So here is the situation...

I know of a studio owner who has run into hard times. During the past year her studio has gone through major turnover. She has lost every member of her competition team and her student enrollment has gone from 115-120 every year to only have 65 right now. Recently her office manager also quit.
I would like to come in and help her out. However I don't want her to have any say in any changes I make. Should I make an offer to buy? Or a short term agreement that I can come in and do what I think needs to be done and then make a decesion about purchasing?
I only ask because I am so hesitant about buying a studio that might not survive through the end of the year. How can I protect myself but also get this studio back and running to its previous level?

What would you do? I would be more than willing to come in and have her take a :sabatical: and do marketing/advertising, etc on a pre set budget. but then how do I pay myself? Or again, should I buy? But how do you make an offer on a business that isn't making any money?

Ahhhh!! I don't know what to do. The owner knows she needs help, but is a very "must be in control" person- which is the very reason her studio has plummeted during the past year.

Thanks! I appreciate ANY and ALL suggestions!

With her current student count, do you know if she can continue to make it? is she able to pay rent, teachers, staff, and utilities? Do you know why she's lost all those students?


If I were you, I would wait it out a little bit and see if she continues to run things badly. She might realize she needs help and what she is doing isn't working. How do you even know if she'd be willing to sell? If she is such a control freak she probably won't want to accept that she needs to let go.
I don't think I would want to buy a studio that's losing so many students either. People will know the name and will always associate it with the original owner. In my opinion it's easier to open your own studio than to buy one. People's expectations are so much different.

Thanks so much for your reply. I guess I should have added that I have a close relationship with the owner. About two weeks ago she sent me an email saying she was over it, done and did I want to buy it? Since that time she has changed her mind and doesn't know what she wants to do.
I want to go to her with a proposal, but I don't know what would be best. She always says she has invested her life savings into this studio and thats why she feels like she needs to make money from selling it- but a failing business isn't worth anything!!!

I could buy her equipment, but not sure what kind of price to offer her.
Thanks again! Hopefully I will get more suggestions

it wasn't that long! I've posted much worse lol!

OK, some questions:
1. How do you know she wants to sell (or have someone come in)?

2. Why do you want to help this studio? Do you have some connection with it or do you want to run a dance studio in general and this would be an opportunity?


If you just want to own a studio I would say it may be easier to start fresh than trying to revive a failing business. But if you have some connection to this particular studio then that may be another story...

almosthere wrote:

I would like to come in and help her out. However I don't want her to have any say in any changes I make. Should I make an offer to buy? Or a short term agreement that I can come in and do what I think needs to be done and then make a decesion about purchasing?

If you don't want her to have any say in your changes, you need to be the owner of the studio. Yes, you should buy it and come with an offer. The Chamber of Commerce can help you to come with an amount that's appropriate now. A failing business is still worth a lot! It depends on WHY it is failing and WHAT is necessary to make it profitable again. And don't forget the Goodwill.
No one in a buying position wants to pay for things that seem worthless. But when you are in the selling position (and when you buy a studio now, you will be there one day too) you want credit and (financial) respect for all your hard work.

^^^ I agree with the above suggestions. I bought an unprofitable dance school from its original, 80 year old, retiring owner about 5 years ago. I just paid for her assets and took over her studio lease and insurance. She thought her decreasing enrollment was due to a cyclical economy, and it would rebound. I knew better, and I did diversify the curriculum beyond ballet. I had performed in her dance company for almost 10 years, although I trained at a professional conservatory. I knew the repertoire and her costume/prop inventory, and wanted to keep their annual Nutcracker going.

What I didn't know, because I didn't live in this township, is that the neighborhood was dance-toxic. The schools' sports coaches would bad mouth dance, and their peers would ridicule my few dancers. It's taking me a longer time to turn profitable than I imagined, so be sure you know what you're getting into.

First, do you presently own a studio yourself?

Second, WHY is the studio failing? Is it the economy and the demographic? Or is it an internal problem that you can see being "fixable"?

Sometimes it's hard to turn around a sinking ship if it already has a reputation. It can be hard without a clean slate. If it has to do with her and the way she runs it, it could be extremely difficult to change things with her still on board.

If she's very controlling and feels like this was "her baby", you may very well lose a friend trying to "fix it" for her.

I'd have to know more about why it's failing to make a suggestion.

xxx Deleted...missed OP's reply. Will rethink my response.

Well thank you again for your responses...

I need to stay annonymous (for competitors sake) but yes, I have a very deep connection with this studio owner. I do not currently own a studio- this would be my first. However I have several years of experience.

I presented her an option this past week, and she was very receptive. She wanted to have this weekend to think it over and come up with additional ideas and then she and her husband would meet with me. I think we are on the road to the right track. I made sure she knew I wanted full control (of course I will make tasteful decision that are best for the studio) and she was agreeable. I asked her to continue to do payroll and tax preperation only.

I will keep you updated