Are you thinking of opening a yoga studio but not sure where to start or how much it will cost you? Understanding the costs that come with opening a yoga studio will prepare you for the road ahead in creating your business. Building your own yoga studio does not have to be difficult if you understand the costs. If yoga is your passion and you want to create your own studio, you must understand the expenses behind your passion. I have given some insight to help you along the journey of becoming a successful yoga studio owner.
It costs on average around $100,000 to build a medium to large-sized yoga studio. It typically costs between $15,000 to 1 million to start up your business, but you will want a median of $100,000 tucked away to start off with to give you some wiggle room to make your yoga studio exactly what you want it to be.
There are many factors that will make up exactly how much you are going to spend on creating your dream studio. Below is a summary of the key factors that may cost you to build your yoga studio.
What goes into your budget?
Here are some specific decisions that will determine your costs for your new yoga studio:
- Location, rent, and additional monthly bills: about $10,000 to $60,000, but cost depends on where you are located and what kind of building you are using.
An attractive location is important when deciding to buy a yoga studio. However, if it is a high-traffic area or a big city, it may cost you more than opening one in a smaller city. Location will determine rent prices and state regulations for your studio. It may be good to look for spaces that you can initially invest in before completely buying or renting out a business space for your yoga studio.
Taking an alternative route to rent or selling by investing in a yoga studio can give you good insight as to what it takes financially to be successful. This can give you a leg up, as investing is not as cost-consuming as it is to buy or rent, allowing you to save more, so one day you are able to buy a studio.
Rent and utility start-up deposits will need to be factored in. Depending on the location and size of the yoga studio you choose, will help you determine what kind of utility and space expenses you will endure.
- Renovations: cost depends on location
Sometimes it may make more sense to find a “fixer-upper” studio for lease that may need some tender love and care to avoid larger rental or buyer payments. Or, you may just want to renovate a studio you have purchased to fit what you are looking for. Create a budget and add your budget amount to what it costs to start up the yoga studio.
To get a better idea for creating the renovations and looks that you want for your space, go into places like hardware stores, and pick out the things that you would like to see in your space.
Do not initially buy these things. Make mental notes and take pictures of the things that you like and their prices. This includes everything from ceiling fans, and yoga mats, to the paint colors that fit the colorway you want. This practice will help you get an idea of the costs you will incur for the “small details” of your studio.
Additionally, this will benefit you because it will start to form ideas into reality, as you physically see the things that can be and sometimes will be used at your facility.
- Equipment: about $5,000
Thankfully, yoga is a mind and body connection that does not require much equipment. However, there are still things like mirrors, dressing room items like cubbies, along with other decorations that need to be accounted for while creating a budget for the start-up costs.
How Much Does It Cost To Start A Yoga Studio
- Staffing: cost is variable depending on who you hire
It is imperative that you include in your starting budget enough money to pay for an instructor, even if that instructor is you. You need to earn a fair living wage, too, and if you decide to hire additional staff later, you have this portion of your budget already decided.
- Technology & marketing: between $500 and $2,000 for a point-of-sale system; $250 for a website and additional costs for all other marketing decisions
As everything continues to shift into the virtual realm, you will need to get several different systems or one large POS system for business management and sales. Do your research as to what kind of management and security systems you are looking to put into your studio and plan accordingly.
You should also consider creating a website. Without this, your potential students will not be able to find out information about who you are and what you can do. To create your own, it costs about $250. Social media pages can be set up for free.
- Licensing and regulations: about $1,500 for business permits and insurance, with up to $1,000 for other licenses
Licensing and regulations will be different depending on the state that you live in. Typically, there are multiple licenses and regulations that you will need to abide by to start up your business. Here is a small list of some of the licenses you will need to start:
- A business license: Of course, since you are opening your own practice, per se, you will need to obtain a standard operating license.
- Insurance: In most cases, this is needed to become a serious business. Insurance protects you against any risks that may occur as your business starts to grow and bring in customers.
- Register for Taxes: Registering for taxes will allow you to make your yoga studio into a legit legal entity within the eyes of the government. Registering for taxes should be one of the first licensing and regulations items that you take care of.
- Optional: Food handlers’ licenses: If you plan on selling drinks and even small snacks at your location, you will need to thoroughly follow up with government administrations who handle the specific items you are selling. This can be costly but will ensure that you are putting out safe products to your members.
- Legal advice: depending on your personal choices
Legal advice is a strong recommendation for assisting new business owners. Obtaining an attorney can be beneficial to cover yourself of any unwanted penalties or setbacks while trying to set up your business. Legal advice can be beneficial in directing you on the who, what, when, where, why, and how of getting started.
How Much Money A Yoga Studio Makes On Average
How can you save money in your budget?
We all know that opening your own yoga studio is an investment that can potentially be costly, but it can be worth making. Ways to save extra money so you can put more into your investment are listed below.
- Eat in more.
- Shop for the things that are on sale.
- Cut out any additional unneeded expenses (unused or unwanted subscriptions).
- Be mindful of economic changes.
- Take up a side hustle in the limited spare time you have – this can include selling things that have been created from your hobbies or getting an additional part-time job that will make you additional money to put away for savings.
An additional list can be found here. It may be a good idea to create a financial planning excel sheet where you can track your expenses.
You will need people to assist you in creating the yoga studio of your dreams. A great way to save on costs is to do your research when it comes to who you will be working with. To do this, when you need a job done for the studio, do not go with the first person that you find. Make sure that you are doing your research with prices, as well as reviews.
You want to get the most for your buck but do not want to jeopardize having to rehire someone else to finish a job that was done incorrectly. It is important to remember that quality will get you further in the long run than cutting costs upfront.
How can you turn your costs into a profit?
Make sure that you are investing in marketing for your business as well. Marketing is a key factor in creating a profit that will set you apart from competitors, along with lifting you off the ground and start gaining profit.
Think about why you wanted to create a yoga studio space in the first place and allow that to channel your creativity in marketing for your company and your brand. Your business is more than just the yoga, it is in the sales of merchandise too. Do not be afraid to invest in people that you trust and have done research on, to assist in things like website content and design, logo ideas, and advertising for the space you have worked hard to attain. As important as it is to make sure that you have enough money to cover the costs of starting up a yoga business, it is important to remember that the time you put into your studio is just as important.
Consider giving collateral to assist with the costs and achieving your dreams! The expenses are a way to financial freedom. Whatever you are looking for in your studio is achievable if you are willing to put the time and attention into it.
Creating your own business may sometimes be difficult in the beginning, but you can profit anywhere from 15% to 25% if done correctly. Of course, the costs may feel overbearing at times initially, but with the right amount of planning and structure, your opportunities are endless!
How Much Yoga Teachers Actually Make (On Average)
Frequently Asked Questions
When you determine the cost of your yoga classes, you should consider three things: the competition, what you’re offering, and your total budget. First, find out how much other yoga studios are charging in your immediate area, and find out how much you would need to make weekly, monthly, or yearly to make a profit. You should also charge based on the amount of knowledge you or your yoga instructors have. From there, you can determine the best price.
The profit of a yoga studio is directly impacted by the amount of money charged per class, the amount of classes, and the amount of people per class. Depending on those factors, a mid-sized yoga studio charging about $10 per class with fifteen classes a week to ten people per class can make around $80,000 annually.
To learn more about starting your own Yoga Business check out my startup documents here.
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Meet Shawn Chun: Entrepreneur and Yoga Fan
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online yoga business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a yoga business owner in public at a studio or anywhere else I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Yoga Business Boss: I want to help future yoga business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.