Research Report - Feasibility for Dance Club

Innovation and Entrepreneurship

1-SAMRT objectives as a point and must be Specific Measurable Achievable Realistic Timely.2- Character traits of products/services (100 words) Description of your two products/services (with pictures if possible), why you chose those products/services and the benefits you expect to offer to customers (for both products) included.3- Financial Projections/Income Statement (50 words) white it as a paragraph after that make master budgets.4- About the survey expect that those who answered the questionnaire 50 persons and make chart for it. Analyze the survey 5- Final Choice (100 words) Justification of your choice of which product/service you will produce/operate (of the 2 mentioned above).Reasons were logical from market & financial aspects

ContentsTable of Figures:3Executive Summary4SMART Objectives5Specific Goals5Measureable5Achievable5Relevant5Timely6Business Objectives6Business Research6Business Strategy6Description of Firms Products/Services7Benefits7Market Strategy8Marketing8Operations and Plans10Financial Projections/Income Statement11Master Budget0Survey0Questionnaire0Analysis of the Survey2Graphical Presentation results of the Survey2Final Choice6References7

Table of Figures:Figure 1: Example of Dancing Exercises8

Executive SummaryThe Fitness Dancing Club attempts to be the leading health club in the city of Al Ain. In this day and age the general public is more concerned about their fitness and as well young individuals are affected by western style of dancing. This sort of concept club is niche in the city of Al Ain and will attract those people who want to make creative change in the dance history and like to be physically fit and mentally feel fresh in the real world. Dance club supports issues of the society and create awareness by educating them through their dance performances and it is a step to stance the ongoing trends in Dance Art plus its a step to ensure that the health is on condition that you retain yourself against the real world.

SMART ObjectivesSpecific GoalsThe objective of the dance club is to provide a full fitness program to the people who are conscious about their health. It basically attracts the people who have great interest in dance and we as mentors will use this dance ability of them to provide them with great fitness and health programs. So the ultimate goal of the organization is to compete in the market.Measureable Our aim is create a brand that is the leading brand in the providing performance and effective fitness plans. These plans could be measure through the outcome of the given performance if the people of the club satisfied with the performance they will keep coming and also suggest to other people about the club. This can be done through a survey after opening the club.Achievable These goals are also achievable if the employees of the club provide up to the mark performance in providing the promised facilities to the members. That is also the ultimate goal of the club to acquire the desire goals of the members and also the club. RelevantAs the objectives are set by the club which is achievable by the employees in relation to achieve the desired goals of the club and they are not based on the external factors which are non- controllable. TimelyEach of the objectives based on the timeframe which has to be completed on that timeframe because to achieve the goals and effectiveness of the business this timeframe is very important. Timely completion of the targets planned would help the club to maintain its goodwill also. Business ObjectivesBusiness ResearchOur goal is to create successful and profitable clubs that fulfill the needs of dancer who want to recognize themselves in the art of dance and want to remain fit and healthy. Today dance club is all about entertainment and our goal is to be a step ahead of the competition. Nowadays people look for something different in their life and this is a kind of club where they can interact and share views with the people of every class. We want to establish our brand through organized marketing and operational execution that ensures brand acknowledgment and the quality and stability of our concept.Business StrategyRegistrationBeginners can join for a short course of 3 months and fees are to be made for the whole course at one time. No payments will be on monthly basis. RefundsPayment paid once cannot be refunded.Anyone can withdraw from lessons in person.

Tuition paymentEveryone pay lesson tuition in full for a course. All participants come to an agreement and sign the Rule and Registration Forms before the Club processes tuition payment. Email updates notify students for payment due respectively.SubstitutionsThe club provides a substitute instructor when the regularly scheduled instructor is not feeling well or unable to attend a lesson because of some personal reason.Description of Firms Products/Services

The Dancing Fitness Health Club will be introducing a series of lessons of the modern art of fitness through expression or in the form of dance. Our main products are dancing classes where people can learn different dances of their choice. The dancing school is going to offer different type of dance classes such as (Tango, samba, Jazz, Hip Hop, Ballet and salsa). Dance school will offer people different type of packages and classes. There will be special classes and general. For the special classes there will be family package were people can learn dancing with their kind. Second, couple classes are also there for specific number of people where the costumer can choice the group or individual. BenefitsThe benefits that we are expecting to give to the customers with these exercises are flexibility in the body, relaxation, strength, endurance and the ability of well- being.Figure 1: Example of Dancing Exercises

Market StrategyMarketingA solid and comprehensive marketing plan is essential for any business, especially a new business. This club would require a competitive plan that would lay emphasis on what sets it apart from its competitors. The following would be inducted in our plan to ensure we lay a strong foundation in the minds of both parents and children about our school in the dance teaching industry and maintaining health. Grand-Opening ConcertWe have arranged to organize a concert for the opening ceremony of our school. Special VIP passes would be reserved for famous personalities and the tickets would be sold to the general public.Print MediaWe have chosen to rely on the classic print media as we are just initiating our project and we are bring together in the money we have enough funds to: Bring the idea which appeal to parents through advertisements placed in newspapers as this would encourage them to allow their child to enroll in our institution Given the current law and order of our country several people from various ages have started to read the newspaper - not in the morning but read it, irrespective of when. We also hope to also attract students (mostly ranging between the ages of 14-20) through such advertisements. MerchandiseAll members would be provided with complimentary Dance Club t-shirts. There would also be a souvenir shop in the near the club that would offer special discounts to members currently enrolled in any lesson. The merchandise would include t-shirts in various colors, coffee mugs, pens, caps and wrist bands.Pricing and Promotion All performances are moderately price. Fee for training a month for any dance art is between 1500 and 3000 dirhams. An average customer ticket is considerably larger for live performances day visitors which are around 500 to 1000. Our promotional strategy will be a mixture of local media and occasion marketing will be used at several locations. The radio is listened to by pretty much every person so we will also place an advertisement on radio stations. The method of live exhibition of any occasions has been overwhelmingly viable in producing unlimited publicity for the lead area which has been more adequate than any promoting that could have been acquired.Operations and Plans

The performances or events are financed by tickets and in the normal routine days club will be open to every volunteer. We will also cater charity function and will also work for fund raising for noble cause. We need an auditorium with 250 people capacity and a normal practice room and a gymnasium. The list of the equipment is as follow

ItemsQuantity Price Total (dh)

Sound system230006000

lights66003600

White Board25001000

Table 55002500

Chairs 151001500

Total 14600

Financial Projections/Income StatementThe owner has invested USD 500,000 in the business as share capital to start with, the financial projections, including sales budget, Purchases Budget, Budgeted cost of goods sold, Budgeted Inventory for December 31st, Selling Expenses Budget, General and Administrative expenses, expected cash receipts from customers, expected cash payment to suppliers, cash budget, budgeted income statement and budgeted balance sheet.

Master BudgetDance ClubDance Club

Opening Balance Sheet Balance Sheet

01-Jan-1301-Jan-14

Assets

Cash50000 600000

Accounts receivable 0 50000

Inventory 26240 13000

Equipment90000 20069

Less accumulated depreciation0 90000 90019169

Total assets166240 682169

Liabilities and Equity

Liabilities

Accounts payable102000 111240

Note payable to bank (12% per year)12240 114240 13349 124589

Long-term notes payable 6% interest per year2000 2000

Total liabilities116240 126589

Shareholders' equity

Ordinary shares500000 554580

Retained earnings0 50000 1000 555580

Total liabilities and equity166240 682169

Sales Budget20X120X2

1st Qtr2nd Qtr3rd Qtr4th Qtr1st Qtr2nd Qtr3rd Qtr4th Qtr

Prior quarters sales in units 0 30 36 40 44 48 53 58

Plus 10%0 6 4 4 4 5 5 6

Projected unit sales30 36 40 44 48 53 58 64

Selling price per unit500 500 500 500 500 500 500 500

Projected sales $15000 18000 19800 21780 23958 26354 28989 31888

Sales Total for the Year74580 111189

Sales first quarter following20X1 1st Qtr20X2 1st Qtr

Prior quarters sales in units 5000 64

Plus 10%500 8059

Projected unit sales5500 70

Selling price per unit30 30

Projected sales $165000 2105

Purchases Budget


Next quarter's unit sales 30 40 44 30 53 58 64 70

Ending inventory % (multiply)25%25%25%25%25%25%25%25%

Desired units ending inventory8 10 11 8 13 14 16 18

This month's unit sales (add)30 36 40 44 48 53 58 64

Units to be available38 46 50 51 61 67 74 81

Less beginning inventory in units (minus)8 8 10 11 8 13 14 16

Units to be purchased30 38 41 40 54 54 59 65

Budgeted $ cost per unit (multiply)12 12 12 12 12 12 12 12

Projected purchases354 461 487 482 643 648 713 784

Purchases Total for the Year (total for 4 quarters)1784 2789

Budgeted cost of goods sold


This quarter's unit sales 30 36 40 44 48 53 58 64

Budgeted $ cost per unit (multiply)13 13 13 13 13 13 13 13

Projected cost of goods sold390 468 515 566 623 685 754 829

Cost of goods sold for the year1939 2891

Budgeted inventory for December 31st

Units 8 18

Cost per unit - $ (multiply)13 13

Total98 228

Selling Expenses Budget


Budgeted sales $15000 18000 19800 21780 23958 26354 28989 31888

Delivery charge rate (multiply)3%3%3%3%3%3%3%3%

Delivery charge total450540594653719791870957

Sales Manager salary3500035000350003500035000350003500035000

Projected selling expenses3545035540355943565335719357913587035957

Selling expenses yearly total142237143336

General and Administrative Expenses Budget


Administrative Salaries1500015000150001500015000150001500015000

Depreciation60006000600060006000600060006000

Interest on long-term notes - 0.5% monthly1800018000180001800018000180001800018000

Interest on short-term notes - 1% monthly750000000

Totals3907539000390003900039000390003900039000

General and admin expenses yearly total156075156000

Expected Cash Payments To Suppliers


50% previous quarter, 50% present quarter102177407474485563646681749

Expected Dec 31st balance241392

Cash Budget


Beginning cash balance5000027760400004000040000400004000040000

Cash receipts 1037404040404040

Equipment sales

Shares issue

Total cash available 5001027797400404004040040400404004040040

Cash payments

Payments for merchandise 102177407474485563646681749

Sales delivery expense450540594653719791870957

Salaries

Sales 3500035000350003500035000350003500035000

Administrative 1500015000150001500015000150001500015000

Interest on long-term notes 1800018000180001800018000180001800018000

Dividends

Interest on short-term notes3%750000000

Total cash payments17070268947690686913869281694366955069705

Preliminary balance (Total cash available - Total cash payments)-120692-41150-29028-29098-29241-29396-29510-29665

Additional loan (min cash balance 40,000) (add)16069281150690286909869241693966951069665

Amount Available for loan repayment if any00000000

Loan repayment (minus)122400000000

Ending cash balance (4th quarter balance appears in balance sheet)2776040000400004000040000400004000040000

Ending short-term notes (4th quarter balance appears in balance sheet)00000000

Budgeted Income Statement

Sales 74580111189

Cost of goods sold (minus) 19392891

Gross profit72641108298

Operating expenses

Sales expenses142237143336

General and administration 156075156000

Total operating expenses298312299336

Net income (Loss)-225671-191038

Budgeted Statement of Retained Earnings

Beginning retained earnings (given)01000

Net income -225671-191038

Funds available for distribution-225671-190038

Less cash dividends 00

Ending retained earnings-225671-190038

Budgeted Balance Sheet

Dance ClubDance Club

Budgeted Balance Sheet Budgeted Balance Sheet

31-Dec-201331-Dec-2014

Assets

Cash451858 824615

Accounts receivable 33 33

Inventory 98 228

Equipment450000 450000

Less accumulated depreciation (depreciation in opening balance sheet plus depreciation expense for the year)-32000418000 -56000394000

Total assets869989 1218876

Liabilities and Equity

Liabilities

Accounts payable241 392

Note payable to bank0 241 0654334

Long-term notes payable595419 200000

Total liabilities595660 854334

Shareholders' equity

Ordinary shares500000 554580

Retained earnings(225671)274329 -190038364542

Total liabilities and equity869989 1218876

SurveyQuestionnaire1- Gender 12

MaleFemale

2- Age:123

18 2425 3031 40

3- Would you like to dance?

12

YesNo

4- If you answered yes to the last question tick the types of dance you interested in?

123

Cha-Cha-Cha

Ballet Dance

Jazz Dance

456

Hip Hop Dance

Belly Dance

Salsa

5- Would you join the club dance if it was available in Al Ain?

12

YesNo

6- If you answered yes to the last question tick the location that suits for you?

123

Al Kabesi

Mazyed

Bawadi Mall

456

Al Ain Mall

Al Jimi Mall

Kalifa Street

7- Would you like to learn theory classes before dancing?

12

YesNo

8- Which one from the following describes best your perception of dancing?

1234

A hobby

An art

A profession

A sport

9- Do you dance? (Professionally or as a sport/ a hobby)

1234

Yes

No

Used to dance

I would like to learn how to dance

10- Would you join the classes if the member ship cost -------- is for one month (4-5 classes a week) 123

Less than 500

500 or more

1000 and above

Analysis of the SurveyTotal Sum 50 persons Responses= 994Total questions= 10Graphical Presentation results of the Survey

Final ChoiceAs from the survey and the smart objectives of the business this would be the maximum profit earning business and help the people of Al Ain to find a perfect health care center at their home town. As from the benefits that the fitness club is devoted to provide will give extra cutting edge to the business because these are the things that most of the people are looking forward to in the busy life style.

References Grau, A., & Ordan, S. (2000). Europe Dancing: Perspectives on Theatre Dance and Cultural Identity. Retrieved from Google Book: http://books.google.com./books?id=bDK-JAPZ72oC&pg=PA121&dq=theatre+dance+academy&hl=en&sa=X&ei=vvJMUbC3FoyO7AbThoG4BQ&ved=0CD4Q6AEwBA#v=onepage&q=theatre%20dance%20academy&f=falseMathew, A. (2001, september 26). Dubai's first community theatre set to be built next year. Retrieved from Gulf news: http://gulfnews.com/news/gulf/uae/general/dubai-s-first-community-theatre-set-to-be-built-next-year-1.425621World Journel of Management. (2011, march). The Need for Academic Programs in Tourism, Arts & . Retrieved from Wbiaus: http://wbiaus.org/8.%20Ode%20Amaize%20(NEW).pdf

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Research Report - Feasibility for Dance Club