How to Start a Yoga Instructor School

Start a yoga instructor school by following these 10 steps:

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

We have put together this simple guide to starting your yoga instructor school. 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 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 Instructor School Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

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.

What are the costs involved in opening a yoga instructor school?

As mentioned, most yoga schools start out as studios, offering daily classes within the community. Therefore, many of the costs associated with opening your school have already been incurred. You will need a dedicated space to host the school’s students. Some printed material may be necessary for your teaching, but the bulk of your classes will be through guided learning. If your vision is to host students from all over the world, it will also be necessary for you to assist students with lodging and food. Some schools have found success hosting in their own homes or studios, while others negotiate affordable rates with establishments within the community.

What are the ongoing expenses for a yoga instructor school?

Like any business, you will incur standard business expenses, such as rent, utilities, marketing, and website hosting. To ensure your school stays on top of the latest trends and teachings, it is important that you invest in yourself each year. Conferences and continuing education classes can be found all over the world, ranging in price from $300 to upwards of $1,000. Be sure to include travel expenses in your budget and strive to visit someplace new and inspiring each year. This will help keep you balanced and feed your hunger for greater knowledge.

Who is the target market?

While it is true that you will be targeting a small niche of individuals, you do carry one distinct advantage - you understand these people, because you are one of them. Your ideal customer is one who has experienced the positive impact yoga makes on people’s lives, and is ready to share that blessing with their community. They embrace the principles of Eastern medicine and are on their own personal path of growth.

How does a yoga instructor school make money?

Your yoga school will likely generate revenue from multiple different sources. First, you should have a number of students who regularly attend yoga classes, instructed by either you or one of your employees. Clients are charged on a per-class or monthly basis, depending upon your fee structure. This will help you sustain through those first years, as you realize your vision for a yoga school. When setting prices for your instructor classes, be sure to consider who you want to attract. If boarding and food are part of the package, set prices accordingly. Your passion for sharing this lifestyle should not stand in the way of reaching the business’s financial goals.

How much can you charge customers?

Yoga school fees vary, depending on how the school is designed and what is offered. Schools that include room and board in their fees charge $2,800 to $3,400 per student, per class.

How much profit can a yoga instructor school make?

Since many yoga schools also host yoga classes, it’s difficult to uncover specifics regarding the profit behind yoga schools. However, if your school’s fees are set at $3,000, and you incur $1,000 in expenses per student, your profit per student is $2,000. If you host a class of ten students, four times a year, that’s an annual profit of $80,000.

How can you make your business more profitable?

To increase annual profits, most schools choose to offer less intensive classes, charging up to $1,800 per student. For students seeking a less hands-in approach, consider selling DVDs, offering online courses, hosting webinars, and publishing their own yoga instructor books. Those seeking to offer a well-rounded school have also found success hosting classes in other aspects of holistic healing.

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 yoga instructor school 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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a yoga instructor school. Learn more about licensing requirements in your state by visiting the SBA's reference to state licenses and permits.

Certificate of Occupancy

A yoga instructor business is generally run out of a storefront. Businesses operating 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 a location:
• 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 instructor 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 location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your yoga instructor business 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.

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?

Are you a yoga instructor who is ready to take your professional transformation to the next level? One of the many beautiful aspects of yoga is that it calls to many for continuous growth. If you are a passionate learner who yearns to share your teachings with others, opening a yoga instructor school may be exactly what you are looking for.

What happens during a typical day at a yoga instructor school?

If you are considering opening a school, you likely possess the thirst for knowledge and drive to continuously grow on a personal and spiritual level. You love to dabble in every aspect of healing practice, learning as much from your students as they learn from you. While you may employ an instructor or two, you will spend much of your time teaching yoga classes, practicing at least one session a day with your students. A complete yoga training class requires 200 hours of training and is often done as a retreat for attendees. During this time, your duties will increase, as many of your students will be traveling from other areas of the world. Immersing yourself in the program is critical to your school’s success, as building deep connections is what will set your school apart from the others.

Running a school of this magnitude requires you to wear many hats. When not instructing, you will need to manage the business aspect, network with others in the community, and market your school/studio.

What are some skills and experiences that will help you build a successful yoga instructor school?

To open a yoga instructor school, one must possess significant amount of knowledge regarding the history and concepts behind this age-old practice. Owners should have completed the 200-hour course, and have traveled the world learning from some of the greatest teachers. Running a successful and recognized studio prior to opening a school is highly advised. Yoga Alliance offers a number of classes and resources to start you on your path to fulfilling your vision.

What is the growth potential for a yoga instructor school?

Over the last few years, the yoga profession has been ranked as one of the top-growing careers, indicating significant room for development. Those realizing significant growth fully immerse themselves in this way of life, sharing their journey with others along the way.