Trading the World for 1,600 Square Feet

By Suzanne Citere

A former globetrotter opens a dance school

Every time I drove by a new building under construction, a voice in my head said, “That would be a great place for a dance studio."

If you had told me 10 years ago that one day I would be the proud owner of a tiny but lovely dance school, I would have said you were nuts. Teaching for two dance schools was just what I wanted—I walked in, taught my classes, and off I went with no worries. Because my husband works for an airline, we happily traveled the world whenever we could. It was a carefree existence; while I was traveling I never gave a thought to what was going on back at the studios. My former bosses joked that I taught between vacations.

Then several events combined to alter my perspective about the course of my career. First, my daughter, Nina, was born. My priorities changed as I faced the challenges of being a working parent. Teaching for others meant that my baby was sometimes in childcare, and I didn’t want that. Then a car accident left me with injuries that put a sudden stop to my days of teaching jazz and acrobatics classes. I was in too much pain to even turn my head, let alone spot back handsprings. But the final push toward school ownership came with the construction of a building within walking distance of my home. Every time I drove by it, a voice in my head said, “That would be a great place for a dance studio.” It was on a well-traveled street, and because the community had not seen any new construction for a long time, the excitement about its opening, I figured, could only be good for business. For a while, I talked myself out of it—what about the stress, the responsibility, the financial uncertainty? But that voice in my head got louder and louder, until I could no longer ignore it.

Doing my homework

Having never rented commercial property, I decided to do some investigation. I wanted to know everything I could about my options before I made my decision. I drove major roads, taking down real estate agents’ phone numbers and getting price quotes on rent and common-area maintenance fees (CAM). Since I have a real estate license, I didn’t work with an agent; however, I did have a real estate attorney review the lease before I signed it. I also talked to other school owners and called local preschools and elementary schools, which confirmed my suspicions that the area’s population of young children was exploding. (My daughter’s preschool had an 18-month waiting list.) To me the phrase “location, location, location” is one to live by when it comes to opening any business. The building I coveted was in a beach community where the rents are very high, as are home values in the area—which means more disposable income for things like dance lessons. Because I wanted to stay close to my house and out of the area where I had been teaching (I had no desire to compete with my previous employers), my only other option was the west side, an inland community with less expensive rent and much more space. But the available rentals all had problems. Some were less visible from the street; others had parking issues or would have to be brought up to code—too expensive a venture for me. In the end, the deciding factor was exposure. I chose the high-end property and it was worth it. It has turned out to be a very popular center with tons of foot traffic—even more than I anticipated. Being located in such a busy center has helped to grow my school; many of my clients have said they drove by the studio all the time or frequented nearby restaurants.

Because my school has only one dance room, when I need extra space I rent from the gym across the street, an arrangement I made before I moved in. Having extra rehearsal space was important, but because I needed it only occasionally, I didn’t want to pay extra rent for a larger studio. Renting from the gym was an ideal setup, and it saved my business in its early months. Although my landlord had verbally guaranteed that my space would be available in September 2003, it wasn’t completed until March 2004. That gym across the street turned into my temporary studio—a stroke of luck in what could otherwise have been a disastrous start to my business.

Financial planning

Finding a location was only the first step; next, I had to finance it. Although it was risky, I decided to take out a home equity loan. (I had heard that small business loans were hard to get, so in the interest of saving time, I went the home equity route, which had the added perk of a lower interest rate.) Most of the initial costs of setting up the business went into three things: advertising ($5,000 covered the cost of a tri-fold brochure, its printing and mailing, and a direct-mail list; $2,000 went toward newspaper and magazine ads), a sprung floor ($3,000 for the subfloor and $3,000 for the Marley), and mirrors (about $2,500). Other expenses included ballet barres ($300) and about $2,000 in office supplies, including a computer and a studio-management program. I had the floor and mirrors professionally installed, but do-it-yourselfers can save quite a bit of money by installing their equipment themselves. I did save some money by signing a five-year lease rather than a three-year one.

Getting the word out

The summer before I planned to open my school, I began advertising and accepting registrations. My most effective advertisement was in a small local newspaper that is delivered free to each household in my neighborhood; it was also by far the cheapest ad I purchased. A glossy, expensive ad in South Florida Parenting did not net me one phone call. I also put flyers in the local private schools’ newsletters. (Our public school district doesn’t allow this.) Initially, all the calls I got came from the direct mailing of the trifold brochure; later, responses to the various ads trickled in. I also put stacks of brochures in the local pediatrician’s office. Now, after being in business for a year, I am getting students through word of mouth.

Putting the pieces together

The studio is only 1,600 square feet, but it’s functional. There is a small waiting area with a sliding glass window that opens into the office. My studio manager can close the window when she needs quiet or privacy or leave it open to greet clients and monitor activities in the waiting room. A TV monitor allows classroom observation in the waiting area, and built-in benches are used for seating and storage. The bathroom and storage closet are in the back of the studio, so I had people use the back door to get to the bathroom—a simple solution to a small-space problem.

I hadn’t planned on hiring a manager. Running the business on my own was manageable when only about 60 students were enrolled. But as the number of students grew, I needed help collecting payments while I taught, answered the phone, and did the bookkeeping. It made sense to hire a full-time employee. Fortunately, just the right person came along. A friend who was familiar with dance studio management software helped me get set up, and as we got busier, she began putting in more and more hours, until I finally put her on the payroll.

Curriculum

We offer a curriculum that includes creative movement, ballet, tap, jazz, modern, acrobatics, and hip-hop, Monday through Saturday. With only one room, my priority became the under-18 age group. Classes for adults didn’t go over well; they would pay and never come. The school now has a competition team of 15 girls, who take Pilates and extra ballet classes. I was reluctant to get involved with competitions because of the amount of work involved, but when students with experience came in to register, the first question they asked was “Do you compete?” Hip-hop is also a great way to bring in new students—12- or 13-year-old kids who have never danced can take a hip-hop class without feeling like they’re behind. And preschool classes are very popular—the demand is so great that we have a waiting list. I started a new “baby” class last January and had to close enrollment for it after a month because it was full!

A successful start

The school’s enrollment in the first month was about 50 students; a few more registered in January. Using the gym for classes until the building was ready meant that the school was less visible, but it also brought in students whose parents came to the gym—they would drop them off to take class while they worked out. The first year-end recital featured 63 dancers, and about 35 more started in the summer and continued through the fall season. In our third year, enrollment stands at about 200 students who average two classes per week. I never thought the school would grow that fast! Now, with four more years on my lease, I worry about outgrowing our space. But I signed a five-year lease because I thought (and still do) that it would take that long to see how much the studio would grow and whether or not owning one was the right choice for me. When the lease is up, if the school has a solid reputation and following in the community, we may move to an older building or out of the neighborhood to save on rent. Maybe buying a building will be an option one day, but nowadays it seems like a pipe dream!

Many people had told me that it would take at least two years for the school to show a profit, but we were able to cover our expenses immediately and began turning a profit that first summer. I didn’t expect to have more than 100 students in the second year, but we surpassed that by about 50. My goal never was to have thousands of students; instead, I wanted a smaller base of students who take several classes each week. Quality training is important to me, and that high standard is easier to maintain with fewer students.

Lifestyle choices yield satisfaction

I have a wonderful faculty who teaches the older, advanced dancers. I teach all the preschool and primary-grade classes because they happen early in the day, which allows me to be home with my husband and daughter for dinner every night. Although I realize that I could save money in payroll if I taught more classes, I want to be the one to raise my daughter. I pay teachers instead of a nanny! Besides, I’ve been teaching for 25 years and was getting a bit burned out. Teaching the preschool classes myself turned out to be one of the draws to my school. Parents are happy that their young children are being taught by the owner, who happens to have a child the same age as theirs. And the kids are happy because we do our tap warm-up to the Dora the Explorer theme. Before my daughter was born, I had no idea who Dora was!

When I walk into my clean studio and see my dancers lined up at the barre with their eager faces and their black leotards and pink tights, I break into a smile and allow myself to feel just a little proud. Owning a dance school was never a lifelong dream, but it’s given me the freedom to live my life the way I want to. I find that I enjoy the administrative aspect—I am still in my element, just in a different capacity. (Like many studio owners, I am somewhat of a control freak.) I may not live the life of a carefree world traveler these days, but opening my own school has proved equally adventurous.

When Goldrush asked school owners what advice they had for new school owners, the words of wisdom they offered proved equally valuable for seasoned professionals.

• Don’t do it for the money. If you don’t love it, don’t do it. —Barbara Lotsberg, Barbi Lee Dance Arts, Edina MN

• When opening a new studio, keep your expectations low. We are given what we are capable of handling. Accept your enrollment gracefully and maximize your services. If you are greedy and forceful, you are going into the business with bad intentions and will most likely fail. Always work from pure intentions and never feed off of someone else’s business. Here is something to think about: When a seed is first planted, the root growth isn’t visible to the eye; it happens in the deep darkness of the soil. How do we know? Because once the root has taken hold, a green sprout will break through the soil. —Karin Tremblay, former school owner, MA
  

• Have a business plan—it forces you to look at your studio’s finances and future. Also, talk to other studio owners. I still call my friends who own studios to ask them questions. And be ready for anything! —Elizabeth Rogers, Rogers Dance Academy, Hillsborough, NJ
  

• Take pride in your accomplishments. When times get tough, go back to what you liked about this business. Confront all problems as soon as they arise; there are always solutions. Choose your staff wisely and treat them well. Be aware of the impact you have on children—consider your words and act responsibly. Never allow anyone to rob you of your humor. Rarely is anything a matter of life and death, but when it seems that way, find a way to deal with the stress that is not self-destructive. And set aside money each month for your retirement. —Ilka Doubek, Litchfield Dance Arts Academy, Pawleys Island, SC

• High-quality classes are a must, especially for the little ones. Studio owners often make the mistake of hiring young adults to teach the preschool students. Those students support most studios; if nurtured properly, they will be with you until they graduate from high school, or longer. In return, your happy customers will sell your business for you. —Sarita Zuniga, Sarita’s Dance Studio, San Antonio, TX

• Define your personal time. Don’t let parents or students invade that time, unless it’s an absolute emergency, or you will end up resenting the school. Balance is the key. —Julie Brash, Free Flight School of Dance, Vancouver, BC, Canada
  
• Support your faculty and staff. Let them know that because they mold the lives of our youth, you expect their best. Always be honest; integrity goes far with your students, staff, and community. Allow your students, not yourself, to be in the spotlight. —Donna C. Trotter, Dance-a-Lott Studio, Cornelia, GA

• It’s a business, so don’t get too attached to your students. Don’t worry if you have to ask someone to leave your studio; someone will take their place. Always be fair and ethical when asked about other studios. Believe in yourself and your philosophies, and be the boss—make sure the faculty meets your standards. Continue your own education; you need to keep growing as a dancer/educator/choreographer. You must love what you do and understand that there is good with the bad. —Suzanne Perdue, Suzanne Perdue Dance Center, Framingham, MA

• Be ready to wear many different hats! You are the maintenance person, accountant, psychologist, public-relations coordinator, juggler, and—oh yeah, teacher and choreographer. —Elaine Godburn, Five Pointes Dance Center, Inc., Farmville, VA

• No matter how great a teacher or dancer you are, if you are unorganized your clients will leave for a more “together” studio. Run everything like clockwork, from classes to rehearsals to performances. —Mary Beth Snow, Mary Beth Snow’s Dance Place, Ocean City, NJ
  

• Be flexible! Try new programs and be willing to let go when something doesn’t work. As an owner, you have to leave your ego at home. —Carol Richmond, Carmel Ballet Academy, Carmel, CA
  

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