Listing ID: 71365
The business is located in Fairfield County, CT and offers dance classes for ages 4 through high school as well as adults.??The business started in 2016 after seeing an opportunity in the Fairfield County area to step away from the more traditional dance school and company offerings and instead shift into an urban dance focused class offering, bringing something new and fresh to the community and the community responded in kind.
Over the course of the first 3 years in business, the company showed a 77% increase in its student base, ending their 2018/19 season with over 300 students. The business was significantly impacted by COVID-19, reducing their student count by 50%, but moving into the 2021 dance year, the company has seen a 38% increase from year prior.
85% of the studio’s revenue comes from kids classes with the remaining 15% coming from a combination of adult class revenue, workshops, camps, studio and outside events.
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- Asking Price: $149,900
- Cash Flow: $83,594
- Gross Revenue: $307,032
- EBITDA: N/A
- FF&E: $24,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,838
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The business is conveniently located in a centrally located shopping plaza in town with several other store fronts including restaurants and a grocery store. This proves extremely beneficial to clients as a one-stop shop for class participation and errand running. The studio is handicap accessible. The total size of the studio is 1,838 sq ft with about 1,500 of that designated to the studio space itself. There are two bathrooms. One handicap and the other is a full bathroom with shower. The studio also has a small office space. The studio has track lighting (on dimmers) as well as “party lights” including disco ball, pin lights and strobes. All lighting will be left for new owners. Stereo/Speaker: See Attached Pictures Flooring: Core Luxe Waterproof Rigid Vinyl Plank w/ Attached Pad (warranty included)? Furniture: There are several pieces of furniture include a coach, storage bins, shelving units, reception desk, retail fixtures, desks and filing cabinets that can be left for the new owners. The studio also has several seasonal decorations that are open to the new owners. Unused office supplies such as paper towels, toilet paper, paper, etc can be left to new owners. As well as any dispensers already installed.
Up to 6 months time from sale date. Hours and support negotiable, to possibly include: - Support in business operations - Support in client transition - We could potentially offer support in marketing, but this would be contingent on ensuring that we feel comfortable with the new owner’s business offerings, service and business model. - Support in introduction to key contacts in town such as Chamber of Commerce, local charities, school contacts, etc.
Moving on to new opportunities.
Fairfield County has many dance studios, but very few are focused on urban dance.
New owners could look to grow the business in several ways including but not limited to the following, Increase size of current studio location. Open an additional studio location. Develop an on-line leg of the business. (specific for kids) Shift from an urban dance focused studio to include additional dance styles. NOTE: There are many other dance studios in the area that do this, so if this was to be done, we would highly recommend that there is a point of differentiation developed that would help convince parents to make a shift. New owners could also look to bring in additional styles that are not widely offered within the area such as latin or even ballroom. Create a robust adult class offering for the morning and weekend hours when kids classes are not in session. OR sub-lease morning hours to bring in additional revenue.
The venture was established in 2016, making the business 6 years old.
The business has 10 employees and is situated in a building with disclosed square footage of 1,838 sq ft.
The building is leased by the business for $6,318 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the genuine reason and the one they tell you may be 2 entirely different things. As an example, they may state "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or an array of other factors. This is why it is very vital that you not depend absolutely on a vendor's word, but rather, use the seller's solution together with your general due diligence. This will repaint a more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that profit margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new consumers? Often times, businesses have repeat consumers, which develop the core of their everyday earnings. Specific factors such as new competitors sprouting up around the location, roadway building, as well as staff turnover can influence repeat clients and also adversely impact future revenues. One vital thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the chance to build a returning consumer base. A final idea is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional typical family earnings effect future revenue prospects?