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business

Planning Your Business – The Numbers Game

The next step in being successful with our dance career is having a game plan. It is about knowing what to do to reach our goals money-wise and also from a satisfaction perspective. Today it is about the numbers. You need to evaluate your situation with brutal honesty and set a goal. From there we reverse engineer all the steps that are needed to make it happen. I will take you through this process step by step. This process is there to define your personal goals. They are ultimately what defines where you are going. Let’s call it the B-Boy/B-Girl or Hip Hop Dance Business Blueprint.

The following calculation uses numbers after tax. Meaning you calculate with the amount that stays with you after paying your taxes. How much you have to pay depends on the country you live in and the amount of money you earn. In most states, there is a certain threshold of earnings before you have to pay any taxes, and from there you have a progression of percentages you have to pay.

For the exact amount you have to put aside, you must inform yourself about your local tax laws as I can not cover that in detail. The best thing you can do is to talk to an accountant.

Many people think it is smart to start under the radar without invoices and illicit work. I don’t. If you have the fiscal authorities after you, your life is hell. So do this right.

Grab a notebook and a pen. If you want you can use something digital too, but I prefer the oldschool way for work like this because it keeps me away from distractions. Think about the following points and take down notes. 

  1. How much money do you need to survive? Consider only your fixed cost per month and add 20% as a security buffer. If you are not certain about how to do that, check out this post about calculating your monthly expenses.
  2. How much do you want? Be honest. This number can be as high or low as you desire. 
  3. How much do you earn at the moment from dance-related sources?
  4. How much do you earn at the moment from other sources? 
  5. How much spare time do you have? 
  6. How much savings do you have?   

You see that all of those questions started with how much. The thing is: the planning we are doing is a numbers game, like every business. We are all here for the love of the dance but making a business work is knowing your numbers. Don’t forget that and don’t wing it.

You now know: 

  • Your short term (what we need to survive) and long term (what we want) goals of income. 
  • Your current situation. This gives us the difference we have to take care of aka the mileage we have to run before we win. 
  • Your resources (savings, current income, spare time). 
  • The things you can do from the last two posts about your possibilities and your dance business set up.

Calculating time again. You take the difference between your next goal (either fixed cost or desired income) and your current situation. Now you check what it would need to fill the gap with dance-related work. Sketch out multiple options, taking all the primary and secondary work fields that you found in the prior tasks into consideration. Draw one scenario for creating all the needed income with one primary work field only and one scenario for splitting it up over multiple work fields. Develop as many different but possible scenarios as you can. Write them down. Then walk away for a day or more. 

Come back and check your developed options. Throw the ones that feel wrong away, burn them or get rid of them however you prefer. Take the remaining scenarios and think them through. Do you have one that works with your current resources? For example, you need to teach 2 more classes to reach your break-even point (where you earn what you need to survive). Do you have spare time for two classes? If the answer is yes: great. You found one way that is working without having to change a lot. Check all of your remaining options, just to check if there are more of the viable. 

If there is only one option working, congratulations. Stop calculating, start executing

If there are multiple options that might work, choose one. Roll a dice or flip a coin if you are indecisive. Making that decision is progress. Then start executing

If you have no options that seem to work, you must free some time. This can be done by either stopping or reducing the time you spend in front of the TV, video games or social media or by reducing the hours you work in your regular job. If you work in a steady job that covers your fixed cost, you can take your time because you are not losing any money. Start by finding those additional hours that you can turn into dance related income. If you work 9 to 5 you can teach, practise, rehearse or choreograph in the evening and perform, compete or teach at the weekends. 

As soon as you have a small income built, you gradually shift hours from your regular job to the dance. This transition can be as fast or slow as you are comfortable with. In order for this to happen with as little extra stress as possible, I recommend taking your time. 

Example Calculation

Here you find an example on how to do the whole calculation. My tool of choice for doing anything math is either Google Sheets or Excel. In case you need a short introduction into this; let me know either in the comments or on social media. If enough people are asking, I will cover that in a post.

Calculation Example
An example of the calculation done in Google Sheets
(the table calculation inside Google Docs)

short term goal: fixed cost of 1.300 
long term goal: desired income of 3.500 
income from a regular 20h job: 800
you don’t watch tv at night because you are busy practising with your crew
no savings 

Primary work fields you consider valuable for yourself: performing & teaching, you love to battle but are not good enough to win major comps. 
You and crew are doing regional small jams. 

We need to close the gap from your income to your fixed cost first: this is 500 bucks.

You know that the shows you can do with your crew pay approx. 250 per gig. So you can dance two shows per month. Or you can find a studio that pays you about 70 per weekly class that you teach and do two of them. 

You want to do all shows but are uncertain if you can land 2 gigs a month in the beginning. Therefore you decide to start 1 dance class and go for as many shows as possible with the crew. The one class takes away from your practise time but brings in some money. 

For some month you are landing the shows as planned but then, you don’t book any shows for some month. You decide to go for another two classes because you don’t want to fall below you fixed cost again. With the 3 classes you earn about 200 (not all of them are full enough to pay 70) per week which adds up to 800. Together with 800 from your day job you have a stable 1.600 with fixed costs of 1.300. You did it. 

Before we take this new situation as our starting point and work our way up to the desired goal, let’s take a break and check what happened. 

In the example above we did not drop our day job. If we wanted to get rid of this one we would need to carry 500 more. If you keep that additional job it is highly recommended to swap it for a job that favours your dance stuff. 

One of our decisions did not work: we wanted to cover our difference with teaching and performing. Performances did not work, so we shifted towards teaching. It could have gone the other way around. 

Let’s keep going. 

Our new difference is 1.900 as we need to work out way from 1.600 up to 3.500.
We still work 20 hours regular, teach 4,5 hours and have travel time to the studios of another 2 hours per week.
We still have plenty of time to practise. 

For the sake of simplicity, we calculate classes with 200 a month and shows with 250 (you should make better deals if you can). 
You can either teach 10 additional classes, do 8 shows a month or try a combination of both. 
When you live in a big city it might be possible to teach 13 classes a week but in the bigger cities, there are often a lot of teachers too. 
Booking two shows a week isn’t exactly easy either. Any combination might be hard because if you book shows outside town you will miss classes. 

So what can you do? 

If you favour teaching: Try teaching classes in the suburbs outside of town or cities nearby. If you have teaching days “abroad” with 3 or more classes this will add up fast. Just don’t forget to calculate with travel cost and your loss of time.

If you favour performing: Create a show with a few people and get an agency that takes care of your booking. If you have nobody to perform with, find an agency that sends you to auditions that might book you bigger jobs. 

If you want to do both: Get a friend from your crew or somebody else who has the same or a better level as you to do your classes while you are performing. If you have to cancel your classes for performances, they will be gone soon. 

Switch your day job when you have the possibility to get one of the secondaries that help your dance career. For example, start working at that artist agency when they hire. 

You know the goal and you can take your steps. I could calculate the example to the end but there is no difference to the first half of the trip. There are no shortcuts, just taking one step after the other. 

Start now, do your work … and you will make it. 

If you need more help building your dance career, consider buying a copy of my book, The Dance Business Manual. In it, I outline the approach I used to transition to a full-time dance career.

Categories
business

Your dance-business set-up

We already talked about the abstract work that needs to go into the creation of your sustainable dance business and rolled up the most common options you can put work into.

Today I want to explore how to set up your activities for a balanced way of working. I hope you made a list of the things you consider possible for yourself, as suggested in my last post. It will make the following step much more accessible. If you did not, consider going back to this post and take a few minutes to compile your list.

What you are looking for is a combination of activities that a) provide a steady flow of income, b) you love to do, c) that synergise well and d) can support you even when you are not able to dance for a while.
The most common combination within the people that I know is the Performing, Teaching combo with an added secondary work field that has benefits for the other two.

Examples are Performing, Teaching and Event Management or Performing, Teaching and DJing/Music Production. I ran with Performing, Teaching and theatre and movie production for many years before the birth of my daughter.

This combination is prevalent because performing is one thing that most dancers love, and teaching is the most reliable source of income. When you pair them with event-management, you are doing community building, which pushes your reputation and makes more people come to your performances and classes. When paired with DJing/music production you can book a gig at dance events or sell your music to dancers. We are searching for these synergies.

Look at your list of things you can do. Define one primary activity that sounds like reliable, steady income (making the obvious choice of teaching here is not a bad thing). Now pick the one that you really want to do.
If you think that this combo can provide enough money for you, you are already good to go, when you have big balls. I recommend incorporating a secondary work field that plays into your primary ones or simply helps you build your name. You can also work with two secondaries, but you should have a reason to do so.

I will use my current situation as an example:
After the birth of our daughter, I stopped travelling for dancing because I wanted to be around. This immediately stopped my income stream from performing. I also was not able to teach on a regular schedule anymore. (We had a hard start due to medical conditions). What I did was starting to write, as I had the opportunity to do so for Rookies at Work, the agency I was with from the beginning. Here I had my secondary work field covering all the expenses from my family and me. As I write exclusively about dance topics, this work is definitely based on my dance knowledge. Now, as the child starts to go into daycare and my wife and I get used to our new parent-lifestyle, I develop some in-depth workshops so I can start to teach again. I also plan to publish some literature about dance topics. Finally, when the time comes, I will start a new movie project. In that case, I would have one primary field and two secondaries. The reason for that is that I value the time with my family more than being away for rehearsals and performances all the time.

Another point to keep in mind is that your decision is not final. You can always adapt along the road and change your activities, when new circumstances demand a different treat. But as long as you go with a set-up, you should be commited to make it work.

TL;DR: Pick a combination of 2 to 4 activity from your list from my last post and choose which combination works well by considering the following criteria:

  • what provides a steady income (you need one)
  • what do you love to do (to keep you hungry)
  • what can you do to add people to your active activities or build your reputation

Be courageous and share your setup in the comments.

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business

The 4 elements of running a dance business

Most people who are into dance, flirt with the idea of becoming a professional dancer from time to time. While this is not the right thing for everybody, it is not too hard to pull off for someone who really wants it. With discipline, dedication and honesty about what oneself can do, it is doable, even without any talent. (Talking about myself here, not you :-p)

Being successful in your dance business is no matter of luck. There are four key components you have to take care to create a sustainable income. Only one of them is directly related to dancing. Invest time in all of them and you will see results in a matter of months.

  1. Honing your craft.
  2. Providing value.
  3. Finding your audience.
  4. Building your network.

If you have it all, you will be successful. Let me explain in a little bit more detail.

Honing your Craft

You need to be good at what you do. This is an essential rule in every business. You deliver bad quality, you are out – even when you have everything else down.

Put in the hours into your dance skills, your understanding of the music, your knowledge on how to create shows and how to present yourself. You want to create the illusion that everything you do is super easy and comes naturally to you. Every great dancer delivers this illusion and it is imperative that you can do it too.

This also goes for secondary dance workfields like organising events, judging, or anything where your knowledge and experience as a dancer is the key. But those are a topic for another post.

Providing Value

Giving the people something they crave is the key to success. If you think about it, it is obvious. Nonetheless, it often happens that people try to “sell” things that nobody really needs. Don’t fall into this trap.

The best methods of providing value to peoples lives (from a business point of view) are:

  • teach them
    If someone wants that move but does not get it for years and you help him finally get it, you can be sure you added some value to his life. This goes for everything you can teach dance wise: steps and moves, musical understanding, groves, concepts, choreography, …
  • enlighten them
    If you spark insights that give them an understanding of how they can improve by themselves. This is very similar to teaching but deserves its own place. You can introduce are a certain kind of thought process or sources of inspiration that may help their development. It is more like telling them where to look instead of what to do.
  • entertain them
    Entertainment is one of the biggest industries right now and dance can do it very well. People want to be distracted, they want to be amazed and see things they have never seen before. If you create that show that can take them out of their regular lives for even the shortest amount of time, you will earn your place in the hearts of the people and that is where you ultimately need to be.
  • touch them emotionally
    Connecting to people in a way that you can take them on a journey through more emotions than just enthusiasm is even better. You know the feeling when a movie or music takes you on an emotional rollercoaster, right? That is where your audience needs to be. To be honest: it is not easy and takes a lot of work and/or talent. There are very few dancers and choreographers out there that can do that. If you find out you can do it, look no further for what you should do.

Find your Audience

Jeff Goins writes in his bestseller Real Artists don’t Starve: “in order for art to have an impact, it must first have an audience”. This is another no-brainer if you hear it from somebody else. Building or finding your own audience is still one of the things that a lot of dancers neglect. Dance is art and art is a matter of taste (as soon as a certain level is reached of course). So the people that enjoy your dance might not be the same that enjoy the dance of some of your colleagues and vice versa.

You should take the time and research the people who love to watch your work. Create a place to present what you make and make it easy to find. Luckily today that is not as hard as it used to be. The internet is your best friend. These are some of the tools you can and should use:

  • Your Website
    There is really no excuse to wing this. On your website, you can introduce yourself, show your work, post events or shows you are attending and give people all the info about you. If you have things to sell, you can put it up there too.
  • Social Media
    Social networks help you connect with the people that like what you do. You go there and direct the traffic to your website, where they can learn everything about you. Don’t make the mistake to promote all the time. Spamming people will not bring you sympathy. On social media, the goal is to engage with your audience and build a relationship. When people are comfortable around you, they will care about your promotions as well.
  • Word of Mouth
    Still the strongest form of an ad! If you are recommended to someone by a friend of theirs, your chances are really good that they consider checking your stuff out.
  • Meeting in real life
    If you can meet people and make a real world impression, that is the way to go. The only disadvantage is that you can only be at one place at a time. This means it does not scale well.

Building your Network

This is the same work as building your audience but for a different group of people. Your professional network are the people that you collaborate with or that help you do what you do. It is imperative to have healthy relationships with them and to never let them down as long as they treat you right. Here are some examples of people you should have in your network (depending on your work fields not all may apply):

  • other dancers of course
  • choreographers
  • producers & directors
  • composers
  • musicians
  • booking agents
  • event promoters
  • festival directors
  • photographers
  • videographers
  • an accountant (if you are not into accounting yourself, this one is crucial)

You might not need all of them and depending on your personal niche there might be many more.

Here we have them: the four crucial elements to running your dance business. When you are planning to start your dance business, or you are already earning money with it, I encourage you to grab a notebook and think about all four elements in detail. List your strengths and weaknesses. What value can you offer to people? What do you know about your audience and in which ways do you connect with them? Make a list of your collaborators and see if you miss anyone. There is power in the clarity that you gain from seeing this base-line study in front of you.

From there, we can start to level up.

If you want to level up fast, consider grabbing a copy of my book, The Dance Business Manual. It covers all the steps to thrive in your dance career.

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business

Let people do their Work

Photo from: Bernd Christian Gassner / pixelio.de

A lot of artists that are building their reputation are used to do a lot of stuff themselves, even stuff that is not really their core competency. We get so comfortable with doint it all, that there is a risk of thinking we can do everything that is related to our work better than others.

Most of the time this happens due to us not having the money to hire experts for some parts of the production. Later when we might have the money or we find people that can do the job, we think it is needless. We overlook that there is a big difference between a job done because we can do it and a job done by an expert who is really good at it.

I just saw this in the festival distribution of our movie Elsewhere. I have sent the movie to festivals myself and we got some screenings. Now a festival agency is taking care of that and within the first month of the cooperation we had new screening and won an award.

As a reminder to myself and everyone who finds himself in the situation from time to time: if you let people do the work they are good at, it pays off.

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blog

Marketing vs. Good Work

If you do good work, they will come.

A lot of good people live by that belief. But in my own experience and within of the range of research I did for an upcoming project, it looks like this is not true.

I guess most of us have that friend that is creating either great music, having awesome business concepts or doing some other part of great work for the sole purpose of creating. We have been told, that putting out good work will make the audience come and find you. This might have been true back in the days. Today good work is everywhere because technology helps people creating and so many people can do great work now that was not possible without computers and stuff.

But due to this fact there is a total overload of information and there is a very small chance that people who are looking for what you do, find you without you putting in the work into the marketing side of things too.

Promoting your art and selling it is not bad. There is no selling out if you stay true to your craft and vision. Selling out is doing whatever works in order to get the money.

So the question is not if you should focus on doing good work or marketing. In order to be successfull with your art, you need both.

In order for our work to have an impact, it must first have an audience.

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blog

Working together in flexible structures as strategy in niche markets

When active in a nice market people tend to avoid working with other people in the same niche. One is afraid of losing possible customers to the others.

In most cases it is much better to do the opposite and connect with as many active people in your field as possible.

I use an example from our austrian hip hop scene to show why:

There is a loose group of dancers that are responsible for doing a ton of projects, despite the fact that they are not in the same crew. Under different leadership they are doing event management, theater productions, movies, commercial shows, fashion labels and music production. The advantage is that everyone has an experienced workforce and at the same time more work during the year. All of this would not be happening if we avoided each other.

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documentation

Artists Social Insurance Fund

Today I sent in the last papers for my application to the austrian artists social insurance fund. It pays a part of your social insurance if your work is considered art.

Before 2016 the rules were pretty strict and it was very hard to get accepted. In the beginning of 2016 the rules have been renewed so that you can also apply with work that is teaching art and promoting art.

Therefore I highly encourage you to check if you are within in the rules that qualify you to receive funding from there. The KSVF supports freelance artists that live and work in Austria.

More Info on the Homepage of the KSVF (in german language).

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blog

a plea to the djs

Todays post is about laziness … and how it does damage to people that did work that some of us make their money with. DJs that play only their own stuff can stop reading here.

The following stuff is based on laws in Austria. Most countries have their own societies for that and the details in the process may vary but the concept stays the same.

In Austria we have a very controversial insitution: the AKM. It is the copyright collecting society for musicians an composers. This means whenever a piece of music is played in a commercial context, the AKM takes care of giving some money to the people who created that music.

That’s great, right? Yep but a lot of DJs don’t care about doing their part in giving the people their money. Because the AKM gets money from the promoters. Either with a yearly fee or on a per event plan. The money goes to the artists of the music that was played during the event. But the AKM needs to know which music was played. And it is your responsibility as the one who plays the music to send your setlist there. If you don’t do this the fee that is payed by the promoter is distributed via a distribution key that favors mainstream artist and well known composers.

Damn, that means by not handing in the list of your set, you give money to the people that are aired on mainstream radiostations instead of the people that made the awesome sound you are playing. Shame!