Checklist for Starting a Dance Studio Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Dance Studio business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
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A Step by Step
Guide to Starting a Small Business
This is a
practical manual in a PDF format, that will walk you step by step through all the
essential phases of starting your Dance Studio business. The book is packed with
guides, worksheets and checklists. These strategies are
absolutely crucial to your business' success yet are simple and
easy to apply.
Copy the following link to your browser and save the file to your PC:
https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf
How to Create
Effective Advertising Campaigns
Human behavior, according to psychologist Abraham
Maslow, is always the result of one or more of five basic needs
or motivating forces. Maslow classified these in a sequence he
refers to as "the hierarchy of human needs."
His theory is that until a lower-ranking need is
satisfied there is no desire to pursue a higher ranking need.
Below are the five human motivators, beginning with the basic or
lowest-ranked need and continuing to the highest.
1. Physiological needs -
Include hunger, thirst, reproduction, shelter, clothing, air and
rest.
2. Safety-security - The
need for security, stability, dependence, protection, structure,
order, law, tenure, pension and insurance.
3. Love-belonging - The
need for belonging, acceptance, love, affection, family and
group acceptance and friendship.
4. Self-esteem - The need
for recognition, respect, achievement, responsibility, prestige,
independence, attention, importance and appreciation.
5. Self-actualization -
The need for satisfaction, the desire to achieve fulfillment
through reaching self-set individual goals or aspirations.
In the context of Small Business Effective Advertising
Sales, the advertising practitioner will do well to become
familiar with the Maslow theory of human motivation because it
stresses once again that motivation is always an individual act.
The most your advertising message can hope to do is to present
an appeal strong enough to stimulate action toward satisfying
one of the basic human needs.
If there is one rule that will be most helpful in
preparing effective advertising, it is this: The message must
put the desire of the potential customer before the advertiser's
desire. Please read that one more time! The rule may sound like
a simple one to follow, but frequently advertising messages take
the form of a plea to customers to respond and solve the
advertiser's problem.
Visualize the felt tip pen you probably use every day.
When it was manufactured the raw materials were converted into
these product features: a plastic barrel, a plastic cap, a
supply of ink, a felt tip and a metal pocket clip. These are the
total product points in the felt tip pen. What's amazing is that
none of those things have anything to do with why you will buy
the pen! You buy any item only for how it will benefit you. The
key, of course, is benefit. Effective advertising must promise
the consumer some benefit he or she will receive after buying
the goods or services advertised. Product features should be
cited only to make the promised benefits believable. Here is an
example of how you can advertise the felt tip pen by promising
benefits and then using the product features to make promised
benefits believable. Cost Effective Advertising Campaign.
You can drop this pen on concrete from 20 feet in the
air and it will not break because it is made of a strong
plastic.
You can draw a jet black line for more than 100,000
yards, thanks to the large supply of quality ink.
This pen will not leave an ink stain on your shirt or
in your purse, thanks to the snug-fitting plastic cap.
When you bend over this pen will not fall from your
pocket because it features a strong spring steel clip.
Although this technique appears logical, many
advertisements ramble on and on with all the product features
while the potential customer asks, "What will it do for me?"
Using the benefit approach can be simplified by
preparing a worksheet on which each product you plan to
advertise is dissected into (1) the benefits the buyer will
enjoy by owning this product and (2) which product features will
help convince the potential buyer that the promised benefits are
likely to be true. Using the benefit approach is the best
advertising technique for each advertising medium. It is also
the selling technique used by all top salespeople. Practice
it-it works!
Techniques in Presenting Effective Advertising
Message
The buying decision is seldom a purely rational one -
emotions influence your behavior. As you explore various
techniques for presenting your advertising message, do not
ignore psychological and emotional appeals. For example, red, a
strong color suggesting excitement, increases reader interest
when used in sales ads. While the principles discussed here
relate most specifically to print ads, they can apply to all
media.
Determining Layout Shape and Design
Behavioral scientists have determined that of all the
rectangular shapes, the vertical rectangle of approximately
three units wide by five units deep is the one the public is
exposed to most and, therefore, the one people find most
comfortable. The advertising world refers to this shape as the
golden rectangle of layout. It is believed that an advertising
message receives higher readership when presented in this size.
Communicating Desired Layout to Printer
In submitting any printed advertising message to the
media, the only way to ensure that your ad looks the way you
intended is to provide adequate instructions. Layout means
blueprint to the typesetter or printer. Your layout should be a
full-size replica of what you want the finished advertisement or
brochure to look like. Here are some guidelines to use in
preparing layouts:
1. A layout should accurately indicate where all parts
of the completed message are to be located with respect to the
borders. This must include the location and approximate, if not
actual, dimensions of all artwork.
2. There are five parts to a comprehensive layout:
Headline - Print all
headlines right on the layout sheet, making the headline fill
the width you want. Give the printer a close approximation of
the desired type size by the size of your lettering. On each
line, put the exact words you want to appear and use capital
letters or upper and lower case letters the way you want the
type set.
Illustrations - Use a
copy machine, if possible, and paste a copy of any artwork or
photograph on the layout sheet where you want it to appear. If
you plan to reduce or enlarge the artwork, show the finished
height, width and the location on the layout sheet.
Copy - Copy refers to the
text in your advertisement. Do not letter in the copy on your
layout sheet. Use two parallel lines to represent each line of
copy and draw these lines in the exact position on the layout
sheet. These parallel lines should show whether you want the
copy set flush on both right and left margins or if you prefer a
ragged edge on the right margin. Each block of copy should be
positioned properly on the layout sheet and then should be
keyed, i.e., assigned a circled letter of the alphabet that
matches a separate block of copy supplied on copy sheets. Copy
sheets should be typewritten, double-spaced and should include
all words and prices to be typeset, including any headlines you
have lettered on the layout. Leave a two inch left margin on the
copy sheet to give the mark-up person space to code for type
style and size.
Prior to opening your Company you must
decide upon the general Cost Level you expect to keep. Will you
cater to individuals buying
in the high, moderate, or low
price range? Your choice of location, look of your institution,
quality of merchandise handled, and
services to be provided
will depend on the clients you would like to bring, and so will
your costs.
After establishing this overall price level,
you are ready to price Individual items. In general, the
purchase price of an item
has to cover the price of the
product, the other costs, and a profit. Therefore, you'll have
to markup the item by a specific
amount to cover costs and
make a profit. In a company that sells few things, total prices
can readily be allocated to each product
and a markup
immediately ascertained. With many different things, allocating
costs and determining markup might need an
accountant. In
retail operations, goods are often marked up by 50 to 100 per
cent or more just to make a 5% to 10% profit!
Let's work
through a markup illustration. Suppose your company sells 1
product, Product A. The supplier sells Product A for you
for
$5.00 each. You and your accountant determine the costs entailed
in selling Product A are $4.00 per item, and you also want a
$1 per item gain. What's your markup? Well, the sale price is:
$5 plus $4 and $1 or $10; the markup therefore is 5. As a
percent,
it is 100%. So you have to markup Merchandise A by
100% to make a 10% profit!
Many small business managers
are interested in understanding what Industry markup norms are
for a variety of products.
Wholesalers, distributors, trade
institutions and company research firms publish a huge variety
of such ratios and company
statistics. They are useful as
recommendations. Another ratio (along with the markup percent )
significant to small firms is your
Gross Margin Percentage.
The GMP is comparable to your markup percent but whereas
markup Identifies the percent above the cost to you of every
item that
you must set the selling cost so as to cover the
other costs and earn profits, the GMP shows the relationship
between sales
revenues minus the expense of the item, which
is your gross margin, along with your earnings earnings. Exactly
what the GMP is
telling you is that your markup bears a
certain relationship to your sales earnings. The markup
percentage along with the GMP are
essentially the same
formula, with the markup referring to individual product pricing
and GMP referring to the product costs times
the amount of
items sold (volume).
Perhaps an example will clarify the
purpose. Your company sells Product Z. It costs you .70 each and
you decide to sell it for $1
each to cover costs and gain.
Your markup is 43%. Let up state you sold 10,000 Merchandise Z's
Last month hence producing $10,000
in earnings. Your price to
purchase Product Z was $7000; your gross margin was $3,000
(earnings minus cost of goods sold). This is
also your gross
mark for your month's volume. Your GMP would be 30 percent. Both
these percentages utilize the same basic amounts,
differing
only in division. Both are utilized to establish a pricing
method. And both are published and can be used as guidelines
for small businesses beginning out. Often managers decide what
Gross Margin Percentage they'll need to earn a profit and simply
visit some published Markup Table to discover the percentage
markup which correlates with that margin requirement.
While this discussion of pricing might appear, in some respects,
to Be directed only to the pricing of retail product it can be
applied to other kinds of companies as well. For services the
markup must pay for selling and administrative costs as well as
the
direct cost of doing a specific service. If you're
producing a product, the costs of direct labor, materials and
supplies,
components purchased from different concerns,
special tools and equipment, plant overhead, selling and
administrative expenses
must be carefully estimated. To
calculate a price per unit needs an estimate of the amount of
components you plan to produce.
Before your factory becomes
too large it would be smart to consult an accountant about a
cost accounting system.
Not all things are marked up
from the typical markup. Luxury articles Will require more,
staples . For example, increased sales
volume from a
lower-than-average markup on a certain item - a"loss leader" -
may bring a higher gross profit unless the purchase
price is
lowered too much. Then the resulting increase in earnings will
not increase the total gross profit enough to compensate
for
the minimal price.
Sometimes you Might Wish to sell a
particular item or service at a lesser Markup so as to increase
store traffic with the
expectation of increasing sales of
Regularly priced merchandise or generating a large number of new
service contracts.
Competitors' prices will also govern your
costs. You cannot market a Product if your competition is
greatly underselling you.
These and other Factors May cause
you to vary your markup one of items and solutions. There is no
magic Formula that will work on
each product or each service
all the time. But You ought to keep in mind the overall average
markup that you need to make a
Profit.
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