By Sara Willcutt

There are many new studios opening all the time. Talented people with a passion for dance want to share their vision with others. The competition between all the studios benefits the dance community by providing higher quality instruction. Unfortunately, many new studios close during the first year.

Why?

The first year of business is the hardest. During the first year, a business owner has to deal with insurance, taxes, accounting, advertising, hiring employees, renting or buying space, trying to recruit dancers to take their classes and running the business.

Are you ready to start?

Write down a list of the pro’s and con’s.

Here is a list of things to consider:

Business licensing requirements

Sales and promotions

Legal responsibilities

Building client relationships

Taxation

Budgeting

Accounting

General ledgers

Business and marketing plans

Loans and financial obligations

The success of any business depends on planning and preparation.

There are a lot of exciting decisions to make, such as designing flyers and choosing a syllabus to teach, but there is more.

It is equally important to think about the business side of things. This can be overwhelming, but allow time to research and study. Take business classes. Many community centers and local groups offer affordable classes. Look around to find one that fits. Some classes are one time only, while others are in a series. Information about starting a business can be found at the Internal Revenue Service website.

Information from the IRS: Small Business and Self-Employed One-Stop Resource.

Read! There are many great business books available. Try the library, bookstores and online sources.

Minnesota Women Venture, has great resources and classes, as well as scholarships and savings programs to aid in success.

Another way to learn is from the experience of others. Find a mentor. A mentor is someone who has experience and success in business and is willing to commit long term to help guide you through the initial stages and on to your long-term goals.

Costs can vary. Some mentors will offer free services, while others charge up to $200 per hour. SCORE, is a great resource where you can ask questions and get help free of charge. There are offices in many locations.

Mentors do not need to have experience in the dance industry. Basic business skills are much the same from industry to industry. You may know someone successful in business; consider asking him/her to be a mentor.

When making business decisions, remember to research, compare costs and ask questions.

Starting a business is a process.

Stay dedicated and work hard, but give time to prepare before opening. Writing a business plan is a good place to start. You can find guidance on the Score website:

60-Second Guide to Writing a Business Plan

Resources That Give You a Head Start of Business Planning

5 Tips for Writing a Business Plan For a Loan

Top 5 Business Tips

A business plan should cover every aspect of your business and make sure you are ready to open your studio.

Some of the things included in a business plan are:

• Target market

• Location for school

• Planning for growth

• Staff employment

• Pricing

• Cash flow

• Overhead costs

• Calculating break-even point

• Promotions and marketing

• Product or service description

• Description of your position

• Description of employment positions

• Contingency plans

• Accounting

• Organization type: sole proprietor, partnership, corporation, limited liability corporation, non-profit

What are your strengths and weaknesses? How can you emphasize your strengths and compensate for your weaknesses? What opportunities and help are available to you?

What is your competition? How would you fill a need in the community?

There are many great software programs designed to help organize and run businesses. Some are listed in the resources section under software for studios.

Also, try the message link boards to get ideas and answers to questions.

With research and planning, along with your passion and talent, you can succeed in business and create a wonderful learning environment for the community.