I have not myself started a club but I have been involved in the incipient stages of a couple of clubs. And I sympathize with you in advance for the amount of time you are going to have to put in to get some momentum going for this club. It would appear in the beginning that you have to do all the organizing and legwork to start a club, and to organize dance lessons and events. But I know it is most gratifying when the club fledges and holds its own momentum after a couple of years.
First of all, you have to draw students to your "club". This is best done by giving a variety of simple beginner lessons in the dances that are most catchy and easy to learn. A poll of the beginner dancers at the Dancing Illini a few years ago indicated that the most popular dances are the Cha-cha, the swing and salsa/mambo. We gave each of these dances in one of three beginner levels classes and the response was tremendous. Over a 100 couples sometimes in this huge basketball floor, a definite nightmare for the inexperienced instructor.To keep them coming back, you have to show that dancing is fun. This I opine is best realized by organizing social dances (or just practises), as many as time and money can permit. And filled with fun dances. And here is where self-promotion kicks in. Get an advanced/competitive couple to give a performance at one of these events. A few will be turned off but most will be awe-struck and curious to learn more, to be as good as the advanced couple.
One more gimmick to try is to give "quickies" - quick 15 minute lessons in say a Merengue or Samba, or even an advanced figure or tip in the dances they know. Quickies before dance socials or dance practises will work toward bringing the dancers to the event. Keeping them there is what determines success.
Most beginners want "more steps" (sic). so give it to them. Give lesson 101, 201, 301 etc, all catered to more steps. And when they are ready, introduce the intermediate and advanced level..
All this takes a lot of work. But once you get them involved, you may be able to start a committee of devoted dancers that can keep this thing chugging along hopefully.
A good way to foment extra-curricular social interaction is to organize a trip to a local bar to do some social dancing. And perhaps an after-hour get-together after say a dance party or practice. And intermingling of the good dancers with the novices is always encouraging....
Evidently there are many aspects towards making a club a successful one and I have just incoherently touched upon a few. Talk to Henry Neeman . He has recently started a self-sustaining club at Oklahoma and he has seen the DI fledge. He can give you more tips on what NOT to do .Good luck with it and I hope your club will be a success. Ciao..
Sriram.