Yoga is a relaxing, low-impact exercise that has become immensely popular in recent years. Participants often attend yoga classes to improve fitness and reduce stress. A yoga studio business offers several different yoga classes.
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Learn how to start your own Yoga Studio and whether it is the right fit for you.
Start a yoga studio by following these 10 steps:
- Plan your Yoga Studio
- Form your Yoga Studio into a Legal Entity
- Register your Yoga Studio for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Yoga Studio
- Get the Necessary Permits & Licenses for your Yoga Studio
- Get Yoga Studio Insurance
- Define your Yoga Studio Brand
- Create your Yoga Studio Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your yoga studio. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a yoga studio?
The startup costs associated with opening a yoga studio business are fairly small. Leasing or purchasing a space to teach classes is often the biggest expense, and this expense can vary greatly from one geographic area to another. Other expenses include liability insurance and purchasing mats for participants to use. Business owners also should have transportation to get to and from classes, and a computer and phone to communicate with participants.
Instructors who want to keep their startup costs minimal can begin by renting an inexpensive space only when they have classes scheduled. Local fitness centers may rent out space for classes, and classes can be offered in parks. (Weather can be problematic when teaching in a park.).
What are the ongoing expenses for a yoga studio?
A yoga studio business has two primary ongoing expenses. The business must continue to pay for its space and its liability insurance. If the business has employees, it must also pay their salaries.
Because there isn’t a universal certification standard, instructors don’t need to worry about renewing their certifications. Instructors may want to take continuing education courses.
Who is the target market?
An ideal client is someone who wants to live a healthy lifestyle, and has some discretionary income and free time. People who are particularly interested in reducing stress, learning about the East and improving flexibility are especially likely clients, as these are some characteristics that set yoga apart from other exercise programs.
How does a yoga studio make money?
Yoga studios have a few different pricing structures, but they all make money by charging participants for classes. Studios may charge on a per-class basis, offer a set number of classes at a discount or have a monthly membership fee. A monthly membership fee may entitle students to as many classes as they want, or they might get to attend a certain number of classes for free and receive a discount on any additional classes they go to.
How much can you charge customers?
Yoga studio businesses charge an average of $12 per class when participants pay on a per-class basis. Some studios in large cities charge up to $16 per class. Participants who pay for multiple classes at once usually pay between $9 and $15 per class, and monthly memberships can run around $190 per month.
How much profit can a yoga studio make?
The revenue that a yoga studio business brings in can be significant. A single class of 10 students, for instance, may bring in $100 if each student pays just $10. If a studio has three classes a day that average 10 students each, it may be able to generate a weekly revenue of $2,100 -- or more than $100,000 annually.
From this revenue, however, a business must pay all of its operating expenses and overhead. The actual profit of a yoga studio business will depend largely on how much it pays for space to teach classes, as this is the largest ongoing expense.
How can you make your business more profitable?
Yoga studio business owners can increase revenue by offering additional types of classes. They may provide hot yoga classes, outdoor classes or classes for aspiring instructors.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Yoga Studio Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your yoga studio is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
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.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
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.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
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.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a yoga studio business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
To avoid liability and potential lawsuits, studios should have their clients sign waivers before participating in classes.
- An example of an appropriate waiver can be found here.
Certificate of Occupancy
Yoga studios, like all businesses run out of a physical location, typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
If you plan to lease space for your yoga studio:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a yoga studio business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
If you plan to purchase or build a yoga studio:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for you business’ location to ensure your yoga studio will be in compliance and able to obtain a CO.
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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a yoga studio
While word-of-mouth advertising and referral programs are effective ways to grow a yoga studio business, they’re often slow ways to grow a business when first starting out. Offering classes outside of the physical studio, such as at fitness centers or parks, are faster ways to recruit new participants. Many people will sign up for a yoga class if it’s at a convenient time and in a convenient place. Some participants who try a class and like it will be willing to travel to the business’ actual studio for other classes.
Many yoga studio businesses offer free or greatly discounted trials that let participants check out a class without financially committing to it. Trials are often for one or two classes, or for a week.
How to keep customers coming back
A yoga studio business can set itself apart by specializing in a certain type of yoga, such Asura or Bikram yoga. Focusing on a particular style not only makes a business distinct, but it also suggests a certain level of expertise. Studio owners can further set their business apart by getting advanced certifications in the style of yoga that they focus on.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Yoga Studio in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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Is this Business Right For You?
People who are passionate about nutrition, fitness, health and, most of all, yoga may be well-qualified to open a yoga studio business. Business owners should be strong and flexible enough to demonstrate most, if not all, yoga poses. Strong communication and public speaking skills are also helpful, as yoga instructors teach groups of people new poses and guide them through routines.
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Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a yoga studio?
A yoga studio business owner spends a lot of time teaching yoga classes, but they also wear other hats. When not teaching classes, a yoga studio owner may spend time marketing and managing their studio. These additional duties often include recruiting new participants, scheduling classes and cleaning mats (if yoga mats are provided for participants who don’t have their own).
What are some skills and experiences that will help you build a successful yoga studio?
A yoga instructor needs to be a yoga expert. There are not universal standards for yoga instruction, but Yoga Alliance offers a widely recognized certification program. Becoming certified with Yoga Alliance requires completing a guided training program that includes 200 hours of work. The organization has a directory of registered yoga schools where aspiring instructors can complete their training, as well as a list of certified yoga continuing education programs for additional post-certification training.
What is the growth potential for a yoga studio?
Yoga studio businesses range in size from small, independent studios run by a single instructor to large studios with several instructors. A large business may serve only one geographic area, or it might have studios located in many cities and towns.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
How and when to build a team
Yoga studio business owners often hire their first employee when managing the studio, marketing the business and teaching classes becomes too much. The first employee is often an administrative assistant who can sign up new participants, field questions for participants and help manage the studio..
Business owners may elect to bring on additional instructors once they’re teaching several classes each day. Other instructors may be hired as employees, or they can be independent contractors who rent studio space.
- Yoga Alliance, non-profit association of yoga teachers and schools
- International Association of Professional Yoga Studio Owners