How do I verify a dance studio’s class enrolment trends across the school year?
Ask for registration and attendance records by class for each part of the year, then match them to payments received. Look for the usual rise in the fall, mid-year dropouts and a recital-time lift. If the numbers only come as a summary, ask for the underlying lists before you rely on them.
A dance studio’s year has a shape: sign-ups in late summer, some drop-off over the winter and a push toward the recital. You want to see that shape in the records, month by month, and compare it to what the owner says. Ask for class lists with start dates and end dates, not just a total student count.
Match enrolment to money. Tuition received, registration fees and recital charges should line up with the students on the lists. If they do not, ask why. Check how many students return from one term to the next, how many come from friends and how many are new to dance. Ask what the studio does when a class is too small to run.
Look at how classes are spread across ages and styles. A studio relying on one popular class or teacher is more fragile. Use a cash flow forecast to see how the quiet months are covered, and ask your accountant to compare it to the books. Walk through the studio during busy and slow hours. If trends are falling, ask what the owner thinks is behind it before you decide how to proceed. Ask whether the studio runs trial classes, camps or holiday sessions, and check how many of those students move into regular classes.
Key takeaways
- Ask for class lists with start and end dates, not just totals.
- Match enrolment to tuition and fees actually received.
- Check how classes are spread across ages, styles and teachers.
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Sources
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- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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