Get a Title Loan for Your Dance Studio with ACFA Cashflow
Running a dance studio is no easy task. Between paying for the space, hiring instructors, and purchasing equipment, there’s always something needing your attention. Sometimes it can be tough to make ends meet, but don’t worry – ACFA Cashflow is here to help! Title Loans options that we offer for businesses in the dance industry, so you can get the cash you need quickly and easily. Plus, our online application process makes it easy to apply for a loan from anywhere. So what are you waiting for? Apply today!
You grew up dancing and have been a dance teacher for years, potentially even as a studio manager or director, but you want to do more. You want to open a dance studio of your own.
When starting from scratch to create a dance studio and a community of students isn’t feasible, you may decide to purchase a dance studio instead.
How do I go about purchasing a dance studio?
Buying a small business involves extensive planning, study, and commitment. But if it’s something you sincerely want to accomplish, there’s no reason why you shouldn’t be able to do it. Everything you need to know about the initial step in selling or purchasing a dance studio is right here.
Before purchasing a dance studio, a potential buyer must examine several factors, including developing a business plan and obtaining bank financing. It should be no surprise that these processes take time, so make sure you know how long each one will take before contacting a potential buyer.
Things a buyer should do a year before buying a dance studio
Get a small business loan
Obtaining the cash to purchase a dance studio might take a few months to over a year, depending on whether you get a small business loan, plan to finance through personal savings, or finance through the existing studio owner.
You must first acquire pre-approval from a lender before applying for a small business loan to purchase a dance studio. Some people find this phase to be more difficult than others.
And each potential studio owner’s experience will be as individual as their dancing style.
When seeking small company funding, you must face the potential of not being pre-approved by every lender. The most important thing to remember is to stay positive. The wind may be knocked out of your sails for a brief moment, but don’t forget to employ your resources.
Put money aside for a down payment
A down payment is necessary for a small business loan, just as it is for a home loan.
Banks often ask for a 20% down payment at the time of closing. Save for a down payment requires time and dedication, so don’t let it creep up on you. Don’t run (or chassé) for the hills if 20% isn’t a possibility for you financially. Do some research to see what other possibilities you might have.
If you finance through the Small Business Association, you may just be required to pay down 10% at closing. Here’s where you can breathe a sigh of relief. If saving isn’t your strong suit, consider the following suggestions for putting money aside for a down payment:
- If your monthly automobile payment is getting out of hand, consider trading it in for a less expensive vehicle.
- Skip the payment plan option at furniture and big-box merchants like Lowe’s or HomeDepot to save money on interest.
- Turn non-dance-related interests like graphic design and photography into a side job and be paid to do what you love.
- Create and keep to a budget.
- Stop going to Target or any other store where you can spend $100 on toilet paper every week.
Get advise on how to start a small business.
Angie and Hayley both advocate seeking advice from the US Small Business Administration if buying a dance studio is your first step into the realm of small business ownership.
Have you never heard of them before? The Small Business Administration (SBA) provides free counseling and low-cost training to entrepreneurs and a variety of financing opportunities.
However, we’ll return to the topic of funding later.
You’ll be off to the races with the best practices for implementing your business plan to start your own business after spending some time with your caseworker to discuss your goals and financial position.
Things that dance studio owners should undertake a year before selling their business.
Make changes to your studio.
Let’s face it: when it comes to fixer-uppers, pros like Chip and Joanna are the best.
You’ll have a hard time finding new owners who are willing to spend a lot of money upgrading your dancing facility. That’s why routine maintenance and simple enhancements are critical to your company’s value. If your ballet studio requires new marley floors, invest in high-quality items that will appeal to potential customers. Your sound system, barres, and props, to name a few, are all in the same boat.
Get your financial house in order.
You should constantly have your money in order as a business owner. You’ll be able to promptly and accurately reveal facts like your studio’s profit and loss statements and tuition and billing structure if you have at least three years of financial data on hand. At the end of the day, your studio is a business, and whoever (or anyone) decides to acquire it must know it’s solid and reliable.
Ensure that inventory is reordered correctly.
Is there a retail store at your dancing studio? If you answered yes, you might now stop scrolling! As the owner of your studio, you must examine any retail inventory that bears the name of your present studio. Your pre-school classes’ branded pink and purple leotards are charming, but being left with boxes of unsold, branded clothes when your studio changes hands isn’t.
Hello, money squandered!
As the seller, define your essential terms.
You are expected to create the primary terms of purchasing your dance studio as the seller.
The purchase price, settlement date, equipment, real estate, intellectual property, and vendor contracts are all crucial terms to mention.
Recognize that the buyer will arrive at the table with a list of demands, necessitating some haggling during this transaction stage. The key here is to understand which terms you’re ready to compromise on and which aren’t.
Make a succession plan.
How do you want the future owner of your dance studio to succeed you as the owner? Do you wish to stay on staff at the new studio for a year or two as a teacher or advisor before leaving?
Or do you want to take a break after you’ve made your purchase? These are questions that you should ask yourself as a business owner before meeting with potential purchasers.