A Step-by-Step Guide to Opening a Yoga Studio
May 7, 2024
After more than 5,000 years, yoga remains one of the most popular low-impact exercises. Mindbody's 2024 Wellness Index found that 40% of consumers turn to low-impact workouts, such as yoga, for its calming and relaxing benefits. If you've been dreaming of turning your passion for yoga into a business, now is the perfect time to take the plunge. If you're unsure where to begin, keep reading to learn more about embarking on this journey.
What you need to know about opening a yoga studio
Starting a fitness business can be an exciting but overwhelming experience. There are many details to consider, such as calculating startup costs, getting licensing and permits, hiring staff, and marketing your services. Let's get started with some commonly asked questions.
Is it hard to start a yoga studio?
Launching a yoga studio can be a challenging task, much like starting any business. It requires careful planning and execution to ensure success. You need to start by outlining your goals, financial projections, legal obligations, and marketing strategies. These aspects need to be thoroughly planned from start to finish. However, with dedication and persistence, your vision will gradually come to life.
Is owning a yoga studio profitable?
The short answer is yes; owning a yoga studio can be profitable. The yoga market is booming and is expected to reach $250.70 billion by 2032. While there isn't an exact salary that yoga studio owners bring in, the average profit margin can range from 15% to 30%. You can build a thriving yoga studio over time by selecting the right location and pricing, building a loyal customer base, and providing quality services in a welcoming and peaceful environment.
How to open a yoga studio
As you consider opening your own yoga studio, it is important to understand the steps involved in making it happen. If you're unsure where to begin, we've got you covered with valuable tips on:
- Defining your vision
- Conducting market research
- Pricing your services
- Developing a business plan
- Securing funding
- Finding a location
- Building a team
- Marketing your business
- Opening your yoga studio
Define your vision
Defining your vision for a yoga studio is the most important initial step in your journey. Take your time to explore the various yoga styles available and choose one that aligns with who you are and your aspirations for your studio. Each style has a unique energy that will shape your business, be it the tranquility of restorative yoga or the physical demands of Ashtanga.
It's also important to envision the atmosphere of your studio. This includes identifying your target audience and how you can empower them on their wellness journeys. These factors will influence the services and products you offer. For instance, you may be passionate about providing specialized classes for specific demographics, such as beginners, seniors, or expectant mothers.
Your passion for yoga will be ingrained throughout your studio by painting a clear picture. Creating an environment that meets your clients' needs is key to a successful launch and long-term sustainability.
Conduct your research
Now that you have a vision in mind, the research begins. Take the time to collect information about startup costs, financial projections, staffing requirements, facility costs, equipment costs, legal and licensing obligations, and estimated monthly operating expenses. These insights will influence how you price your services and determine funding needs and options.
In addition to gathering information on what's necessary to operate your business, the research process also allows you to make informed decisions regarding the location, target audience, and types of classes you offer. To do this, you should delve into your local community's demographics, interests, and competition to gain insights into what your potential clients prefer, such as their preferred class times, desired amenities, and willingness and ability to commit to memberships or packages.
Price your services
We often hear from yoga studio owners who don't know how to price classes, worry that classes are priced wrong, or want to raise prices but aren't sure how or when. We recommend keeping your pricing simple. Studies show that customers won't decide if you have more than seven options. Too many pricing options create confusion, indecisiveness, and reduced sales.
Offering high-commitment pricing options that suit clients' needs is important to maximize your revenue potential with them. If you have low capacity or a lot of competition, pricing on the cheaper side may encourage more people to buy. However, increasing the price may be appropriate if you're at full capacity.
Remember that clients will only purchase a membership if it's financially feasible, and they understand how often they should attend. Therefore, your pricing strategy will ultimately impact the average attendance for your membership.
Create a business plan
Once you've completed your research, it's time to develop a business plan. This is a fundamental step towards opening a yoga studio and entails outlining your goals, services, pricing, and financial expectations. A well-thought-out business plan will include:
Executive summary
Clarify your business by summarizing who you are, what you offer, and your strategy to achieve your goals.
Company description and market analysis
Provide a comprehensive overview of your business's purpose, model, products, services, and target market research, along with an industry analysis that examines the local market, current trends, and potential growth opportunities.
Organization and management
Outline your staffing needs and detail the qualifications and expertise of any team members who will contribute to your business's operations and success. Also include what resources and expenses, such as insurance, security systems, and yoga studio management software, are necessary to maintain your operations.
Services
Describe your studio's offerings, pricing, member packages, and any retail and inventory information. Too many pricing options can create confusion, so keep your pricing and package options simple.
Marketing and sales
Detail your marketing plan, including strategies, costs, and responsible parties. Consider social media marketing, advertising, email campaigns, referrals, sponsorships, partnerships, and pricing.
Financial projections and funding
Develop a financial plan incorporating current and future projections supported by research and detailed breakdowns of monthly and annual earnings over five years.
Get funding
Money can often be the most stressful factor in opening a business. Make sure to consider all expenses and be smart about your financials. If your future studio is in a good location and serves a community need, it will grow and thrive and be worth the investment. Take time to do the math and be honest about how much money you need for your studio. Consider all your funding options, including:
- Bank loans, such as Mindbody Capital
- Investments from friends and family
- Crowd-sourcing campaigns, like GoFundMe or IndieGoGo
- Bootstrapping your efforts with your personal funds
Secure a location
Commercial real estate prices vary greatly from city to city. Take a look at commercial real estate in your area, or look online at places like Zillow.com. This will help you get an idea of what your monthly rent will be. Most commercial leases require a 3 to 5-year commitment, with a deposit of the first and last month's rent. You should also consider the legal fees you will incur to review lease documents, which can be anywhere from $500 to $1000.
Once you have secured a space, get bids from contractors to estimate the cost of construction. This can start at $15,000 and can likely be more, depending on the work needed, your design aesthetic, and how much the landlord is willing to contribute to getting your space ready.
How much space is needed for a yoga studio?
When setting up a yoga studio, you need to determine the space size based on the number of students you plan to teach. The studio should have enough space to accommodate each student and their yoga mats. A good rule of thumb is to allocate 25 square feet per yoga student. For instance, a 450-square-foot studio can comfortably accommodate 15-18 people.
Besides the size of the studio, other factors to consider when choosing a studio space are whether you need a reception area, an office, retail space, or storage space. Keep these factors in mind while searching for a suitable studio space. For reference, a simple boutique studio with about 25 students and a small retail and lounge area would be about 1100 square feet.
Hire staff
Once you have determined the number of people you need to hire for your studio, it's time to create job descriptions for each role and outline the qualifications required for each position. Consider the best pay structure for your employees, whether hourly, per head, or a combination of both. Remember that making your instructors feel valued and motivated to work at your studio is vital. After completing these initial steps, you can begin your search by posting the job openings on social media and online job boards.
Market your yoga studio
Marketing your new yoga studio is necessary to attract clients and build a thriving community. Use online and offline marketing tactics such as social media promotion, email campaigns, and local advertising to build your brand and craft compelling messages. Offering special promotions or introductory offers can incentivize potential clients to try out your studio. Collaborating with local businesses, wellness influencers, and community organizations can help you expand your reach and establish partnerships. You can also promote your studio by hosting events, workshops, and open houses to showcase your offerings and engage with the community.
Open your doors
You've gone through the grueling process of developing your yoga studio; now it's time to open your doors. As you plan out your class schedule, keep in mind that you should expand your offerings as the community grows. Initially, start with a lighter schedule, holding classes at popular times. This way, classes will have a fuller atmosphere, making students feel more energized while attending, and instructors will be encouraged with higher attendance. If you are an instructor, schedule yourself to teach more classes at the beginning when the community is still growing.
It's also a good idea to keep costs low after you open your doors by managing most aspects of the business independently. Remember that there is a fine line between trying to do everything and burning yourself out. There are many things to keep up with, including managing instructors, keeping the studio clean, updating the website and social media, bookkeeping, and staffing the front desk. Don't be afraid to ask for help! You can hire college students or friends to take care of simple tasks at the studio, saving you lots of time and energy.