Business cw HELP! [Archive]

TangoTricia

01-06-2009, 04:52 AM

if anyone can help.

well, I don't run a dance studio but this topic interests me; I would like to understand the business model for dance. I think of it as any leisure and entertainment business, and have no idea where the artistic endeavour gets factored in. Maybe someone with more experience will jump in to help us out. I also acknowledge the many times I have asked for non-specific help with an assignment, and the generosity of those who have contributed.

Brief pause to check the question, incase I'm letting my own interests run away with me. I'm guessing here that what is required is firstly a list, a breakdown of the different costs which arise from running a dance studio, classification of these into fixed and variable, and an estimate of the actual ££££ (or $$$$ etc) costs against each item. If it were a specific business you were running, we would know lots more about the model which may influence whether specific costs would be fixed or variable. For example, do you rent studio space, say on an hourly basis for each class. or do you rent a whole studio? own, say with a mortgage. Or do you happen to own a fabulous space, and choose to run classes in it? or are part of a Uni/, school/college, who let you have space for free. These would make quite a difference about what is fixed and what is a variable cost. That classification tends only to hold over a particular timescale. Even if you have to pay by the hour, there will usually be a time at which you are committed to pay for that time, even if you don't use, it, say you are ill at the last minute.

Say you get the space for free from an educational establishment, who provide heating/lighting/water, kitchen facilities, showers,loos and maintain these for you. Hurrah, no costs for janitorial supplies. Development question; do you plan to stay here for ever, or is this temporary while you build up your business? How suitable is the space (a mirrored studio, with a sprung wooden floor and great sound system? - worth holding onto)

Having sorted the location, how do you book time there? If it's that great, I can't believe they are always empty, just waiting for you to turn up and book. Who sets the priorities for who gets to book etc? What happens if someone else wants the space after you have booked? Is there anyone who gets higher priority than you? Need to have this clear, so you do actually have a viable business.

Ok, how do people know to come. What sort of classes are you offering? Do you give classes yourself? What kind of dance? What type of audience do you plan to target? Beginners, or more experienced? or both and a mixture. And what format? Group, individual etc. Do you have regular or occasional visiting teachers? How does that work. How do you attract people to come in the first place, and to keep coming? Are you/they already famous? Do you have a steady turn over of say other students, or will you sometime run out of beginners?

If you own the studio, and make it available for others, of course, this would be different here... You might have the teachers do the marketing to students, and you market the studio to get it known to teachers.

What do you need to do to get known: both generally (open days, demonstrations etc) and specifically (leaflets, adverts (on-line and non). How do you distribute these, are there notice boards, cafe tables. How do you tap into a new audience? Are there allied activities where you might attract people to cross over ? Martial arts, musicians, young mums

Do you do partner dance, i.e. need to attract a mixture of men and women, or at least people wanting to dance either role? What do you do if a class is not balanced?

What music will you play? Do you need a cd player, an ipod or a laptop, plus any amp/pa kit? Does the studio provide good, up to date kit? Does it need future investment in upgrades? How do you get hold of music, esp. music that will appeal. Do you need live music? Let's assume that the studio you are using has a performing rights certificate. You can play or perform any music regardless of copyright.

What will you be teaching? Do you already have a syllabus? Is there an examining body ? Membership fees? Or is it more modern, in which case, what will you teach? How do you get over what they need to know, at different stages in learning? Are you looking for social or performance dance?

What do you need to factor in for your time? What competition is there around you? What do they charge? How much do they take home? How long can you survive as the business builds up? How do you keep your skills up to date, both for dancing and teaching. And long-term, you need rest, too, of course. Any maybe a pension?
What about actually collecting money form them? Is it cash only? Do you need facilities to pay be card? Would it be sensible to sell books of tickets/vouchers? Do you have time to collect the money from each class, or do you need someone to do that for you. What do you need to pay them? Will it be in cash, a percentage of the take, or in free lessons? Do you need a teaching assistant?

What extras can you provide for your students? Can you give them info on where to get the music for practice. What exercises can they do meanwhile? Can you beg or borrow equipment and provide a Cd of music for them to practice to?

What do you need to ensure they keep coming back? Its one thing to set up a business, its another to sustain competitive advantage, so you keep growing.
Well, I enjoyed thinking this through, and notice that I haven't really given you the actual costs that you were looking for.

Does this give you something to get you going? Do post your own version of how you see your studio working and I'd be happy to review it. Or, if you let me know more about the business you have in mind, I'll have another go. have you any idea of the purpose of the assignment. Is it to prepare your specific business. or to demonstrate that you have thought through different models and understand the differences? T xx