Are you a health freak along and a great follower of Yoga? Then opening a Yoga Studio business can be a good money-making opportunity for you.
Yoga is an ancient Indian form of exercise practiced for the benefit of the body as well as the mind. It has gained immense popularity for its benefits. That is why more and more people prefer Yoga over other forms of exercise, especially the people above 50.
Also, it will be better if you get a certificate in Yoga training. It is without saying that customers tend to get more confidence if trained by certified yoga trainers.
Is Yoga Studio Business Profitable?
Yoga Studio is much in demand now and more and more people spend a good amount of money on Yoga classes. This is your first and foremost plus point for the business. However, it is no exception from other forms of healthcare business where you need hard work, dedication, and determination to succeed.
As per Statista, the numbers of people practicing Yoga, as well as the revenue from the Yoga Industry both are on a continuous rise. The global yoga industry’s worth is more than $80 billion dollars. In the United States alone there is a growth oF more than 50% in the last four years.
With the growing popularity of Yoga and the demand for it, the Yoga Studio Business is undoubtedly profitable. With the right planning and proper management, you will be able to get good returns from your investment.
Yoga Studio Business Plan Checklist for Beginners
Find below the 12 important steps to follow to open a successful yoga studio shop business:
1. Find a Good Location
The success of your Yoga Studio Business depends largely on the location. Choose a place where many people live, preferably a residential area. Do elaborate market research on the people of the area, along with their affordability, demand for Yoga, and average age. Getting a place at a premium location may be expensive but it will give you good returns in the long run.
In choosing the location find out how many Yoga Studios are there in the neighborhood. Inviting too much competition at the beginning may not be a good option for you. Shortlist a few locations and then after considering the pros and cons finalize the location. A place with a parking space is also a point of consideration.
Another key point regarding space is that you have to decide how many students you want to accommodate at a time. Approximately, each person needs 30-35 Sqft of area. Therefore, 600 Sqft studio space plus small space for the reception and office will be sufficient for 15-20 students at a time.
2. Make a Yoga Studio Business Plan
This is an important point to be considered in any kind of business. Make a thorough and detailed business plan for your Yoga Studio Business. If you need, you can take the help of experts in this regard.
Your Business Plan should contain the details about The Investment Needed, Expenses, Profit Margin, Staff Requirement, and most importantly, Marketing and Publicity Strategies. Focus on every point so that you may not face any problems while implementing the Business Plan.
Some of the basic topics that your yoga studio business plan document are as follows:
- Initial and recurring costs
- Target customers
- Pricing plan
- How do you plan to promote yoga training programs?
3. Name Your Yoga Studio
Choose a name that suits your Yoga Studio. Don’t go for very long or difficult names. Find a name that is easy to understand, remember as well as pronounce.
Along with it find a domain name for your website in the name of your business and also a trademark in the same name. Design a good logo also.
4. Register Your Business
Do the necessary legal formalities needed for your business. Different countries offer different legal company structures.
If you are from the United States, the most popular ways of registering your small business are Proprietorship, Partnership (if you have a business partner), or LLC. Most experts though prefer forming LLC as it protects personal assets from business ones.
You can form an LLC yourself directly paying the desired state fees or hire a professional LLC company formation provider paying some extra charges.
5. License, Permits, and Taxes
Get the necessary License and Permits required for your Yoga Studio Business both at the federal as well as State levels. Register your business for taxes and get the EIN.
6. Open a Business Bank Account
After all the legal formalities, open a Bank Account in the name of your Yoga Studio. Along with it, you can also apply for a Business Credit Card.
7. Buy Business Insurance
No matter what scale you are operating, insurance is a must for your Yoga Studio Business. In order to protect the Studio against any accident or other unfortunate event, you have to get General Liability Insurance.
For the persons you hire, you have to get Worker’s Compensation Insurance. Always remember, Insurance is for the safety and security of your Yoga Studio.
8. Decide Who are Your Target Customers
Broadly speaking, anyone who is a health freak and swears by a healthy lifestyle can be your client. Try to gather more information on the demographics of the local population.
Your client profile may consist of people of different age groups, ranging from 25-year olds to seniors above 50. Do market research and collect as much information as possible to understand the market more.
In this regard, keep in mind that there are many branches of Yoga for both physical and spiritual well-being. You have to decide the focal point of your Yoga Studio. However, it is better to go for the popular forms of Yoga to start your business. Because that will be easier to get more clients.
9. Calculate the Cost of Starting a Yoga Studio Business
To start your Yoga Studio, you will need an investment of approximately $ 15-18000. This will include your space contract, interior decoration, props and equipment, office set-up along with a computer, printer, furniture, telephone, etc. Moreover, you need some Yoga Training Software.
10. Arrange Fund
If you have savings, you can start with your money. Otherwise, you can apply for Bank Loans or Business Grants.
You have several expense heads which include:
- Salaries of Staffs
- Insurance Premiums
- Cleaning and Maintenance of the Studio
- Publicity and Advertisements
11. How Much Profit Can You Get in Yoga Studio Business
Yoga Studio is quite a profitable venture. You get your revenue from the payment made by the students. The payment ranges between $ 10-14 per class. If a student goes for multiple classes per week, then the charges can be discounted.
Besides, the monthly membership charges can be reduced further. This is because you are sure of the revenue as well as the attendance of the student. The rates vary from region to region. In big cities, the rates are higher.
The hourly rates of Yoga Instructors vary between $ 10-25. For highly experienced and specialized trainers. It can go higher also. For earning more revenue, you can organize special private classes for students with higher rates.
Furthermore, you can generate more income by selling Yoga props like mats, or books and DVDs. These have very good demand. After your Yoga Studio has earned some repute, you can also start training classes, which will further add to your income.
After deducting all the expenses like rent, salaries, maintenance, promotion, etc., one can earn a profit of approximately 25-30%. Here, of course, the most important point is the regular flow of students.
There are many successful Yoga Studio business owners making more than $ 10,00,000 annually.
12. Have a Marketing Plan for Making More Profit
This is the most important aspect of growing your Yoga Studio Business. Here, you have to follow a well-planned strategy. Some of the aspects that your marketing plan must address are the following:
Build Your Brand
First of all, give an all-out effort to build your brand. Spread the name of your Yoga Studio before it is inaugurated. Use advertisements, promotional campaigns flyers, posters, and banners to create interest among your clients. Make your Yoga Studio’s name and presence felt by all means.
Create Online Presence
After you get the domain name, launch the website of your Yoga Studio. This is an important aspect of publicity, especially among the young generation. Design your website very nicely and with a lot of information about your Yoga Studio.
Don’t forget to enable the options of online admission and payments. Also, keep your website updated regularly.
Create pages in the name of your Yoga Studio in popular social networking sites like Instagram, Facebook, and Twitter, etc. Share the link to your website on the pages. Keep the pages updated with regular news about your Yoga Studio along with good pictures. This will help in making your Yoga Studio known to many people.
Sponsorship is a useful weapon for the publicity of your Yoga Studio. You can go to sponsoring Fashion Shows, Exhibitions, and Annual Sports, etc.
Don’t forget to offer various discounts on your Yoga Studio. The common discounts are monthly membership, annual membership, etc. You can offer a special discount for couples, aged members or a special festival discount. This is a very effective marketing tool to add a number of clients.
Make Cold Calls
Regular visits and face-to-face meetings with prospective clients help to build trust and confidence. You can visit personally, or let your executives visit the residential areas, corporate offices, clubs, parties, etc.
Organize Gala Opening of Your Yoga Studio
Organize the opening of your Yoga Studio in a very colorful as well as ceremonial fashion. Try to involve some celebrity visits in the opening ceremony, which will attract several people along with good publicity and press coverage. This will spread the name of your Yoga Studio.
Some Important Tips to Make More Profit in Yoga Studio Business
In order to run your Yoga Studio Business successfully, you have to be careful and take necessary actions in certain areas of the business. Some of them are listed below:
a) Hire Good Instructors
Keep in mind that people pay a good amount at your Yoga Studio. Therefore they will expect the best from you and it begins with a good instructor. Hire good and duly certified instructors for your Yoga Studio. Take the interview of the candidate with utmost care and caution. It is better to hire experienced and energetic trainers because they will not only give you good service, but also several references and new clients.
b) Maintain Cleanliness
Cleanliness is a vital element to keep customers captive and bring new customers. Maintain a clean odor-free surrounding and use good accessories and props.
c) Listen to Your Customers
Take regular customer surveys and consider their opinions seriously. Try to incorporate changes that they suggest as well as new services they want from you.
d) Don’t Expect High Returns Overnight
In your Yoga Studio Business, don’t expect to earn high profits right from the first month. No doubt it is a profitable business, but you have to give the business some time to settle. Meanwhile, you have to focus on building your brand and gearing up a client base.
To sum up, your Yoga Studio Business has a good prospect. You have to adopt a professional approach and be hardworking and focused.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.