to answer the points in order:
(1)Having done one and been in lots, I've noticed a few things.
The choreography is 2nd to the music choice and theme, at least in order of creation. Ultimately the choreography is THE most important thing but certainly picking the music and theme first is the easiest way to go about it.
Choreography is an ongoing thing, from an initial outline, bits will be added or changed to fit the dancers and to help the continuity of the production. After the initial planning, the whole thing shouldn't take more than 6 weeks or so to actually do. Anymore than that and its going to be over-rehearsed and ultimately not as good as it could have been due to dancers getting fed-up
(2)For the dancers it almost always ends up with whoever is available, unless you live in a dance saturated place like London where you can be picky. If you can be picky, great - pick people who will be the best for the particular choreography you have in mind. If it all gets political because "why did you not asked me this time" comes up - theres not much you can do except remain polite and say something like "i want to give others a chance".
(3)There really should not be drop outs other than emergencies, after people agree to the commitment. Emergencies can be handled easily if you have a few people in mind in advance - as long as they are adults who aren't miffed that they weren't in it from the beginning you'll be fine
(4)Being part of something that everyone is enjoying should be enough - this is almost entirely down to the quality of what you are doing and the personality of the organiser. (oh and not taking too long see "6 weeks" in point (1) )
(5)A performance must be fun to do for the people involved - if it isnt - it shows. Technically there needs to be depth in the dance - floor shapes, good movement, speed changes, synchronisation, well executed moves (that are consistently performed well by the dancers you have) and some sort of theme or story. More important than anything else though - is the fact it needs to be "tight" - if theres ever any more than a few seconds of "what are they doing" or "this is just filler" the audience and the judges minds will wander.
Just because its amateur dance doesn't mean it has to be amateurish, and some cabarets I've seen have been. There have been some great cabarets though.
I'd also like to add that it should NOT ever ever be a democracy - that way lies madness and a dubious result - there needs to be someone talented at the head, even if they do accept feedback, advice and help - it has to be their own little dictatorship whilst still remaining a team atmosphere
Just my opinion of course.
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