How To Open A Yoga Studio: The Ultimate Guide

In the past decade, the yoga industry has gone through an incredible transformation. There are currently over 42,000 yoga studios in the United States, roughly double the amount in 2013 and more and more people are coming around to the physical and mental health benefits of this ancient practice. There’s also a newfound appreciation for how this practice can be used to connect with ourselves and others, which is especially needed given the recent global pandemic.

Yoga studios now offer an array of classes catering to various populations and practitioners and new technology has enabled those not able to physically attend classes to access resources and teachings from home. What’s more, an emphasis has been placed on making these teachings financially accessible. After all, people of all economic backgrounds should be able to cultivate their personal development through yoga. 

While the yoga industry has certainly changed over time, the tenets behind the practice itself remain relatively unchanged from its inception millennia ago. Today, the yoga industry is a marriage between new, exciting innovations and an ancient ethos of eternal value.

Is owning a yoga studio profitable?

Myriad factors contribute to how profitable your yoga studio is. A few examples of them are the location, the expenses, the number of students and their consistent attendance, the pricing structure, and so on. On the other hand, research conducted by Studio Growth indicates that yoga studios in the United States generate an average monthly revenue of $13,495 and an annual income of $161,940. So, when factoring in the rapid rise of the industry, there’s great financial potential—just ensure you do your due diligence when it comes to planning it all out! 

No matter your prowess with the practice, starting any business can be daunting. This is why ensuring you’ve ticked all the relevant boxes is so important. Following the steps below will provide a solid foundation for success and help you create a popular, thriving yoga studio!

1. Set your yoga studio objectives
2. Research the local market
3. Draw up a comprehensive business plan
4. Plan your finances
5. Set up as a legal entity
6. Decide on your name & branding
7. Create a website & choose a booking system
8. Create a marketing strategy
9. Hire staff and scale

Step 1 - work out a clear objective for your studio.

The first step to starting your studio is to determine your business's mission. You'll need a detailed mental picture of how you want your company to develop in the future, complete with all of your hopes and dreams for it. Remember, time and resources can be wasted if you don't have a destination in mind.

As a first step, consider the following questions.

• Who are you and what do you represent?
• Why did you decide to start the studio?
• What is the company's ultimate goal?

Clearly defining your vision statement is only the first step; you'll also need to know who you're serving, what kinds of courses you're providing, and what sets you apart from the competition.

If you're trying to narrow down your potential clientele, you might consider whether or not you want to cater to beginners as well as experts. Identifying the kind of yoga students you hope to attract is a natural by product of determining the major categories of yoga sessions you intend to provide.

Will you be offering traditional Vinyasa yoga, Bikram yoga in a heated room, or Yin yoga, which focuses on meditation and restorative practices? It's up to you whether you want to provide a wide range of lessons or focus on a specific style of yoga. 

As you refine your idea, there is one final question to ask yourself: what will make you unique? How will your studio stand out from the competition and entice students to come back for more lessons? Perhaps you use signature ideas in your class that help students find fresh perspectives and motivation. Another idea might be a fruit platter or herbal tea for students to enjoy after class. No matter what it is, anything that enables you to stand out will help to attract a dedicated fan base. 

Step 2 - research your local market

Market research is a fundamental stage you need to take before starting any business. However, unlike many other professions, opening a yoga studio requires you to dig deep into your local area. It’s unlikely people travel for hundreds of miles for a class, so you’ll probably be sharing a high-competition customer pool with other local studios.

Try to learn more about your competitors in the region and the services they provide. Most studios are open for walk-ins, so feel free to stop by and give a class a shot. 

• Is there something you could provide to those studios that they currently lack?
• What were the best and worst parts of each yoga session so we can make adjustments and keep bringing you the best experience possible?
• Focus on the minute details and make notes as you go through, from checking in new pupils to the final asana.
• Devise a chart detailing the salient features and distinctions. This will provide you with a clearer view and show you where you could make improvements.
• Work out some potential customer profiles to better tailor your studio.

Step 3 - draw up a comprehensive business plan

Right, so you’ve taken a thorough look at your local market and identified potential. Now it’s time to write a business plan! 

Creating a water-tight business plan can seem like you’re packing for an overseas trip! After all, you need to include absolutely everything that will lead to a successful yoga studio. This includes a thorough market analysis, a comprehensive financial forecast and a clear strategy for achieving both short-term and long-term goals. Don't forget the executive summary either—that's like your travel itinerary and, should you want to convince potential investors, should be your number one priority. Finally, you don't want to forget any slips of paper with important information jotted down during conversations with other professionals. 

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Ensuring you have a comprehensive business plan will prevent your yoga studio from failing before it’s even got underway. Fortunately, we recently reviewed 5 of the best business plan templates specifically designed for yoga studios, so you can easily lay the groundwork for success.

Step 4 - plan your finances

Money is the oil that greases the cogs of any functioning business so you should ensure your financial plan and projections leave no stone unturned. 

Ultimately, sustaining expansion requires a stable financial foundation. Using the data collected from your business plan, you should be able to estimate how much capital is required to open your studio and maintain operations for the first few months.

Funding for your investments can come from many places, including savings, bank loans, and the sale of assets.

As you develop your strategy, try to keep the following in mind:

What is the minimum investment to open a yoga studio?

Opening a yoga studio requires a modest outlay of capital. When all is said and done, the price of renting or purchasing a location could be the single largest expense. To begin with, you could try to minimize costs by hiring an inexpensive space on an as-needed basis is a viable alternative.

The cost of yoga equipment like mats, blocks, and straps should be factored in, along with liability insurance. You should also consider students' means of getting to and from class, as well as their availability to use a computer and a phone.

What are the ongoing costs of running a yoga studio?

There might only be a handful of major regular expenditures for your studio. Recurring costs include utilities, rent, upkeep, and (depending on whether you have any) paying staff.

How do you determine what your class fees should be?

The cost of yoga classes can be determined in several ways. Studios may have a monthly membership cost, charge per class, or provide discounts for prepaying for a set number of lessons.

What other sources of revenue can you tap into?

Today, statistics suggest that the retail sector is vital to the booming yoga economy. As you probably already know, yoga practitioners have a penchant for name-brand clothing! So why not potentially increase your earnings by selling customized products like specialized clothing, sippers, mats, and water bottles? Beyond simply making some extra cash, an added bonus will be that the clients wearing or carrying your yoga studio's branded apparel or accessories will be spreading the word about your business.

Location, location, location!

Finding a suitable location for your yoga studio that is both affordable and convenient can be one of the most challenging aspects of opening one. Given its far-reaching consequences on your productivity, client satisfaction, and brand image, choosing the right space for your yoga studio is essential. 

Before picking that goldilocks location, here are a few things to bear in mind:

How much will it cost?

When choosing a site, it's important to ensure the costs are within your budget. While more obvious factors like rent and utilities should be factored into your budget planning, so should tax, fees, and renovation prices.

What size should it be? 

Take into account the number of expected attendees for each session and select a suitable venue accordingly. For example, 15–20 people can be comfortably accommodated in a space of around 600 square feet (55 square metres).

How accessible is it?

How convenient is the location, does it have wheelchair access, and is there adequate parking? As your company expands, these considerations will take on greater significance. It's good for business in the sense that it helps both your customers and your employees.

How close are you to competitors?

Pick a spot that doesn't feel too competitive with other yoga studios. If you already have a well-known brand, you can easily beat out the local competitors. However, if you're just getting started, you should try to avoid neighbourhoods near other well-known studios.

What is the local environment like?

Will your studio’s surroundings attract your ideal customers? Location is crucial when it comes to pulling in your target audience, so put your services where they can be easily accessed by them.

Step 5 - setup as a legal entity

Yes, I know it can be a bit of a pain. After all, you’re a yogi, not a lawyer! However, taking the time to register your business and acquire the relevant licences will help your company's credibility rise. What’s more,  you'll gain valuable insight into taxation, recruiting, and other legal matters.

When it comes to the legal side of business, much of it is country-specific and there’s a lot to unpack. However, here is a simplified rundown of 4 key options. Ensure you do the proper research to work out which is the best fit for your studio.

Sole proprietorship

This is best if you intend to operate your yoga business single-handedly. It's important to realize that the success or failure of your firm will have repercussions in other areas of your life if you decide to go the sole proprietor route. As such, your company would not be treated as a legal entity in its own right.

Partnership

The partners in a partnership are all equally responsible for the business's debts and responsibilities; an excellent option if you can find a company partner whose skills complement your own.

Limited liability company (LLC)

Many business owners swear by an LLC for all the protections and benefits it offers. The owners, partners, or shareholders of an LLC are shielded from legal responsibility and provided with the same tax breaks and freedom as a traditional partnership.

Corporation

This is the best option if you want your company to exist independently of yourself and your other personal assets, but forming a corporation is expensive. As you might guess, it’s not the most common path taken by new yoga studio owners! However,  if your business develops a medium to high-risk profile or needs capital to expand, go public, or be sold, it could be worth considering.

After you’ve researched these options thoroughly and have decided on the best business structure for your yoga enterprise, it’s time to open a business bank account! This is a tried and true way to maintain financial privacy for both your business and yourself.

Step 6 - Choose a name and design a brand

Brand identity & Booking Website

Right, so you’ve picked a great location, and sorted out all the financial and legal stuff—now it’s time to get creative! 

Come up with a fitting name for your studio

First and foremost, creating a memorable brand begins with picking the right company name. The name of your studio should be easily discernible by potential consumers and should communicate the services you provide. If you're having trouble getting those creative juices flowing, check out our free-to-use Yoga names to get some ideas!  

Decide upon a logo

A logo is more powerful than you think as it is usually the first impression your company makes on potential buyers. A logo's success in attracting customers depends on its appropriateness to the business's identity and mission. Consequently, it is crucial to pick a compatible partner.

There are many symbols (often associated with ancient spiritual traditions) that you can use, like the Om symbol, Mudras, the chakra sign, and much more. Feel free to explore until something resonates!

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Step 7 - Launch a website with a built-in booking system

Making a slick, accessible website with an integrated booking platform is an integral component of your business and branding strategy. When designing your site, try and find the sweet spot between the site's colours, typography, pictures, and content to make a strong first impression.

Additionally, we recommend researching local SEO so your site can rank higher in local search results 

With so many CMSs and Booking systems available, it can be tough to know what’s right for your studio. Ultimately, there are many great booking systems for yoga studios, but our favourite has to be Baluu. 

Baluu has become increasingly popular with yoga studios in the last year. This is partly due to its unrivalled ease of use and affordability, but most importantly, it is an all-in-one software solution for small businesses. You can create a fully branded website, take online bookings, and process payments all on one ergonomic platform. Not to mention all the marketing customizability tools Baluu offers! Why not try Baluu’s 30-day free trial and see if it's a good fit?  

Step 8 - employ a multi-faceted marketing strategy 

As Henry Ford famously said, “stopping advertising to save money is like stopping your watch to save time.” The simple fact of the matter is if you want your business to attract more clients, you’re going to have to invest a considerable amount of time and money into marketing. The tips below will give you a framework to develop a profitable strategy for growth. 

• Utilize platforms like Twitter, Instagram, Reddit, Facebook, and TikTok to spread the word about your studio and connect with new clients. Share information about your courses, upcoming events, and discounts via these channels.

• Join forces with complementary businesses in the area to increase exposure for your studio, such as gyms and health food stores.

• Provide a free class or trial membership to new clients to entice them to join your business and experience yoga's advantages for themselves.

• Try out word-of-mouth advertising. Offer rewards to current customers who bring in new ones by telling their friends and family about your studio.

• Community events such as health fairs, festivals, and charity events are great opportunities to network with potential clients and spread the word about your studio.

• Build a customer loyalty programme to keep your satisfied customers coming back.

• It's important to keep tabs on your progress and evaluate your marketing efforts regularly to make any necessary adjustments to your approach. We recommend using analytics tools to keep stock of your progress.   

Step 9 - hire reliable staff that share your vision

You'll be able to do it all when you first open your studio, but as demand increases, you may need to bring on some help. This is when it’s time to start building your A-team!

Spend plenty of time interviewing potential new employees to ensure they share your enthusiasm for yoga and can contribute to the success of your company. Determine where you're lacking and seek out teammates who can help.

Furthermore, the expertise of your team members shouldn’t be overlooked. For example, if a new employee is an expert in advanced asanas, you could look to incorporate a class that covers it. Remember, to get the most out of your yoga classes, it's important to have instructors that are certified by a reputable yoga organization.

Key takeaways

Like starting any business, opening a yoga studio comes with its own unique set of challenges. We’ve tried to cover as much as we could in one article, but it’s impossible to assess every intricacy. The best thing you can do is to plan extensively and ensure you have the finances to support your studio while it’s getting up and running. At first, you'll need to be prepared for long hours, lots of hard work, and some serious mental and physical challenges. But if you're up for the challenge, then opening a yoga studio could be one of the most rewarding ventures of your life. Just make sure you go into it with your eyes wide open (and maybe your chakras too). Good luck!

Need more advise? Take a read of some of our related guides below: 

• How To Start A Yoga Business: The Ultimate Guide
• Top 5 Best Yoga Business Plan Templates To Help You Kick Start Your Business In 2023
• 460 Yoga Studio Name Ideas For Your Business (Free To Use)
• Top 10 Best Yoga Class Advertising & Marketing Ideas For 2023

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