Dance Studio Business Plan

Executive Summary

Ballroom and social dance is enjoying a resurgence. Shows like Dancing with the Stars, viral partner-dance trends on TikTok and Instagram, and a wave of themed nightlife events have pulled dance out of the ballroom and into everyday culture — while dancesport itself continues building toward Olympic recognition, with the World DanceSport Federation (WDSF) actively pursuing inclusion in the 2032 Brisbane Games. Interest is growing, but for most people there's still nowhere local to actually learn.

U&Me Dance is dedicated to bringing quality, affordable dance instruction to Chico, California. Butte County has an active pocket of ballroom and swing dancers — including a dedicated following around Chico State's student dance clubs — but the region has never had a studio built specifically for social and ballroom dance. Our plan is to bring that existing community together under one roof, then grow outward from that base as more people discover how much fun partner dancing can be.

U&Me Dance was founded by Mary Evans and Toni Simler, a mother-daughter team who have danced together since the early 2000s. Mary spent seven years teaching in Bay Area studios, most recently as a lead instructor and program coordinator, and holds certification through the National Dance Council of America (NDCA). Toni spent 25 years in corporate operations and customer experience leadership before retiring to launch the studio full-time; she and her husband have been social dancers for over two decades. Together they bring both the craft and the business discipline needed to build a studio that lasts.

Mission

U&Me Dance offers a place where people can learn to dance, meet new people, have fun, and feel comfortable doing it. We offer a full range of instruction — from single drop-in classes to structured membership packages — designed to fit any budget or skill level. Our instructors train continuously with regional and national coaches to stay current on technique and trends. U&Me Dance welcomes dancers of every background and maintains a smoke-free, alcohol-free studio environment.

Objectives

Goals and objectives for U&Me Dance, Year 1 through Year 3:

• Sign a lease and complete build-out over summer/fall 2026, opening our doors by November 2026.
• Build a dance studio with a warm, supportive atmosphere centered on customer satisfaction.
• Provide a social and entertainment outlet for people of diverse ages, backgrounds, and interests.
• Offer dance training at every level, from complete beginner to advanced/competitive.
• Invest in ongoing training, benefits, and incentives that keep our instructors long-term.
• Reach $300K+ in revenue during our first full year of operation (2027), with continued growth thereafter as our membership base and class schedule mature.

Opportunity

Problem Worth Solving

Butte County has an active, underserved ballroom and social dance community, but the region has never had a studio built specifically for it. Dance isn't typically taught parent-to-child anymore, so interest tends to show up as adults actively looking for somewhere to learn — and right now, Chico doesn't have anywhere to point them.

The gap is compounded by Chico State's student population: swing and social dance clubs draw a steady stream of students eager to dance, but with no dedicated studio nearby, that energy has nowhere to land beyond informal meetups. Without a local studio, residents and students are left choosing between Sacramento-area studios an hour or more away, informal instruction at bars, or no instruction at all.

People who haven't yet experienced partner dancing need a low-pressure, welcoming space where they can learn at their own pace. U&Me Dance is built to be that space.

Our Solution

U&Me Dance is dedicated to bringing the fun and challenge of dancing to Chico and Butte County at an affordable cost. We offer private and group dance instruction for social through competitive-level dancers, along with weekly practice parties and seasonal/holiday dances where students can put their new skills to use.

U&Me Dance offers its students a variety of instructional choices, so we can best serve their individual needs and budgets.

Private Lessons offer students the best value for their investment. Working one-on-one with an instructor, students receive personalized instruction and immediate correction. Through the physical experience of connected movement, students learn to confidently replicate that movement with any partner — both beginners and advanced dancers progress faster and more comfortably this way.

Group Classes introduce students to dancing with different partners and help them get comfortable with a range of step patterns. Rotating partners throughout class builds both technique and camaraderie among students sharing the same learning experience. Group lessons run every week across traditional styles and current club trends, at every level from basic beginner through advanced competitive styling, with specialty classes for children and teens.

Practice Parties are held weekly, giving students a low-pressure environment to practice what they've learned alongside other students. Instructors circulate on the floor to answer questions, demonstrate steps, and dance with students.

Facility Rental is another service offering. Our studio space is well suited to private events — weddings, receptions, workshops, and community gatherings — and we plan to make it available for rent during off-peak hours (weekend mornings, for example) to independent instructors and community groups.

Beyond these core offerings, U&Me Dance will bring specialty dance programs to local schools, senior centers, and community organizations. We're also building relationships with studios in the Sacramento area, giving our students access to exchange programs, guest instructors, and additional competition and event opportunities.

Market Overview

Social and ballroom dance has moved well beyond its traditional audience. Dancing with the Stars, viral partner-dance content on TikTok and Instagram, and a broader wellness-and-connection trend have all pulled new, younger dancers into studios that were once seen as a niche, older-generation hobby.

On the competitive side, the World DanceSport Federation (WDSF) — the IOC-recognized governing body for dancesport — continues to push for full Olympic inclusion, with an active campaign targeting the 2032 Brisbane Games. That visibility keeps ballroom and Latin dance in front of a wider audience, even though it hasn't yet secured a spot on the program.

Locally, Chico's population has grown steadily alongside Chico State's enrollment, and Butte County's relatively low median age points to a customer base that skews younger than the traditional ballroom-studio stereotype — good news for a business model built on group classes, practice parties, and a membership structure rather than solely private lessons. We believe that combination of renewed cultural interest and an underserved local market gives U&Me Dance a strong opening in Chico.

Service Business Analysis

Dance instruction has grown from a niche hobby into a broader wellness and social-connection category. Two trends are driving demand:

• Competitive dancesport has professionalized. USA Dance (the U.S. member body of the WDSF) and regional dancesport federations have expanded competition circuits, instructor certification pathways, and youth programs over the past decade, raising both the visibility and credibility of the sport.
• Social dance styles — West Coast Swing, Salsa, Argentine Tango, and viral partner-dance trends from social media — have pulled in a younger, more casual audience that isn't necessarily chasing a competition medal, just a fun night out and a new skill.

For people unfamiliar with partner dancing, the barrier isn't interest — it's access. Most people who've never set foot in a studio need a low-pressure, welcoming environment before they'll try it. U&Me Dance is built around removing that barrier: affordable entry points, beginner-friendly group classes, and a studio culture that treats first-timers as well as it treats competitive dancers.

Competition and Buying Patterns

There is currently no dedicated ballroom or social dance studio in Chico or Butte County. A handful of independent instructors teach privately or rent space by the hour, and a local informal group — the Chico Social Dance Club — organizes occasional dances at rented venues like the Chico Women's Club and local breweries, without a home studio of its own. The club's organizer has expressed interest in partnering with U&Me Dance to host its monthly dance nights once we open.

That leaves independent instructors as our closest competition. Rather than compete head-on, U&Me Dance plans to invite these instructors to rent studio time for their own private clients — turning potential competitors into studio partners — while offering something none of them can: a dedicated, professional space with consistent group classes, practice parties, and community events. Our combination of affordable pricing, a purpose-built facility, and quality instruction fills a real gap in the Chico market.

Target Market Segment Strategy

Our addressable market is broad — nearly anyone able to walk can learn to dance. Our job is to introduce dance to people who haven't considered it and give them a reason to start.

For children and teens, the emphasis is on making dance fun and social rather than formal. We'll partner with local middle and high school dance and drill teams, and connect with USA Dance's youth outreach programs to build interest in this age group early.

Chico State University has no formal ballroom dance curriculum, but hosts an active student swing and social dance club. We plan to build a relationship with the club from day one — offering discounted student class packages, hosting club events at the studio, and exploring a for-credit partnership with the university's kinesiology or recreation department down the line.

Single and married adults ages 25–55 remain the core of the ballroom dance studio customer base. This group is often looking for a new hobby, a way to meet people, or a shared activity as a couple. We'll offer wedding dance packages for engaged couples planning their first dance, along with social and drop-in options for singles looking for a low-pressure way to meet people.

Adults 55 and up are a smaller share of the market but tend to become our most loyal, long-term students. For this group, dance is often a return to something they used to do, a low-impact form of exercise, or simply a new challenge. We'll build relationships with local senior centers and retirement communities to introduce dance as both a social outlet and a wellness activity.

Market Segmentation

According to the California Department of Finance and Butte County Association of Governments, Butte County had an estimated population of approximately 209,800 in 2026, with Chico as the county's largest city at roughly 105,000 residents. Butte County's population is projected to grow modestly at around 1.5% annually, supported in part by Chico State University's roughly 15,000-student enrollment.

U&Me Dance considers the entire Butte County population a potential customer base, segmented into the following groups:

• Children/Teens (5–19 yrs): approximately 31,000 residents. We'll offer age-appropriate group classes designed for this segment.
• College Students/Young Adults (20–24 yrs): approximately 21,000 residents, concentrated around Chico State.
• Single and Married Adults (25–55 yrs): approximately 77,500 residents — our core customer segment.
• Seniors/Retired (56+ yrs): approximately 54,500 residents, including a substantial retiree population in and around Paradise and Magalia.

Competitors

U&Me Dance doesn't face direct studio-to-studio competition in Chico today, but several alternatives currently absorb the demand we're targeting:

• Independent instructors who teach privately out of rented space, community centers, or clients' homes. They offer personalized instruction but no group classes, practice parties, or community events.
• Fitness studios and gyms offering Zumba, cardio-dance, or occasional ballroom-adjacent classes — these build fitness and rhythm but not partner-dance technique or social connection.
• Sacramento-area dance studios, roughly 90 minutes south, which serve some of Chico's more competition-focused dancers willing to make the drive for structured programs and competition prep.
• Informal community dances, such as those organized by the Chico Social Dance Club at rented venues, which provide a place to dance socially but no instruction.

None of these alternatives combine instruction, community, and a dedicated venue the way U&Me Dance will. Our biggest competitive risk isn't another studio — it's convincing people who've never considered dance lessons to walk through our door for the first time.

Execution

Market Plan Overview

U&Me Dance's marketing strategy targets people who want real value from their investment in learning to dance. We offer a range of lesson packages and membership options designed to fit any budget, taught by highly trained, professional instructors who reflect the quality of the studio. The space itself will be warm and welcoming, with customer service as our top priority. Marketing channels include social media (Instagram, TikTok, Facebook), a studio website with online booking, local partnerships, and targeted local advertising.

Our sales approach is consultative: instructors and prospective students work together to identify goals and map out a course of lessons that fits. Instructors receive ongoing sales and customer-experience training, with an emphasis on understanding what each student is actually looking for before recommending a package.

The Trend-Seeking Student

Chloe Martinez

A junior at Chico State who is tired of the typical party scene and looks for unique, 'Instagrammable' experiences. She is motivated by viral TikTok dance trends and wants a social outlet that focuses on skill-building and clean fun rather than alcohol.

Age

21

Location

Chico, CA (Near CSU Chico Campus)

Family Status

Single, living with roommates

Education

Pursuing B.A. in Media Arts

Profession

Undergraduate Student and Part-time Barista

Opportunities

• Offer short-term workshops focusing on popular social media partner dances to capitalize on her interest in digital trends.
• Create a low-cost 'Social Pass' for students that fits within the limited budget of a Chico State student surviving on part-time wages.
• Leverage her desire for content by offering discounted classes in exchange for tagging the studio in her dance videos.

Pain Points

• Limited social options in Chico that don't revolve around drinking
• Lack of structured, safe spaces to practice partner dancing outside of informal campus clubs
• High cost of private lessons at traditional studios

Needs

• Affordable group class rates (under $15 per class)
• A smoke-free and alcohol-free environment where she feels safe
• A community of peers in her own age bracket (20s)

“I see these amazing partner dances on my feed every day and I'm dying to learn them, but I want a real studio, not just a crowded bar floor.”

The Connection-Seeking Professional

David Wright

A busy professional looking for a way to reconnect with his spouse and find a 'third space' outside of work and home. He values the health benefits of dance and is interested in the technical aspects as a form of mental decompression.

Age

38

Location

California Park, Chico, CA

Family Status

Married, 2 children (ages 7 & 10)

Education

B.S. in Civil Engineering

Profession

Project Manager at a local engineering firm

Opportunities

• Market Friday night 'Introduction to Swing' sessions specifically as a local date-night alternative to dinner and movies.
• Offer early evening classes that allow him to participate and still be home for his children's bedtime.
• Develop team-building dance workshops for local Chico firms looking for unique employee wellness activities.

Pain Points

• Struggling to find quality time with his wife that isn't centered on chores or kids
• Frustrated by the 90-minute drive to Sacramento for professional-level ballroom instruction
• Sedentary lifestyle due to a demanding office job

Needs

• Local, high-quality instruction with NDCA-certified teachers
• Structured curriculum that shows clear progress over time
• Convenient evening class times that fit a 9-to-5 work schedule

“My wife and I need something that's just for us. Driving to Sacramento for a lesson is impossible, so having a professional studio right here in Chico is a game-changer.”

The Enrichment Strategist

Susan Miller

A long-time Chico resident and active retiree who views dance as both a competitive sport and a vital social community. She is aware of the WDSF's Olympic push and wants a studio that treats ballroom with the technical respect of an athlete while maintaining a warm social atmosphere.

Age

62

Location

North Chico, CA

Family Status

Widowed, active in local community groups

Education

M.A. in Education

Profession

Retired School Administrator

Opportunities

• Provide advanced technical coaching for students interested in the competitive side of ballroom, aligning with the WDSF Olympic movement.
• Host mid-day 'Tea Dances' or social mixers to cater to the retiree population who prefer not to drive late at night.
• Offer 4-8 week structured series on specific styles (Waltz, Foxtrot) to satisfy her desire for technical mastery.

Pain Points

• Local options are often 'unstructured' or lack certified professional leadership
• Feeling socially isolated after retirement and looking for a consistent community
• Desire for high-impact exercise that is gentle on the joints

Needs

• Highly experienced, certified instructors (NDCA style)
• A welcoming, inclusive community environment with consistent social events
• Focus on proper technique and 'Dancesport' standards

“I've been a social dancer for years, but I want to take it to the next level. I'm looking for a studio that values the craft and the community in equal measure.”

Marketing Strategy

Our marketing plan starts with a simple idea: satisfy our customers, and they'll keep coming back — and bring others with them. We'll offer referral incentives to current students who bring in new ones.

We're selling fun, connection, and a new skill — not just dance technique. Our biggest challenge is reaching people who've never set foot in a dance studio and don't think of themselves as "dancers." Our marketing message leans into that: the chance to meet people, build a fun new skill, get some exercise, and shake up date night or a night out with friends.

Core channels:

• Social media — Instagram and TikTok for short clips of classes, practice parties, and student wins; Facebook for community/event promotion and our local dance group.
• Google Business Profile and local SEO — so we show up when someone searches "dance lessons Chico" or "wedding dance lessons near me."
• Local partnerships — cross-promotion with Chico State's student dance clubs, bridal shops, and wedding venues for our first-dance packages.
• Community presence — booths at Chico's downtown events and farmers markets, and hosting a free monthly community dance night open to the public.
• Traditional local advertising — flyers, local publications, and radio, used selectively to reach older demographics less active on social media.

Sales Strategy

One of our core sales tactics is advertising discount specials and introductory offers, designed to get new students into the studio and figure out what they're looking for. Instructors work with each prospective student on these specials to identify their goals, then outline a course of lessons that fits. Once a course outline is agreed upon, the customer meets briefly with a manager to confirm the plan meets their expectations before signing on — a simple contract that commits both the student and the studio to a series of appointments.

We offer a mix of private lessons, group lessons, and practice parties, structured around the industry-standard progression: Social Foundation, Bronze, Silver, and Gold (Showcase) levels, with Bronze and Silver further split into two tiers each to match the pacing most students need.

Beyond individual course packages, U&Me Dance offers three membership tiers:

1. Basic — unlimited admission to practice parties, plus discounts on special events.
2. Gold — limited group class access, unlimited party admission, five guest passes, and event discounts.
3. Platinum — unlimited group class access, unlimited party admission, ten guest passes, and event discounts.

Memberships run for one year and renew annually. We also offer package discounts for larger lesson bundles.

All payments are collected at time of purchase, booked and managed through our online scheduling platform. Customers may arrange a payment plan with a 50% deposit and the remaining balance due within 30 days. We accept cash, check, credit card, and digital payment (Venmo/Zelle).

Competitive Edge

There is currently no dedicated ballroom or social dance studio in Chico or Butte County, which gives U&Me Dance a real first-mover advantage. But we're not counting on that alone — because Chico isn't used to having a studio, part of our job is introducing the community to what a dedicated dance studio even offers. One advantage working in our favor: Chico already has an active, informal dance community, including Chico State's student swing and social dance clubs, that we can plug into from day one.

We'll price in line with Chico's cost of living, offer a wide range of competitively priced packages, and keep our instructors trained on current styles and technique. We also plan to build relationships with Sacramento-area studios so we can bring big-city trends, guest instructors, and exchange events to our students without them having to leave Chico.

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Sales Plan

Sales at U&Me Dance happen primarily through the studio's front desk and instructor consultations, supported by online booking.

Lead generation: Prospective students come in through our website, social media, walk-ins, community events, and referrals. Every lead is entered into our studio management software (e.g., Mindbody or Punchpass) to track follow-up.

Trial-to-package conversion: New students typically start with a discounted introductory offer — either a single private lesson or a group class pack. Instructors use this first session to understand the student's goals and recommend an appropriate ongoing package (private lessons, group class series, or membership).

Follow-up: Front desk staff follow up with trial students within 48 hours if they haven't booked a next session, and check in with active students who haven't attended in two or more weeks to reduce drop-off.

Team: In Year 1, sales conversations are handled directly by Mary and Toni alongside instructors. As the studio grows, we plan to add a dedicated front-desk/sales coordinator to manage scheduling, follow-up, and membership renewals.

Targets: We're aiming for roughly 25% conversion of trial students into an ongoing package or membership, tracked monthly alongside new-student volume.

Locations and Facilities

U&Me Dance plans to lease approximately 3,000–4,000 square feet of commercial space in or near downtown Chico, within walking distance of Chico State to capture student foot traffic and close enough to residential neighborhoods to be convenient for evening classes.

The space will require light build-out: a sprung or floating hardwood dance floor, wall-length mirrors along one side of the main studio, a small retail/reception area, a private office, and a single restroom upgrade. We're budgeting for a straightforward tenant improvement rather than ground-up construction, keeping our start-up facilities costs manageable.

The main studio floor will comfortably hold group classes of up to 20 students (10 couples), with a smaller secondary room available for private lessons and overflow. Parking is a key requirement given Chico's downtown layout — we're prioritizing locations with dedicated or easily accessible evening parking, since most classes run after standard business hours.

Technology

U&Me Dance runs on a small, practical technology stack built around our studio management platform (Mindbody or Punchpass), which handles class scheduling, membership billing, and student check-in in one place. Our website, www.uandmedance.com, integrates directly with that platform so students can browse the class schedule, see upcoming events and pricing, and book or buy packages online without calling the studio.

We use email and SMS reminders (built into our scheduling platform) to cut down on no-shows, and a shared calendar so instructors always know their schedule and any last-minute changes. Social media (Instagram, TikTok, Facebook) is managed directly by the owners in Year 1, with short video content pulled from classes and events.

As we grow, we plan to add a simple CRM view within our studio software to track each student's package status, renewal date, and attendance trends, so we can catch drop-off early and follow up proactively.

Website Marketing Strategy

Our website is built for two audiences: people researching whether to try a dance studio at all, and existing students checking the schedule. We prioritize local SEO — showing up for searches like "dance lessons Chico CA," "wedding dance lessons Chico," and "ballroom dancing Butte County" — supported by a Google Business Profile with reviews, photos, and up-to-date hours.

The site includes clear pricing, class descriptions, instructor bios and photos, and a live event calendar, plus a dedicated page for our Chico State student discount and wedding dance packages. We'll publish occasional blog content and short videos (styling tips, student spotlights, event recaps) both for SEO and to share on social media.

We'll cross-link with Chico State's student organization pages where possible, local wedding vendors (photographers, venues, planners) for our first-dance package, and Sacramento-area dance and USA Dance chapter sites to plug into the broader regional dance community.

Equipment and Tools

Core studio equipment and tools include:

• Sprung or floating hardwood dance floor
• Wall-length mirrors
• Professional sound system with wireless microphone
• Reception desk, POS system, and retail display for dancewear/shoes
• Folding chairs and tables for practice parties and events
• Studio management software (Mindbody or Punchpass) for scheduling, billing, and check-in
• Basic office equipment (computer, printer, Wi-Fi)
• Cleaning and maintenance supplies for the dance floor
• A small inventory of loaner/rental dance shoes for new students

Milestones

Key Metrics for Success

We'll track a mix of financial and operational metrics to gauge U&Me Dance's health:

Financial: monthly revenue trend against forecast, gross margin, net profit margin, and monthly break-even revenue — reviewed monthly against our financial plan.

Growth: new introductory students per month, and conversion rate from trial to ongoing package or membership.

Retention: active membership count, package renewal rate, and average student tenure.

Engagement: weekly practice-party attendance and event turnout, as an early signal of community strength and word-of-mouth growth.

Our early-stage goal is steady, predictable growth in new-student intake and a conversion rate high enough to make our marketing spend sustainable — with detailed targets set in our financial plan.

Company

Ownership and Structure

U&Me Dance is a Limited Liability Company (LLC) owned and operated by Mary Evans and Toni Simler, a mother-daughter team.

Mary Evans serves as Owner and Dance Director, responsible for teaching advanced students, hiring and training instructors, scheduling group lessons and special events, and designing our lesson programs.

Toni Simler serves as Owner and Business Director, responsible for teaching Social Foundation and Bronze-level students, managing accounting and financial operations, bookkeeping and payroll, marketing strategy, and vendor/lease negotiations.

Both owners have danced together since the early 2000s. Mary brings seven years of experience as a dance instructor and program coordinator at Bay Area studios, along with certification through the National Dance Council of America (NDCA). Toni spent 25 years in corporate operations and customer experience leadership before retiring to launch the studio full-time, bringing hands-on management, budgeting, and vendor-negotiation experience to the business side.

Start-up Summary

U&Me Dance's start-up costs assume a leased commercial space in or near downtown Chico. The space is largely move-in ready but will need light renovations, including a sprung dance floor, mirrors, and a small office build-out. The lease is expected to close in mid-September 2026, with build-out running through late October and doors opening November 2, 2026.

Our "Other" category covers items like Chamber of Commerce membership, initial marketing materials, and a contingency buffer for anything underestimated.

Current assets include a $12,000 security deposit. Long-term assets cover the studio build-out and equipment (sprung floor, mirrors, sound system) — see the table below for detail.

We are not currently seeking a loan. The owners are investing $130,000 to launch, which covers start-up costs plus a substantial working-capital cushion — the studio doesn't open until November 2026 and isn't expected to reach sustained monthly profitability until its second year, so we're funding for a realistic runway rather than a best-case one.

Company Ownership

U&ME Dance is a Limited Liability Company owned and operated by Mary Evans and Toni Simler.

Management Team

U&Me Dance is a very small company, with owners Mary Evans and Toni Simler responsible for managing and directing all activities.

Mary Evans, Owner and Dance Director, is primarily responsible for:

• Teaching advanced students
• Hiring, training, and supervising instructors
• Scheduling and planning group lessons and special events
• Creating dance lesson programs and packages
• Studio events

Mary brings seven years of experience as a dance instructor and program coordinator at Bay Area studios, along with certification through the National Dance Council of America (NDCA). She has firsthand experience with studio operations from working under previous studio managers, plus a strong network of instructors and dancers across Northern California built over years of teaching.

Toni Simler, Owner and Business Director, is primarily responsible for:

• Teaching Social Foundation/Bronze-level students
• Managing accounting and financial operations
• Bookkeeping and payroll
• Designing and running marketing strategy
• Vendor relations and contract/lease negotiation

Toni spent 25 years in corporate operations and customer experience leadership before retiring to launch U&Me Dance full-time. That background gives her strong budgeting, vendor management, and process-building skills that translate directly to running a small business. She and her husband have been social dancers since the early 2000s, so she also understands the studio from the student's side of the floor.

Advisors

U&Me Dance is building a small advisory network to support us through launch and early growth:

• SCORE Chico mentor — a retired small-business owner providing free, ongoing guidance on lease negotiation, staffing, and early financial management.
• CPA (local, Chico-based) — supporting bookkeeping setup, payroll, and tax planning from day one.
• Local business attorney — reviewed our LLC formation, lease, and student contract templates.
• Regional dance-industry contact — an established studio owner in the Sacramento area (met through USA Dance) who has agreed to be a sounding board on staffing, pricing, and studio operations as we grow.

We plan to check in with this group quarterly during Year 1, and more frequently around major decisions like our lease renewal or first major hire.

Financial Plan

Revenue

Expenses & Costs

Profitability

Use of Funds

U&ME Dance requires $50,000 in start-up funding, allocated as follows:

Start-up Expenses ($9,550)

• Legal: $1,000
• Accountant: $300
• Office Supplies & Stationery: $500
• Brochures: $250
• Grand Opening: $5,000
• Signage: $500
• Other: $2,000

Start-up Assets ($40,450)

• Cash Required: $10,750
• Other Current Assets (deposit): $12,000
• Long-term Assets (sound system, tables, chairs, etc.): $17,700

The owners, Mary Evans and Toni Simler, are investing $50,000 initially. We are not currently requesting a loan, but may need one for operating costs if sales are less than anticipated.

Sources of Funds

U&ME Dance will be financed through owner investment:

We plan to use our own start-up cash to finance the business. The Majestic is a turn-key building requiring limited contract work. We want to finance growth mainly through cash flow rather than debt.

No long-term loans are planned at start-up. If sales fall below forecast, we may seek a loan for operating costs.

Projected Statements

Key Assumptions

The financial plan depends on important assumptions shown below. From the beginning, we recognize that collection of payments for dance lesson packages is critical. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Three critical underlying assumptions:

1. People in Whatcom County and Bellingham will be interested in learning to dance and will give us a try.
2. The area will continue to grow at the projected rate of 5% per year.
3. The Majestic will continue to be rented for events as in the past.

We assume 25% closing ratio for new students and 50% advancement rate for existing students between dance levels.