How to Start a Dance Studio in 13 Steps

Here are the most important aspects you need to know about when starting your dance studio:

1. Location — You need a space that is accessible and visible to your target demographic. Consider factors like parking availability, public transportation access, and foot traffic. The space should be large enough to accommodate dance classes and possibly multiple classes at the same time.
2. Choose a niche or specialization — Develop a diverse range of classes that appeal to different age groups, skill levels, and interests. This might include ballet, jazz, hip-hop, contemporary, tap, and special classes like dance fitness or dance for toddlers.
3. Equipment — Your studio will need proper flooring that is safe for dance, mirrors, barres, sound equipment, and possibly changing rooms and a waiting area for parents.
4. Hire professionals — Hire experienced, qualified professionals who are skilled dancers but also effective teachers. 
5. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
6. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
7. Online presence — Take your business online, build a professional website, and get listed on Google Business, Yelp, and local directories. Encourage your customers to leave positive reviews.

Step 1: Decide if the Business Is Right for You

Pros and cons

Opening a dance studio has pros and cons to consider before deciding if it’s right for you.

Dance studio industry trends

As the pandemic recovery continues, the dance studio industry should continue to rebound.

Industry size and growth

• Industry size and past growth – The US dance studio industry is recovering from the pandemic slump and valued at nearly $4 billion.((https://www.ibisworld.com/industry-statistics/market-size/dance-studios-united-states/)) Before the pandemic struck, the market had grown 3% per year since 2015.((https://www.thestudiodirector.com/blog/dance-studio-industry-stats/))  
• Growth forecast – The dance industry is poised for further growth as the Bureau of Labor Statistics predicts a 31% annual increase in employment of dancers and choreographers through 2030.((https://www.bls.gov/ooh/entertainment-and-sports/dancers-and-choreographers.htm)) 
• Number of businesses – Nearly 70,000 dance studios are operating in the US.((https://www.ibisworld.com/industry-statistics/number-of-businesses/dance-studios-united-states/))
• Number of people employed – The industry employs almost 125,000 people.((https://www.ibisworld.com/industry-statistics/employment/dance-studios-united-states/))

Trends and challenges

Trends in the dance studio industry include:

• The average age of children taking dance classes has increased from preschool to elementary ages. 
• Virtual dance classes seem to be a new trend that is here to stay, presenting an opportunity for dance studios to extend their reach.
• Ballet is always a popular class, and interest in hip-hop dancing has been rising steadily.

Challenges in the dance studio industry include:

• The rise in online dance classes is making the industry more competitive.
• Dance teacher turnover is a problem in the industry because many are seeking professional dance careers or have aspirations to open their own studio.

What kind of people work in a dance studio?

• Gender – 73% of dancers are female, while 27% are male.((https://www.zippia.com/dancer-jobs/demographics/#gender-statistics))
• Average level of education – 70% of dancers hold a bachelor’s degree.((https://www.zippia.com/dancer-jobs/demographics/#degree-level-types))
• Average age – The average age of an employed dancer is 29 years old.((https://www.zippia.com/dancer-jobs/demographics/#age-statistics))

How much does it cost to start a dance studio business?

Startup costs for a dance studio range from $5,500 to around $13,000. The largest expenses are for the studio space rental and preparation. 

You’ll need a handful of items to successfully launch your dance studio business, including: 

• Dance bars
• Full wall mirrors

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Deposit on a studio space	$2,500 - $6,000	$4,250
Space preparation with dance bars and mirrors	$1,500 - $3,000	$2,250
Total	$5,550 - $13,100	$9,325

How much can you earn from a dance studio business?

Prices for weekly dance classes are generally charged on a monthly basis, from $70 – $150. These calculations will assume an average price of $120 per month. If you work on your own at first, teaching all the classes, your profit margin should be about 60%.

In your first year or two, if you have 50 students, you’ll be bringing in over $70,000 in annual revenue. This would mean a profit of more than $40,000, assuming that 60% margin. As your studio grows in popularity, you could grow that number to 400 students. At this stage, you would hire other dance teachers, reducing your profit margin to 20%. With annual revenue of more than $570,000, you would make a healthy $115,000.

What barriers to entry are there?

There are a few barriers to entry for a dance studio. Your biggest challenges will be:

• Skills – You need to have extensive dance experience and teaching skills
• Competition – Competing with established dance studios and online studios

Step 2: Hone Your Idea

Now that you know what’s involved in starting a dance studio, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research dance studios in your area to examine their services, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a ballroom dance studio.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine the type of classes

The types of classes that you offer will depend on your dance skills. You also need to decide if you want to offer both adult and children’s dance classes or specialize in one. You can also offer private lessons.

How much should you charge for dance classes?

Prices for weekly dance classes range from $70 to $150 per month. Your costs will be rent, overhead, and dance teacher salaries. Once you’re fully operational, you should aim for a profit margin of about 20%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

If you teach primarily children’s dance classes, your target market will be parents. You can find them on sites like Facebook and LinkedIn. You could also distribute flyers at local schools. 

Where? Choose your dance studio location

Selecting the right location for your dance studio is essential for attracting clients and ensuring its success. Look for a spot with ample space, good ventilation, and appropriate flooring for dancing.

Consider accessibility and convenience, ensuring that the location is easily reachable by public transportation and has ample parking. Additionally, assess the local demographics and aim to select a location that caters to a wide range of clients, from children to adults.

By strategically choosing the right location, you can establish a profitable and popular dance studio that offers a range of dance classes and stands out in the competitive dance industry. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Dance Studio Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “dance classes” or “dance studio”, boosts SEO
• Name should allow for expansion, for ex: “Infinity Dance Studio” over “Latin Fusion Dance”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Dance Studio Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief summary outlining the dance studio’s mission, vision, and key business goals.
• Business Overview: An introduction to the dance studio, including its founding story, location, and legal structure.
• Product and Services: Details on the dance classes and additional services offered, emphasizing the unique value proposition.
• Market Analysis: An examination of the dance industry’s current trends, target customer demographics, and potential growth opportunities.
• Competitive Analysis: Evaluation of other dance studios in the area, identifying strengths, weaknesses, and opportunities for differentiation.
• Sales and Marketing: Strategies for promoting the dance studio, acquiring customers, and retaining them through effective marketing and sales efforts.
• Management Team: Bios of key team members, emphasizing their expertise in dance instruction, business management, and any other relevant skills.
• Operations Plan: A detailed plan outlining day-to-day operations, including class schedules, facility management, and instructor coordination.
• Financial Plan: Projections for revenue, expenses, and profit margins, including startup costs and a break-even analysis.
• Appendix: Supplementary materials such as resumes, permits, legal documents, and any additional information supporting the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to dance studios. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your dance studio will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a dance studio business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Dance Studio Business Licenses and Permits

Starting a dance studio business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your dance studio business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Studio Director, DanceStudioPro, or Class Manager, to manage your scheduling, classes, billing, and enrollment.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Local SEO — Optimize your website for local searches with details about dance classes, teacher bios, and student testimonials. Encourage satisfied clients to review your studio online. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Brand Identity — Ensure your studio’s brand feels energetic and welcoming, encompassing your logo, website, and ads.
• Social Media Engagement — Utilize platforms like Instagram, Facebook, and YouTube to share dance videos, updates, and live performances.
• Content Marketing — Create a blog to offer dance tips and health benefits, and share success stories to showcase student achievements.
• Online and Virtual Classes — Expand your reach by offering online dance classes or workshops.
• Community Events and Networking — Participate in local events, host open days, and collaborate with schools and clubs to promote dance programs.
• Partnerships — Join forces with local fitness centers, stores, and event planners for cross-promotions.
• Customer Interaction — Develop personalized dance programs and solicit regular feedback to enhance student satisfaction.
• Email Marketing — Distribute newsletters with studio updates and exclusive offers to keep your audience engaged.
• Workshops and Performances — Organize workshops and participate in local festivals to showcase your studio’s talent.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your dance studio meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your dance studio business could be:

• Hip hop dance classes for the whole family
• Group or private dance lessons for your child
• Ballroom dancing to bring romance to your relationship

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a dance studio, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in dance for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in dance studios. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a dance studio business include:

• Dance Teachers – teach a variety of dance classes
• General Manager – staff management, scheduling, accounting
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Dance Studio – Start Making Money!

Do you want to be the next Arthur Murray? You could have your own dance studio too, and maybe someday more than one!  Whether you teach children or adults, as a passionate dancer, your work will be very rewarding. In a $4 billion industry, it can also be very profitable. You could generate a nice income while doing what you love —- and maybe you’ll see one of your students on Broadway someday!

Now that you’ve prepared yourself by reading this step-by-step guide, you’re ready to pirouette your way into entrepreneurial success.

Common Questions

Can a dance studio be profitable?

Yes, a dance studio can be profitable. Customers will pay you monthly for weekly dance lessons, so you’ll have recurring income. If you have 100 students, that starts to add up nicely!

Do I need a license to open a dance studio?

You may need various business licenses and permits at the state and local levels. Check with your local governments for requirements or visit MyCorporation’s Business License Compliance page.

What is the minimum size for a dance studio?

A minimum of 20 by 30 feet is recommended for comfort and flexibility.

How tall should a dance studio be?

The ceiling should be at least 10 to 12 feet high to accommodate lifts and jumps.

What size dance floor is needed for 50 guests?

A dance floor of 20 by 20 feet is suitable for 50 guests.