Free Dance Studio Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $70,000 for the development of a dance studio while showcasing the expected financials and operations over the next three years. Dance Studio, Inc. (“the Company”) is a New York based corporation that will provide dance classes and instruction to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
Through the Dance Studio’s facility, several sessions will be held daily for adults and children that want to learn or expand their dancing skills. The Company will offer classes for a number of dance specialties including ballet, tap, jazz, modern dance, as well as a number of eclectic cultural dance methods. The business will also earn secondary streams of revenue from the sale of dance apparel, water bottles, and dance shoes that will be sold within the facility. The third section of the business plan will further describe the services offered by the Dance Studio.
1.2 The Financing
Mr. Doe is seeking to raise $70,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Management’s mission is to provide dance class students with informative, fun, and physically stimulating instruction while boosting self-confidence. To that end, the Owner is committed to providing a safe atmosphere where students can learn, broaden, and expand their understanding and skills within dance.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the dance training industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals (and parents with children) within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Dance Studio, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Dance Studio requires $70,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Dance Studio, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Dance Studio. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
As stated earlier, Dance Studio, Inc. intends to provide its customers with an extensive array of dance instruction to the general public. Below is an overview of the services that the Company will provide. Please note that the pricing schedule for the Company’s services is located in the fifth section of the business plan. Additional revenue sources will include the direct sale of dance apparel (shoes, leotards, etc) as well as snacks/water bottles which will create significant additional cash flows for the business. It should also be noted that any instructor hired by the Company that will work with children will undergo a full background check that would be normally associated with any employee of a school. This will ensure that the business does not expose itself to liabilities resulting from improper tutelage of children.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the dance studio industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. The However, many parents feel that after school activities (including dance instruction) are a necessity for a child’s growth, and as such, only a severe economic decline would result in a major revenue slowdown for the business.
4.2 Industry Analysis
Within the United States, the dance school and instruction industry aggregately generates $1.3 billion dollars of revenue and jobs 37,000 people. The industry consists of 6,500 companies that operate at least one location dedicated to providing dance classes and dance instruction. Approximately 20% of these businesses operate in a not-for-profit capacity as extensions of community centers for adults and children. This is a mature industry, and Management expects that the future growth of all dance studios will mimic that of the general United States population and economic growth.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Dance Studio, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with school coaches within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
The business will seek to develop an outstanding reputation as a premier local supplier of dance classes and coaching within the target market. To that end, Mr. Doe intends to directly create referral relationships with local high school, middle school, and elementary school teachers and coaches who will refer business to the Dance Studio. Many young children (especially girls) are often enrolled in dance classes as a primary extracurricular activity, and as such, creating visibility among institutions that can bring the Dance Studio to the attention of parents is extremely important. The business will also maintain a moderate amount of print advertising in locally distributed newspapers and publications. Additionally, local conventions, dance competitions, dance/cheerleading trade shows, and other direct advertising methods will be used promote the visibility and reputation of the Dance Studio.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Dance Studio, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $70,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The business’s revenues are sensitive to the overall condition of the economic markets. The dance services that the Company is selling are not an essential service, and as such, in the event of an economic downturn, the business may have an overall decrease in revenues as clients’ discretionary incomes decrease. However, the business has moderate operating expenses, and expected revenues would need to decrease by more than 30% before the business would not be able to service its debt. The Owner is confident that his abilities to promote the business will allow the business to always operate positively and cash flow positive.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis