How Much Does It Cost to Open a Dance Studio?

You need a minimum of $187,380 to open a dance studio (Medium scale). This amount includes the salaries of staff for the first 3 months of operation.

No matter the type of business you plan to start, and the amount you budgeted, you cannot be certain of the amount you will eventually spend on the business. This is so because there are certain factors that influence the total cost of starting a business.

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.

Estimated Cost Breakdown for Opening a Dance Studio

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;

1. The total fee for registering the business in the United States of America – $750.
2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
3. 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.
4. The total cost for hiring a business consultant including writing a business plan – $2,500.
5. The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
6. 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.
7. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
8. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
9. The cost for store equipment (cash register, security, ventilation, signage) – $4,750
10. The cost of purchase and installation of CCTVs: $2,000
11. 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
12. The cost of launching a website: $600
13. 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 there is no uniform price list when it comes to opening a dance studio, but everyone who wants to open a dance studio may want to take a cue from the existing price list.

But they are required to make little additions or subtractions from the template they are working with. In this article, we will look at the 10 key factors that influence the cost of opening a dance studio.

Factors That Influence the Cost of Opening a Dance Studio

1. The Location of the Dance Studio

The location you choose to start your business will either make or mar the business hence business consultants will always recommend that before you choose a location for your business, you must do feasibility studies. The goal of a feasibility study is to tell whether a business can survive in a certain location. Usually, a thriving business location will attract extra costs.

For example, you are likely going to spend more if you choose to open your dance studio in a place like Los Angeles, California, New York City, New York, or Las Vegas, Nevada, than when you open your dance studio in a place like Lost Springs, Wyoming, Hibberts Gore, Maine or Baker, Missouri.

2. The Size of the Dance studio

The size of a dance studio may range from 800 to 1,500 square feet. As a matter of fact, some smaller dance studios may be as small as 500 square feet, while larger dance studios may be as big as 3,000 square feet or more. The bottom line is that if you choose to open a large dance studio, you must be ready to spend more and if you choose to open a small dance studio, then you will be spending less.

This is so because the size of the dance studio will affect the rent or lease, the amount required to furnish and equip the space, and of course, the manpower required to man different positions in the dance studio.

3. The Cost of Rent or Lease

The amount you will spend on rent or lease will to a large extent depend on the size of the dance studio and of course, the location or city where you intend to open the business.

For example, if you choose to open your dance studio in a city like San Francisco, California you are expected to spend far more than the amount you will pay in any city in the United States. This is so because San Francisco is the most expensive place to rent or lease a property in the United States.

4. The Cost for Renovations and Add-ons

The reason why people spend money on renovating a facility is to make sure the facility is looking like what they want. Of course, most rented properties may not fit into what you have in mind for your dance studio, which is why you should have a budget for the renovations and of course, add-ons.

5. The Cost of Furnishing and Equipping the Dance Studio

If you are opening a dance studio, then there are certain furnishings and equipment that must not be missing in the facility. As a matter of fact, some dance studios are used for organizing dancing competitions and other related community events depending on the size of the dance studio.

The type of service offerings you intend for your dance studio will determine the type and cost of furnishing and equipment for the dance studio.

6. The Cost of Hiring and Training Your Staff

The only reason why you should have a very minimal budget for hiring and training your employees is if you choose to run a one-man show. But if you want to run a standard dance studio, then you must make it a point of duty to hire staff members that will occupy key positions in your studio.

You should make plans to hire a dance studio manager, a dance Instructor, a front desk receptionist, a marketing and communications manager, and a technical director. Trust me, it will cost you money, and of course, it will influence the cost of opening your dance studio.

7. The Cost of Obtaining Licenses and Permits

The truth is that without the required licenses and permits, you cannot legally open and operate a dance studio in the United States of America.

You should budget for the cost of obtaining your business license, music license, health and safety permit, occupancy permit, building permit, and zoning permit amongst other local permits and licenses that may require by your county government.

8. The Cost of Marketing and Advertising

No business thrives without a proper marketing and advertising strategy in place. Even though social media has made people spend less on marketing and advertising their businesses, the truth is that you are still expected to have a budget for marketing and advertising if indeed you want people to pick up membership in your dance studio.

You should have a budget for your dance studio, and the type of marketing and advertising strategies you want to deploy to promote your dance studio will to a large extent influence the cost of opening the business. If you choose to advertise your dance studio on either a local or national TV or radio station, you will spend far more when compared to only promoting your dance studio online from your social media platforms.

9. The Cost of Insurance

If you are planning to open a dance studio in the United States, then one area you must have a budget for is insurance. This is so because it is illegal to operate a business without having the required insurance policy coverage in place.

So, in essence, if you want to legally open and operate a dance studio in the United States of America, then you should have a budget for insurance. You should at least plan to buy general liability insurance, property insurance, and workers’ compensation insurance.

Overall, the amount you will spend in purchasing insurance coverage and the type of insurance you will purchase will influence the cost of opening your dance studio.

10. The Cost for Inventory

Last of all, the budget for your inventory is yet another major cost that can influence the cost of opening a dance studio. The truth is that, before you can successfully open a dance studio, you are expected to have a budget for inventories such as tissue papers, towels, cleaning supplies (mops, brooms, and disinfectant spray) and costumes et al.

In Conclusion,

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.