Starting a salsa school

No capital. No dance background. And no management experience. That was how Sol Solis started her dance business fresh out of college.

“Like someone threw you into a pool, you either sink or swim,” said Solis, the 36-year-old co-founder of Latin Rhythms Dance Co. “I’m gonna choose to swim. So we did it. After 14 years, we are still in the business and we are doing well.”

Today her company has grown into a half-million business in a dance studio located at 210 N. Racine Ave. in the West Loop. More than 60 classes of a variety of Latin dances including salsa, bachata, cha cha and mambo are taught every week.

A couple of minutes before a group class on a cold weekend afternoon, the studio’s front door repeatedly opened and shut as students showed up. The changing room became crowded. A couple of students chitchatted before changing their snow boots and winter coats to dance shoes and tight outfits.

Divided by red curtains and wooden walls, the well-lit 4,500 square feet studio has four separate classrooms, a small minibar and a dining area. Posters of upcoming dance events, class curriculum, studio members’ performance photos cover the walls.

Sitting on a red bench in the hallway, Solis was about to start her salsa private class. With more than 300 students coming in every month, she remains on the teaching frontline while also managing the day-to-day operations–everything from arranging class schedules and studio rentals to holding dance rehearsals.

In the past 10 years, salsa dancing has become tremendously popular. TV shows like “Dancing with the Stars” and “So You Think You Can Dance” have fueled interest in the field. Latin Rhythm was in a great place at a great time.

“Every class has 10 to 12 students. The maximum is 20. We have to close class because we don’t want to have too many students in a class,” Solis said. “Beyond that we feel like you can’t get enough attention from instructors. Sure, we can say ‘Pack them in’ and we can get more students. But we want to show the integrity.”

Maintaining a good reputation is more important to Solis than ever because more and more dance studios have sprung up in Chicago. Three years ago, Latin Street Dancing, a strong local competitor, moved to a new location two blocks away from her studio.

Andres Meneses, owner of Latin Street Dancing Inc., says there is room for both. “A lot of students go to both places to learn to dance,” he said. “Some start at one place and some start at the other.”

Other than offering classes, Meneses and his team produce Latin music and organize dance events to diversify their business. The company also buys radio airtime and sends out instructors to teach dance classes in nightclubs.

Being mindful of her competition, Solis researched her competitors and tried to learn as much as possible from their marketing strategies. With limited resources, she chose social media over the dollar-consuming traditional marketing strategy of advertising on TV or in newspapers.

“We have a proactive approach on social media,” Solis said. “We have Facebook, Twitter, Instagram pages. We are doing a blog. All these things will constantly drive traffic to our website. The more people we get, the more power we have.”

But Solis has invested a lot of blood and sweat to get to this point.

Originally she opened the studio in Pilsen, a Mexican neighborhood on Chicago’s Southwest Side. Maricza Valentin, Solis and three other partners each put in a few hundred dollars from their checking accounts to rent a small room. It was so humble that there was not even mirror on the wall. Music was supplied by a boom box. And the studio had no website.

“We put zero dollars in marketing because we didn’t have enough money. Our primary marketing approach was referrals,” Solis said. “I got my family and told them ‘You guys are gonna sign up for a class and you’re gonna tell you friends to sign up for a class.’ My mom was in my first class. It was grassroot like that.”

Without taking out bank loans and largely relying on the cash flow to expand, the business developed at a snail’s pace initially. But the team made some money and then reinvested it in the business.

Young and inexperienced, Solis and her team made one mistake per hour more than the market price for instructors and yet they failed to collect enough money from students. And because the studio was understaffed, classes were only designed for three levels. Many students, after taking a few months of class, got tired of the curriculum and left. After doing market research, the team lowered instructors’ salaries and revamped the curriculum.

“Failing is fine. Failing is actually good. Just fail quickly, recover, learn that mistake and don’t make the same mistake twice,” Solis said.

Soon after moving to the West Loop and investing about $40,000 in decorating the new studio, the business took a hit from the recession in 2008. That year, it lost about 25 percent of its students. Latin Rhythms was able to pay its rent and keep the doors open, but that was about all.

“People had to make cuts in their lives,” Solis said. “You still have to pick up your rent and buy groceries. But dance is like a luxury, a splurge.”

Luckily, the students who continued to come to classes helped the studio weather the tough times. Some students told her the one-hour dance class helped them shut out the misery of the economy and feel good about themselves.

After navigating the gyrations of the economy, the business is now growing at a steady pace.

“I like that the dance here is very technical,” said Gabriele Reyes, a student who comes to the studio once a week. “They don’t let you get away with doing things in the wrong way. They correct you right away. I feel I’m getting my money’s worth.”

by Lingjiao Mo