D
ynamic
E
O Z Ethusiasm
Dance
nergy
riginal
ip
Bryonna Cane
Invention
Convention
March 26, 2009
Problem
 A large need for alternative exercise
options in the community
 Expensive classes
 Distance to many of the studios requires
transportation many do not have
Solution

Exercise through dance

Specifically Zumba
 Hip- Hop
 Salsa

Affordable classes


Per class fee
Closer location to the community

Robinson Center
Mission Statement
 Service business for the local community
 Mission Statement:
DEOZE Dance offers a fun way to work out
with members of your community that
also keeps your mind active during the
process. Beyond dance, we seek to
build self-esteem and confidence by
teaching new skills and meeting people
with similar interests.
Industry and Market
Analysis
 Fragmented; there are offerings in three
different places
 Generally people are focusing on their
health more and want more alternative
activities
 Market Analysis:
 Many programs offered, but not to the age
group that I am targeting
Target Market
 Ages: 17-35
 Men and Women
 Community surrounding the Robinson
Community Learning Center: South
Bend, IN
 Low-mid income
 Behavior
 Need something within walking distance
 Want a better athletic and social option
Competition
Competitor
YMCA of
Michiana
Fitness USA
Debbie
Werbrouck's
School
Southold Dance
Theatre
Dance Sport
Price
Location
$75 / 3
classes
Northside Blvd
$50
registration
+ $19 a
East Ireland
month
Road
About $20
/ Class
$12 / class
but must
pay by the
session
($70 / 6
weeks)
Douglass Road
Lincoln Way
West
Could not
be reached Grape Road
Quality
Mass offerings,
inexperienced teachers,
classes not as upbeat as
necessary for the age group
No personal attention,
middle-age focus. The dance
classes are a small part of a
lot of programs
Largest competitor: Offers
general dance. No specialty
classes. Focused on
elementary school aged
participants
Elemenary, ballet, and
performance focus. No fastpaced classes offered.
Ballroom and swing classes:
completely different focus
and partners needed
Competitive Advantage
 Cost effective and affordable
 In walking distance
 A studio centered around a younger
demographic
 It will build a brand in the area, that will
end up serving as a barrier to entry
 I have an understanding of the business
side of the industry
Qualifications
 Personal
 9 years dance experience
 4 years professional dance training
 Teach all dance workshops and
choreograph performances for Greater Holy
Temple
 Network
 Aunt with dance background
 Support network/mentors developed though
experience
How will I achieve a
profit?
 CASH COW: Classes
 High enrollment
 Having a high capacity
 Easy payment plan
Legal Structure
 Sole proprietorship
 Least expensive start-up cost
 Partnership not needed at start-up until business
picks up.
 If needed: look for partner later
 No contracting the employees
 Pay bi-monthly
 Hourly basis
 Have every participant sign a liability release
form
Philanthropy Plan
 I plan to donate 1 classes profit per
month to the charity of my choice
Marketing Mix
Method
Flyers
Word of
Mouth
On-line
Description
Posted in schools and
churches; using bright
colors to catch people's
eyes
Using my network to get
people talking about the
new student run
business in their area
will gain me support
Facebook and Myspace
sights for the dance
studio. I can then
"friend" people to get
the word out
Advertise in school
Community newspapers and the
Publications South Bend Tribune
Easy to hand-out to
Business
anyone I meet, and
Cards
spread the word
Target
Customer
Students,
church-goers,
community
members
Friends,
family, my
extended
network
Students and
friends
Community
and students
Community
Cost
$40*
$0
$0
Schools:
free;
South
Bend
Tribune:
$50
$0
through
RCLC
*Note: While flyers are free to design in RCLC, the expense comes
from gas money, printing, and posting
Economics of One Unit
Definition of 1 unit
Selling price per unit
Estimated people per hour
Revenue per hour
Direct Labor
Materials: (Rent)*
Total COGS per Unit
Gross Profit Per unit
1 class
$10 per person
15
$150
$15
$0
$15
$135
Direct Labor (Variable Cost)
Definition of One Unit (1 class)
Direct labor
(wage per hour)
Time (in hours)
to make one
unit
$15
1
Total
Direct labor
cost per Unit
$15
$15
Average Monthly Fixed Costs
Type of Fixed Cost
Entrepreneurial Stipend:
20 hours per month x
(6.50 + 1.50)
Rent
Advertising: supplies,
posting, printing, flyers,
delivery
Total Fixed Cost
Monthly Cost
$160
$0 through the
RCLC
$30 with help
from RCLC and
after start-up
$190
Monthly Sales Projection
Month
January
February
March
April
May
June
July
August
September
October
November
December
Total
Units Sold
20
20
24
24
24
24
18
24
24
24
18
18
262
Notes: Assuming 4 weeks per month,
holiday vacations in July, November,
December, and January. New Year's
Resolutions generally increase Jan. and
Feb. income; therefore the increase in
units
Start-up Investment
Entrepreneurial hours
needed for star-up
30 hours
Item
Marketing Supplies
Weights (15 sets at $15)
Jump Ropes (20 at $1.25)
Ab Mats (20 at $10)
Cash Reserves covers 3
months fixed costs
Estimated Total Startup Investments
Minimum Wage
$8.00
Where will I buy
this?
Walmart
Discount Fitness
Equipment
Wal-Mart
Discount Fitness
Equipment
Total Start-up
Investment
$240
Cost of Item
$50 with help of
the RCLC
$225
$25
$200
$570
$1,310
Financing Strategy
Source
Amount
Personal Savings
$350
Relatives Friends
$600
Investor
$360
Grant
Total
$1,310
Projected Yearly Income
Statement
Selling Price Per Unit
$150
Number of Units Sold
$262
Total Sales
$39,300
Less Variable Costs
Total COGS
$3,930
Other Variable Costs
$0
Total Variable Costs
$3,930
Gross Profit
$35,370
Less Fixed Costs
USAIIRD
$2,280
Other Costs/Unforseen
$0
Total Fixed Costs
$2,280
Profit before Taxes
$33,090
Less Estimated Taxes at 25% $8,273
Net Profit
$24,818
Return on Sales and
Financial Ratios
 ROS: = Yearly Net Profit / Total Sales * 100
 = 63.15%
 For every $1 of sales, my business earns:
 = $0.63
 Monthly Break-Even Units = Monthly fixed
costs / Gross Profit per unit
 = 1.4 classes at 15 people per class
Intellectual Property
 Copy write logo:
Operating Plan




Banking: checking and savings account
Technology needed: computer for
recordkeeping
Laws: obey capacity rules, limit liability
with release forms, and maintain a
business permit
Taxes: Report earnings quarterly on
1040 tax form
Business and Educational
Goals
Business
Short term goal
Break even
Long Term
Increase enrollment
Double the amount of
classes
Branded Merchandise
Educational
To teach people about
the history of the dance
Personal Goal
To learn to teach the
classes myself
Long Term
Nutrition, eating healthy
Time Management
Business Schedule for a Typical 5-Day
Week:





Entrepreneurship Hours: 20 Hours
School Hours: 25 Hours
Work Hours: 20 Hours
Free-Time: 30 Hours
Sleep: 7 Hours
Thank you for your
consideration and
support
Of DEOZE Dance!