The Ultimate Guide to Opening a Yoga Studio

Important elements to think about when starting your yoga studio:

1. Location — Choose a strategic location with high foot traffic and easy accessibility. Consider a space that offers a peaceful and welcoming environment suitable for yoga practice.
2. Trainers and instructors — Hire skilled and certified yoga instructors. Ensure they have the necessary qualifications and experience to provide high-quality classes and personal training sessions.
3. Licenses and certifications — Obtain all necessary licenses and certifications required to operate a yoga studio legally. This includes business licenses, health permits, and any specific certifications for fitness and wellness businesses.
4. Certification for owners and trainers — If you plan to teach, obtain your own yoga certification from a recognized yoga alliance or institution. Encourage your trainers to continuously upgrade their skills and certifications.
5. Equipment — Invest in high-quality yoga equipment such as mats, blocks, straps, and bolsters. Ensure your studio is well-equipped to accommodate various styles of yoga and the needs of your clients.
6. Niche and specialization — Define a clear niche or specialization for your studio. This could include focusing on a specific style of yoga, such as Vinyasa, Hatha, or Yin, or offering specialized classes like prenatal yoga or yoga for athletes.
7. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
8. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
9. Online and social media presence — Develop a strong online and social media presence to promote your studio. Use social media platforms to share class schedules, special events, and wellness tips to engage with your community.
10. Marketing and promotion — Use a mix of online marketing, local advertising, and partnerships with wellness influencers to promote your studio. Offer introductory classes or promotions to attract new clients.

You May Also Wonder:

Is a yoga studio profitable?

A yoga studio can be very profitable if you have a good location. The industry is, however, very competitive so you’ll need to find a way to differentiate your studio.

What is the growth potential of a yoga studio?

A yoga studio can grow its revenue by offering a variety of classes and selling yoga clothing. It can also expand by adding new locations. However, it’s a very competitive industry, so the potential for high growth is limited.

Can you start a yoga studio on the side?

You could offer outdoor yoga classes on the weekend as a side hustle. However, opening a full-fledged studio would certainly have to be a full-time business to make it worthwhile.

What are the requirements for a yoga studio?

There are few requirements to have a yoga studio, other than business licenses and permits that may be required in your state and locality. All yoga instructors, however, should be certified.

Step 1: Decide if the Business Is Right for You

Pros and cons

Yoga industry trends

Industry size and growth

• Industry size and past growth – The U.S. Pilates and yoga studios industry is worth $11.8 billion in 2023 after declining 1% annually the last five years, mainly due to a large dip during the pandemic.((https://www.ibisworld.com/industry-statistics/market-size/pilates-yoga-studios-united-states/))
• Growth forecast – The U.S. Pilates and yoga studios industry is projected to decline 1.4% in 2023. 
• Number of businesses – In 2023, 48,547 Pilates and yoga studios are operating in the U.S.((https://www.ibisworld.com/industry-statistics/number-of-businesses/pilates-yoga-studios-united-states/))
• Number of people employed – In 2023, the U.S. Pilates and yoga studios industry employs 122,147 people.((https://www.ibisworld.com/industry-statistics/employment/pilates-yoga-studios-united-states/))

Trends and challenges

Trends

• Outdoor yoga became popular during the pandemic and the trend has continued
• Yoga for kids is a growing trend, presenting a possible new revenue stream

Challenges

• Growing popularity has created a saturated yoga market
• At-home yoga facilitated by YouTube videos has increased, meaning fewer clients for physical yoga studios 

Demand hotspots

• Most popular states – The most popular states for yoga instructors are Nevada, California, and Vermont.((https://www.zippia.com/yoga-instructor-jobs/best-states/))
• Least popular states – The least popular states for yoga instructors are Ohio, Idaho, and Arkansas. 

What kind of people work in yoga studios?

• Gender – 87% of yoga instructors are female, while 13% are male.((https://www.zippia.com/yoga-instructor-jobs/demographics/))
• Average level of education –The average yoga instructor has a bachelor’s degree.
• Average age – The average yoga instructor in the US is 37.5 years old.

How much does it cost to start a yoga studio business?

Startup costs for a yoga studio range from $4,500 – $11,000. The main costs are a studio space rental and mats and equipment.

To cut your costs, you could hold outdoor yoga classes at parks, but that would be weather dependent and seasonal. You could also offer yoga classes online under a subscription model. However, there are so many free YouTube yoga videos that you might have trouble getting people to pay for your online classes. 

If you’re not already certified as a yoga instructor, you can take classes and become certified through the Yoga Alliance. You could also become a certified yoga therapist through the International Association of Yoga Therapists. 

You’ll need a handful of items to successfully launch your yoga studio, including: 

• Mats
• Yoga blocks
• Yoga straps

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$100 - $500	$300
Business licenses and permits	$100 - $300	$200
Insurance	$100-$500	$300
Website	$200 - $1,000	$600
Initial Marketing Budget	$1,000 - $3,000	$2,000
Studio space rental	$2,500 - $5,000	$3,750
Mats and equipment	$500 - $1,000	$750
Total	$4,500 - $11,300	$7,900

How much can you earn from a yoga studio business?

You can generally charge about $12 per person for a group yoga class. Your profit margin after costs should be about 50%. 

In your first year or two, you could hold 15 classes a week for 10 people, bringing in more than $93,000 in annual revenue. This would mean nearly $47,000 in profit, assuming that 50% margin. 

As you gain traction, you could hold 30 classes per week for 10 people. With annual revenue of more than $187,000, you’d make a tidy profit of nearly $94,000.

What barriers to entry are there?

There are a few barriers to entry for a yoga studio. Your biggest challenges will be:

• Getting certified as a yoga instructor
• Standing out in a competitive market

Step 2: Hone Your Idea

Now that you know what’s involved in starting a yoga studio, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research yoga studios in your area to examine their classes, price points, and customer reviews.

• Make a list of yoga studios that offer similar classes. 
• Review your competitors’ classes – their features and pricing. Also examine their marketing strategies. This should help you identify their target market. 
• Check out their reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses and capitalize on the latter. Maybe your competitors don’t offer yoga classes for kids, so that could be your niche. 

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a studio that offers hot yoga or sells yoga clothes. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your yoga classes

You’ll need to determine which kinds of yoga to offer. It’s best to offer a variety so your students can always try something new. Types of yoga classes include:

• Ashtanga yoga
• Hatha yoga
• Hot yoga
• Iyengar yoga
• Kundalini yoga
• Power yoga
• Restorative yoga
• Vinyasa yoga

You could also offer kids yoga, private yoga classes, and online classes. 

How much should you charge for yoga classes?

The average price per person for a group yoga class is about $12. Check market prices in your area. You’ll also want to consider your costs when setting prices.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is going to be health conscious people, which could be men or women of any age group. You should spread out your marketing to include TikTok, Instagram, and Facebook. You could also advertise on yoga-related forums, groups, and blogs.

Where? Choose a yoga studio location

You’ll need to rent out a studio space, assuming you’re not only providing instruction online. You can find space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Yoga Studio Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “yoga” or “yoga studio”, boosts SEO
• Name should allow for expansion, for ex: “Harmony Yoga Center” over “Serenity Flow Yoga”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Yoga Studio Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a concise summary of your business plan, highlighting the unique aspects of your studio and its value proposition to potential customers.
• Business Overview: Describe your yoga studio, including its location, the types of yoga classes offered, and the ambiance of the studio space.
• Product and Services: Detail the yoga classes, workshops, and any additional services like private sessions or wellness programs that your studio will provide to clients.
• Market Analysis: Analyze the local market for yoga services, including target demographics, trends in health and wellness, and potential demand for your yoga offerings.
• Competitive Analysis: Identify other yoga studios or wellness centers in the area, emphasizing what makes your studio stand out in terms of class variety, instructors, and customer experience.
• Sales and Marketing: Explain your strategies for attracting and retaining clients, including digital marketing efforts, partnerships with local fitness influencers, and any special promotions or membership programs.
• Management Team: Introduce key team members responsible for running the yoga studio, highlighting their experience in yoga instruction and business management.
• Operations Plan: Describe the day-to-day operations of your studio, including class scheduling, instructor management, and cleanliness and safety protocols.
• Financial Plan: Present financial projections, including startup costs, revenue forecasts, and profitability estimates, along with funding requirements and potential sources of investment.
• Appendix: Include any additional materials, such as sample class schedules, instructor bios, or lease agreements, to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to yoga studios. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your yoga studio will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts. Here’s how to form an LLC.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation. Read how to start a corporation here.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a yoga studio business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Yoga Studio Business Licenses and Permits

Starting a yoga studio business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your yoga studio business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Glofox, Vagaro, or WellnessLiving, to manage your bookings, marketing, direct emails, and payments. 

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Book Now”. This can sharply increase purchases. 

Marketing

Here are some powerful marketing strategies for your future business:

• Community Partnerships: Collaborate with local businesses, such as health food stores or wellness centers, for cross-promotions and mutual referrals to tap into a broader audience.
• Introductory Workshops: Offer free or discounted introductory workshops to showcase your studio’s atmosphere and teaching style, encouraging potential clients to experience the benefits of yoga firsthand.
• Social Media Challenges: Engage your community with social media challenges, like a 30-day yoga pose challenge, encouraging participants to share their progress and experiences, creating buzz around your studio.
• Specialized Classes: Introduce specialized classes tailored to specific demographics or needs, such as prenatal yoga, stress relief sessions, or yoga for athletes, to broaden your appeal and meet diverse interests.
• Loyalty Programs: Implement loyalty programs or class packages that reward consistent attendance, fostering a sense of belonging and encouraging clients to commit to their practice.
• Student Referral Incentives: Encourage your existing clients to refer friends by offering discounts or free classes for successful referrals, leveraging the power of word-of-mouth marketing.
• Corporate Partnerships: Develop partnerships with local businesses to offer workplace yoga sessions, promoting employee well-being and creating opportunities for corporate yoga packages.
• Themed Events: Host themed events or workshops aligned with current trends, seasons, or holidays to keep your offerings fresh and attract new clients seeking unique experiences.
• Local Press Coverage: Reach out to local media outlets for coverage on the health benefits of yoga, your studio’s unique approach, or success stories of your clients, creating positive publicity for your business.
• Local SEO — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Online Presence Optimization: Optimize your studio’s presence on online review platforms and social media by encouraging satisfied clients to leave reviews, building trust and credibility for potential customers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your yoga studio meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your yoga studio business could be: 

• Hot yoga to sweat your way to health and wellness
• Group and private yoga to meet your needs
• Boost your confidence and well-being with demanding weekly yoga 

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a yoga studio business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in yoga studios for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in yoga. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a yoga studio business include:

• Yoga Instructors – lead classes
• Marketing Lead – create and implement marketing strategies
• General Manager – scheduling, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Yoga Studio – Start Making Money!

Yoga is beneficial to people of all ages in many ways, as you know as a yoga enthusiast. You could help countless people improve their well-being while joining a large industry and making a nice living, which is just an added bonus to the rewards of helping people.

You’ve done your business homework, so now it’s time to strike a yoga pose and start your entrepreneurial journey!