There are thousands of yoga studios in the country; how you will succeed depends on how well you plan yours. Choose the right yoga studio business model.
With 6,000 yoga studios in the US, and counting, creating a winning business model and plan is a must. To become a successful business owner, you need to figure out how to distinguish yourself from the competition. Complete the steps below to arrive at a business plan that is unique to you and highlights why people should choose your yoga studio over others.
Step 1. Do a Yoga Studio Competitor Analysis
Before deciding how you want to run your yoga business, look into how others in your area are running theirs. You will find both strategies that work, as well as unmet needs that you can target with your own business.
Look at what competitors are charging and what model they use. Some focus on drop-in classes, while others work on a membership model. You may also find yoga studios that augment their in-person class income with social media influencer income and online classes or videos.
You should also see where successful studios are located. Many people first decide to check out a studio because it's close to home. Look at the demographics of specific neighborhoods before choosing your location.
Step 2. Write Your Yoga Business Executive Summary
This document is a synopsis of your business plan. It can help clarify your business goals and make them more concrete. Questions to ask yourself before writing the summary include:
- What type of classes do you plan to offer?
- Who is your ideal customer?
- What makes your yoga studio different from others in your market?
- What are your goals and projected milestones?
- What are your financial projections for gross and net earnings?
Expect to revise your executive summary as you get further into research and planning. The information you collect about what's possible and what's already being done will change your eventual plan. For instance, if you see that teacher training is in demand but few are offering it, you can make it one of your focuses.
Step 3. Customer Analysis
During this stage of your planning process, you should find out who in your community is most likely to attend your yoga classes.
Begin by identifying potential yoga class participants in your area. This will start with general demographics for your area that include factors like sex (71% of yoga practitioners are female) and income.
Next, determine the needs of your prospective customers. If you live in an area with an aging population, for instance, classes with modifications for mobility may be in high demand.
Finally, figure out how to tailor your class offerings to the needs of people in your area.
Step 4. Develop Your Yoga Products and Services
In this part of your plan, develop detailed descriptions of your potential offerings. These blurbs should include what types of classes you will offer, how students will book classes, and whether you plan to offer à la carte, blocks of classes or a membership model.
Discuss what yoga styles you will offer. This is a good place to put your competitor analysis into play. If there are a dozen Vinyasa classes, but no hot yoga, you have an opportunity.
Also consider auxiliary streams of income at this stage. You can sell yoga accessories at your studio, or offer one on one classes online if those services are desired in your area.
Step 5. Develop a Sales and Marketing Strategy for Your Yoga Business
How do you plan to attract and retain students? Come up with some strategies for the sales and marketing section of your plan.
Most yoga studios gain a lot of their customers from word of mouth. Consider offering free or discounted classes to those who give you referrals.
A robust social media presence can help you reach new customers and remind those who have already taken your classes to sign up for another one.
Local community events are another way to reach new students. Talk to local bars or breweries about offering drop-in “beer yoga” classes at their location. You can also set up tables at local festivals to answer questions and sign up new students.
Step 6. Project Your Yoga Studio Costs and Funding
Many businesses fail early because the owners underestimate their costs and run out of money. Figuring out how much you'll need to operate each month and having a source of funds while you get established is one of the keys to survival.
Estimate your rent, maintenance costs and pay for employees and contractors. When considering revenue, include your class and membership prices, as well as projected revenue from other streams of income.
If you are going to seek investors, this section is vital to helping them understand how much you need and what their risk will be if they invest. Speak with a financial adviser before you make your pitch. Their advice will be invaluable.
The Final Word on the Yoga Studio Business Model
There is no one way to run a successful yoga studio. The business model you choose should be based on your local audience, your unique attributes and the needs of your community. By researching all of those, you can create a more successful plan.
FAQ About Yoga Studio Business Model Choices
Is a yoga studio profitable?
Whether or not a studio is profitable depends on a number of factors. Researching and understanding the local market can help you ensure that your business will succeed.
Why do yoga studios fail?
Studios can fail for all kinds of reasons. Usually, they fall prey to poor advertising, an overabundance of competition or poor planning.
How do I write a business plan for a yoga studio?
The steps above are a great place for starting your business plan. If you want something more detailed, consider using a template like the ones freely available from the Small Business Administration.