2. EXECUTIVE SUMMARY
R – Academy of Dance is a start up dance school.
Various kinds of dance levels structured for the people of
different levels.
The estimated investment for the academy is 60,00,000.
Location: Chennai, Tamilnadu.
Target customers: tiny-tots between 3-10 years, young boys
and girls between 10-20 years, ladies, married men and
women, corporate, software and other working professionals
and disabled people.
Raja.A, 40, Fin III, FW0709.Slide – 02 of 23
3. COMPANY SUMMARY
The Company is privately
owned by Mr. Raja and will be
established on March, 2009.
The total capital required for the
start up is 6 million in which
30% i.e. 18,00,000 is by the
owner 35% i.e. 21,00,000 is by
the bank and remaining 35% i.e.
21,00,000 is by venture capital.
Raja.A, 40, Fin III, FW0709.Slide – 03 of 23
4. OBJECTIVE
Create a dance studio with a warm,
supportive atmosphere, which is based
on satisfying customers.
Provide a social and entertainment
forum for people with diverse interests,
backgrounds and ages.
Provide dance training for students at all
levels of dance, from beginner to
advance.
To combine the dance with fitness and
isolation exercises.
Provide continual training, benefits and
incentives for staff to encourage a long-
term commitment of employees.
Raja.A, 40, Fin III, FW0709.Slide – 04 of 23
5. VISION
“The whole world should feel the magic
of dance.
Everyone should get with the beat.
We want to dance all the time.
We want to dance everywhere.”
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6. MISSION
“To create an entertainment and
community education.
To offer a unique and appealing
entertainment for all customers.
It will provide excellent opportunity for
social interaction with dancing and
special events.
It will provide an excellent opportunity
for the people who want to take dance
as their career.
To provide dance education to all people
by mixing it with fitness exercise and
in other modes.”
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8. SWOT ANALYSIS
STRENGTH:
Offering dance with yoga, isolation exercises
and stretches.
Variety of dance at one building.
International choreographers.
Unique courses for all levels and all types of
people.
WEAKNESS:
Infant Company
Raja.A, 40, Fin III, FW0709.Slide – 08 of 23
9. SWOT ANALYSIS
OPPORTUNITIES:
Passion towards dance among youngster as
been increasing.
Awareness about international dance
among people.
THREATS:
Emerging competition.
Raja.A, 40, Fin III, FW0709.Slide – 09 of 23
10. MARKETING ANALYSIS
Identified Customer Group:
Kids between 5-10 years.
Young boys and girls between 10-20
years.
Married men and women.
Corporate peoples.
Disabled people.
Market Needs:
Learning all form of Dance in same
place.
Dance in the form of fitness exercise.
Dance which relieves stress and
mental pains.
Raja.A, 40, Fin III, FW0709.Slide – 10 of 23
11. COMPETITION
The major competitors are:
John Britto Dance Academy
Kalalaya Dance Academy
Raack Dance Academy
The Swingers
Competitive Edge:
All day multi time slot schedule
International dance trainers
Dedicated instructional space
Affordable fees structure
Special discounts for disabled people
Unique events specially designed for corporate
Raja.A, 40, Fin III, FW0709.Slide – 11 of 23
12. MARKETING STRATEGY
Our marketing efforts will focus on the following channels for
reaching the customers:
Website
Print
Radio
Television
Email/Newsletter
Promotional stage programs
Raja.A, 40, Fin III, FW0709.Slide – 12 of 23
13. 4 P’s
PRODUCT:
The product of R-Academy of dance is
targeted at different parts of market.
Each product is designed to appeal to a
particular segment. Latin form like
Cuban, L.A style Salsa, Cha-Cha and
Disco funk for ladies, corporate,
software and other working
professionals.
PRICE:
The price of the product is based on the
demand and on what the market will
bear i.e. Demand pricing.
Raja.A, 40, Fin III, FW0709.Slide – 13 of 23
14. 4 P’s
PLACE:
The major place would be covered is the
southern part of India including Tamil
Nadu, Andhra Pradesh, and Kerela.
PROMOTION:
The Company’s promotional strategy
covers the southern part. The main
above-the-line promotion for R-
Academy of dance is Television and
Promotional stage programs.
Raja.A, 40, Fin III, FW0709.Slide – 14 of 23
15. SALES FORECASTS
Start up expenses:
Rent = 12, 00,000
Equipments = 50,000
Legal = 45,000
Electricity = 50,000
Promotional Expenses = 1, 05,000
Insurance = 50,000
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16. EXPECTED MONTHLY & YEARLY SALES
0
200000
400000
600000
800000
1000000
1200000
1400000
in Rs.
April July October January
Month
sales monthly
sales
0
5000000
10000000
15000000
20000000
in Rs.
1 2 3
year
Sales yearly
Series1
Monthly Sales
Yearly Sales
Raja.A, 40, Fin III, FW0709.Slide – 16 of 23
17. ORGANIZATIONAL CHART
Founder &
Managing
Director
Administration Operations
Executive
Director
Marketing
Coordinator
Program
Manager
Accounts &
Program
Associate
Costume
Coordinator
Make up &
Hair Stylist
Dance
Instructors
Dancers
Raja.A, 40, Fin III, FW0709.Slide – 17 of 23
18. FINANCIAL PLAN
PESTEL Factors. Particulars 2009 2010 2011
Tax 35% 35% 35%
Loan Interest 7% 7% 7%
Depreciation 1,00,000 1,25,000 1,50,000
Assumptions
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19. FINANCIAL PLAN
Break Even Analysis:
Overheads = 60,00,000
Selling Price = 20,000
Cost Price = 15,000
Break Even Point = Overheads
Selling Price – Cost Price
Break Even Point = 60, 00,000
20,000 – 15,000
Break Even Point = 1,200 units.
Turnover = 1,200*20,000 = Rs. 2, 40, 00,000.
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20. FINANCIAL PLAN
Projected P & L Account
Raja.A, 40, Fin III, FW0709.Slide – 20 of 23
Particulars 2009
(In Rs.)
2010
(In Rs.)
2011
(In Rs.)
Sales 1,21,87,280 1,52,43,100 1,82,80,920
Expenses:
Salary 45,00,000 45,00,000 45,00,000
Rent 12,00,000 12,00,000 12,00,000
Equipments 50,000 55,000 60,000
Legal 45,000 45,000 45,000
Electricity 50,000 50,000 50,000
Promotional Expenses 1,05,000 1,25,000 1,45,000
Insurance 50,000 50,000 50,000
Total Expenses 60,00,000 60,25,000 60,50,000
Profit Before Tax 61,87,280 92,09,100 1,22,30,920
Tax 21,65,548 32,23,185 42,80,822
Net Profit 40,21,732 59,85,915 79,50,098
Net Profit/Sales 32.99% 39.26% 43.48%
21. FINANCIAL PLAN
Projected Balance Sheet
Particulars 2009
(In Rs.)
2010
(In Rs.)
2011
(In Rs.)
Assets:
Equipments 50,000 55,000 60,000
Cash 40,21,732 10,007,647 17,957,745
Total Current Asset 40,71,732 10,062,647 18,017,745
Accumulated Depreciation 1,00,000 1,25,000 1,50,000
Total Asset 30,71,732 99,37,647 1,7867,745
Liability:
Loans 1,47,000 1,47,000 1,47,000
Venture Capital 4,20,000 5,25,000 6,30,000
Total Liability 5,67,000 6,72,000 7,77,000
Net Worth 25,04,732 92,65,647 1,70,90,745
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22. FINANCIAL PLAN
Particulars 2009
(In Rs.)
2010
(In Rs.)
2011
(In Rs.)
Sales 12,187,280 15,243,100 18,280,920
Bank Balance at the beginning
of the year 60,00,000 40,21,732 10,007,647
Cash Payments:
Salary 45,00,000 45,00,000 45,00,000
Rent 12,00,000 12,00,000 12,00,000
Equipment 50,000 55,000 60,000
Legal 45,000 45,000 45,000
Electricity 50,000 50,000 50,000
Promotional Expenses 1,05,000 1,25,000 1.45.000
Insurance 50,000 50,000 50,000
Tax 21,65,548 32,23,185 42,80,822
Total 81,65,548 92,48,185 10,330,822
Bank Balance at the end of the
year
40,21,732 10,007,647 17,957,745
Projected Cash Flow Statement
Raja.A, 40, Fin III, FW0709.Slide – 22 of 23
