Monday 11 April 2011

Long Run Costs and Economies of Sale

If I were to form a company I would create a chain of dance studios.  My company would offer dance lessons of every style for every age.  I would only have certified dance instructors teaching the classes and I would have an office person at every dance studio.  My first studio would be in Kelowna, BC and as my company expanded I would open up studios in Kamploops, Penticton, Nelson, Cranbrook, and possible Vancouver.  If my company was well off I would expand into Alberta.

My company would target people of all ages.  Not only would my dance studios offer dance lessons but they would also offer fitness classes.  The company would target people looking for a fun way to exercise, as well as dancers that wanted to perform and learn.

Some of the long run costs would include: power bills, heating, teachers wages, and office persons wages.  Repairs of the facilities, costume rentals, and stage rentals are all short term costs.  The fixed costs are rent or mortgage on the facilities.

The Studio Dance Co. is similar to the type of company that I would start.  It offers dance classes in various disciplines as well as fitness classes.  The only difference is that I would open up a chain of dance studios in different towns.  The Studio Dance Co. has trained proffessional teachers, a comfortable waiting area, safe facility, and it also offers summer workshops.  There wasn't much information on the financial aspect online, but by observing their website it seems that The Studio Dance Co. is financially stable.

http://www.studiodancers.com/

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