Dance school business plan with general calculations

Having your own dance school will seem like an interesting way of earning money for those who, one way or another, are connected with the art of choreography. The relevance of a business idea is due to the demand for the service. Many want to learn how to dance, and someone visits the ballroom to maintain good physical shape.

The dance business has the following advantages :

  • Small initial investment
  • Growing demand for services
  • Ease of opening
  • Minimum equipment
  • Different business formats
  • Payback in just 3-6 months of work
  • Profitability 50-60%

Among the shortcomings can be identified:

  • Market saturation
  • The need for a large area

Having decided to realize themselves in the field of dance services, they ask themselves the question: how to open a dance school, what is needed for this. First of all, it is necessary to draw up a detailed plan that will help to take into account the pitfalls and subtleties of the organizational process. It includes several stages of starting a business.

Step-by-step business plan for opening a dance school

First of all, you need to evaluate the idea, choose a concept and arrange activities, properly launch business processes, calculate investments and profitability.

You should also decide on the format of the school :

  • Teaching dance lessons on the basis of a fitness club as an additional service for visitors: the most budgetary business option
  • Dance studio with several teachers for training professionals and amateurs
  • Dance school focused on one direction of a particular type
  • Sports dance club with famous teachers to prepare clients for contests and competitions
  • Club with fitness classes for non-professionals with qualified choreographers

The choice of one or another direction will be influenced by the situation on the market for these services, which will be studied by a thorough analysis.
You can try to open a franchise business, but this will require additional funds to purchase it and monthly deductions.

Analysis of demand and competition for training in various types of dances

A novice entrepreneur will have to face a high level of competition , especially characteristic of megacities. The number of dance schools is increasing every year by 3%, so finding your niche will not be easy. In medium-sized cities, the situation is somewhat different and there are few competitors.

As a competitive advantage, you can use:

  • Staff professionalism
  • Convenient school hours
  • Affordable prices
  • Variety of dance programs

The demand market is segmented into several age groups of service consumers:

  • Children 4-10
  • Teenagers and students aged 11-22
  • Young people aged 23-30
  • Adults 31-45 years old

After studying the offer of competitors and identifying potential customers, they choose a priority line of business.

Niche selection

There are many types of dances related to different programs:

Classic direction :

  • classical ballet
  • Ballroom European dances: tango, waltz, foxtrot
  • Latin American ballroom dancing: Argentine tango, lambada, samba
  • Historical dances: mazurka, minuet, polonaise
  • Boogie Woogie
  • Rock’n’roll

Eastern dance:

  • Baladi
  • Persian dance
  • Egyptian Oriental Dance: Kawazi, Saidi, Shaabi, Nubia, Eskanderani, Felyakhi, Haggala
  • Khaliji, close to the Persian direction
  • Turkish dance direction
  • Tribal with elements of Indian, African, Spanish dances, residents of the Near and Middle East
  • Moroccan direction with elements of Lebanese and Egyptian dance

Ethnic:

  • Dances of the peoples of Russia: Russian folk dance, round dance, hopak, lezginka
  • Irish dances
  • Flamenco

Erotic dances:

  • Strip of plastic
  • Lap dance
  • pop strip
  • Half dance

Modern dances:

  • Club direction: tectonik, house, trance
  • Jazz Modern
  • Hip-hop: breakdance, popping, street dance

A variety of directions makes it possible to choose a niche that is relevant for your locality.

Popular destinations are: street dancing for teenagers and youth, classical and Irish for adults and children, Latin American dances for children and adults, strip plastic and oriental dances for adults.

Search and repair of premises

For the functioning of the dance school, you need to find a suitable room with an area of ​​\u200b\u200b120 square meters. m. with ceilings 3 meters high and windows. The building can be located both in the city center and in a residential area. The main thing is that it be noticeable, and there are public transport stops and a parking place nearby.

Communication systems must be connected to the building: heating, water supply, ventilation and sewerage.

Indoors, cosmetic repairs should be carried out with safe, non-combustible finishing materials, and good lighting should be provided. To avoid injury, floors should be covered with a shock-absorbing, not very hard coating . Unvarnished parquet, high-end wear-resistant laminate, modular polymer floors are suitable.[/su_list]

The room is divided into several zones :

  • Separate changing rooms for men and women with shower and toilet
  • Dance hall
  • Place of reception and rest of visitors with a reception desk

The cost of repair and decoration of the premises will be about 500 thousand rubles.

 Documents and permissions

The activities of the dance school must be registered with the tax office by registering as an individual entrepreneur or LLC . In the first case, it is enough to submit an application with a TIN, a copy of the passport and a receipt for the paid state duty in the amount of 800 rubles. If there are several owners, an LLC is registered by paying a state fee of 4 thousand rubles. and submit the following documents:

  • The decision to establish an LLC
  • Statement
  • 2 copies of the charter of the company
  • Minutes of the founders’ meeting
  • Letter of guarantee from the landlord or property documents

As a taxable base, the simplified tax system is suitable with a deduction of 6% from total income or 15% from the difference between income and expenses , etc. OKVED codes:

  • 92.34.2 on the activities of dance schools, discos, dance floors
  • 92.62 on other activities in the field of sports
  • 93.29 on other entertainment and entertainment activities

You will also need to approve the training program, and a license is not needed.

Hiring

This step involves the search for teachers of different dance styles , able to work with children and adults. Depending on the size of the school, you will need a team of 4 to 10-15 professionals in their field with piecework pay or 30% of the proceeds from the group.

In addition to the teaching staff, you need to hire an administrator, a cleaner, and use the services of an accountant under an outsourcing agreement.

Purchase of equipment

You don’t need a lot of equipment to equip a dance school. Main purchase:

For the dance hall

  • high-quality acoustic system from 70 thousand rubles.
  • air conditioning for the hall worth 25 thousand rubles.
  • machine for choreography from 4 thousand rubles.
  • mirrors costing from 2 thousand rubles.

For the locker room

  • benches at a price of 1.5 thousand rubles. per piece
  • dressing lockers – 1.2 thousand rubles. a piece

For the lounge and reception of visitors

  • hanger for 12 thousand rubles.
  • a sofa worth 15 thousand rubles.
  • reception desk at a price of 10 thousand rubles.

You should buy reliable equipment from trusted manufacturers. This item of expenditure will require from 700 thousand rubles.

Advertising and marketing

To attract as many customers as possible, you need to use different marketing tools:

  • Bright signboard and outdoor advertising: banners, pillars, billboards
  • Own website, social networks, instagram and other Internet resources
  • Distribution of business cards and leaflets in high traffic areas, shopping and entertainment centers
  • Advertising in the media
  • Announcements on transport, house entrances, elevators, bulletin boards
  • word of mouth
  • Customer loyalty program: discounts on the purchase of a subscription, free attendance of the first lesson and other promotions

A good option for business promotion would be participation in city events , dance shows, master classes and open parties with a dance program. The students’ favorite performances will surely attract the attention of beginners, will cause a reciprocal desire to learn how to dance.

How much to invest at the start

This stage involves the calculation of expenses and income, as well as the profitability of the business.

Turning to the financial part of the business plan, you should estimate the size of the investment. To open a dance school in 120 sq. m. you will need about 800 thousand rubles:

  • for rent and repair of premises – 700 thousand rubles.
  • purchase of equipment and inventory – 700 thousand rubles.
  • registration of activities – 20 thousand rubles.
  • marketing and advertising – 50 thousand rubles.
  • other expenses – 30 thousand rubles.

Expenses can be either more or less than the specified amount, depending on the location, equipment manufacturer, finishing materials.

Monthly expenses

It is also necessary to provide a reserve of funds for a couple of months to pay current expenses in the amount of 350 thousand rubles. These will include:

  • payment of wages to personnel – 200 thousand rubles.
  • rent of premises – 60 thousand rubles.
  • taxes and utility bills – 40 thousand rubles.
  • advertising and contingencies – 50 thousand rubles.

How much can you earn

The amount of earnings is determined by the number and cost of classes. The average price of a group lesson is 500 rubles. per student , individual lesson 1 thousand rubles.

https://youtube.com/watch?v=jISyElanZCc%3Ffeature%3Doembed

Conducting classes in four groups of 10-15 people, daily earnings will be 20-30 thousand rubles, and monthly – 600-900 thousand rubles. Given a net profit of 50-250 thousand rubles, the initial injections will pay off in 1-2 years of work . This is a very good indicator.
Additional income of 10 thousand rubles. will bring the production of wedding dance and other programs.

Possible business problems and risks

At the last stage, the degree of risks inherent in the business is assessed. Typical problems include:

  • Increasing competition affecting entrepreneurial income
  • Decreased demand for dance direction
  • Rent increase
  • Causing material damage to the property of the entrepreneur: breakdown of equipment and inventory, fire, theft
  • Poor quality of services due to weak teaching staff, which can harm the reputation of the school

Many risks can be avoided through a competent pricing and marketing policy, careful selection of personnel, and a wide range of services.

Opening a dance school from scratch is within the power of both entrepreneurs with experience and beginners. It does not require any special knowledge, and the starting capital is quite acceptable. By properly planning business processes , you can recoup the costs and make a profit in a short time. And with a successful start, you should think about expanding the business.

Leave a Comment