The first thought that most people have when they hear that someone owns their own business, is that they must make decent money from it. Any business you become a patron of is running its business to make money. There can also be great intentions and passion behind it, however, money is what keeps the doors open.
So how much money can a yoga studio make? According to StudioGrowth the average yoga studio owner can make around $7,000 a month in income, with their studio bringing in around $13,500 a month overall. These numbers are subject to change depending on your class fees, overhead costs, class sizes, and more.
As mentioned these numbers are an average, meaning that some studios can make more monthly while others make less. The leading factors to your studio’s income are class sizes, class prices, and your overhead costs (such as rent, employee wages, and utilities). Each studio will make a different amount which is something to remember.
How Yoga Studios Make Money
Before we can discuss average income, we need to understand how studios make money. There are several different revenue streams that they can have. From group classes to private sessions, merchandise, renting out the studio, and teacher training to name a few. The more revenue streams a business has, the more room there is for growth and profit.
Group Classes
Group classes are a great source of revenue as many people enjoy the group environment and partaking in the activity with friends. This allows you to bring in more customers at once while charging a decent fee per person. The key here is finding the times that work best for your intended demographic.
For example, one morning class may be ideal for those who attend after dropping their kids off at school or enjoy a morning session. While others enjoy a nighttime class to unwind after their day. So, figuring out which classes, beginner or advanced to name a few, will be preferred allows you to better utilize your resources and time. Having a class for two students is not as beneficial if you are charging class rates.
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Private Sessions
Another option is private classes for those who do not mind paying more for a personalized class. Some people thrive in a solo environment and are willing to pay the cost to have the experience. These clients can help fill in the rest of your day if you have enough of them.
One way to incentivize people to schedule these sessions is to offer a bundle price for prebooking. Whether that’s a buy four classes and get your fifth half off or every tenth class is free. Both offers hold similar value to the studio but lead the customer towards ten classes since the promise of a free one is more enticing than the half-off is.
Of course, you can also offer a discount or promotion for attending a certain number of group sessions as well. Or even setting up a referral program. So that your customers bring in their friends and spread the word about your studio while they receive maybe twenty-five percent off a class session for every friend they refer.
Merchandise
Another great option to generate additional revenue for the business is to figure out what items your customers may want and to sell them. This can mean adding your logo onto yoga mats, yoga socks, hoodies, t-shirts, and sweatpants and selling them in a mini gift shop type setup. Allowing customers to represent your studio and staying comfortable.
This may not seem practical to some but say the weather took a turn and people have errands to run afterward. Instead of going home to change they may just buy a hoodie to stay warm and cozy while running errands. Or maybe they forgot their yoga socks at home and prefer them over regular ones. So they purchase yours.
These items have no expiration date and many websites offer discounts on smaller orders so purchasing them to have on hand will pay off for you. Whether they get sold today or next week, the money brought in after costs are revenue. Especially since you are not relying solely on those items to generate revenue for your business. Offering stickers when people attend their first class is also a great promotional item. People enjoy stickers and tend to put them on laptops, water bottles, planners, and so on. Helping you get some word-of-mouth marketing.
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Renting Out The Studio
The options here truly are endless depending upon your studio space and the types of events you allow. If you chose to go this route just ensure that your insurance is higher coverage and you are insured in case anything happens since you never truly know what can happen.
Being a studio owner dealing with classes you likely already have this type of insurance but it’s good to check and be thorough. Better safe than sorry.
The types of events you can rent the space out for are varied from birthday parties to other instructors and more. For example, if you know someone interested in teaching ballet classes, but they do not have a studio yet. They can rent out your space when it’s not being used for their classes. While you make money during an otherwise empty period.
Or you can allow people to rent the space for birthday parties if someone wants to set up a ballerina birthday or they just need a space indoors. During the warmer months, a lot of party venues are booked, so opening it as an option can bring in additional income, again during otherwise dead times for you.
According to PeerSpace, studios can be rented for anywhere from $50 to $120 an hour. Depending upon the event, the number of people, the types of accommodation needed, and so on you can determine your pricing. Do try and make it similar to other spaces being rented in your area though if you want it to be considered.
This is also when that word of mouth and merchandise marketing we mentioned earlier can come in handy. Helping to spread the word about your studio and the fact that you rent the space out, can go a long way when it comes to marketing.
Teacher Training
While yoga teachers do not need certifications or training per se to teach classes, they are preferred. Those with proper certifications tend to have a better reputation in the community and the opportunity to charge more for their classes. So taking the training and paying your state’s fees if needed, requirements may differ by state, which can be beneficial for you.
Some programs are hour based, requiring about two hundred hours of training. While others are curriculum based and can last anywhere from three to five months.
This training can allow you to make extra income and allow others in your community to become qualified to teach yoga. They could also become a potential studio renter from you in the future, you never know.
So a yoga studio can make around $13,500 a month with the owner making around $7,000 a month in profit. These numbers are averages and depend upon the number of classes offered, the number of students you have, and any additional revenue streams you have in place.
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Frequently Asked Questions
No, you are not teaching your competition, you are sharing your skills and knowledge with others who value them. They can continue to be customers of yours or they can rent out your studio to teach their classes. Throughout the teaching classes, they may find a type of yoga they truly enjoy and want to make that their specialty, which is hopefully different from yours as well.
No, if you have enough customers attending your sessions and your studio is doing well off of those classes alone, you can stop there. The options mentioned are just other ways to bring in money for your business when it may otherwise be empty. If no one is using the studio, why not try to generate additional revenue with it? At that point, the money earned would be pure profit since overhead expenses are already calculated into prices and fees.
You could buy a few tables, chairs, and basic party setup items for the space. Then offer them as rentals for parties or events so that people have the option of convenience when booking with you. Nine times out of ten people will try to bundle things together to get the best price. They do this because it’s advertised as being the easiest and cheapest way to go about doing something. So that is yet another way you could earn additional money when renting out your 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.