Opening a yoga studio is no modest undertaking, especially in a small town. With fewer experienced yogis than you might find in a large city, yoga can be intimidating to those who have never tried it. Building a loyal group of members requires developing new relationships that evolve organically and sincerely over time. Use this article as a checklist to ensure you lay a solid foundation on which your studio will thrive.
To open a yoga studio in a small town: create a detailed business plan, find a yoga studio space, obtain the necessary licenses and permits per your town and state guidelines, purchase insurance, apply for a Federal Tax ID/EIN based on your business entity type, open a business-only bank account, hire yoga instructors, set up a website and phone system, and furnish your space with the proper equipment. Most importantly, market your company to ensure a steady stream of paying clients to cover your operating costs and produce a profit.
Having passion alone is not enough to be successful in the long term; you will need to be highly organized and have the determination to push through adversity, no matter the obstacles.
10 Steps To Opening A Yoga Studio In A Small Town
Step 1: Develop A Detailed Business Plan
“If You Fail to Plan, You Are Planning to Fail” — Benjamin Franklin
To start your business strong and continue to grow every year, you need to have a strong business plan that is thoroughly detailed.
Questions You Will Need to Answer
- What is my business name and logo?
- What is my mission statement and vision?
- What does my studio stand for, and what is its purpose?
- How is my yoga studio going to benefit other people?
- How is my yoga studio different from other companies in the area?
- Who are the founders and management team? State their qualifications and experience.
- What precisely will my studio offer? Include all types of classes and a targeted number of students per class.
- What is my financial plan?
- Will I need to apply for a loan?
- Will I offer monthly memberships or class-by-class payment?
- How much will be allotted for operating expenses (rent, equipment, marketing, payroll, insurance, website creation and maintenance, phone system, etc.)?
- What is my marketing plan?
- Online/social media advertising
- Direct paper mailing
- Word of mouth
- What are my business goals? Include detailed expectations for your 6-month, 1-year, and 5-year plans.
Step 2: Find A Studio Space
The location of your studio is critical, so take your time finding the right spot. I recommend hiring an experienced Realtor who will help you find the perfect location and assist you in purchasing or signing a tenant lease. Here are some details to consider when choosing your site:
- Choose a space close to public transportation or centrally located.
- Confirm the number of parking spots you will be allotted; ensure ample parking space.
- Check your space requirements – choose a large enough space for the number of people you want per class.
- Check the location of competitor studios and gyms that offer yoga classes in town – you want to be the only studio available in the area.
- When you find the right commercial lease spot for your studio, you must submit a business plan and a letter of intent to the landlord.
- For a small town, I recommend offering a wide variety of yoga classes. A niche studio will pare down an already small pool of potential students.
- Choose a short-term lease (1-2 years) to start. Don’t get locked into a long-term lease if you plan to expand the number of members.
Step 3: Apply For Licenses And Permits
Once your location is secured, apply for and submit all licenses, permits, liability insurance, waivers, and other town and state-required documents. This process can take time, so allow yourself at least six months to acquire everything you need. Failure to comply with town and state business requirements could result in hefty fines or even a business shut down as soon as you open to the public (not a good first impression).
Check with the US Small Business Association (SBA) to find out licensing requirements for your state, and take a trip to your town hall clerk’s office to discover your town’s requirements.
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Step 4: Choose The Right Insurance Plan
Speak to an insurance professional about choosing the right yoga-specific liability insurance for your studio, as there are many coverage options. BeYogi is a policy I recommend but be sure to do your research to find the right fit. Make the decision ahead of time (and include it in your business plan) if you require your teachers to obtain individual yoga instructor liability insurance policies, which is also recommended.
Now is also a great time to create liability waivers for your students to minimize the risk of being sued if someone gets hurt during a class. If you offer classes to minors, have their legal guardian sign for them.
Step 5: Open A Business-Only Bank Account
Setting up a business banking account dedicated solely to your business will help keep your business and personal transactions separate. From this account, you will pay your rent, teachers, equipment, marketing materials, cleaning services, trash pickup, and any other services your business will require.
Having a business-only credit card will also aid in building credit for future loans if you plan to expand and will help with organizing your taxes at the end of the year. You may qualify for business-only advantages, such as lower rates and small-business lines of credit.
Step 6: Set Up A Website And Phone System
Your company website doesn’t need to be expensive or overly complicated, but it does need to be user-friendly and consistently updated. Your main page should have your vision statement about who you are as an individual and why you embarked on this adventure. Include a section about your instructors (with photos), and have your teachers write their bios with personal insight into who they are and what yoga styles they teach. Make sure you update your calendar of classes in real-time; if there is a last-minute cancelation or change, your members need to know about it immediately.
The same idea applies to your phone system; it doesn’t need to be overly complicated, but someone needs to answer the phone every time it rings and respond to messages promptly.
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Step 7: Hire Teachers
Your teachers should have prior experience, qualifications, and referrals and share in your passion for yoga. Your team will be traveling billboards for your business, so they need to be able to not only recite your vision statement but also believe in it wholeheartedly.
Your team should be as excited as you are to open the doors. I suggest scheduling monthly meetups at fun, off-site locations to create a sense of togetherness. Encourage your instructors to join each other’s classes so you are all teaching as a cohesive unit. If you are sensing a lack of energy or commitment, offer referral incentives to create healthy competition within your staff and to increase the number of new members.
Step 8: Furnish Your Space
This is the fun part! Your décor should match your vision statement. If you only offer power or hot yoga, you will want your studio to have a fun and upbeat atmosphere, so choose paint and décor to match the energy. The same idea applies if you want a peaceful, tranquil vibe. There is no wrong way to decorate your space – make it uniquely your own!
Step 9: Purchase Equipment and Logo Apparel
You will want to invest in some uniformed apparel for your staff. A zip-up hoodie or tank with your company logo gives your team members a polished, unified look. As another layer of marketing and advertising, encourage your teachers to wear their gear outside the studio as much as possible.
Feel free to expand on this list, but to save on startup costs; I suggest starting small with these yoga studio staples:
- Yoga mats
- Yoga blankets
- Yoga blocks
- Yoga straps
- Foam rollers
- Cleaning supplies
- A source for music
Step 10: Market Your Brand
“People don’t buy what you do; they buy why you do it.” – Simon Sinek.
If your business is to survive long-term, especially in a small town, you must continuously meet new people, connect genuinely, share your passion, and plant seeds for future business.
Offer your services as a teacher at other studios to build relationships with clients before opening your studio. Once you open your new space, you should have a handful of eager students to join. Attend local events, distribute free company logo merchandise, or offer discounts to current members for referrals.
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Frequently Asked Questions
Opening a yoga studio can cost anywhere from $15,000 to $100,000, depending on the size of the studio, location, and other factors. To find out both your total start-up and ongoing costs, calculate the following: monthly rent or total purchase cost; any renovations; studio equipment purchases; total cost of licenses, permits, insurance, and legal fees; monthly utilities and services; initial marketing costs; website creation and monthly maintenance expenses; and teachers’ wages.
A yoga studio owner in the US earns between $18,690 to $70,180 a year, with a median salary of $36,160. However, larger studios in affluent areas such as New York and Los Angeles can earn over $100,000 annually. The total number of members, membership fees, and attendance consistency are the major factors determining how much a studio owner will make.
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.