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How to open a dance studio

Dance is not only a conversation without words. It is also art, sports, excellent stress therapy and a powerful “pumping” of the body with positive emotions. And for those who are ready to teach others to “move to the beat”, dancing can be a good business.

dance studio business plan
Amount of required investment$ 50-100 thousand
Payback period1 year

Setting the heat on the dance floor in Moscow is not a problem. You can find any style: from classical ballroom dancing, “teenager” break-dance or R’n’B to incendiary Latin and even belly dance. There are clubs for rock and roll, hustle, Spanish flamenco and Argentine tango. There are Arabic dance and striptease schools. As they say, there would be a desire.

Ticket to dance

– With the right organization, a dance club can be a decent business, – Vyacheslav Khlopkov, President of the Russian Hustle Federation, is convinced. – From an organizational point of view, it is no more complicated than, say, a travel agency. You need to rent a suitable room, invite a good teacher and find people who are ready to pay for dancing lessons. Actually, that’s all. At the same time, the prospects for the “dancers” are promising – there are many people who are engaged and who want to be engaged, and in the future, I believe, there will be even more, so the field for work is not plowed.

The average price of a monthly subscription in Moscow is 1500 rubles. A simple calculation shows that one group of 15 people can bring “average” 22,500 rubles. I look at the schedule of several popular studios and see that 20-30 groups of various directions are working in them at the same time. We multiply and it turns out that the revenue of such a club per month is about 450-670 thousand rubles, or about $ 16-24 thousand. In addition, there are other income items – many clubs hold seminars, offer individual classes, which are much more expensive than group ones.

The dance club has three expenditure items: renting a room, paying teachers and an advertising budget. Most dance clubs rent space, some on a permanent basis, some for an hourly rate. A decent hall can be found in various recreation centers, creative centers, dance clubs with their own halls, and sports centers. The price of such a lease is on average about 500 rubles. at one o’clock.

Your way out, maestro

The foundation of the dance business is the teacher. You can’t do without bright charismatics here. Exhausted at work, people crave to draw positive emotions, so a person must be able not only to learn to dance, but also to do it beautifully. Experience shows that for the sake of “incendiary” teachers, people are ready not only to travel to the other end of the city, but also to endure an increase in fees for classes. It is not easy to find such a guru, but it is possible. The salary of teachers depends both on its stardom and on the size of the group. On average, in large clubs, it is either a percentage of the group fees (from 20% to 50%), or a specific amount – from $20 to $35 per lesson.

A big plus for the teacher is if he can lead different directions of dance. This will allow, in which case, to close unprofitable directions and teach more running styles.

According to Vyacheslav Khlopkov, club dances, hip-hop, R’n’B, belly dance are at the top of the popularity ratings today. Moreover, the competition in this segment, according to him, is not yet very significant, in contrast to, say, ballroom dancing. And there is demand. According to Yandex statistics, there are about 14 thousand queries per month for the word “dance school”, “belly dance” is searched as many as 26 thousand times, and just the word “dancing” is asked at all 150 thousand times.

An entrepreneur should take into account that the motivation of people who come to the ballroom is different. Someone needs an outlet from office life, for someone dance is the most acceptable relaxation and physical education, and someone longs for a romantic adventure.

– It seems to me that most people who come to our hustle are looking for new acquaintances, – Khlopkov notes ironically. – This should be taken into account when developing a business plan and, possibly, when conducting an advertising campaign. At the same time, our audience is very different. Young students and students, office workers, managers, lawyers and so on and so forth. There is even one chairman of the board of the bank, he has been working with us for more than two years.

Visiting a hustle club one evening, the author observed with his own eyes a dance community of about 40 people there. It was difficult to calculate the average age of those involved – among the dancers there were both 20-year-olds and 50-year-olds. What united them was the pleasure with which they danced and their excellent mood. It is no coincidence that one of the visitors to an Internet dance forum wrote that rather than paying a psychotherapist, it is better to go to a dance club once.

Let’s count

Alexander Azymov, head of the Model-357 dance club, says:

– If an entrepreneur decides to build a serious dance business, he needs to focus on $50-100 thousand initial investment. This will allow not only to rent a room, but also to make repairs, purchase equipment, organize a decent service, and conduct a serious advertising campaign. When starting with a smaller amount, there is a high risk of getting lost among the many tiny dance clubs, often without even an organizational and legal form.

An approximate schedule will be as follows. Of the starting $100 thousand, 70-80% will be spent on renting a suitable room with several halls, as well as bringing it into proper shape – the halls need good flooring, mirrors, etc. It is better to choose a room closer to the center. If you choose a sleeping area, then before you open something, you need to carefully study the social composition of the population, conduct marketing research.

At least $20-30 thousand should be invested in an advertising campaign. A new studio needs the press, outdoor advertising, radio, and a good website. At the same time, it is important not to miscalculate the time of the beginning of the “seasons” – September and February. People traditionally start a new life during these months, having rested after the summer and the January holidays. And, of course, it is necessary to constantly maintain advertising activity after the first campaign. For a big promoted club, the average advertising budget is $3-5 thousand per month.

For us, the most effective advertising means are the Internet site, as well as the “girl” press. Experience shows that magazines for a female audience of 17-22 years old, like Seventeen, etc., “shoot” best of all. But advertising in magazines for a teenage audience, girls 13-16 years old, turned out to be ineffective. In addition, we traditionally advertise in magazines such as “Your leisure”, but it seems to me that the advertising return of this category of press is constantly decreasing.

It is vital not to make a mistake with the pricing policy. In our club there are groups of 1300 rubles. per month, where there are a large number of students (about 20), and 2300 rubles each, where the group does not exceed 10 people. But expensive bands, in my opinion, are no longer justified. Dance clubs, created “for the respectable and capricious” and offering monthly subscriptions for $160-200, had big problems with group occupancy. In addition, it is worth thinking about the introduction of club cards. In our club, up to 20-30% of visitors buy club cards that allow them to attend an unlimited number of classes in any direction. The price of such cards is from 3500 rubles. for a monthly card and from 20,000 rubles. for an annual.

Another important point is the range of services offered. Narrow-profile clubs are commercially unpromising, so immediately offer a wide selection of dance styles. By the way, – adds Alexander Azymov, – we now have seven of them in the club, in addition there are groups in yoga and tai chi gymnastics. In the future – the opening of a solarium and a fitness area. Business needs variety.

If we talk about prospects, it is worth looking for new directions. Usually, the vast majority of those involved in dance clubs are girls aged 20-22, and in general, as a rule, clubs are 90% “female”. It is worth thinking about attracting a male audience. Perhaps this will open up new dance and business horizons.

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