Do you want to open a dance studio and want to know the cost? If YES, here is a cost breakdown for opening a dance studio and the profit margin / ROI. The commercialization of dance-inspired television shows and growing interest in dance as an alternative form of exercise has positively impacted the dance studios industry especially during the last five years.
The industry also benefited from the growing economy of the United States, as rising disposable income and employment resulted in a steady increase in consumers spending on dance instruction. The multi-billion dollar dance industry in the united states of America has benefited greatly from the promotion of dance-inspired television shows and the rising interest in health and fitness.
The Estimated Cost Breakdown for Opening a Dance Studio Business
When it comes to starting a dance studio, the major areas that you look towards spending the bulk of your cash is in renting or leasing a standard facility and equipping the studio. These are the key areas where you will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the dance studio in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for renting or leasing a space or warehouse that will be converted into the dance studio and that can accommodate the number of students that will come to learn various dance steps for at least 6 months (Re – construction of the facility inclusive) will cost – $80,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for store equipment (cash register, security, ventilation, signage) – $4,750
- The cost of purchase and installation of CCTVs: $2,000
- Equipping the dance studio (studio floor, sound system, DVD players, Pianos, Flat Screen TVs, computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $40,000
- The cost of launching a website: $600
- Miscellaneous: $2,000
From the rough estimate as listed above, you would need a minimum of one hundred and eighty-seven thousand, seven hundred and eighty USD ($187,380) to establish a medium – scale but standard dance studio in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers to have a clear picture of what they want to achieve, go to the market or directly contact wholesalers and suppliers of the types of sound system, musical instruments and dance floor they want to have in their studio in order to get the real time prices of these items.
The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.