How to Start a Meditation Studio

Start a Meditation Studio by following these 10 steps:

1. Plan your Meditation Studio
2. Form your Meditation Studio into a Legal Entity
3. Register your Meditation Studio for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Meditation Studio
6. Get the Necessary Permits & Licenses for your Meditation Studio
7. Get Meditation Studio Insurance
8. Define your Meditation Studio Brand
9. Create your Meditation Studio Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Meditation Studio. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Meditation Studio?

The costs for this startup may seem significant. Generally speaking, the biggest cost is creating an ideal meditation studio. Your studio may include one or more rooms designed to create a sense of calmness, provide privacy, and offer the right comfort in the space. There is a lot of interior design work in a place like this. The startup costs may range from $15,000 to $30,000 or more, depending on the size and scale of the location. If you cannot host meditation sessions yourself, you will likely need to hire additional staff members as well.

What are the ongoing expenses for a Meditation Studio?

Ongoing expenses may be easier to manage than most business owners realize. The biggest cost is typically the space. Utilities and advertising costs are also key factors to keep in mind. In some areas, a lease may cost $2,000 while in others an $800 room may suffice. Payroll will also be a large expense as your business grows.

Who is the target market?

Meditation is a spiritual and holistic experience. The target market for these services is typically those who are already participating in this field and are interested in wellness. However, it's important not to limit demographics too much. A busy professional may find that turning to meditation before their workday allows them to manage stress better, and an older couple may come in for meditation services as a way to promote wellness. There are even some studios that offer programs for children.

How does a Meditation Studio make money?

How can you turn meditation into a profitable business? Generally speaking, in a meditation business, customers pay a fee for using the service. This may be a monthly fee, a one-time fee for use, fees associated with memberships, or even fees associated with lessons and sessions.

How much can you charge customers?

Pricing varies depending on your location. The amount of services offered can play a role in what you can charge your clients. Do some field work to determine what other services, like yoga services and fitness studios in your area, charge for classes, routine workshops, and private sessions. These rates can range from $10 to $30 per group session. Private services may charge even more.

How much profit can a Meditation Studio make?

Profit comes from selling enough memberships and session fees to compensate for all of the overhead costs. In this case, profits are larger in a city or an area with numerous interested parties. The meditation and holistic industry in this US is a multibillion dollar industry. The profit you make depends on the scope of your business. Aim for a profit margin of 40% or higher.

How can you make your business more profitable?

You can increase profits for a meditation business by building up your client base. From there, companies need to work to provide more services such as providing different types of meditation, catering to specific needs (such as sessions focused on relieving work stress), or offering more comprehensive services. Expanding to different locations can also help.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Meditation Studio is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A meditation studio provides an opportunity for people to engage with meditative activities in a calming, soothing environment. This business is typically right for those who can create a space like this and help people learn to meditate. Some business owners lead meditation sessions, while others may hire employees to do this. Those who see the value of medication and practice meditation themselves may be right for this business model.

What happens during a typical day at a Meditation Studio?

Running a meditation studio involves maintaining the actual location and marketing. Clients can come in for self-service meditation spaces, or you can lead courses and sessions. Your goal will be to educate the public about the benefits of meditation and encourage them to come in for the ideal experience.

What are some skills and experiences that will help you build a successful Meditation Studio?

Those who own a meditation studio have two options: they can provide hands-on service and support to people who come in to meditate, such as leading various types of teaching and meditation groups, or they can hire others to do that. In all situations, those who operate a meditation studio typically need to be able to provide one-on-one service in a customer-forward industry. They likely need to practice meditation while also being able to communicate the values of this service to their customers. They may need to be able to help people in one-on-one sessions practice meditation, which requires having good bonding skills with others.

What is the growth potential for a Meditation Studio?

Meditation studios create spaces for people to meditate, which means there is ample growth potential in the right environment. A core level of success in this industry comes from educating others about what meditation is and how it can play a role in their life. Done well, you can make a lucrative business, especially if you can expand to multiple locations, add on more hours, and provide additional services.