How to Start a Dance Studio

Part 1 - How to start a Dance Studio business - Background

Dance instructors have the experience and knowledge required to offer dance lessons, but they need a venue to teach their craft. A dance studio provides instructors with space to offer dance lessons, including both group classes and private sessions.

Identifying your niche will put you in the right position to start your own dance studio.

Our guide is in 3 parts:

• Part 1 - How to start a Dance Studio business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a dance studio?

The two main costs associated with a dance studio are the cost of a building and the cost of insurance. A building requires a large investment of capital, and the building’s taxes and mortgage should be included in the total building costs. Additionally, a studio should have a reserve fund available in case the building needs an emergency repair. Regarding insurance, a dance studio should have robust liability protection that covers all students, instructors, guests and events held in the building.

Dance studio can get started for much less in one of the following ways:

• Leasing and renovating an existing commercial space as opposed to constructing or purchasing a brand new studio

• Purchasing or leasing less expensive commercial space that’s smaller or in a less busy part of town

Read our dance studio purchasing guide to learn about the materials and equipment you’ll need to start a dance studio, how much to budget, and where to make purchases.

What are the ongoing expenses for a dance studio?

The ongoing expenses for a dance studio include the upkeep costs, mortgage and taxes associated with the studio’s building, employee salaries, and the studio’s insurance premiums. Building costs will depend on the value and size of a studio’s building, but will easily be at least several thousand dollars (and possibly tens of thousands of dollar) each year.

Who is the target market?

There are many ways to start a successful dance studio. However, most studios fall into one of two categories:

• Traditional Studio: traditional dance studios provide an educational space for movement arts, such as ballet, jazz, or even hip hop. While lessons can be offered to customers of all ages, many studios specialize in group or private lessons for children and teens. In addition to offering lessons, studios often organize dance performances or competitions for their students.

• Active Lifestyle Studio: a growing number of dance studios offer an alternative to hitting the gym. These studios offer instructor-led sessions in active dance styles, such as Zumba or Aerial Silk. This style of studio appeals to adults looking for a fun way to lead a healthier, more active lifestyle.

If a dance studio employs its own instructors, ideal clients include children and students from affluent families who are passionate about dance can afford to attend regular classes.

If a studio does not employ its own instructors, its primary clients would then be instructors – dance enthusiasts who often have professional dancing experience. They may be past dancers or still regular performers.

The dance instructors that a studio serves don’t need to be wealthy, but it helps to have a studio located in an affluent area as residents have discretionary income to spend on dance lessons, which can increase the number of dancers instructors have to teach. The more students they have to teach, the more often they’ll need a space to offer classes and lessons.

How does a dance studio make money?

A dance studio typically generates revenue in of two ways:

• By leasing studio space to independent dance instructors. Classrooms, the performance space and the entire building can be rented out.

• If a dance studio directly employs its instructors, then the primary income source will be class fees paid by dance students.

A studio can also sponsor recitals and/or bring in a special guest instructor. The studio could then acquire money through ticket sales and class fees.

How much can you charge customers?

Dance studio’s rates usually vary with when instructors want to use the space. During peak times, rooms may go for $100 an hour or more. On off-peak hours, fees may be closer to $20 to $30 per hour. These expenses are usually charged per-room, so a studio that has several classrooms can multiply its income by the number of rooms available.

Dance class fees typically range from $50-150 per student per class. Fees can be charged on a per class basis, or as part of a seasonal membership.

How can you make your business more profitable?

Dance studios can increase their revenue by offering special events, such as guest dance instructors and recitals. They can also rent out any performance space they have for dance-themed parties and other events.

Day-to-Day and Growth

What happens during a typical day at a dance studio?

 Some of the common day-to-day activities at a dance studio include:

• Creating lesson plans

• Offering regular dance lessons

• Planning and coordinating performances 

• Taking phone calls and answering inquiries from parents and potential students

• Cleaning and general maintance tasks – either performed by the owner or outsourced to other companies

What are some skills and experiences that will help you build a successful dance studio?

Whether or not your will be teaching lessons yourself, some background knowledge on different styles of dance can help you determine which instructors to hire and what types of lesson to offer.

It’s also useful to know how to handle basic maintenance tasks such as fixing broken lights, unclogging drains and repairing doors. These skills can greatly reduce how much a dance studio has to spend on repair and service calls.

First-aid knowledge will come in handy if a student or instructor is injured during a lesson.

What is the growth potential for a dance studio?

A dance studio is usually a single building that serves the surrounding community. The size of the building can vary, depending on how much demand there is for dance lessons in the area. Some studios only have one or two classrooms, and a performance space. Others have several stories of classrooms and a few performance spaces of different sizes.

A few studios have several locations within a region, but this is not common.

Should you consider joining a franchise?

Joining a dance studio franchise can be a good option for entrepreneurs who prefer to use a proven model rather than start from scratch. While joining one can mean slightly higher initial costs and less control, a quality franchise offers great benefits such as initial and ongoing support, marketing assistance, and brand recognition.

Opening a dance studio franchise typically requires $15,000-$500,000. Larger dance studio franchises like Jazzercise typically cost more, while more niche favorites like Tutu School and Kinderdance often have lower startup costs.

Interested in joining a dance studio franchise? Check out our favorites.

How and when to build a team

A dance studio needs instructors. Unless you have the experience and desire to act as a full time instructor, you’ll either need to hire instructors or lease them studio space. Either way, a studio should only work with respected instructors, because how they treat students will reflect on the studio and its brand.

Part 2 - Is a Dance Studio business the right fit for you?

Part 3 - Action plan to launch your Dance Studio business in 90 days