You dream of opening your yoga studio but have one small problem: no money! Don’t worry; your dream can become a reality if you make smart, careful choices during your business planning phase. The good news is that you can open a yoga studio with relatively low overhead costs. Creating a comprehensive plan for your studio will help you figure exactly how much you will need for the initial investment.
To open your yoga studio with no money, you will need to have a crystal-clear vision for your studio; a concise business plan that details your total initial investment cost, monthly expenses, and projected revenue; and a means to acquire funds for start-up capital.
Owning your own studio will be a fulfilling experience, but it will also take considerable planning and persistent effort, leaving you exhausted most days. You will need to keep a laser-sharp focus on why you want to open your studio, as passion and persistence will be paramount to your success. Keep reading to discover three simple steps to open your studio with no money.
Step 1: Create A Vision Board
“Without leaps of imagination or dreaming, we lose the excitement of possibilities. Dreaming, after all, is a form of planning.” – Gloria Steinem.
Some believe that if you put your dreams out to the universe, it will reward you with exactly what you desire. In truth, it takes a little more effort, but creating a physical Dream Board will keep you on the right track. Your board should display images, quotes, goals, and anything else that directly answers the question, “Why am I doing this?”
Vision Board Tips
- Be Realistic.
“Expect the best, plan for the worst, and prepare to be surprised.” – Denis Waitley.
It would be a miracle if you spent below your budget, opened your business on time without any snafus, and enjoyed massive, lasting success. Your goal should be to get as close to achieving that miracle as possible, which translates to a consistent daily effort, time, and a steady stream of positive vibes. There will be highs and lows, so quickly learning to bounce back from disappointments will be crucial to your long-term success.
- Do Your Research!
Before you open your doors, you should objectively analyze the following:
- Market Analysis:
What is your area demographic? Structure your class offerings around the characteristics of your population. Your research will tell you if you should include classes aimed at seniors or children or, if you have a surplus of young, fit adults, if you should incorporate some trendier styles, like beer or goat yoga (yup, those are real things).
- Competitor Analysis: Are there any other yoga studios nearby, and if so, what are their business structures, class offerings, and monthly membership costs? You want a strong marketing campaign aimed at their members if you wish to convert them to your studio.
Step 2: Write A Detailed Business Plan
“Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.” – Abraham Lincoln.
Although it can be tempting to jump headfirst into the fun stuff, like painting and decorating, your most significant effort should be preparing a detailed business plan. This plan will outline every detail of your studio, including your unique concepts, competitors, intended marketing strategies, goals for your studio, both long- and short-term, and your overall financial plan.
Mapping out your course will take many hours to complete, but you cannot skip this part if you wish your studio to survive and thrive for years. Your vision board will be instrumental in keeping your motivation high during this process.
Here is a list of essentials you will need to obtain before opening your doors to the public:
- Business Registration and Tax ID
- Licensing and Permitting fees
- Insurance fees
- Rental deposits or funds to purchase a property
- Utility deposits
- Equipment costs
- Website creation
- Phone & Internet connection
- Renovation costs, if needed
- Initial marketing costs
- Grand Opening Party funds
Step 3: Find a Source for Funds
“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand.
Now that you have done the exhaustive work of building your business plan that explains where every penny will go, you will need to find the pennies.
It’s never a good idea to put yourself into massive debt to start any business. Far too many unknown variables could shut down a healthy business, so you want to ensure you don’t dig such a big hole that you cannot get out. A change in trends, an economic recession, or a force of nature like a hurricane can set your business back considerably, so you want to make sure your business can withstand any unforeseen obstacles that come your way.
Here are some options if you decide to borrow or finance part (or all) of your start-up costs:
Option 1: Tap Into Your Savings
Self-Funding, aka “bootstrapping” your business, means you will need to tap into your financial resources such as savings, 401k, or other retirement accounts or investments. If you do not have these financial resources, you’ll need to put yourself on a tight budget and squirrel away as much as possible until you are ready to take the plunge. Be sure to put all profits you receive directly back into the business, at least for the first year.
Choosing this option doesn’t mean you have to hit the brakes on your branding, so start building your future client base by teaching at other established locations, online or outdoors, while you save so you’ll have a client base when you are ready to open your doors.
Option 2: Borrow From Family or Friends
If you are lucky enough to have a supportive base of friends or family members willing to kick in some cash to help your start-up, be sure to have an explicit, written agreement that outlines all aspects of your business arrangement. Will you pay them back with interest? Will they be entitled to a specific profit percentage? What do they expect in return, if anything? Maybe you can offer free memberships to those who help financially to get your business off the ground.
Option 3 – Consider a Partnership
An excellent way to split the cost of owning a business is to enter your venture with a silent partner or a partner who wants to be actively involved. Make sure you like and trust this person wholeheartedly and that you share a mutual vision for the studio’s future. Have a legal professional draw up a contract outlining ownership percentage, responsibilities, profit splits, and anything else that needs to be ironed out before entering a partnership.
Option 4: Borrow From A Bank
“A bank is a place that will lend you money if you can prove that you don’t need it.” – Bob Hope.
You must have good personal credit to take out a small business loan, so speak to a finance professional about ways to clean up your credit. Even if you choose not to use a loan for start-up capital, it’s a good idea to build your credit if you decide to expand or move your location in the future. A separate business-only credit card for company expenses also helps keep your business and personal money separate for tax purposes.
SBA-guaranteed loans are another great option to explore. If you are a woman, explore SBA Microloans for Women to get a loan of up to $50,000 to start a new business venture. Before accepting the terms of a loan, read all the fine print to ensure there aren’t any hidden fees and your rate will not increase during your loan term.
Tips To Keep Studio Costs Low
- Rent Rather Than Buy
Hire an experienced Realtor to help you find a space to rent that is centrally located or find a quiet business that has extra space to share. Splitting rent and utilities with another company is a great way to save your money for the first year. Once you are an established studio, your students will be happy to move with you to a better space.
- Buy Cheap Equipment And Minimal Décor
The beauty of yoga is in its simplicity, so if you purposefully stage your studio with a minimalist mindset, you won’t need many extras to dress up your space—Research the best places to find discounted yoga equipment to keep costs low.
- Do Your Own Dirty Work
Your studio needs to be sparkling clean; this is non-negotiable. You can save money by doing the dirty work yourself rather than hiring a cleaning company. Go in early or stay late to scrub and sanitize your studio space, mats, bathroom, and wash towels at home rather than send them out to a professional service.
- Trade Memberships for Products or Services
Do you know any handymen who can help renovate your space in exchange for a discounted membership? Or a friend who can help create a killer website in exchange for a free membership? Maybe you can offer a discounted membership for free food catering for your Grand Opening Party. Get creative, and don’t be afraid to ask for help!
How To Best Offer Private Yoga Sessions
Frequently Asked Question
There is a saying in business that you are either growing or dying, so continuously marketing your studio will guarantee future clients for future revenue. In addition to marketing on every social media platform, direct mailings are another low-cost option to help get your information into more hands. A coupon to try three classes for the price of one is an excellent offer because it guarantees you will at least profit from the trial, even if the person decides not to join.
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.