How To Start A Dance Studio

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Opening Dance Studio (2021 Update): 10 Things You Need To Know!

Perhaps you have been dancing your whole life and are looking to share that passion with others.

Maybe you’re nearing the end of your professional career as a performer and want to find a way to keep in touch with the industry.

You could open your own dance studio!

But this is not something you should rush into.

You must take the time to understand what it takes to open a studio. It’s all about fully grasping the challenges and the rewards of starting a dance school.

You have better chances of succeeding the more you know the ins and outs of the business.

In this review, we’re going to cover everything you need to know about opening a dance studio.

As a matter of fact…

The information I’m about to show you is exactly the same information that has helped more than 73% of our readers with their questions about get a dance studio up and rolling.

But, I want to say something first…

Even, though you might have some pre-conceived notions about starting a dance studio… when you’re done reading this review, you can rest assured that whatever decision you make will be the best one for you.


Towards the end of this article, I’ll answer some of the most frequently asked questions on how to start a successful dance studio business…

But on top of that, I’ll show you the exact system thousands of others have used to build their own online business to over $40,000 a month in mostly passive income.

So let’s get started…

Table of Contents

Business Overview

Most dance studios offer classes in a range of styles, often across many types of dance.

These classes are intended to educate, prepare and entertain dancers for competitions and careers or just as entertainment or pleasure.

Studio A focuses on training young ballet dancers for a career in ballet. They offer rigorous and competitive programs.

Some studios offer a more relaxed approach that appeals to a broader audience, including children, teens, and adults of all levels.

Students can take multiple classes at a studio and may have the opportunity to work with various instructors.

Dance instructors can teach lessons, lead group rehearsals, choreograph, and prepare students to perform in recitals and competitions.

Industry Summary

According to IBIS World, the industry of dance studios grew between 2014 and 2019.

The sector saw a 3.8% increase in annual growth, and 53,140 dance studios were added, while a 108,454 increase in employment was observed and a total of $4 billion in revenue in 2019.

The popularity of television programs that focus on dance, such as competitions and the promotion of dancing as an exercise option, is partly responsible for this growth.

The revival of interest in dance has significantly impacted Latin-inspired and fusion dancing and ballroom dancing.

The industry’s growth was also aided by an increase in disposable income between 2014 and 2019 and the opening of additional studios to meet this increased demand.

Industry Trends

To stay relevant and current, dance studios must be aware of the latest trends.

Wellness Living reports that dance challenges became a popular trend in 2018 and have influenced the perception of dance and the world.

Studio owners can embrace these trends like the newly released dance challenge to keep their students engaged and create valuable marketing materials such as videos that can be used by new students.

Social media will continue to be a key component of dance studios’ success in the future. It can make them viral and reach new audiences, which in turn can bring in more students.

Studio owners who use social media actively will have an advantage as a result, such as when they release a video showing students taking part in a dance challenge.

The modern dance will continue to be popular than traditional techniques.

However, studios can still teach students to transfer classical techniques to more robust, more creative contemporary methods. This will ensure that they receive a balanced education.

Target Market

Different studios have different audiences. Some studios target children and their parents, while others market to more experienced dancers, often adults.

Some studios only offer one style of dance and are available to those who want to learn it. Others provide more classes and can market to a larger audience.

In all cases, the target audience will be students and their parents who are interested in learning to dance, and have the income to pay for lessons.

Skills, Experience, And Education Useful In Running A Dance Studio

Although a degree in business is not required to open a dance studio, specific skills and experience can help make it more successful.

Dance experience. Experience in at least one type is required for a dance studio owner. This experience should generally be extensive. Most studio owners will also have experience performing and competing.

Teaching experience. Dancers need to communicate dance techniques to students in a way that is easy to understand.

Knowledge of the dance industry and competition standards. Working knowledge of dance standards and current trends can make a studio more successful at competitions.

Attention to detail. A studio owner will be able to help students with their technique and choose the right flooring.

Management skills. Some studios may hire multiple teachers. Experience in managing, training, and managing other teachers can prove to be helpful.

Marketing skills. Marketing is vital to any studio. This industry requires a lot of experience with social media.

Costs To Start A Dance Studio

The location available to the business owner will determine the cost of opening a dance studio. A business owner may be able to rent out or lease an existing studio to lower startup business expenses.

This can save you between $10,000 and $20,000. Owners who need to renovate their space to make it a studio can spend up to $40,000 to $50,000.

The following are typical startup costs for a studio of dance:

  • Remodeling studios can be expensive, such as flooring and mirrors
  • Furniture for changing rooms and waiting areas
  • Mats and equipment bars
  • Studio management software/ calendar software
  • Signage
  • Working capital for the three to six months of salary, internet, rent, and utilities.

Steps To Starting A Dance Studio

Step 1: Write Your Dance Studio Business Plan.

Next, you need to create a business strategy. A business plan will be required by banks. Numerous studies also suggest that having business planning can increase your chances of starting a successful company.

Step 2: Form A Business Entity.

The legal structure of a business to be legally operated is called a business entity.

There are four main business entities that you can choose from: a sole proprietorship, partnership, or corporation, as well as a Limited Liability Company (LLC). Each entity type has its pros and cons.

These include liability exposure, costs, and administrative requirements.

Step 3: Name The Business.

It can be hard finding the perfect name for your business. Names must not only be appealing to your customers but also have to be easy to remember.

Step 4: Select Your Location.

Although most studios do not require a prime location with high traffic, your customers must be easily reachable. Some customers may travel great distances to see your programs.

The rental cost of dance studio space will depend on which facility the business uses. Renting a studio that is already furnished will cost you more than renting one that has to be renovated.

However, your company will save money on renovations and operate as soon as the rental agreement starts.

You need to consider how much space you require and how it is being used. Studios will require a waiting room, classrooms, and offices, as well as plenty of parking.

The studio that offers multiple dance styles and plans to hold various classes simultaneously will require more space.

Step 5: Apply For Business Licenses And Permits.

There aren’t any specific licenses needed for dance studios. But, there are general registrations at the federal, state, local, and state levels that could be required by a studio, including the following:

  • a sales tax permit for branded apparel or outfits for performances
  • An Employer ID Number for payroll taxes
  • An occupancy permit to operate from a commercial space

Accreditation is helpful to enhance the reputation of a dance studio with customers and to help attract staff.

Many accrediting agencies are well-known, such as the National Association of Schools of Dance or the National Office for Arts Accreditation.

Step 6: Find Financing.

Finding the right business idea and the ability to manage it is one thing. However, getting funding to open a dance studio can be another.

It is not expensive to open a dance school. However, funding can be difficult because most of the costs are for building renovations.

A small business loan is available to those with good credit, contributing 15 to 25 percent of their personal savings to startup costs.

Step 7: Open A Business Bank Account.

It is easier to track your personal and business finances by keeping them in separate credit and business bank accounts.

Step 8: Get Your Marketing Plan In Place.

Although marketing the grand opening of your studio is essential, it is equally important to think about ongoing marketing campaigns.

Marketing brings in new students. Studio owners also need to market the new classes and programs they create to attract new enrollment.

Marketing techniques include everything, from social media marketing to radio advertising to print advertising.

Marketing costs can vary depending on what type of activity is being done.

If other fitness clubs offer dance classes, it could be a chance to partner with them and cross-market their classes.

Step 9: Get Insurance.

For full coverage of your dance studio, you should consider purchasing multiple insurance policies.

  • Commercial liability insurance covers the business in case a customer is injured at work. It can also cover legal fees.
  • If an event such as a fire damages equipment or supplies, commercial property insurance will cover the costs of replacing it.
  • Only if the company hires employees, worker’s compensation insurance covers medical expenses if the employee is injured while on duty.
  • Commercial auto insurance covers the vehicle of the company and provides protection in case of an accident.

Insurance policy costs can vary depending on the location, the value of the studio building, and number of workers. You may request quotes from several companies to get a better idea of the cost of insurance.

Compare the quotes, paying particular attention to differences in their premiums, deductibles, and coverage limits.

Step 10: Hiring Employees.

The dance studio owners may initially teach all the classes, but it may become necessary to hire additional instructors as the studio grows.

Based on a PayScale report, the average hourly rate for dance instructors is $23.51, but hourly rates vary depending on their experience and where they live.

Apart from paying salaries for employees, studios also need to budget for the other expenses associated with hiring employees.

Some of these costs include worker’s comp, paid time off, and retirement and insurance contributions.

Step 11: Set Up An Accounting System.

It is crucial to have an accounting system to ensure the long-term success and sustainability of your business.

Tax compliance is vital for ensuring that the business does not get into trouble with the government. The numbers can also be used to track trends and monitor cash flow and maximize profits.

How Much Can You Potentially Make Owning A Dance Studio?

There are many ways to make money in a dance studio. Dance Magazine reported on various studio owners’ salaries, including some who earned $24,000, $40,000, and $80,000.

Its location, specialization, class offerings, size, and demographics can affect the potential profit margins.

Things To Consider Before Starting A Dance Studio

Starting a studio can be difficult if you don’t have experience teaching lessons or managing a dance program. You can learn from the studio owner as an apprentice. Even a few years as an apprentice can provide valuable experience and help you prepare for the challenges of starting your own studio.

It takes time to build a studio program. If you don’t find an area that needs dance lessons, your chances of growing your program will be low. Before opening your studio, consider working as a freelance teacher. You will be a better teacher and build a reputation. This will also prepare you to work with loyal students that will follow you as you open your studio. This preparation will help you build a list of customers willing to pay, making it easier to transition into a full-time owner.

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Now, I know you probably have tons of questions… So, check this out to learn more.

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