Dance Studio Business Plan
You’ve come to the right place to create your dance studio business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their dance studios.
Example Business Plan for a Dance Studio
Below is a template to help you create each section of a business plan for your dance studio.
Executive Summary
Business Overview
Henderson Dance Expressions is a startup dance company located in Henderson, Nevada. The company is founded by Mary Roberts, a local dancer who has worked as a dance teacher for more than two decades and has taught thousands of students, , and is prepared to take on her new role as a dance studio owner. Now that Mary has garnered a positive reputation as a role model for dance students of all ages, she is ready to open her own dance studio, Henderson Dance Expressions. Mary is confident that her ability to effectively lead classes, coach students, and work with parents will help her quickly acquire new clients for her studio. Mary plans on recruiting a team of highly qualified professionals to help manage the day to day complexities of running a dance studio including teaching, marketing, scheduling, and fee collection.
Henderson Dance Expressions will provide a comprehensive array of dance styles, classes, and private lessons for students of every age and every skill level. Henderson Dance Expressions will offer a comprehensive dance curriculum to help every dance student reach their fitness and performance goals. Henderson Dance Expressions will be the ultimate choice in Henderson for dance instruction while being the most inclusive dance company in town.
Product Offering
The following are the products and services that Henderson Dance Expressions will provide:
- Childrens’ Classes (beginner, intermediate, advanced)
- Adult Classes (beginner, intermediate, advanced)
- Private Lessons
- Dance apparel and branded merchandise
- Dance instruction and choreography
The following dance styles will be available:
- Ballet
- Tap
- Jazz
- Modern
- Hip Hop
- Salsa
- Tango
- Ballroom
- Contemporary
- Folk
- Irish
- Swing
Customer Focus
Henderson Dance Expressions will target dancers of all ages and skill levels in the city of Henderson and surrounding areas. The studio will target individuals looking to improve their dance skills in one or more of the styles offered through dance instruction and fitness training. Henderson Dance Expressions will also target individuals looking to use dance as a form of exercise to achieve their fitness goals. Additionally, the dance studio will target individuals who want to perform or become professional dancers. No matter the student, Henderson Dance Expressions will deliver the best instruction, service, and value for the price.
Management Team
Henderson Dance Expressions will be owned and operated by Mary Roberts, a local dancer who has worked as a dance teacher for more than two decades and has taught thousands of students. Mary has a Bachelor of Arts degree in Dance for the University of Nevada and has worked in the dance industry for so long, she understands all aspects required in running a successful dance company. She will oversee all of the instructors, class offerings, and client relationships.
Mary has recruited Lisa Campbell, an accountant, to help manage the studio’s finances. Lisa has a Bachelor’s degree in Finance from the University of California. She has worked as a bookkeeper for a dance apparel retail company for the past ten years and is well versed in financial accounting. Lisa will be responsible for all of the company’s finances including budgeting, collecting dancers’ fees, managing accounts payable, bookkeeping, and monthly financial reporting. Mary relies strongly on Lisa’s diligence, attention to detail, and focus on optimizing the budget.
Success Factors
Henderson Dance Expressions will be able to achieve success by offering the following competitive advantages:
- A diverse staff of friendly, knowledgeable, and caring dance instructors who will go the extra mile for each student to ensure they reach their personal performance or fitness goals.
- Comprehensive array of classes and private lessons available, so there is something for every dancer regardless of age or skill level.
- Henderson Dance Expressions offers a flexible pricing plan, so dance students get the most value for their money.
Download the Dance Studio business plan template (including a customizable financial model) to your computer here
Financial Highlights
Henderson Dance Expressions is seeking $200,000 in debt financing to launch its dance business. The funding will be dedicated towards securing the studio space and purchasing dance equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads and association memberships. The breakout of the funding is below:
- Dance studio build-out: $30,000
- Dance equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $140,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Henderson Dance Expressions.
Company Overview
Who is Henderson Dance Expressions?
Henderson Dance Expressions is a newly established dance company in Henderson, Nevada. The studio will be the most inclusive option in the area catering to students of all ages and skill levels. Henderson Dance Expressions will provide a comprehensive array of dance classes and private lessons with instructors ready to support each student in reaching their personal performance or fitness goals. The Henderson Dance Expressions staff use a tailored, student-centered teaching approach that includes personalized programs to fit each student’s individual goals.
Henderson Dance Expressions will be able to manage a sizable student-base with a full weekly schedule of classes and private lessons offered by a large pool of instructors. The team of dance professionals are highly qualified and experienced in their dance specialties. Henderson Dance Expressions removes all barriers that prevent students from having fun or performing their best by providing a supportive environment.
Henderson Dance Expressions History
Henderson Dance Expressions will be owned and operated by Mary Roberts, a local dancer who has worked as a dance teacher for more than two decades and has taught thousands of students. Mary’s tenure in the dance industry has given her the skills and knowledge required to start her own studio. Mary has built a large network of dance professionals over the years and has recruited several of them to be instructors at the new studio.
Since incorporation, Henderson Dance Expressions has achieved the following milestones:
- Registered Henderson Dance Expressions, LLC to transact business in the state of Nevada.
- Has a contract in place to lease the facility that will become the dance studio.
- Reached out to numerous contacts to include professional dancers and instructors to advise them on their upcoming dance company in order to start getting instructors on her roster.
- Began recruiting a staff of accountants, instructors, sales and marketing associates, and office personnel to work at Henderson Dance Expressions.
Henderson Dance Expressions Services
The following are the products and services that Henderson Dance Expressions will provide:
- Childrens’ Group Classes (beginner, intermediate, advanced)
- Adult Group Classes (beginner, intermediate, advanced)
- Private Lessons
- Dance apparel and branded merchandise
The following dance styles will be available:
- Ballet
- Tap
- Jazz
- Modern
- Hip Hop
- Salsa
- Tango
- Ballroom
- Contemporary
- Folk
- Irish
Industry Analysis
The dance studios industry in the U.S. is an estimated $3.8B market. There are approximately 52,000 dance studios throughout the United States with over 100,000 dancers employed as teachers. Dance studio industry growth is positively correlated with recreation expenditure. As the country’s unemployment rate decreases and disposable incomes increase, more people tend to spend money on recreational activities such as dance.
Dance has traditionally been a popular recreational activity for children and adults alike. As the public becomes more health and fitness minded, dance will continue to be a chosen activity to maintain a healthy lifestyle. Additionally, there are numerous different styles of dance that can appeal to a wide range of people.
The main negative influences on the dance studio industry are high levels of competition and low barriers to entry. Dance studio operators can achieve a competitive advantage by developing a unique value proposition, offering a range of instruction forms (such as in-person, group classes, and virtual classes), and maintaining a full schedule of classes to give students more flexibility in their program choices.
Download the Dance Studio business plan template (including a customizable financial model) to your computer here
Customer Analysis
Demographic Profile of Target Market
Henderson Dance Expressions will target dancers of all ages and skill levels in the city of Henderson and surrounding areas. The studio will target individuals looking to improve their dance skills in one or more of the styles offered. Henderson Dance Expressions will also target individuals looking to use dance as a form of exercise to achieve their fitness goals. Additionally, the dance studio will target individuals who want to perform or become professional dancers.
The precise demographics for Henderson, Nevada are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Henderson Dance Expressions will primarily target the following customer profiles:
- Children of all ages
- Adults of all ages
- Professional dancers and aspiring professional dancers
- Individuals looking to use dance as a way to improve their health and fitness
- Individuals looking to improve their skills in one or more styles of dance
- Children and families looking for fun recreational activities they can do together
Competitive Analysis
Direct and Indirect Competitors
Henderson Dance Expressions will face competition from other dance studios with similar business profiles. A description of each competitor company is below.
Dance Henderson
Dance Henderson provides dance instruction for children ages 3-17 and adults of all ages. Located in Henderson, Nevada, the studio is able to provide small class size options for the local community. Their list of dance styles include ballet, hip hop, jazz, and contemporary. Dance Henderson is also able to provide private lessons for individuals and online classes for people to participate across the globe. They specialize in dance performance and fitness programs. Dance Henderson’s promise is to deliver effective instruction from top of their field dance teachers in a structured environment. Dance Henderson’s team of experienced dancers assures students can learn proper technique and form in a supportive environment.
LV Dance School
LV Dance School is a Henderson, Nevada-based dance company that provides outstanding instruction for students of all ages. LV Dance School provides comprehensive dance lessons for students in individual and group settings. The owners of LV Dance School are former dancers so they understand how a dance class should be run from a student’s perspective. They also are experts in their dance styles and can help students master the technique at their own pace. Students and parents can depend on their instruction process using positive reinforcement to incentivize students to improve their skills. By choosing LV Dance School for tailored dance instruction, they take the uncertainty out of the process and ensure students get the most value out of their time spent in the studio.
Steps and Styles Dance Studio
Steps and Styles Dance Studio is a trusted Nevada dance company that provides superior dance instruction for students in Henderson and the surrounding areas. They are able to provide a comprehensive dance program geared toward students who want to become professional dancers and those who just want to have fun. Steps and Styles Dance Studio is able to instruct students of all skill levels, from beginner to advanced, in multiple dance styles. The instructors are well-versed in ballet, cheer, folk dance, ballroom, and more. Their pricing structure is simple and straightforward. Steps and Styles Dance Studio offers four different pricing programs for their classes – pay by the class, pay by the month, pay by the season, or pay per program.
Download the Dance Studio business plan template (including a customizable financial model) to your computer here
Competitive Advantage
Henderson Dance Expressions will be able to offer the following advantages over their competition:
- Large pool of diverse instructors who are experts in their dance specialties and experienced in teaching students of various age groups.
- Comprehensive array of dance styles and programs for students of all ages and skills levels to ensure there is something for everyone.
- Henderson Dance Expressions offers group classes, private lessons, and online classes to give students greater flexibility to achieve their individual goals.
Marketing Plan
Brand & Value Proposition
Henderson Dance Expressions will offer a unique value proposition to its clientele:
- Highly-qualified team of skilled dance instructors that are able to work with students of all ages and skill levels.
- Flexible program options that will allow each student to get the most value for the price.
Promotions Strategy
The promotions strategy for Henderson Dance Expressions is as follows:
Word of Mouth/Referrals
Mary Roberts has built up an extensive list of contacts over the years by providing exceptional service and expertise to her students. Many have communicated to Mary that they kept coming back to her classes because they were happy with the instruction she was providing. Once Mary advised them she was leaving to open her own dance studio, they expressed interest in following her to her new company and committed to help spread the word of Henderson Dance Expressions.
Professional Associations and Networking
Henderson Dance Expressions will become a member of Dance/USA, the National Dance Education Organization, and Dance Educators of America. Mary will focus the networking efforts on expanding Henderson Dance Expressions’ network of instructors and students.
Print Advertising
Henderson Dance Expressions will invest in professionally designed print ads to display in programs or flyers at industry networking events and in magazines, newspapers, and direct mailers.
Website/SEO Marketing
Henderson Dance Expressions will hire an in-house marketing director to design and maintain the company’s website. The website will be well organized, informative, and list all of its available programs and classes. The marketing director will also manage Henderson Dance Expressions’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Henderson dance studio” or “dance classes near me”, Henderson Dance Expressions will be listed at the top of the search results.
Social Media Marketing
The company’s marketing director will create and maintain an active presence on social media platforms such as Facebook, Instagram, Twitter, YouTube, and TikTok.
Pricing
The pricing of Henderson Dance Expressions will be moderate and on par with competitors so customers feel they receive value when they choose to enroll in their programs.
Operations Plan
The following will be the operations plan for Henderson Dance Expressions.
Operation Functions:
- Mary Roberts will be the Owner and President of the company. She will oversee all dance instructors, program offerings, and client relations. Mary has spent the past year recruiting the following staff:
- Lisa Campbell – Accountant and Bookkeeper who will provide all client accounting, tax payments, and monthly financial reporting.
- Kelly Green – Sales and Marketing Director who will provide all sales and marketing efforts for Henderson Dance Expressions.
- Benjamin Martin – Office Manager who will oversee all day-to-day operations of the studio including maintaining the schedule, supervising the maintenance and cleaning staff, and managing the inventory of dance apparel available for sale in the studio.
Download the Dance Studio business plan template (including a customizable financial model) to your computer here
Milestones:
Henderson Dance Expressions will have the following milestones completed in the next six months.
8/1/2022 – Finalize contract to lease studio space
8/15/2022 – Finalize personnel and staff employment contracts for the management team
9/1/2022 – Finalize contracts for dance instructors
9/15/2022 – Begin networking at industry events and implement marketing strategies
9/22/2022 – Begin moving into Henderson Dance Expressions studio
10/1/202 – Henderson Dance Expressions opens for business
Management Team
Henderson Dance Expressions will be owned and operated by Mary Roberts, a local dancer who has worked as a dance teacher for more than two decades and has taught thousands of students. Mary has a Bachelor of Arts degree in Dance for the University of Nevada and has worked in the dance industry for so long, she understands all aspects required in running a successful dance company. She will oversee all of the instructors, class offerings, and client relationships.
Mary has recruited Lisa Campbell, an accountant, to help manage the studio’s finances. Lisa has a Bachelor’s degree in Finance from the University of California. She has worked as a bookkeeper for a dance apparel retail company for the past ten years and is well versed in financial accounting. Lisa will be responsible for all of the company’s finances including budgeting, collecting dancers’ fees, managing accounts payable, bookkeeping, and monthly financial reporting. Mary relies strongly on Lisa’s diligence, attention to detail, and focus on optimizing the budget.
Financial Plan
Key Revenue & Costs
The revenue drivers for Henderson Dance Expressions are the dance tuition fees charged to students for instruction services. Henderson Dance Expressions will offer flexible pricing options to accommodate each student’s goals. Students can pay per class, per program, or on a monthly or annual basis depending on what will work best for them.
The cost drivers will be the overhead costs required in order to staff a dance studio. The expenses will be the payroll cost, rent, utilities, dance supplies, and marketing materials.
Funding Requirements and Use of Funds
Henderson Dance Expressions is seeking $200,000 in debt financing to launch its dance business. The funding will be dedicated towards securing the studio space and purchasing dance equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads and association memberships. The breakout of the funding is below:
- Dance studio build-out: $30,000
- Dance equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $140,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Dance Studio business plan template (including a customizable financial model) to your computer here
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Average number of students per month: 100
- Average fees per month: $50,000
- Studio lease per year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Dance Studio Business Plan FAQs
A dance studio business plan is a plan to start and/or grow your dance studio business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your dance studio business plan using our Dance Studio Business Plan Template here. There are a number of different kinds of dance studios, some examples include the traditional dance studio which might offer group classes and private lessons, and there are online dance studios that offer on-demand dance training and virtual lessons. Dance studios are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. Starting a dance studio business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop A Dance Studio Business Plan - The first step in starting a business is to create a detailed dance studio business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dance studio business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dance studio business is in compliance with local laws. 3. Register Your Dance Studio Business - Once you have chosen a legal structure, the next step is to register your dance studio business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your dance studio business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Dance Studio Equipment & Supplies - In order to start your dance studio business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dance studio business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. Learn more about how to start a successful dance studio business and starting a dance studio business plan: What Is a Dance Studio Business Plan?
What are the Main Types of Dance Studios?
How Do You Get Funding for Your Dance Studio Business Plan?
What are the Steps To Start a Dance Studio Business?