How to Start a Zumba Studio

Start a zumba studio by following these 10 steps:

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

We have put together this simple guide to starting your zumba 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 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 Zumba Studio 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 zumba studio?

Costs vary, depending upon the size of your start-up operation, number of employees, and specific services you offer.

Start-up costs include the following:

• Zumba teaching license - $200-$350
• CPR and first-aid training/certification
• Liability insurance
• Location - If you decide to start out teaching at an established gym, this will significantly reduce your initial costs. It will also, however, slow down the growth of your business. When venturing out on your own, choose a studio space that is centrally located and easily accessible. Try to make it in an area with a diverse population. Make sure your space has at least on street-view window to inspire those walking by to sign up.
• Website and marketing materials

Standalone studios can be opened for as little as $30,000, while high-end facilities can cost upwards of $500,000. Entrepreneurs are urged to cut down on costs by keeping it simple.

What are the ongoing expenses for a zumba studio?

In addition to standard operating expenses, such as rent, utilities, and phone, expect to budget for the following business costs:

• Insurance for employees and the business
• Travel and education costs - Once you are Zumba certified, you won’t be required to renew each year. However, true success comes from continuously growing and expanding your skill set.
• Payroll expenses - consider reducing this expense by hiring instructors on a 1099 basis
• Inventory
• ZIN(Zumba Instructor Network) membership - Membership offers invaluable business and instructor support, as well as marketing tools. $35 per month
• Marketing and business tools and website maintenance
• Purchase and ongoing maintenance of equipment

Experienced business owners report a range of ongoing expenses from $2,500 to upwards of $15,000 per month, depending upon how the business is structured.

Who is the target market?

There are a surprising number of individuals within your community who are willing to pay to sweat it out learning new dance steps. The target market for a Zumba studio is all-encompassing, offering a number of great marketing opportunities.

Potential clients include:

• Children
• Individuals with health issues
• Corporations who are dedicated to facilitating healthy living for their workforce
• Sport clubs
• College students
• Fitness gurus who are seeking variety in their workout regimen

Once you’ve identified the audience(s) you wish to cater to, you can begin to build a marketing strategy that will successfully reach this market.

How does a zumba studio make money?

When teaching at a gym, you will generally be paid a flat rate, regardless of how many students attend your class. Dedicated Zumba studios charge per student, for each class that they attend. Many Zumba studios offer class packages to ensure student retention.

How much can you charge customers?

Students pay anywhere from $5 to $20 per Zumba class, depending upon the level of instructor and location. Many studios also offer a variety of discounted packages for new students, returning students, and monthly subscriptions. These packages start at $25 and go all the way up to $200 each.

How much profit can a zumba studio make?

Entrepreneurs who have been able to expand their portfolio to include two or three locations report an annual revenue of more than $350,000. Profits are directly tied to your dedication and ability to understand and meet the needs of your target market.

How can you make your business more profitable?

To maximize your business’ profitability, consider building a well-rounded facility that meets the needs of a broader audience. Potential strategies include:

• Offer a Zumba instructors program
• Host community based dance classes
• Teach choreography
• Provide instruction in various dance styles, not limited to just cardio-based dance
• Offer dance production and consulting services
• Merchandise sales
• Coordinate social events that incorporate your studio’s services
• Host a destination Zumba retreat

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 zumba 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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a Zumba business, if you’re opening your own studio. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

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 Zumba 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 Zumba business will be in compliance and able to obtain a CO.

Liability Waivers

To avoid liability and potential lawsuits, Zumba businesses should have their clients sign waivers.

An example of an appropriate waiver can be found here. 

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?

To run a successful Zumba studio, you must be dedicated to consistently delivering quality classes to your students. You must be passionate about helping your students reach their fitness goals and motivating people through dance.

What happens during a typical day at a zumba studio?

Many Zumba instructors get their start teaching classes at large gyms that offer a multitude of different fitness classes. With the popularity of Zumba on the rise, however, many entrepreneurs are finding greater success opening a “boutique studio.” Your day-to-day activities will vary, depending upon which route you take.

Daily tasks include:

• Preparing for upcoming classes - learning choreography, picking music, and practicing
• Making sure the studio is safe, clean, and comfortable
• Teaching classes
• Hosting and/or attending community events
• Market your business and network within the community
• Attend Zumba conferences, building on your education and certification

Once your business has reached its short-term growth goals, consider expanding your team to include someone to handle administrative duties. This will ensure you’re able to focus on the parts of the business you’re most passionate about.

What are some skills and experiences that will help you build a successful zumba studio?

Leading a successful Zumba business requires a high level of business prowess and leadership skills. Zumba instructors must possess strong interpersonal skills and an outgoing personality that helps them lead their students with confidence. Awareness of others and their personal needs will help you connect with students, ensuring a successful class and, ultimately, studio.

Leaders in the industry urge interested entrepreneurs to spend some time working in a gym setting. This firsthand experience will help in understanding the needs of potential clients, successful marketing techniques, and the administrative side of running such a business.

What is the growth potential for a zumba studio?

While most new business ventures take an average of three years to turn a profit, many Zumba business owners have realized accelerated growth. By the end of the first year, many have been able to reinvest a portion of their profits, opening several additional locations in their region.