You’ve been a devoted yoga practitioner for a while—you love the lifestyle, you have loyal students, and now you’re thinking about starting your own yoga studio. It is estimated that about 40 million people in the U.S. practice yoga– that’s quite a market! To get off to a successful start, you’re going to need more than good karma. Roll out a mat and have a seat, I have more to tell you!
To start a yoga studio, know what your potential clientele wants and create your vision, develop a business plan, cultivate a following, register your business, and select a space. Then file the appropriate paperwork, open a business bank account, set up your payroll and payment method, hire staff and open your doors.
Start with vision
Currently, there are more than 5,000 yoga studios in the United States. There are also yoga classes offered in gyms and recreation centers, not to mention countless more online yoga platforms. With this in mind, it is very important to consider what you will bring to yoga students that will set you apart from the rest, and build upon that.
Think about what kind of studio you want to create. The focus of some yoga studios is strength and fitness, while other studios are more relaxed, meditative and spiritual. While it’s possible to cater to different clienteles (with different classes) your studio should ultimately stay true to its original identity (the feature you decide will set it apart from the rest). This will determine the overall vibe of the studio, influence the types of teachers you hire, and ultimately shape your following and your business.
Gather feedback
Once you have an idea about the direction you wish to go, you can start gathering feedback. Host free (or very low cost) classes in public venues like parks, beaches and nature preserves. You’ll need to promote your events in advance for the best turnout, and you’ll also have your free students sign waivers and register for classes in advance. Here is your opportunity to gather contact info for surveys and marketing, via the registration form.
After each free yoga practice, send a survey from a freemium site like Typeform, asking students what they liked or didn’t, what they want to gain from practicing yoga, and what they look for in a yoga studio and yoga community. You’ll think of more to ask, but those three questions are important. Use the information you gather from the survey to nail down how to best serve your yoga community with your offerings.
Continue using the contact information to keep your followers posted about future events and special pre-opening promotions. Many yoga teachers say hosting potlucks is a popular and fun way to nurture long-lasting relationships within the yoga community. Use events like this to unite and keep your yoga flock together while the business gets underway. Stay on the radar!
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Draft your business plan
Now that you’ve established your vision, identity and sense of direction, it’s time to come up with a business plan. The purpose of a business plan is to define the focus of the business. The business plan is going to include your mission statement, articulate objectives and goals and tell how you’re going to achieve them, lay out a budget, and sort out lots of other important details you might not have thought about yet.
A business plan is also necessary when you need to apply for any business loan for your yoga studio. The bank will want to have a look at your business plan to make sure the revenue and expenses look good before lending you money
If you aren’t sure where to begin, I have a great resource for you. Use the free template from the nonprofit small business mentoring organization, SCORE. By the way, SCORE has a large collection of webinars and courses for small business owners about marketing, how to use TikTok for your business, getting loans and more. Here is a webinar on how to write your business plan if you’re stuck!
Scout out some spaces
You’ve done your research within your yoga community and online; you know what your clientele wants in a yoga space. You’ve also created a business plan, so you know what’s in your budget.
The best locations are centrally located and easy to get to, both in commute time and parking access. Location is critical to a yoga studio’s success, so try to stay within these parameters. The trick will be finding a plum location that’s also within your budget.
Ask around and find out how much rent other businesses in the neighborhood pay so you have a ballpark idea of what is reasonable for the area. Later, when the time comes to enter into a lease agreement, don’t be afraid to negotiate. If you’re not comfortable doing this, employ the services of a business broker or attorney. An experienced representative will save you a lot of money.
Be sure you or your representative asks your landlord to include a “Good Guy” clause that won’t leave you on the hook if you need to exit the lease early.
According to Yoga Journal, “If you include a ‘Good Guy’ clause, you guarantee to pay the rent only as long as you’re occupying the premises. If you have to leave your studio, even before the lease ends, you will have no obligation to the owner to continue paying rent, as long as you vacate the premises. The ‘Good Guy’ clause works because every landlord’s biggest concern is that a tenant will stop paying rent but remain in the space, preventing her from leasing the property to someone else.”
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Get all the legal stuff in order
You’ve got your following, your business plan, and you’ve identified some potential spaces, now it’s time to start setting things into motion. Many of these next steps happen sequentially. I’ll give you a brief overview of what’s to come.
It’s time to form your business entity. For an independent yoga studio, the best business structure is an LLC., or limited liability company, which will protect you personally from being held liable in the event of an injury lawsuit against your business.
Before you can proceed with anything else, you’ll need to register your business for taxes by going to the IRS website and obtaining your EIN, or Employer Identification Number. This is like a social security number for your business—it’s what the government will use to identify your business, and you’ll need it to open your business bank account.
Check with your local and state government to see what licenses, building certificates, or permits you will need to open your yoga studio. Regulations vary by city and state.
Take it to the bank
You’ll need to open a business bank account to run payroll, apply for business loans, and simplify accounting. When you choose your bank, check their website or call ahead to ask what documents you need to bring to open your account—different banks ask for different documentation.
Get a business credit card to start building your yoga studio’s credit. Ideally, this card will offer higher spending limits and better interest rates. A business credit card will also prevent the co-mingling of your personal and business finances, which is strongly cautioned against!
This is a good time to settle on a payroll processing platform and payment method, so you can move on to the next step—hiring your staff.
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Finding the right staff
This is potentially the trickiest part of running your yoga studio. With your specific clientele in mind, you’re going to need to choose the best instructors to meet their needs. First, decide what sort of qualifications you want in your instructors.
The industry standard for basic Hatha yoga is 200 hours of teacher training, but studios are increasingly seeking applicants with 500-hour certificates. Instructors of Hatha yoga who have 200-hour certificates can still be a good fit for your organization, but leave the more novel yoga classes, such as hot yoga or aerial yoga for the 500-hour certified teachers!
Once you know what qualifications you’re looking for, think of what sort of energy you’re looking for in your instructors; think about what characteristics they have that would enhance your studio and yoga community.
According to fitness business platform Hapana, “The right candidate is out there, so wait for them! Hiring employees because you have to fill an open position is a recipe for disaster. In fact, having no one is better than hiring someone who doesn’t accurately represent your studio brand and culture. Create a disciplined hiring process, take time to find and interview multiple candidates, and always conduct proper interviews.”
Staffing can be an issue with yoga studios. There is a high turnover. You can avoid some of this by keeping a friendly work environment, but mostly, it’s just the nature of the business. Always be on the lookout for potential instructors, even when you are running with a full staff. Consider offering teacher training classes so you have a steady supply of recruits!
It’s smart to run on a smaller schedule at first, so it will be easier to cover classes. The most popular times of day for yoga students are morning and evening.
Open your doors!
Consider a hosting a grand opening with a few fun, relaxed yoga sessions and refreshments to let the new instructors get acquainted with clientele. Swag, like branded yoga mats and blocks, can incentivize people to sign up for membership or purchase class bundles, but get some smaller promotional items, too, to thank everyone for showing up.
You’ve done so much hard work and now it’s time to welcome your new community of students into their yoga home. Congratulations and good luck.
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Frequently Asked Questions
If you control the schedule and how the work is done, then the IRS classifies these workers as employees. If you think you’re in a gray area, ask a CPA. The IRS expects you to know and follow the law or face heavy penalties.
According to instructor Rachel Scott of rachelyoga, treat your teachers to perks like free classes and training. Be upfront, not vague, about their potential to earn more or move up in your studio. Listen to their feedback, connect with them, and show them they’re valued as individuals.
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.