DDynamicynamicEEnergynergyOOriginalriginalZZipipEEthusiasmthusiasm Dance Dance

Bryonna CaneBryonna Cane

Invention Invention ConventionConvention

March 26, 2009March 26, 2009

ProblemProblem

A large need for alternative exercise A large need for alternative exercise options in the communityoptions in the community

Expensive classesExpensive classes Distance to many of the studios requires Distance to many of the studios requires

transportation many do not havetransportation many do not have

SolutionSolution

Exercise through danceExercise through dance Specifically ZumbaSpecifically Zumba

Hip- Hop Hip- Hop SalsaSalsa

Affordable classesAffordable classes Per class feePer class fee

Closer location to the communityCloser location to the community Robinson CenterRobinson Center

Mission StatementMission Statement Service business for the local communityService business for the local community Mission Statement:Mission Statement:

DEOZE DanceDEOZE Dance offers a fun way to work out offers a fun way to work out with members of your community that with members of your community that also keeps your mind active during the also keeps your mind active during the process. Beyond dance, we seek to process. Beyond dance, we seek to build self-esteem and confidence by build self-esteem and confidence by

teaching new skills and meeting people teaching new skills and meeting people with similar interests. with similar interests.

Industry and Market Industry and Market AnalysisAnalysis

Fragmented; there are offerings in three Fragmented; there are offerings in three different placesdifferent places

Generally people are focusing on their Generally people are focusing on their health more and want more alternative health more and want more alternative activitiesactivities

Market Analysis: Market Analysis: Many programs offered, but not to the age Many programs offered, but not to the age

group that I am targetinggroup that I am targeting

Target MarketTarget Market

Ages: 17-35Ages: 17-35 Men and WomenMen and Women Community surrounding the Robinson Community surrounding the Robinson

Community Learning Center: South Community Learning Center: South Bend, INBend, IN

Low-mid income Low-mid income BehaviorBehavior

Need something within walking distance Need something within walking distance Want a better athletic and social optionWant a better athletic and social option

Competition Competition

Competitor Price Location Quality

YMCA of Michiana

$75 / 3 classes Northside Blvd

Mass offerings, inexperienced teachers, classes not as upbeat as necessary for the age group

Fitness USA

$50 registration + $19 a month

East Ireland Road

No personal attention, middle-age focus. The dance classes are a small part of a lot of programs

Debbie Werbrouck's School

About $20 / Class Douglass Road

Largest competitor: Offers general dance. No specialty classes. Focused on elementary school aged participants

Southold Dance Theatre

$12 / class but must pay by the session ($70 / 6 weeks)

Lincoln Way West

Elemenary, ballet, and performance focus. No fast-paced classes offered.

Dance SportCould not

be reached Grape Road

Ballroom and swing classes: completely different focus and partners needed

Competitive AdvantageCompetitive Advantage

Cost effective and affordable Cost effective and affordable In walking distance In walking distance A studio centered around a younger A studio centered around a younger

demographicdemographic It will build a brand in the area, that will It will build a brand in the area, that will

end up serving as a barrier to entryend up serving as a barrier to entry I have an understanding of the business I have an understanding of the business

side of the industryside of the industry

QualificationsQualifications PersonalPersonal

9 years dance experience9 years dance experience 4 years professional dance training4 years professional dance training Teach all dance workshops and Teach all dance workshops and

choreograph performances for Greater Holy choreograph performances for Greater Holy TempleTemple

NetworkNetwork Aunt with dance backgroundAunt with dance background Support network/mentors developed though Support network/mentors developed though

experienceexperience

How will I achieve a How will I achieve a profit?profit?

CASH COW: ClassesCASH COW: Classes High enrollment High enrollment Having a high capacity Having a high capacity Easy payment planEasy payment plan

Legal StructureLegal 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 PlanPhilanthropy Plan

I plan to donate 1 classes profit per I plan to donate 1 classes profit per month to the charity of my choicemonth to the charity of my choice

Marketing MixMarketing MixMethod Description

Target Customer Cost

Flyers

Posted in schools and churches; using bright colors to catch people's eyes

Students, church-goers, community members $40*

Word of Mouth

Using my network to get people talking about the new student run business in their area will gain me support

Friends, family, my extended network $0

On-line

Facebook and Myspace sights for the dance studio. I can then "friend" people to get the word out

Students and friends $0

Community Publications

Advertise in school newspapers and the South Bend Tribune

Community and students

Schools: free; South Bend Tribune: $50

Business Cards

Easy to hand-out to anyone I meet, and spread the word Community

$0 through RCLC

*Note: While flyers are free to design in RCLC, the expense comes from gas money, printing, and posting

Economics of One UnitEconomics of One Unit

Definition of 1 unit 1 class

Selling price per unit $10 per person

Estimated people per hour 15

Revenue per hour $150

Direct Labor $15

Materials: (Rent)* $0

Total COGS per Unit $15

Gross Profit Per unit $135

Direct Labor (Variable Direct Labor (Variable Cost)Cost)

Direct labor (wage per hour)

Time (in hours) to make one unit

Direct labor cost per Unit

$15 1 $15Total $15

Definition of One Unit (1 class)

Average Monthly Fixed Average Monthly Fixed CostsCosts

Type of Fixed Cost Monthly CostEntrepreneurial Stipend: 20 hours per month x (6.50 + 1.50) $160

Rent$0 through the RCLC

Advertising: supplies, posting, printing, flyers, delivery

$30 with help from RCLC and after start-up

Total Fixed Cost $190

Monthly Sales ProjectionMonth Units SoldJanuary 20February 20March 24April 24May 24June 24July 18August 24September 24October 24November 18December 18Total 262Notes: 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 InvestmentStart-up InvestmentEntrepreneurial hours

needed for star-up Minimum WageTotal Start-up Investment

30 hours $8.00 $240

ItemWhere will I buy

this? Cost of Item

Marketing Supplies Walmart$50 with help of the RCLC

Weights (15 sets at $15)Discount Fitness Equipment $225

Jump Ropes (20 at $1.25) Wal-Mart $25

Ab Mats (20 at $10)Discount Fitness Equipment $200

Cash Reserves covers 3 months fixed costs $570

Estimated Total Start-up Investments $1,310

Financing StrategyFinancing Strategy

Source AmountPersonal Savings $350Relatives Friends $600Investor $360Grant -Total $1,310

Projected Yearly Income Statement

Selling Price Per Unit $150Number of Units Sold $262Total Sales $39,300Less Variable CostsTotal COGS $3,930Other Variable Costs $0Total Variable Costs $3,930Gross Profit $35,370Less Fixed CostsUSAIIRD $2,280Other Costs/Unforseen $0Total Fixed Costs $2,280Profit before Taxes $33,090Less Estimated Taxes at 25% $8,273Net Profit $24,818

Return on Sales and Return on Sales and Financial RatiosFinancial Ratios

ROS: = Yearly Net Profit / Total Sales * 100ROS: = Yearly Net Profit / Total Sales * 100 = 63.15%= 63.15%

For every $1 of sales, my business earns:For every $1 of sales, my business earns: = $0.63= $0.63

Monthly Break-Even Units = Monthly fixed Monthly Break-Even Units = Monthly fixed costs / Gross Profit per unitcosts / Gross Profit per unit = 1.4 classes at 15 people per class= 1.4 classes at 15 people per class

Intellectual Property Intellectual Property

Copy write logo:Copy write logo:

Operating PlanOperating Plan

Banking: checking and savings accountBanking: checking and savings account Technology needed: computer for Technology needed: computer for

recordkeepingrecordkeeping Laws: obey capacity rules, limit liability Laws: obey capacity rules, limit liability

with release forms, and maintain a with release forms, and maintain a business permitbusiness permit

Taxes: Report earnings quarterly on Taxes: Report earnings quarterly on 1040 tax form1040 tax form

Business and Educational Business and Educational GoalsGoals

BusinessBusiness

Short term goalShort term goalBreak even Break even

Long TermLong TermIncrease enrollment Increase enrollment Double the amount of Double the amount of

classesclassesBranded MerchandiseBranded Merchandise

EducationalEducational To teach people about To teach people about

the history of the dance the history of the dance

Personal Goal Personal Goal To learn to teach the To learn to teach the

classes myselfclasses myself

Long TermLong Term Nutrition, eating healthy Nutrition, eating healthy

Time Management Time Management

Business Schedule for a Typical 5-Day Week:Business Schedule for a Typical 5-Day Week:

Entrepreneurship Hours: 20 HoursEntrepreneurship Hours: 20 Hours School Hours: 25 HoursSchool Hours: 25 Hours Work Hours: 20 HoursWork Hours: 20 Hours Free-Time: 30 HoursFree-Time: 30 Hours Sleep: 7 HoursSleep: 7 Hours

Thank you for yourThank you for yourconsideration and consideration and

supportsupportOf DEOZE Dance!Of DEOZE Dance!