Starting a yoga studio can be a fun and exciting time in an instructor’s life. However, the cost associated with the initial startup can scare off even the keenest yogi. So how much does it cost to set up a yoga studio?
The average price of starting a yoga business is about $70,000. However, the price can range from about $15,000 at the low end to over $100,000 for large, high-end studios. You need to consider the costs associated with the studio space, your yoga business, and retail.
Other things that add to the cost of starting your own studio include your location, the types of finishings you are considering, and what sort of props you will offer. Read on to learn more about the itemized costs of opening your very own yoga studio.
Costs of Opening a Yoga Studio
It is normal to feel overwhelmed when thinking of starting your own yoga studio. Between all the instructor training, legal hoops, and costs, it can feel disheartening and stressful, especially when the average cost to open a yoga studio is $70,000. When it comes to the price of opening a studio, there are 3 main types of expenses: your studio space, setting up the business, and retail items.
Space
The studio space is a primary financial burden when beginning your studio ownership journey. To begin, check out realty sites like Zillow to get an idea of what spaces rent for in your community. Renting or buying in a bigger and more popular city will cost more than renting or buying in smaller towns.
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Rent
Many people choose to rent the studio space rather than purchase it. This allows studio owners to use the space to their advantage, but they do not have to be fully responsible for the space.
The average size for a studio with a reception area and enough room for 25 students is about 1100 square feet.
Legal Fees
Perhaps almost a hidden cost is the legal fees you incur when you have your business lawyer read over the lease agreements. While this can cost between $1,000-$1,500, depending on your location, it is recommended to have a business lawyer read everything before you sign any contracts.
Terms
Be sure to check what is needed upfront before signing any contracts. Many landlords expect the first and last month’s rent at signing and a security deposit. There is also usually a clause about rental terms. Some terms will be yearly, while others can be for 3 or even 5 years.
Buildout
Once you have your space on rent, you can begin finding a contractor. Sometimes, you can find a space requiring minimal work to convert into a studio. However, if you don’t, you will need to hire a contractor and builder to help shape your studio into the yoga space of your dreams.
The costs associated with the buildout are generally high. However, they depend heavily on the amount of work to be done, how quickly you want it finished, and the types of finishings you choose for the space.
Choosing a studio space that is already partially finished or used as a dance studio or yoga studio previously can save you thousands of dollars.
Maintenance & Utilities
Once everything is up and running, you may think there is not much more to pay for. However, while the bulk of the money goes toward startup costs, maintenance on the building can add up.
You will have to pay monthly for the water, electricity, and sewer. Maintenance work will also be done on the studio throughout the year to keep it running smoothly.
Business
The physical space is just one aspect of your yoga business. The business is an entity, and day-to-day activity will add to the financial costs of opening your studio.
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The Essentials
To begin a yoga studio, you need a few things. The first thing is a yoga instructor certificate. If you plan on being the one to teach yoga at the studio, you need to be legally allowed to do that safely.
Next, you will need insurance for both yourself as an instructor as well as for the building. Almost all leases require you to have renter’s insurance on the building, and businesses need liability insurance.
Many places require yoga instructors to be CPR and AED certified and access the required materials in the studio. These classes usually offer certification for a few years, and renewal is easy.
Props
It is essential to offer props to your yoga students. Most studios will provide yoga blocks, yoga straps, and towels to their students in general classes. Having a few extra mats on hand is also a good idea if a student forgets theirs at home.
Some studios will set the room up with special yoga mats, blocks, and straps for each student. The amount of props you provide also depends on which types of yoga you offer.
For obvious reasons, specialty classes like aerial yoga will have more costly props and installation.
The cost for props is a significant investment at once, and then smaller orders as they get worn out. Always ensure your props are in clean and safe working condition, and replace them as necessary.
Staff
Paying yourself and your staff can be a large financial chunk. While many new studio owners tend to do most of the teaching themselves to cut down on spending, others need to hire staff.
Staff can range from instructors to front desk to housekeeping.
Sometimes, hiring staff will help increase the number of students you bring into your studio. This is especially true if you find instructors certified in different types of yoga to offer a variety of classes.
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Bookkeeping & Scheduling Systems
While not many people balance their checkbooks today, businesses do not have that luxury. There are also many tax and reporting laws that a business needs to complete and uphold.
Some businesses choose to hire an accountant to manage their finances. Others use online bookkeeping services. These services usually work through a paid subscription and can add to the business’s costs.
In addition to paying for bookkeeping, many studios today use an online platform for scheduling and classes. These applications allow students to register and pay online, making it easy for students to just show up and enjoy their classes.
Similar to bookkeeping applications, scheduling applications offer paid subscriptions and can become costly. However, almost all scheduling applications will provide detailed records of income collected, making it easier for your accountant or you to keep track.
Marketing
What good is having a business if no one knows about it? Marketing is the number one way to get students through your door and onto their mats.
Some marketing is free to use. Utilizing social media, YouTube and Pinterest are all free platforms you can post on to reach the public. Most email subscriber lists are free until a certain number of emails, usually around 2,500.
Perhaps the best marketing, word of mouth, is free as well. However, creating punch cards for students, printing materials, and running ads in your local paper will cost money.
Retail
While creating merchandise to sell in your studio may seem counterintuitive to a financially aware small business owner, doing it right can increase your income drastically!
Creating and selling items with your logo will also double as an advertisement when your students wear or use them. For example, water bottles, t-shirts, tank tops, yoga mats, sweatshirts, candles, or yoga mat bags are great retail items for a yoga studio.
Many places online allow you to upload your logo and buy bulk items to sell as retail in your studio.
Summary
Opening a yoga studio can be costly, especially in the beginning. Many people shy away from taking the plunge into studio ownership due to the overwhelm of finances involved.
The average cost to open a yoga studio is about $70,000. However, the actual number depends on many factors, including your area, rental costs, contractor work, and how many employees you hire.
Breaking down the costs and making wise financial decisions throughout the process can help set your studio up for success.
A great way to increase your profit is to offer retail products, and it doubles as marketing when your students use or wear the items in public!
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Frequently Asked Questions
Starting your own yoga business can be fun and simple if you know how to do it properly. You will need a yoga instructor certificate, a business name, a logo, and a website to start. Many instructors choose to teach virtually, and others open a brick-and-mortar studio.
Today, many yoga instructors are choosing to teach online in virtual studios rather than committing to a physical studio. Virtual studios allow instructors to teach from and reach students anywhere in the world without the overhead costs of a brick-and-mortar studio.
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.