case study:- Prestige Dance academy

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CASE 11 Prestige Dance Academy P icture a group of children pretending to be butterflies twirling and leaping around a calming blue room. Their teacher is enthu- siastic and encourages them to be creative and carefree. The children are smiling and having the time of their lives. This is much more than a dance lesson for their teacher, Amanda Hunsley; it is the realization of a life-long dream. After graduating in December 2004 from the Applied Business and Entrepreneurship degree program at Mount Royal College (MRC) in Cal- gary, Amada combined her passion for dance and her drive for success to open Prestige Dance Academy. The studio offers a wide range of ballet, music theatre, hip-hop, preschool, Mom & Me, and private dance lessons. Her entrepreneurial spirit was evident at a young age, and beyond just the typical lemonade stand or paper route. She would fold laundry, do cleaning, and make her Dad his lunch and invoice us, her parents Pat and Don Harburn say. Her business idea also came at a young age. She started dancing when she was three, and always imagined that she would become a dance teacher. As a teen- ager she worked at a local dance studio where she had the chance to try almost every job-from care taker to secretary to instructor-and realized she wanted to do it all. One summer she and another youthful instructor opened a holiday dance camp. Things worked out well. I had a business mind and once I realized I loved working with kids, I just put them together. She pursued her dream in a logical manner, starting by working one night a week in an office to acquaint herself with basic accounting and administrative process while in high school, The business program courses were geared toward entrepreneurship and prepared her for all aspects of starting the business. However, being a true Sour Adapted from Tom Keyser, Bus Edge, vol. 4, no. 37, October 21, 2004 author discussions with Amanda Harbun Jessica Patterson, Step by Step, Calgary Entrepreneur Dances Her Way to Success, November 1, 2010, available at http://albertventure.com/2010/11/ step-by-step and www.prestigedance.com Entrepreneurial Passion entrepreneur, she launched her venture at age 19 prior to starting her postsecondary education. It was not easy. Amanda did extensive research on the com- petition throughout the city that indicated that the booming Westhills area of Calgary s south- west quadrant was the place to set up. There were expanding communities, young upscale families, high disposable income, and a gap in competi- tion. So, in 2002, with $20,000, and large amounts of volunteer elbow grease, including drywalling duties free of charge by Amanda s father, she trans- formed an ordinary storefront into a professional studio. At times it s been hard to make people believe in me, says Amanda. The bankers didn t. She had neither a track record nor a credit rating when she asked for a start-up loan. They showed her the door. The contractors who installed her sprung (and costly) dance floor didn t show much respect either. Soon after she opened, one of her retail neighbours caught her by surprise. We all have bets on how long you ll survive, revealed her fellow entrepreneur. Well, I hope you re bet- ting I will be here for a long time, was Amanda s cheerful rejoinder. Nope, said the man from a few doors down. I bet against you. The doubter did not collect on his wager. In less than three years, the studio went from zero students to over 400, Amanda was able to turn a respectable profit and become debt free. In 2004 Amanda was selected out of over 200 college and university students across Canada as the CIBC Stu- dent Entrepreneur of the Year winner. She dazzled the judges with her airtight business plan, her pre- sentation, and her encouraging revenues. Amanda has had success, although she acknowl- edges that it hasn t been easy. She admits she made a serious mistake when she spent her entire promo- tional budget the wrong way, hiring a marketing firm that failed to drum up results. You learn and you fail and you try again, she shrugged. I was dev astated. Now her marketing cash goes to Canada Case 11 Prestige Dance Academy Post, which twice a year delivers Prestige Dance Academy flyers to homes in her target neighbour hoods. After examining a city map detailing traffic flow, she placed a sign for four months a year on a major road leading into the area. Returns have been encouraging; enrolment has quadrupled in less than three years. Like all small business operators, she has also had to learn how to deal with the occasional dis appointed customer, as well as with the odd NSF cheque. She has also learned to rely on her own instincts when it comes to her business. She main- tains high standards, limiting class size to 10 pupils. She also asks that students commit to a 10-month program, allowing her to maintain a consistent cash flow and plan for financial contingencies. Amanda has since completed her undergraduate degree and is now juggling marriage, motherhood, and her business. In order to satisfy her personal goals, she now manages her business from home and teaches just one night a week at the studio. She remains extremely dedicated and passionate about her business. Life is short, she says. It s going to go fast, so you might as well be doing something every day that you re passionate about. She encourages others interested in pursuing a dream to follow her example. As she says, Jump off the edge and do it. If you have the desire and the passion and willing- ness to work hard, you ll find success. Her studio continues to grow and attract cus tomers, in fact, classes are often waitlisted at her studio. She has hired additional dance instructors to help with the business, however, Amanda won- ders about the future growth of her business and whether to expand the business and add a second location. Questions 1. Referring to the theories of entrepreneurship character, does Amanda s experience and character fit the model? 2. Evaluate Amanda s preparation for entrepre neurship. How did it affect the process of her starting a venture? 3. What are the challenges associated with operating her business at home? 473 4. What issues will Amanda encounter if she decides to open a second site? 5. What other growth strategies might she consider?