presence in our lives through media, music, and social functions. People are now seeking schools where they can learn, as it is not usually taught parent-to-child. With Dancesport becoming a medal sport in the next Olympics, more people will be exposed to Social and Ballroom dance.

U&ME Dance is dedicated to providing quality and affordable dance instruction in Bellingham. Although there is already an active and dedicated ballroom dance community in Bellingham, there is no actual dance studio where these individuals can enhance their dance knowledge and enjoy the company of like-minded people. Our plan is to incorporate the existing dance community into our studio, establishing a strong supporter base. From there, we aim to spread the word that dancing is a fun and exciting way to spend time, attracting people from various backgrounds and interests.

Toni Simler and Mary Evans, a mother/daughter team, are the founders and owners of U&ME Dance. They have both been actively involved in ballroom and social dancing since 1995. Mary has worked as a dance instructor and supervisor in dance studios in the Seattle area. In the past three years, she has provided private dance instruction as an independent contractor. Toni, who recently retired from Lucent Technologies after thirty years as a manager in customer service, business management, and contract management, has been a dance student for many years along with her husband. They continue to dance socially. Together, Toni and Mary form a strong team that will ensure the success of U&ME Dance.

1.1 Objectives

U&ME Dance’s goals and objectives for Year 1 through Year 3:

• Create a dance studio with a warm, supportive atmosphere, satisfying customers.
• Provide a social and entertainment forum for people with diverse interests, backgrounds, and ages.
• Offer dance training for students at all levels, from beginner to advanced.
• Provide continual training, benefits, and incentives for staff to encourage long-term commitment.
• Increase sales to reach $300K by the end of Year 1 and maintain 15% annual growth.

1.2 Mission

U&ME Dance offers a place where people can learn to dance, meet new people, have fun, and feel comfortable. We provide a varied dance program with price options for all levels of interest, with greater emphasis on group classes and small package sessions. Our instructors have access to continual training with top professional coaches, ensuring up-to-date steps, technique, and the latest dance trends. U&ME Dance welcomes diversity and maintains a non-smoking, alcohol-free environment.

Company Summary

U&ME Dance, located in Bellingham, Washington, provides the community with a comfortable, friendly environment to learn partnership dancing. We offer private dance instruction, group classes, social dance parties, and rental facilities for local events.

Ballroom dance, as a sport and an art, has become increasingly popular worldwide. As a result, the studio can attract a wide cross-section of customers from Bellingham and Whatcom County. U&ME Dance appeals to people of all ages, abilities, and backgrounds seeking creative self-expression, exercise, and social opportunities through dance.

2.1 Start-up Summary

U&ME Dance’s start-up costs are based on leasing space at the Majestic, which requires minor renovations, including building an office and caterer kitchen.

The other category includes items like memberships to the Chamber of Commerce, Visitor and Convention Bureau, and any other forgotten or underestimated expenses.

Current assets include a $12,000 deposit. Long-term assets include items needed for the business. Refer to the attached table for details.

We are not requesting a loan currently but may need one for operating costs if the sales forecast is lower than expected. The owners are initially investing $50,000.

Start-up Requirements:

– Legal: $1,000

– Accountant: $300

– Office Supplies, Stationary: $500

– Brochures: $250

– Grand Opening: $5,000

– Signage: $500

– Other: $2,000

– Total Start-up Expenses: $9,550

Start-up Assets:

– Cash Required: $10,750

– Other Current Assets: $12,000

– Long-term Assets: $17,700

– Total Assets: $40,450

Total Requirements: $50,000

Start-up Funding:

– Start-up Expenses to Fund: $9,550

– Start-up Assets to Fund: $40,450

– Total Funding Required: $50,000

Assets:

– Non-cash Assets from Start-up: $29,700

– Cash Requirements from Start-up: $10,750

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $10,750

– Total Assets: $40,450

Liabilities and Capital:

– Liabilities:

– Current Borrowing: $0

– Long-term Liabilities: $0

– Accounts Payable (Outstanding Bills): $0

– Other Current Liabilities (interest-free): $0

– Total Liabilities: $0

– Capital:

– Planned Investment:

– Owner Loan/Investment: $50,000

– Other: $0

– Additional Investment Requirement: $0

– Total Planned Investment: $50,000

– Loss at Start-up (Start-up Expenses): ($9,550)

– Total Capital: $40,450

Total Capital and Liabilities: $40,450

Total Funding: $50,000

2.2 Company Ownership:

U&ME Dance is a Limited Liability Company owned and operated by Mary Evans and Toni Simler.

Services:

U&ME Dance brings fun and challenge to dancing in Bellingham and Whatcom County at an affordable cost. We offer private and group dance instruction for all levels of dancers. We also provide a venue for dancers to practice their skills through weekly dance parties and seasonal/holiday dances.

U&ME Dance offers a variety of instructional choices to best serve our students’ individual needs and budgets. Private lessons provide personalized instruction for faster progress and partner dancing confidence. Group classes introduce dancers to different partners and step patterns. Practice dances allow students to practice what they’ve learned and receive assistance from instructors. Facility rental options are also available.

In addition, U&ME Dance offers specialty dancing programs to schools, nursing homes, and other interested parties. We have exchange programs with dance studios in the Seattle area, providing additional opportunities for our students.

Market Analysis Summary:

Ballroom Dancing is a multi-billion dollar industry that continues to grow. One million people enroll in ballroom dance classes each year, and amateur ballroom dancers have increased by 25% annually since 1985. The popularity of social and trendy dances ensures success for U&ME Dance in Bellingham.

4.1 Market Segmentation:

According to the Bellingham/Whatcom Chamber of Commerce, Whatcom County’s population was 166,814 in 2000 and is projected to reach 212,000 by 2010. Bellingham had a population of 68,890 in 2001, with surrounding smaller towns like Ferndale, Blaine, Lynden, Sumas, Everson, and Nooksak.

Our target customer groups include:

– Children/Teens (19 yrs. and under): 36,965 potential customers in Whatcom County

– College Students/Young Adults (20-24 yrs): 16,776 potential customers

– Single and Married Adults (25-55 yrs): 69,865 potential customers

– Seniors/Retired (56+ yrs): 32,998 potential customers

MARKET ANALYSIS

Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Potential Customers

Children/Teens (5-19) 36,965 38,813 40,754 42,792 44,932 5.00%

College Students/Young Adults (20-24) 16,776 17,615 18,496 19,421 20,392 5.00%

Single and Married Adults (25-55) 69,865 73,358 77,026 80,877 84,921 5.00%

Seniors and Retired (56+) 32,998 34,648 36,380 38,199 40,109 5.00%

Total 156,604 164,434 172,656 181,289 190,354 5.00%

TARGET MARKET SEGMENT STRATEGY

Our market is limitless, catering to anyone with the ability to walk. Our goal is to present dance to people of all ages and foster interest in ballroom and social dance within the community.

For children and teens, showcasing the fun of dance is essential. We can introduce ballroom dance through school dance and drill teams, as well as partnerships with local Jazz and Ballet studios.

Colleges have added ballroom dance classes to their curriculum, and we aim to collaborate with Western Washington University’s Swing Kids club to promote swing dancing and expand its popularity.

Single and married adults aged 25-55 are always seeking new experiences. We offer a way to meet new people, providing special wedding packages for couples and emphasizing the social aspect of dance. We also collaborate with local clubs to ensure opportunities for our students to practice and engage with the community.

Seniors and retirees may represent a smaller market share, but they often become long-term dancers. Dance offers a low-impact exercise, social benefits, and mental stimulation. We plan to offer our services to local nursing homes and provide lessons in the studio.

SERVICE BUSINESS ANALYSIS

The ballroom dance industry has grown by 25% annually since 1985. This growth can be attributed to the International DanceSport Federation’s partnership with International Management Group, as well as the popularity of trendy dances like Lindy Hop, Argentine Tango, and Salsa.

Partnership dancing has become increasingly popular, appealing to those who appreciate the joy of graceful movement on the dance floor. U&ME Dance aims to provide affordable quality instruction in a supportive and enjoyable environment.

COMPETITION AND BUYING PATTERNS

There are currently no ballroom or social dance studios in Bellingham or Whatcom County. However, independent dance teachers and Dance Connection, a local group hosting dances, exist. Our plan is to collaborate with these instructors and offer them space to teach independently. We aim to provide an upscale facility, affordable prices, and quality instruction to differentiate ourselves from the competition.

STRATEGY AND IMPLEMENTATION SUMMARY

U&ME Dance’s marketing strategy focuses on delivering value to customers. We offer a wide variety of dance lesson packages and programs to suit any budget. Our highly skilled and professional instructors provide excellent customer service in an elegant environment. Marketing efforts include placement advertisement, direct mail, an Internet presence, and partnerships with local businesses.

Our sales strategy emphasizes a consultative approach, working with customers to identify their needs and develop tailored plans. Continuous sales training ensures our teachers can fulfill customer criteria effectively.

COMPETITIVE EDGE

As the only ballroom and social dance studio in Bellingham, U&ME Dance enjoys a significant competitive advantage. To capitalize on this, we will actively market the benefits of having a dance studio in the area. By partnering with Seattle studios, we can stay up to date with dance trends and offer diverse options to our students.

MARKETING STRATEGY

Our marketing plan revolves around customer satisfaction and word-of-mouth referrals. We will emphasize the fun and social aspects of dancing, targeting individuals who have never considered dance lessons before. Advertising mediums include the yellow pages, local newspapers, flyers, coupons, discount books, radio, and signage.

SALES STRATEGY

Our sales strategy involves offering discount specials and introductory offers to attract new customers. These specials allow us to understand their dance preferences and customize lesson outlines accordingly. A brief consultation ensures customer satisfaction and commitment to lessons. We provide various course packages, combining private lessons, group lessons, and practice parties. Additionally, we offer membership options with varying benefits.

SALES FORECAST

The sales forecast is based on the number of customers acquired each month, with an average lesson cost. Introductory specials are priced at $50 on average, and Social Foundation packages cost $720 ($600 with a cash discount). We anticipate selling 25% of introductory packages as Social Foundation packages, 50% of Social Foundation packages as Bronze I packages, and so on.

Membership sales are projected to average five per month, with an increase to 10 during peak months. Miscellaneous sales include group classes and rental income from space rental. We have kept estimates conservative to account for being a new business introducing a new concept in the community.

OTHER

We also offer other services such as one-time private lessons, DJ services, and special event packages. Additionally, we rent out our space for various purposes.

Sales Forecast:

Sales:

Introductory Specials-Social Basics: $18,000, $20,700, $23,805

Social Foundation Syllabus: $57,600, $66,240, $76,176

Bronze 1 Syllabus: $48,000, $55,200, $63,480

Bronze 2 Syllabus: $48,000, $55,200, $63,480

Silver 1 Syllabus: $21,600, $24,840, $28,566

Silver 2 Syllabus: $2,700, $3,105, $3,571

Memberships: $48,000, $55,200, $63,480

Miscellaneous Packages: $9,330, $10,730, $12,339

Weekly Dances: $12,000, $13,800, $15,870

Space Rental: $33,860, $38,939, $44,780

Other: $2,900, $3,335, $3,835

Total Sales: $301,990, $347,289, $399,382

Direct Cost of Sales:

Introductory Specials-Social Basics: $0, $0, $0

Social Foundation Syllabus: $9,792, $11,261, $12,950

Bronze 1 Syllabus: $8,160, $9,384, $10,792

Bronze 2 Syllabus: $8,160, $9,384, $10,792

Silver 1 Syllabus: $3,672, $4,223, $4,856

Silver 2 Syllabus: $460, $528, $607

Memberships: $0, $0, $0

Miscellaneous Packages: $0, $0, $0

Weekly Dances: $0, $0, $0

Space Rental: $0, $0, $0

Other: $0, $0, $0

Subtotal Direct Cost of Sales: $30,244, $34,780, $39,997

5.4 Milestones:

The following milestones reflect the approximate timeframe and cost for actions required to get U&ME Dance up and running. Our goal is to open and start teaching dance by September 1st, 2002. This date is subject to adjustment depending on renovation completion, permits, etc.

Milestones:

Meet with SBDC: 4/16/2002 – 9/1/2002, $0 budget,Both,Marketing.

Legal: 6/1/2002 – 9/1/2002, $750 budget, Both, Marketing.

Develop Web Site: 4/1/2002 – 4/5/2002, $90 budget, Mary Evans, Marketing.

Train New Teachers: 4/15/2002 – 9/1/2002, $0 budget, Mary Evans, Marketing.

File for State Business License: 6/1/2002 – 7/1/2002, $0 budget, Toni Simler, Marketing.

File for City Permits: 6/1/2002 – 7/1/2002, $0 budget, Toni Simler, Marketing.

Negotiate Lease: 6/1/2002 – 9/1/2002, $0 budget, Both, Marketing.

Order Tables and Chairs: 7/1/2002 – 8/1/2002, $3,750 budget, Both, Web.

Purchase Sound System: 8/1/2002 – 9/1/2002, $2,000 budget, Both, Web.

Renovate Space: 7/1/2002 – 9/1/2002, $0 budget, Both, Department.

Acquire Insurance: 6/1/2002 – 8/1/2002, $2,000 budget, Toni Simler, Department.

Create Calendar of Events: 7/1/2002 – 9/1/2002, $100 budget, Mary Evans, Department.

Open Doors for Business: 9/1/2002 – 9/1/2002, $0 budget, Both, Department.

Begin Advertising: 7/1/2002 – 9/1/2002, $2,000 budget, Toni Simler, Department.

Grand Opening: 11/2/2002 – 11/2/2002, $3,000 budget, Both, Department.

Totals: $13,690 budget.

Web Plan Summary:

U&ME Dance has a Web page, www.uandmedance.com, that provides a convenient way for people to discover our studio. The Web page will be linked to other dance Web sites and will show up on different search engines. Our students can use the Web site to look up group class schedules, upcoming events, studio news, and lesson prices. They can also contact teachers via e-mail. Teachers will have the Web site on their business cards, and it will appear on our ads.

6.1 Website Marketing Strategy:

We plan to link our Web site with prominent Seattle area dance Web sites, city Web sites, and local recreational sites. We will also link with national Web sites to increase our online visibility. By having dance in our title, we will show up easily on different search engines.

Our Web site offers information on prices, lesson outlines, our staff, and pictures of the studio. We provide pages for upcoming events at the studio, community dance events, and national dance news. We have a current calendar of events and a showboard displaying pictures of events.

U&ME Dance will also have a link page for other studios in Washington and national dance organizations.

6.2 Development Requirements:

We have created and maintained our Web page ourselves and will continue to do so in the future.

Management Summary:

U&ME Dance will be a very small company with two owners, Mary Evans and Toni Simler, responsible for managing and directing all activities.

Mary Evans, owner and dance director, will be responsible for teaching advanced students, hiring and training new instructors, scheduling and planning group lessons and special events, creating dance lesson programs and packages, and managing studio events. She brings seven years of experience as a dance instructor and certification from the National Dance Teachers Council of America.

Toni Simler, Owner and Business Director, will be responsible for teaching social foundation/bronze students, managing the accounting/financial aspect of the company, bookkeeping/payroll, designing and developing advertising and marketing strategies, and handling contract negotiation/vendor relations. She brings thirty years of corporate business experience and knowledge gained from being a dance student.

7.1 Personnel Plan:

A teacher training class began in April to train two teachers. These teachers will be offered the training for free in exchange for a job once U&ME Dance gets enough customers. The goal is to have five part-time/full-time instructors by the end of 2002, including the two owners. A receptionist may be hired in the future.

Personnel Plan:

Owners Salary/Distribution: Year 1 – $65,000, Year 2 – $72,000, Year 3 – $84,000.

Instructors Compensation: Year 1 – $33,150, Year 2 – $40,000, Year 3 – $40,000.

Total People: 5.

Total Payroll: Year 1 – $98,150, Year 2 – $112,000, Year 3 – $124,000.

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