Okay, the Bachelor's degree in Business I earned nearly three decades ago didn't include "how to conduct a market study;" nor did it include "hiring somebody to do a market study;" nor did it include "what to do with a market study after it's finished." Maybe I shoulda gotten my MBA after all . . .
Anyway, how does one go about finding out if the business one wishes to open, a business that requires a physical site, is even viable? How can a person like little ol' me get this info without spending tens of thousands of dollars? Is this type of information "out there" somewhere, accessible on the internet, and of reasonable reliability?
Can someone direct me? Give me a little nudge in the right direction? Throw me into the water and yell, "swim east!"??? Something? Anything?
I was just going to post a thread on this topic, but you beat me to it. Is your target dancers or non-dancers?
It's very frustrating that we have to do our marketing based on what we think our clients want, rather than any factual data on their preferences. It's very rare that clients or prospects fill us in on the gems we really want to hear, like why they picked us over other dancers (or why they hired somebody else instead of us), which promotional images they respond best to, and what overall guides their decision in hiring a belly dancer.
The hardest part about marketing belly dance is that there's so little data and we all view the process through BD-tinted glasses. I'm certainly not exempt from this statement, either.
You'd most likely need to outsource a market research firm. Caveat: you will most likely spend thousands, if not tens of thousands, of dollars on this.
Personally, I find it more productive to sit back and hope that a book falls from the sky with all of the answers I'm looking for. And meanwhile, adjust my marketing strategies to fit any trends I might notice in customer feedback.
Believe me, I'm trying to write that book! Trouble is, my book is different from your book is different from Rachel Brice's book. Every different type of dancer draws a different type of crowd.
I want to start keeping a spreadsheet of customer feedback. Occasionally, they'll let you in on the reasons why they chose you, or what you might be able to do to make their lives easier, or what they're looking for in a BDer.
I already have a spreadsheet of basic info, i.e. gender, age group, and ethnicity of recent audiences, to see if I notice any trends. Everybody should be able to sum up their specific target market in a sentence or two. Of course, knowing what to do with that information is another story!
Anyway, how does one go about finding out if the business one wishes to open, a business that requires a physical site, is even viable?
Well, that's two parts, the business and the site, and there is definately a lot of information out there on what makes a good business site and how to negotiate a commercial lease, so I suggest you start there. If you cannot figure that out then the type of business doesn't matter. There's a reason folks say 'location, location, location' and the same reason is why 'the location' costs so damn much... finding the balance that you can afford and negotiating for it is important.
As for what kind of business is viable? None are, if you aren't organized about how you do business! Small Business Adminstration can be helpful but not as helpful as they could be... when daughter decided she wanted to open a dance studio the two (male) counselors told her to drop the idea and go back to college...
IMO
A journey of ten thousand miles begins with a single post.
Join Date: Apr 2007
Location: United States
Posts: 11,276
Re: Market Studies
Go, Deborah, GO! GO!
Boy, when I prepared my first business plan (for my magazine) how I wanted things like the marketing plan and financial projections to be all scientific. I kept thinking there's some secret strategy to it all.. but no, it's just guessing. Hopefully educated guessing, always conservative guessing -- but guessing.
You have the advantage of already having classes. Start with that. Do you teach at more than one location? What would be your income if you brought all your students with you to the new location?
Also, you've been teaching long enough to know roughly what to expect if you start up a new class, right?
Plus you have existing and past students you can survey to discover which marketing methods are working best for you.
All of that puts you light years ahead of a guesser with an MBA but no historical data.
One reason why having my own studio works for me is that I also teach yoga. About 2/3 of my revenue is bellydance, 1/3 yoga. Can you find someone to partner with, or if not partner with, rent space to, that would compliment your program? Someone already teaching other forms of world dance at community centers, ymcas, etc who has a following? My experience is that many people try to teach but don't retain students, meaning you have to keep advertising for new ones and never build a base. I'd rather have one proven instructor to share my space with than three without a following.
Other things to consider in your plan: Revenue from sales of hip scarves (I've tried everything from CDs to earrings to zill bags to skirts - only hip scarves really sell). Revenue from haflas in your space (I'm discovering this may be what helps my business turn the corner) and recitals. If you have a good base of intermediate/advanced students, hosting local instructors for special classes can bring in some revenue, too, while really serving your students. (Second Sunday Series at Lotus Arts Studio)
As far as location -- bellydance is enough of a draw that I'm what's called a 'destination.' People don't come to my studio because they saw my sign, not even when I was in a shopping center. They see my ads or my website, they come *looking* for my studio. Don't pay extra for street visibility! If you build it, they will come. (besides, your students want privacy).
My studio is now in an old doctor's office. They knocked out walls for me. The flooring isn't ideal, and I'm having trouble with a drippy AC unit, but it's home for now and I can afford it. I'd love to have a gorgeous space in a trendy location, but I learned from my first business to *separate my ego* from my business. I don't need a sumptuous exciting place to teach my classes. Just mirrors and some walls. If I'd waited til I could afford the place I dream of, I'd still be waiting and dreaming.
(p.s. I'm writing a book, a business guide for BD teachers. The project went on hold when I started homeschooling my son, but I'll be picking it back up in August.)
If you build it, they MAY come. We've been in five locations in the same part of town, and the most recent two locations have been our own studio, both times in similar buildings less than a mile apart, and the difference in enrollment is striking. Long time students actually disappeared until we moved the studio to the second location and then they reappeared with cries of joy. Fortunately one of the reasons for the downturn, lack of parking, had been covered in the lease so we were able to persuade the landlord to cut the rent payments and save up enough to move out.
Which brings me back to the lease negotiation. I've come to the conclusion that rental agents keep themselves in the dark about the real situation at a site so that they can have plausible deniability. Find the previous tenant(s) and talk to them about why they left. Put everything you can think of in the lease, including your entrance (deadlines) and exit strategy (if they want 6 months rent if you have to break the lease because you went bellyup, where will you get that money from?).
Our experience on where the money comes from is also different from Lauren's. We make our money from class and workshop tuition. Parties, concerts and costume pieces do not provide a significant part of our income. I'd say this is due to the way we run our parties and the kinds of costume pieces we sell, and it's a choice we've made to further OUR vision. Part of the fun of your own business is when the choices you make work; of course, there's also the despair when you screw up big time... but I suppose if you want a formula that works you get a franchise!
Cool, I'll check out that book. Business self-help is my favorite genre these days
Branding for Dummies and The 22 Immutable Laws of Branding were awesome reads for me. They're full of insight on developing a strong, impactful personal brand that sets you apart from the rest.
Honestly, I didn't read the whole book. I took the quiz that helps you determine if you are ready to start your biz-ness. I clearly was not at the time (2004 pre-belly dance, age 23) so I stopped reading it. However, when I am ready to launch my own studio, I plan to read this again along with many others.
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"Most truths are so naked that people feel sorry for them and cover them up, at least a little bit." ~Edward R. Murrow
Not to geek out on gender theory or third-wave feminist "word wank" (to steal a phrase from Zumarrad), but I wonder what would make a Girl's guide to small business ownership different from a gender-neutral one.
Not to geek out on gender theory or third-wave feminist "word wank" (to steal a phrase from Zumarrad), but I wonder what would make a Girl's guide to small business ownership different from a gender-neutral one.
Hmm...that's an interesting case study, Tanya. I suppose differences in communication style and in marketing philosophies might also play a significant role. Women tend to have more reservations about promoting their businesses, while men seem more likely to go for the gusto. Of course, every industry has different conventions and standards, and every individual is different. But thanks for helping me to answer my own question!
Yes, see, that's what sometimes gets my goat. I'd be interested in a small business guide for women if it addressed the topics mentioned in Tanya's link, or offered some advice on communication strategy and self-promoting tactfully. But I'll take my business advice in plain English, not in Chick Lit form
Then again, I'm all in favor of anything that encourages women to take ownership of good ideas and be entepreneurial. So at that point, I guess it doesn't matter how the advice is dispensed....as long as it's good advice
1. Can you get access to demographic info on your potential area(s)? In Australia, we can get census info by location. You want to find what type of people live in your potential area, their disposable income, whether the women work or stay home, etc. This can give you a good idea of which area to target or, if you've chosen a location, what offerings might suit them. I suppose if census info isn't available, try real estate agent reports.
2. Drawing up a business plan can help you clarify your approach and think through the numbers. There's plenty of books on how to do this, but it should contain:
- Your offerings - focus on just a few to start, or you'll go mad. List other ideas as future opportunities.
- Your target market
- Your competitors. Who else is offering what, where, and how are you going to differentiate?
- Your marketing/promotions plan
- Potential income - $/service x no. students/clients. Really hard to estimate, so provide a range. You can also look at growth over time.
- List all expense items and their approx. $. Again, you can list a range.
- Financing plan - what set up capital is required? How much will you need to spend, when, and when will cash start coming in? Consider how your business might build (it never happens all at once).
3. Develop a spreadsheet of $ that explore different scenarios. Because you can only guess at income (and some expenses), calculate a range.
List all income/expense items in a spreadsheet, then calculate low-medium-high amounts for each amount. This will give you an estimated profit under different scenarios. For eg, look at renting a venue by the hour, vs leasing a low-cost place (say it's small, then put lower student numbers in your scenario), vs high cost place. You may need to do lots of ringing around/research to start filling in these numbers.
You can run as many scenarios as you like. This will allow you to say "If I want to make $xx profit then I need to run 10 classes a week in a medium-price location." Is that doable? If you only get 5 classes up and running for the first 6 months, how will that affect the bottom line? This is a really good way to give yourself a reality check, and to set targets for student/class numbers, affordable rent, etc.
1. Can you get access to demographic info on your potential area(s)? In Australia, we can get census info by location. You want to find what type of people live in your potential area, their disposable income, whether the women work or stay home, etc. This can give you a good idea of which area to target or, if you've chosen a location, what offerings might suit them. I suppose if census info isn't available, try real estate agent reports.
Everything Jewel said is spot on. I'd just like to expand on that to let you know that you can also get demographic info from Chamber's of Commerce and City Web sites. Newspapers and other media also often have media kits that contain similar information.
Just throwing some stuff out here in no particular order . . .
Census info: I was wondering if something like that would be a good starting point to creating my own market study. The US census is coming up in 2010, but the results are not usually finalized for a year or two afterwards, so the alternatives mentioned, chambers of commerce/city sites, are excellent suggestions, too.
I know that related to getting demographic info is finding out about a particular city's "friendliness" towards business. I'm familiar with a couple of cities in my area that, although they might seem to be friendly towards -- and encouraging of -- business at first glance, are actually extremely difficult to deal with in the long run. I will definitley avoid those cities.
Taking a job at a market research firm: now that's an idea! I need a j.o.b. anyway to help with the kids' college expenses (well, the expenses with which we wish to help) and to save up for for my dream, so why not kill two birds with one stone, eh? Not that I advocate stoning birds or anything . . .
Jewel's "random thoughts:" I can't tell you how many exciting and dreamy nights -- and into the not-so-wee hours of mornings -- I have spent doing mini-business plans, focusing heavily on the income and expense portions. After all, if the numbers don't work, it can't be done! I always estimate income low and expenses high; I have to admit, though, to occasionally estimating my income a bit higher just to see what's possible!
Location, location, location: Don't I know it! In southern California, from where I hail, being "freeway close" is a huge advantage. Adequate free parking is essential (folks are not accustomed to paying for parking in the 'burbs). The "feeling" of personal safety/security is very important, especially for women attending classes in the evenings who arrive and depart alone.
"Branding:" this is one of the fun parts and at the same time one of the most challenging parts the development of the business plan for me. I know exactly what I want to do and have a very strong foundation for the overall picture I want to present to the public using my services, but the specifics are kinda scary -- mostly because of the $$ involved . . .
Thanks for letting me ramble. It's been good to get some of these thoughts into words. The encouragement, "take note" ideas, etc have been marvelous. Please feel free to share more, Bhuzzers!
A journey of ten thousand miles begins with a single post.
Join Date: Apr 2007
Location: United States
Posts: 11,276
Re: Market Studies
Quote:
Originally Posted by maurazebra
Our experience on where the money comes from is also different from Lauren's. We make our money from class and workshop tuition. Parties, concerts and costume pieces do not provide a significant part of our income.
Just to clarify, because it may have been misleading -- 90-95% of my revenue also comes from classes.
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