Submitted by Jane Armstrong | District director, U.S. Small Business Administration

Start small, but dream big. It’s a critical lesson for small business success. A lesson that Sabetha Mumm, the owner of Dance Vision in Johnston, knows very well.

A sustainable small business model often depends on strategic growth and strong doses of entrepreneurial vision and passion. Add Mumm’s strong work ethic and the dedication to her craft, and you have a seasoned entrepreneur who is making a difference one student at a time.

A lifelong dancer, Mumm always knew she was meant to share her love of dance with others. She began down the safe career path and started as a prelaw major her freshman year in college, while always taking dance classes to feed her soul. After one semester of college she could no longer deny her entrepreneurial dream and switched to a dance major, eventually graduating with a Bachelor of Arts in dance, with honors. The native Iowan dedicated the next few years to researching and planning her business.

Since opening in 2003, Mumm has grown Dance Vision from a rented 2,500-square-foot space with one studio to a custom-designed 12,000-square-foot facility featuring five studios. From the beginning, she emphasized the services of a professional dream team – a banker, a certified professional accountant, a lawyer and a real estate agent.

The U.S. Small Business Administration was also there from the very beginning through two business expansions. She used the extensive resources on the SBA website to develop her initial business plan and financed the startup phase with a $41,000 SBA loan.

Following a second expansion, it quickly became obvious that limited space was affecting Dance Vision’s growth. The company was forced to rent other spaces trying to meet the customer demand, ultimately turning away over 100 customers a year.

In 2016, Mumm worked with Liberty National Bank and Iowa Business Growth, a SBA Certified Development Company (CDC), to secure $1.68 million in total financing through the SBA’s 504 loan program to build the new facility. Through the SBA’s 504 Program, a CDC partners with a traditional lender to provide financing for small businesses in need of long-term, fixed-asset financing, such as the purchase of land and commercial real estate and the renovations of properties.

In a typical 504 structure for an existing business, the SBA provides 40% of the financing for the project through the CDC, the lender provides 50% and the borrower injects 10%, significantly less than a conventional commercial real estate loan. The borrower also benefits from 25-year fixed-rate financing on the SBA portion.

“Sabetha was a perfect candidate for a SBA 504 loan. She was passionate and knowledgeable about her business. She’d done all kinds of research and found a niche in the local marketplace that had a growing customer base. We knew from our first meeting that Sabetha would be wildly successful,” said Jim Langin, Liberty National Bank Des Moines market president.

Mumm has also worked closely with her CPA to identify how the Trump administration’s tax cut initiatives would benefit Dance Vision. Although the total dollar impact is not yet known, she anticipates up to a 20% deduction for pass-through businesses, thanks to the income from the dance studio and the rental income from the building. The business also will gain from the tax bracket and rate changes. 

It is the attention to details that makes Dance Vision a family-friendly environment. The new space features work stations for the students to study between dance classes, a healthy food bar to promote wellness, and security cameras in all five studios so parents can watch the classes from the lobby area.

Location also matters. After extensive market research, Mumm and her real estate agent found a central location in a high-growth area in Johnston. New housing developments and shopping plazas translated into young families and potential dance clients.

Once again Mumm’s extensive research and gut instinct paid off. The Iowa entrepreneur believed “if you build it, they will come,” and her timing was ideal. In just two years Dance Vision has grown from 290 to 420 students, with some commuting as far as 40 miles away.

Clients range from infants in the Mommy & Me classes to adults, with the greatest concentration represented by preschool to high school students. The studio also supports several competition teams, with more than 140 students participating in national showcases 15 weekends a year.

Dance Vision maintains a stellar reputation for the quality of its instruction and the character development of its students. Its lobby features dozens of photos of its outstanding faculty and guest instructors, who are well-known on the national dance scene. The studio also boasts 12 alumni currently working professionally on Broadway and in Hollywood.

Reality television shows have increased the popularity of dance, expanding professional opportunities for dancers from small towns and rural areas. While fame is nice, Mumm places greater emphasis on the important life lessons learned from the sport of dance.

Mumm made the decision to start the business the day her son was born. It was important for her to set an example for her children to follow their dreams and pursue what they love. She never pushed her son and daughter to dance, but they developed a passion on their own terms. Both teenagers are now accomplished dancers, with her son even competing on the TV show “So You Think You Can Dance.”

Mumm is a strong believer in supporting other dance studios, recognizing that small business owners accomplish so much more by working together. She advises other entrepreneurs not to start a business to be famous or rich, but to focus on being the best at your craft and the success will follow. She also encourages small business owners to conduct extensive market research and spend the time to prepare before opening.

Success didn’t happen overnight. Mumm overcame a number of obstacles along the way that only convinced her to never, ever give up. She learned to tighten the budget and operate more strategically during the economic downturn in 2008, when dance lessons were viewed as a luxury items that many couldn’t afford.

She also developed more self-confidence in her abilities as a woman business owner as she sought financing for the business and led the design and construction plans for the new building.

“You don’t need to be great to start, but you need to start to be great,” said Mumm. It’s fitting advice for dancers and small business owners alike who never, ever give up on their dreams.

Jayne Armstrong is the district director of the U.S. Small Business Administration’s (SBA) Iowa District Office with offices in Des Moines and Cedar Rapids. The SBA resource network includes 15 Small Business Development Centers, eight SCORE chapters, the Women’s Business Center and the Veteran’s Business Outreach Center servicing Iowa’s small business community.

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.