A ballroom dancing company offers ballroom dance instruction in a well-equipped facility. It may prepare teams for national or regional contests as well as provide dancing classes to people who just wish to learn how to dance. A ballroom dancing instruction company may be affiliated with a leisure facility or a club, and it may provide courses for both interested dancers and instructors.
Follow these ten steps to start a ballroom dancing teaching business:
Plan your Ballroom Dance Lessons Enterprise
Create a legal entity for your Ballroom Dance Lessons business.
Register your Ballroom Dance Lessons Company with the IRS.
Create a Business Bank Account and a Credit Card
Create Accounting for your Ballroom Dance Lessons Company
Get the Permits and Licenses You Need for Your Ballroom Dance Lessons Business
Purchase Ballroom Dance Lessons Commercial Insurance
Create a brand for your Ballroom Dance Lessons business.
Create a website for your Ballroom Dance Lessons business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this short guide to getting started with ballroom dancing instruction. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses associated with starting a ballroom dancing instruction business?
The three main expenses in launching a ballroom dancing instruction company are the cost of the studio or facility, insurance, and staff pay. Because purchasing an adequate structure might be too costly, the novice should explore renting and/or refurbishing a business space. You must have comprehensive liability insurance that protects teachers, students, and visitors, as well as any attendees at events hosted in the facility.
A dancing studio’s startup costs are estimated to be $50,000 to $75,000. This includes venue expenses (dance area, restrooms, easy parking, and so on), equipment costs (big wall mirrors, excellent sound system, and so on), staff compensation, and advertising (signage, website costs, videos, promotional items, and content marketing).
What are the continuing costs of running a ballroom dancing class business?
Rent or mortgage payments, salary for yourself and your staff, liability insurance, energy, computers / internet, and cleaning expenditures are all ongoing expenses for a ballroom dancing instruction company. There will also be advertising costs in all mediums.
The average compensation for a dance teacher is roughly $32,000, according to www.glassdoor.com. That implies you should budget roughly $2,500 per month for each instructor on your workforce, depending on your region.
Who is the intended audience?
Clients from all areas of life are welcome, particularly those who like social dance, fitness, and meeting new people. Separate lessons are recommended for starting casual dancers and professional dancers practising for local, regional, or national contests. Because intense training is required to compete at higher levels, competitive courses should be offered on a regular basis.
Students who like dancing and have some extra money to spend on regular classes are ideal candidates. Otherwise, students of all ages and backgrounds are welcome.
How can a firm that offers ballroom dancing classes generate money?
A ballroom dancing business earns money in a variety of ways:
The primary source of revenue will be class fees.
Independent teachers may rent studio space.
Ticket revenues may be generated via recitals and other special performances.
Social dance, competitive dancing, and wedding choreography lessons may all provide additional income.
Additional cash might be generated by the selling of dancing shoes, apparel, or costumes.
How much money may you charge your customers?
Payment amounts vary based on the package selected by the customer. A starter package that includes four individual lessons and two or three social lessons might range from $250 to $400. Monthly competitive packages ranging from $140 to $500 per month may contain a mix of unrestricted practise, supervised practise, many exercises, and rounds.
How much money can a ballroom dancing classes company make?
Ballroom dancing courses, according to a new online research, have profited from dance-inspired TV series and are now more popular than ever. Assume you have 200 students paying $150 per month, or $30,000. After deducting normal expenditures, it is feasible to produce a profit of 10-20%.
How can you increase the profitability of your company?
You may increase the profitability of your company by increasing lessons and establishing a few side enterprises, such as selling ballroom-appropriate shoes, clothing, and dance costumes. Another strategy to boost revenues is to extend your studio to a nearby urban region. You’ll be able to reach a much larger demographic and attract many more pupils if you have more sites.
There is a possibility of franchising your dance school if you can develop a respectable and lucrative brand for your company, and particularly if you can link your business with a famous dance expert. According to Fred Astaire Dance Studios, each franchise will cost between $87,500 and $190,000. You would get a considerable amount of the initial franchising cost, as well as a proportion of all franchised businesses’ yearly revenues, as the company owner (usually 8-10 percent ).
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your ballroom dancing classes company is sued, forming a formal business organisation, such as an LLC or corporation, prevents you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
Certain state permissions and licences may be required to run a boutique tour company. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Furthermore, local licencing or regulatory restrictions may apply. For additional information on local licences and permissions, please visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Waiver of Liability
To reduce legal risk and promote transparency, it is best to give clients with informed consent agreements. The following is an example of a liability waiver, sometimes known as a “informed consent agreement.”
Recommended: When you join up for Rocket Lawyer’s premium membership, you can easily produce a professional release of liability form for your ballroom dancing classes company. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.
A studio is often used to operate a ballroom dancing classes company. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a studio space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can acquire a valid CO for a ballroom dancing instruction company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you want to buy or construct a studio space:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building laws and zoning restrictions for the area of your company to verify that your ballroom dancing classes business is in compliance and may receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote a Ballroom Dance Lessons Business
Offering a free first class with no commitment, like Arthur Murray Dance Studios does, is an excellent advertising strategy. Advertising is critical, from posters and flyers to site pages, blog posts, Google+, and so on. Hosting a local dancing competition may also be an excellent method to increase interest in your company.
How to Keep Customers Returning
When it comes to attracting clients, think beyond the box. Show a show on your local cable television channel. Offer a Groupon for discounted lessons. Ask local schools whether you may have a concert or protest in their auditorium. You may also provide students with free lessons on their birthdays and discounts for consistent attendance.
Another wonderful method to attract consumers is to ask prominent dancers to visit to your class and teach special sessions or perform.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.