Business Plan for Best Dance Academy

This assignment analyzes a detailed business plan for 'Best Dance Academy'. It examines various aspects including the academy's mission, vision, and objectives; a competitive analysis using Porter's Five Forces model; a SWOT analysis to identify internal strengths and weaknesses as well as external opportunities and threats; sources and applications of funds used for setting up the academy; and a conclusion highlighting the importance of effective business planning. The plan also includes references to relevant books and journals.

BUSINESS PLAN

Table of Contents
INTRODUCTION...........................................................................................................................3
Business mission, vision and objectives.................................................................................3
Industry analyses....................................................................................................................4
Segmentation, targetting and positioning...............................................................................4
SWOT analyses......................................................................................................................5
Description of business venture..............................................................................................5
Physical facilities and operations...........................................................................................6
Marketing plan........................................................................................................................6
Organisational plan.................................................................................................................7
Assessment of risk..................................................................................................................7
Financial analyses...................................................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCE...................................................................................................................................11

INTRODUCTION
Business plan is a written document which describes in detail how a business
accomplishes the goals and objectives. It summarises the operational and financial objective of a
business and contains details plans and budgets. Entrepreneurial venture undertaken in this report
is Beat dance academy which is a Canada based organisation and teaches dance to all age group
people (Burns, P , 2016). This report will explain the business plan of the mentioned organisation
which will contain the mission, vision and business objectives. It will also use industry analyses
and SWOT analyses. Further more, it will devise the description of business venture and physical
facilities and operations. The last part will assess the marketing plan, organisational plan,
financial analyses and risk assessment.
Business mission, vision and objectives.
Mission:
Beat dance academy is committed to encourage all dancer to strive towards excellence
and enjoy the journey along the way. It's goal is to provide quality dance instruction through
caring, professional instructors in a friendly, family oriented atmosphere.
Vision:
Beats dance academy's vision is to provide training in the field of contemporary dance
and performing art to all age group of people with talent and passion.
Objective:
 The primary objective is to enhance fitness among kids, youth and old ones and
encouraging them for learning dance.
 To train students who posses motivation and requires talent to become professional
dancers.
 To reveal, nature and create opportunities for the wealth of talent and ability that exists
among youth.

Industry analyses.
Porter's five force model helps to analyse competition in the industry (Burns and Dewhurst ,
2016). It includes five forces that determine competitive intensity and attractiveness of industry
in terms of profits. That can be elaborated below:
 Rivalry among competition : It refers to number of competitors already existing in the
industry. As the business is new in the market and there are number of competitor, along
with number of equivalent product and services offerings. It increases the level of
competition to a high extent.
 Threat of new entrant : It refers to the number of new businesses entering in the
market . As the entry barrier is low in this industry and companies also does not require
huge investment it is easy to enter the market. Therefore the threat of new entry in
industry is high.
 Threat of substitute : As there are large number of competitors existing in the industry
who are using aggressive promotional tools in order to attract more customers. While it is
easy to find substitute for the existing services and product this add on in increasing the
level of threat existing in the market (Gately and Cunningham, 2014).
 Bargaining power of customers : As the substitute is easily available in the market for
the product and services offered. It gives advantage to the customer to bargain the prices
and also because the business is entering the market customer may tent to influence. Thus
the bargaining power is high.
 Bargaining power of suppliers : The bargaining power of suppliers is low because the
number of existing dance school is not so high and suppliers have fierce competition
among them. Therefore it is more favourable for them to command economically
adequate and reasonable prices.

Source : Porter' s Five Forces Model. 2019
Segmentation, targetting and positioning.
 Segmentation: It is grouping customers on some sort of criteria such as location,
demographic or any other measure. Organisation will segment customers according to
their age group and will train them accordingly in order to provide a comfortable
environment in which students can learn and grow (McKeever, 2016).
 Targeting: organisation will target audience who wants to stay fit and have a zest of
learning art. Target Audience may be of any age group comprising of kids, youth and old
ones. They should have a common target which is learning and staying fit through
learning different art forms.
 Positioning: It is an important process in developing business plan because it helps in
influencing and attracting the target customers. So for this purpose the beat dance
academy will use poster, tie up with school, hoarding etc. Apart from this they will also
contact the parents of students or children and motivate them by making them understand
the importance of dance in every day life as it is a very good exercise for making people
fit and healthy (Monks and et. al., 2014).
Illustration 1: Porter' s Five Forces Model. 2019

SWOT analyses.
It is a framework which is used to evaluate the companies competitive position and to
develop strategic planning. It analyses the Beat dance academy's internal and external factors as
well as current and future potentials. The SWOT of Beat dance academy is discussed below :
Strength
 Innovative culture.
 Different forms like western, belle,
zumba, aerobics, ball dance, etc.
 Different courses to all age group
people.
Weakness
 Infant company.
 Uncertainty of business environment.
Opportunities
 Youngsters are becoming passionate
about the dance.
 Even all age group people are
understanding dance as a very good
workout.
Threat
 Emerging competition with already
established academies like Canada
dance academy, etc.
Description of business venture.
The following is the description of the beat dance academy :
 Products and services : It provides various options to the customers in dance like
western, hip hop, Cuban, mambo, Latin, salsa, etc. Apart from this, it also provides
meditation and yoga for old age people.
 Size of the business : The business neither too big and nor too small. It is opened by two
friends who have done double masters in international dance forms (Scarborough, 2016).
They have employed 10 trainers who teaches different forms of dances and yoga.
 Background of the entrepreneur : The two entrepreneur are childhood friends who
have trained thousands of people and now decided to open their own dance academy.
They have double masters degree in international dance forms and have certificates of

participations and winners in various dance competitions at national and international
levels.
 Location of the business : Their academy is located in Canada.
Physical facilities and operations.
The beat dance academy provides various facilities to its customers like changing rooms,
soothing atmosphere, air conditioned, flexible sitting and resting areas, clean floors for dance,
effective music and most of all well qualified trainers (Simón-Moya and Revuelto-Taboada,
2016). They also provide the individual trainer for home services for learning dance.
The cost that they will be charging from different customers depends upon the kind of
dance they want to learn and if people wants to take the dance package than the company
provides 3 months package for $100, 6 month package for $180 and 1 year package of $250.
Marketing plan.
Target Market : Its target market is customers of all age groups like youngsters, kids
and old age people as well. This is because as studies have no age to learn similarly, dance can
be learned at any age (Tounés, Lassas-Clerc and Fayolle, 2014). It targets kids of all ages
ranging from 3 years to 16 years, youth may be married or unmarried, couples, corporate
peoples, etc.
Marketing mix analyses : The marketing mix is the 4P's of marketing and this is
discussed below of beat dance academy :
 Products : This offers varied range of products and services like various forms of
international dances, yoga facilities, individual trainers, home services, etc.
 Price : The price of the product is depend upon the choice of customers for choosing the
form of dance as each dance form is charged differently. It also depends on number of
customers for per dance. As the company is newly established so they are also giving
discounts to those clients who are taking 1 year package.
 Place : At initial stage they are covering some areas of Canada but later they will be
expanding their business to entire Canada covering each and every area.
 Promotion : They will use various promotional strategies which will help them in
making people aware about the dance academy by communicating the various benefits of
dance and facilities offered by the academy. It includes strategies like television, radio,
social media, hoardings, newspapers, posters, etc.

Organisational plan.
It is the process of identifying organisations objectives and formulating and monitoring
specific strategies to accomplish business goals effectively and efficiently (Wallace and Webber,
2017). This plan is concerned with developing the medium and long term objectives of the
company and then making various strategies to attain the objectives.
 Form of ownership/ legal structure : The beat dance academy is a partnership
entrepreneurial ventures. In this the profits, loses and all other expenses are equally
shared by the two partners. It follows the hierarchy legal structure in which informations
and decisions are made in hierarchy order. It derives resources from bank loans and
clients who are taking admission in the academy.
 Description of management team : It has different teams for different departments like
marketing team is responsible for developing various marketing strategies, human
resource department is responsible for hiring more trainers by using various sources and
channels, etc.
 Licensing and insurance : Licensing is a business arrangement They are legally
authorised and certified with licensing from Canada government.
Assessment of risk.
It is the identification of hazards that could negatively affect the organisations ability to
conduct business. These helps in identifying the inherent business risks and provides measures,
processes and controls to minimise the impact of these risks to business operations. It is useful in
investigating the weakness of the business, analysing threats of competitors and variations in
clients tastes and preferences. It further helps in making contingency plans which are designed to
help an organisation respond effectively to a significant future course of action or situation that
may or may not occur. Thus, the risk assessment is useful in protecting the organisation from
upcoming threat by analysing it before, monitoring and controlling (Ward, 2016).
Financial analyses.
Feasibility analyses is the study which is used in measuring the ability and likelihood to
accomplish a project successfully which includes all relevant factors. It is used by the
organisations because to determine the potential positive and negative outcomes of a project
before investing time and money. This is useful because it enables the companies to determine

and organise all the details to make a business work. This is important in identifying the
problems associated with the Beat dance academy and designs the relevant solutions for the
same.
Start up cost is the basic cost or initial capital cost which is required by the organisation
for starting a business. The estimated start up cost which will be required by the beat dance
academy is :
Rent : $4000
Equipments : $800
Security charges : $1200
Electricity : $1500
Promotional expense : $1000
Insurance : $1300
Salaries and wages : $2000
Cash flow forecast
Statement of Cash Flows
Particulars 2019 2020
Cash flows from operating activities
Cash receipts from customers 34,265.00 31,218.00
Cash paid to suppliers and employees (32,109.00) (30,756.00)
Cash generated from operations 2,156.00 462.00
Interest paid (297.00) (336.00)
Income taxes paid (330.00) (54.00)
Dividends paid (220.00) -
Net cash from operating activities 1,309.00 72.00
Cash flows from investing activities
Business acquisitions, net of cash acquired (605.00) -
Purchase of property, plant and equipment (385.00) (240.00)
Proceeds from sale of equipment 77.00 -
Acquisition of portfolio investments - (600.00)
Investment income 440.00 420.00

Net cash used in investing activities (473.00) (420.00)
Cash flows from financing activities
Proceeds from issue of share capital 275.00 -
Proceeds from long-term borrowings 275.00 240.00
Payment of long-term borrowings (209.00) (84.00)
Net cash used in financing activities 341.00 156.00
Net increase in cash and cash equivalents 1,177.00 (192.00)
Cash and cash equivalents at beginning of period 176.00 384.00
Cash and cash equivalents at end of period 1,353.00 192.00
Notes to the Statement of Cash Flows
Cash flows from operating activities
Profit before taxation 4,785.00 1,476.00
Adjustments for: - -
Depreciation 495.00 312.00
Investment income (550.00) (420.00)
Interest expense 440.00 360.00
Profit / (Loss) on the sale of property, plant & equipment (55.00) -
Working capital changes: - -
(Increase) / Decrease in trade and other receivables (550.00) (606.00)
(Increase) / (Decrease) in inventories (495.00) (900.00)
Increase / (Decrease) in trade payables (1,914.00) 240.00
Cash generated from operations 2,156.00 462.00
Sources and application of funds
The various sources and application of funds which are used for setting Best dance
academy are bank loans, personal savings, borrowed from family. These funds are invested in

acquiring place, purchasing necessary equipments, promotional activities, hiring choreographers
and trainers, etc.
CONCLUSION
From the above report it has been concluded that making effective business plan is very
important for efficiently accomplishing business goals and objectives. For this purpose, the
organisation will develop mission, vision and business objectives which will help in making
people clear about the work which is to be performed. It will analyse the industry, by using
porter' s five forces model which helps in identifying the competitive edge and level of
profitability. The SWOT has been used to determine the competitive advantage from internal and
external factors.