If you’re a health freak and a great yoga practitioner, then starting a yoga studio could be a good way to earn some extra income.
Yoga is an ancient practice from India that has become increasingly popular among people who want to stay fit and healthy. More and more people choose yoga over other types of exercise because they believe it offers them better results than other forms of fitness.
You should definitely consider getting a certification in Yoga. It would certainly help you gain customer trust.
Is Yoga Studio Business Profitable?
It’s true that yoga studios are popular right now, but they’re not an exception from any other form of healthcare service where you need hard work and dedication to succeed.
According to Statista, the number of practitioners of Yoga worldwide has increased by almost 20 million since 2014, and the global yoga industry’s value is now more than 80 billion US dollars. In the USA alone, the number of practitioners has grown by nearly 50 percent since 2014.
As yoga becomes increasingly popular, the demand for yoga classes is increasing. If you plan properly, you can earn good profits from your investment.
Yoga Studio Business Plan Checklist for Beginners
Below are the 12 essential steps to take when opening a successful yoga studio shop.
1. Find a Good Location
The success of your yoga studio business depends largely on the location you choose. Ideally, you should pick a spot near a lot of potential customers.
You can find out about the demographics of the neighborhood by doing extensive market research. In addition, if possible, get a feel for what kind of clientele you’ll attract by talking to local businesses and residents. Also, consider how much money you’re willing to spend on rent. A great location will pay off in the end.
When choosing your yoga studio, consider where you live. Is there enough room for parking? Are there any nearby parks? How many studios are there in the area? What kind of classes do they offer?
Do they offer private lessons? Will you be able to get into a class if you’re new to yoga? Consider these questions before signing up for a class.
One important thing to keep in mind when thinking about where to rent an apartment is that you need to figure out how many people you plan to host at one time.
For example, if you’re renting a studio apartment, you’ll probably need somewhere between 300 and 400 square feet per student. So, if you’re planning on hosting 20 people at once, you’ll need somewhere between 600 and 800 square feet.
2. Make a Yoga Studio Business Plan
It’s always good to have a well-thought-out strategy before starting your yoga studio. You may want to get some expert advice if you feel you need it.
Make sure your business plan contains everything from the investment needed, expenses, profit margin, staff requirement, marketing and publicity strategy, etc.
Here are some of the basic subjects that your yoga studio business plans include:
- Initial and recurring costs
- Target customers
- Pricing plan
- How will you promote yoga classes?
3. Name Your Yoga Studio
Choose a short, memorable domain that is easily pronounced and understood by visitors.
You might want to register a domain for your website, but you don’t need to worry about designing a logo yet.
Find out how to name your business by following these step-by-step guidelines.
4. Register Your Business
Get the necessary legal documents done for your start-up. Depending on where you’re located, there may be specific requirements.
There are two main types of companies in the US: Sole proprietorships, which are run by one person; partnerships, where there are two people who share profits and losses; and limited liability companies, which protect owners’ personal wealth from their company’s debts. Most experts recommend setting up an LLC for any new venture.
If you want to form your own limited liability company (LLC), you can pay the required state filing fee and then hire a professional service provider who will charge you for their services.
5. License, Permits, and Taxes
You need to register your yoga studio business for tax purposes as well as obtain an Employer Identification Number (EIN).
6. Open a Business Bank Account
Once everything has been completed, open a bank account in the name of your yoga studio. You may be able to get a business credit card too.
7. Buy Business Insurance
Regardless of the size of your business, having general liability insurance is essential. To ensure that your studio is protected from accidents or other unfortunate events, you need to purchase general liability insurance.
You must always keep Workers’ Comp insurance in mind when hiring employees. Remember, workers’ comp is there to protect you from any injuries they may incur at your studio.
8. Decide Who are Target Customers
Anyone who is a health freak can be your customer. You need to gather more demographic information about them.
You need to conduct thorough research into your target audience so that you know who they are, where they live, their habits, etc.
In this context, remember that there are many types of yoga for both physical and mental health. You should choose what sort of yoga you wish to offer. But it is best, to begin with the most popular ones so that you can attract more customers. That would be easier to achieve.
9. Calculate the Cost of Starting a Yoga Studio Business
You’ll probably want to invest between $15,000-$18,000 for your studio. This includes your rent, decorating, equipment, training software, computers, printers, furniture, telephones, etc.
10. Arrange Fund
If you don’t have any savings, then you can either borrow from friends or family or get a business loan.
You have multiple expenses including:
- Rent
- Salaries of Staffs
- Taxes
- Insurance Premiums
- Cleaning and Maintenance of the Studio
- Publicity and Advertisements
If you’re thinking about starting a yoga studio business, here’s how much profit you can expect to get from it.
Yoga Studio is quite an attractive business. You earn income by charging fees to the students. The fee ranges between $10-$14 per session. If a student takes multiple sessions every day, then the charge can be reduced.
Besides, the monthly subscription charges can be reduced further, as you are sure of the income as well as the attendance rate of the students. The prices differ from location to location. In large cities, the prices are higher.
The hourly rate of Yoga instructors varies between $10-$25 per hour. For highly skilled and specialized teachers. It can go higher too. To earn more money, you can offer private classes to your clients at higher prices.
You can earn even more by starting an online store where you sell yoga equipment like mats, books, and DVDs.
After taking into account all the costs associated with running an institute (rent, salary, maintenance, etc.), one can expect to make a profit of approximately 25%-30%. However, the most important thing here is the regular flow of new students.
Much successful yoga studio business owners earn more than $10,000 per year.
12. Have a Marketing Plan for Making More Profit
To grow your yoga studio business, you need to develop a well-thought-out marketing campaign. Some of the key elements of any good marketing campaign include:
Build Your Brand
First of all, try to establish your brand. Spread the word about your yoga studio before it opens. Use ads, promotional materials, leaflets, and banners to attract people to visit your yoga studio. Make sure that your yoga studio’s reputation spreads far and wide.
Furthermore, create an attractive branding image for your yoga studio. It must be printed on your company brochure and cards.
Create Online Presence
Once you’ve got the domain name for your yoga studio, launch the website. Make sure it looks nice and has lots of info about your studio.
Remember to enable the options for online admissions and payments. And update your website regularly.
Social Network
Create a page in the name of your yoga studio on popular social networking websites like Facebook, Twitter, LinkedIn, Google+, Pinterest, Tumblr, and others. Post links to your yoga studio’s website on these social media platforms.
Update your page regularly with good-quality images of your yoga studio. This will make your yoga studio known to many users.
Sponsorship
Sponsorships are a good way to get some publicity for your yoga studio. You could sponsor fashion shows, exhibitions, and annual sports events, among others.
Discounts
Don’t overlook providing various discounts on your yoga studio. The common discounts are yearly subscriptions, monthly subscriptions, etc.
You may give a special discount for married people, old customers or any particular event. This is an excellent method to increase clientele.
Make Cold Calls
Visiting prospects’ homes, meeting them in person, and visiting their workplaces help to build trust and confidence among potential clients. You can either go there yourself or allow your sales team to do so.
Organize the Gala Opening of Your Yoga Studio
You should organize an event at your yoga studio’s entrance to welcome new students. Invite celebrities who would be interested in doing yoga classes there. This will help increase awareness of your yoga studio.
Some Important Tips to Make More Profit in Yoga Studio Business
To run your yoga studio business successfully, you need to be careful and take appropriate actions in different areas of the business. These include:
a) Hire Good Instructors
Keep in mind that your yoga studio should be an enjoyable place to visit. You can attract customers if you provide them with quality services. Do not compromise on quality just to get more customers.
Make sure that you offer excellent customer support and ensure that you do everything possible to make your customers happy. Always remember that your customers are your lifeblood and without them, you cannot survive. So take great care of them.
b) Maintain Cleanliness
Keep things clean. Use good tools and equipment. Make sure everything smells nice.
c) Listen to Your Customers
Customer surveys help you understand your customers’ needs better. You can use them to improve your business by incorporating suggestions made by your customers.
e) Don’t expect high returns overnight
Your Yoga Studio Business may be profitable right away, but you need to wait until you’ve built your reputation and established yourself before you start earning big bucks. You also need to focus on growing your client base.
If you want to start a yoga studio business, you need to adopt a professional attitude and be hard-working and focused.
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