General Dance Discussion > Cost of Running a Dance Studio

Discussion in 'General Dance Discussion' started by Larinda McRaven, Jan 4, 2008.

  1. Joe

    Joe Well-Known Member

    Just make sure it's totally robust or easily taken over by someone else when the student(s) who originally created it graduate(s) and leave(s) ballroom!
  2. nucat78

    nucat78 Active Member

    Yeah. Don't let him write it in COBOL. And don't let him tell you C is self-documenting. :D
  3. toothlesstiger

    toothlesstiger Well-Known Member

    Google calendar seems to depend on the phone. On one phone, it worked like a charm, and synced with all my calendars and those shared with me. The cooler, more modern android phone, pphhbbttt!!!! :p I'm back to the old phone.
  4. nucat78

    nucat78 Active Member

    Just to keep it going, what about liability insurance? Is a general biz policy sufficient? Is there a "dancesport" rider?
  5. DL

    DL Well-Known Member

    I've always wondered about liability particularly in regard to lifts.
  6. pygmalion

    pygmalion Well-Known Member

    I assume there must be some oort of high-dollar-amount, umbrella policy that they have.
  7. Um, yeah. Self-documenting code is like... well... pink unicorns. Doesn't exist.
  8. I have a question about leasing a dance studio. I am open to any help or advice you have.

    So I may be in the market to open a studio. And I ran across an ad "Selling dance studio"
    Its a very small studio (700 SF) and its a Jazz, Ballet studio with kids as the main market.

    The monthly lease is just under $1000/month.

    But they are asking for $17,000 to buy it from them....they say it includes everything: hardwood floor, mirrors, sound system, dance costumes, chairs they say they just want to sell...and basically everything that's there

    My question is where does the $17,000 come from? I can understand if its for their clientele...or their name.... but I would actually have to put up my new dance studio's name...and their clientele is a totally different market than mine...

    What do you think? Do I owe anything besides the monthly rent?

    Thanks for the help
  9. danceronice

    danceronice Well-Known Member

    Would that be INSTEAD of renting, or are they offering to sell the business and you're renting the building from another landlord? So rent is separate, while $17,000 just buys the business?

    But either way, if it's a good floating floor, good mirrors, good sound system--that's $17,000 right there. If the costumes and such aren't things you can use, you can always sell those. That's really not a lot of money.
    KPomPom likes this.
  10. pygmalion

    pygmalion Well-Known Member

    I wonder if they're trying to sell name recognition.
  11. Larinda McRaven

    Larinda McRaven Site Moderator Staff Member

    If the studio is already built out that is one thing that is valuable. Chairs, speakers, music computer or stereo, phones, paper, pens, answering machine, mirror, floors... These are valuable assets.

    Buying their "business" is stupid, imo. You will not be a jazz studio nor does thier client list give you anything more than just a few cold calling options. Buying the "business" also includes their debt, do they have lessons on the books that you need to teach out, outstanding bills...

    Do they own the building? If not then you are paying them to not have to honor their lease and get to walk away from their debt.

    If the pysical assets are worth 17k for you then cool. Buy their chairs etc. But don't buy their "business", it is worthless to you, Leonid have your own clients and name... (What if you buy the business and 6 months later a debt collector comes knocking??? At least with your "business" you know what your debts are.)

    Give them 17k to give you the chairs and stuff and to go away. Pretty much that is what I would do.

    (does anyone really think they can take a floor with them when they go??? no, once you install it maybe you own it but it really "belongs" to the building and landlord. That is like me painting my walls in my rented apartment then trying to sell the paint on the walls to the next tenant. They are not buying the paint, but they are buying the convenience of not having to paint for themselves in the near future)
  12. Thanks for the insights... Yes I would have my name... and actually it would be another expense to taker hers off and put mine on

    We;; that's just that...its just chairs, dance costumes, and may I say OLD hardwood floor...

    I was thinking I can offer like $2000, but its so not close to $17,000 that I don;t even know how to negotiate it... LOL
  13. Larinda McRaven

    Larinda McRaven Site Moderator Staff Member

    Do you really want a bunch of kiddie tap costumes??

    But on the flip side their business name and costumes and lease may very well be worth all of 17k, if they were selling to a business that could use all of that.

    Just because I don't want to pay full price for a 5 bedroom house, when I only need 2 bedrooms doesn't mean the seller doesn't deserve to be paid for what they are selling. It may just be that I am buying apples and they are selling oranges.
  14. Yeah I mean like $2000 for the sound system and maybe mirrors and hardwood... The dance costumes...LOL is so completely irrelevant, I'll tell her....

    I agree if she found someone who can run a jazz, ballet studio, then it may worth the $17,000 to get some of their customers and such. But if I am teaching Latin and Ballroom under a different name, its a totally different market.

  15. danceronice

    danceronice Well-Known Member

    Depending on the floor that might be lowballing--having a good floating floor (if that's what it is) that's still in good condition is $2000 there. With mirrors, floor, and sound, $5000-7500 would seem more reasonable and less a low offer.

    If you can get away without the costumes or the name, though, go for it. And of course it's an issue of whether you're prepared for them to walk away from it without selling?
  16. Joe

    Joe Well-Known Member

    He says it's an old floor, so any real value should have been depreciated long ago, I would think. He may actually have to put something into it to make it nice again.
  17. samina

    samina Well-Known Member

    i'm a bit late in adding my comments to this (rather revealing) thread, but i just wanted to say how much i appreciated this comment. :)
  18. samina

    samina Well-Known Member

    one of the things i appreciate about DF...the way this sort of language pops up not infrequently. such an er-oo-dyte bunch. :)
  19. nucat78

    nucat78 Active Member

    Doctors and dentists sell practices all the time. The equipment has a value but the major part of the selling price is the clientele. There is actually a dollar value allocated to each patient file. You're SOL though if a patient is inactive. At least that's what my dentist told me since he bought an existing practice.

    Since you would presumably have a completely different clientele, I'd think Larinda is correct - if the hard assets and good will are not worth $17K, you'd be overpaying.

    Debts transferring with the sale might be negotiable - but best to have an attorney review that.

    Anyway, good luck! I hope you find your studio and it becomes a great success.
  20. Spitfire

    Spitfire Well-Known Member

    I have a question; do studios generally pay instructors for the time they teach or by percentage of lesson cost? One former studio owner here once told me she paid her staff for the time they actually spent at the studio. Does it just depend on the studio?

Share This Page