How to write winning yoga studio business plans
- A yoga studio business plan will guide your decisions as you launch and grow a successful yoga studio
- Your business plan is a key document that potential investors and lenders use to determine the feasibility and profitability of your business
- There are seven core sections to create a successful yoga studio business plan
You’ve always been a yogi at heart, practicing yoga in the early morning, teaching yoga in the evening, and joining annual yoga retreats to recenter yourself. Now it’s time to take action and turn your passion into an actual business.
A yoga studio business plan can help you set up your business model and determine if opening a yoga studio is financially viable. It establishes what services you’ll provide, how you’ll run your business, and which yoga advertising tactics you’ll use for growth.
On top of that, yoga studio business plans are essential if you want to seek funds from investors or lenders, or establish partnerships with suppliers or other business owners.
There are seven core sections that will make your business plan shine and impress anyone who reads it. Follow this template to craft a business plan for your very own yoga business.
1. Executive summary
Like every other type of business plan, a yoga studio business plan starts off with an executive summary. This one-page overview of your yoga practice should grab readers’ attention by showing how your company is unique and why it will succeed.
The executive summary doesn’t need to go into great detail. It should be succinct and highlight the most important aspects of your business plan. The following information belongs in your executive summary:
- Brief description of your business
- Yoga services you offer
- Your competitive advantage
- Your projected growth
- Why you’ll succeed
Although this is the first section readers will see, it’s better to write your executive summary after you’ve completed the rest of your business plan. You’ll uncover impactful business details throughout the writing process and can revisit your executive summary to craft something that truly captivates readers.
An effective executive summary will compel a reader to read the rest of your business plan.
2. Business description
The business description goes one layer deeper than the executive summary. It explains the vision behind your yoga studio plus your business goals and core strengths.
This overview should include information like:
- Location of your business: State where your yoga center will be located and whether you already have a location secured.
- Yoga services: Which style of yoga will you offer guests? Will you provide Vinyasa, Hatha, or other styles of yoga classes? Or will you crank up the heat with Bikram yoga? Also, mention if you’ll feature group lessons, private lessons, or yoga teacher training.
- Mission statement: Create a brief statement that explains what you do, who you serve, and what makes you unique. For example, your mission could be to “provide a peaceful and healthy yoga escape for those who lead busy lives.”
- Objectives: Set realistic goals for your new business. For example, “Grow monthly revenue to $15,000 and launch a branded yoga product line within the first year of business.”
- Unique value proposition: Why should people frequent your studio instead of one of your competitors? Explain what makes your studio special. For instance, your business might have highly experienced yogis or yoginis who can provide advanced yoga training and guidance.
This section is also the ideal home for information regarding your customers and target market. Be specific about who you plan to serve and what audience you’ll aim for with your marketing efforts. Include details like demographics, income levels, and interests. For example, your target audience may primarily focus on female customers who are health-conscious and in a higher income bracket.
3. Market analysis
While reading your yoga studio business plan, potential investors and lenders will likely ask themselves: Is there enough demand for your yoga center to succeed, and will it become profitable?
The yoga industry in general is booming, with an expected growth rate of nearly 10% over the next six years. But what about in your area?
Gauge the current state of the yoga market in your area. Are there many yoga studios already serving clientele or is your market underserved? Is there an opportunity for you to provide something unique that will help you gain market share? For example, there might be a void for a certain yoga niche, like yin yoga or private yoga lessons.
A thorough analysis of your competitors is another key component of your market research. Learn from your competitors by conducting “mystery visits,” or attending their classes to see their business offerings, how they operate their business, and how they treat their customers.
You can also look at your competition on Yelp to comb through customer reviews and uncover their strengths and weaknesses. From there, you can cater your yoga business and services to match the strong points of other studios and capitalize on their weaknesses.
4. Yoga studio services or product line
The services and product line section of your yoga studio business plan explains the unique services and products that will generate revenue for your business.
Telling readers the style of yoga you’ll be offering is just the start. Explaining the different experience levels required for each class and how classes will be conducted will set expectations and attract the right clientele.
Then ask yourself: Will yoga services be your sole source of income, or will you also sell products like yoga mats, comfortable clothing, and essential oils?
You can even take it one step further and generate additional revenue streams from things like online classes, yoga retreats, or teacher training courses.
5. Operations and management
The success of your yoga studio hinges on your ability to lead, manage, and grow your startup into a profitable venture. Readers will want to know the legal structure of your business, who is leading your company, and who has an ownership stake.
Start by explaining the legal structure of your business—for example, a sole proprietorship, limited liability company, or S corporation. Readers will likely understand the fundamental differences between each business structure, so there’s no need to go into great detail.
Next, showcase how leadership is organized and why each individual is qualified to shine in their position. Who will be managing employees and handling day-to-day operations?
Give brief bios on your leadership team, including your yoga instructors. Do they have advanced yoga certifications that enable them to provide top-notch service to students?
Lastly, clarify who has an ownership stake in your business. Are you a sole studio owner or do you have other investors who hold partial ownership in your new business?
6. Marketing strategy and sales
Finding and retaining new customers will drive the success of your business. A concrete yoga marketing plan will prepare you to pull prospective yoga students in the door and turn them into loyal customers.
There are many different marketing channels that can help grow your small business and improve client retention—for example, social media marketing, content marketing, or cost-per-click advertising. Here are a few marketing ideas to get you started.
- Claim your Yelp Business Page so you can respond to customer reviews and show potential clients how your studio excels at customer service.
- Advertise giveaways, promotions, or discounts on your social media pages to engage new and repeat customers.
- Launch a referral program that capitalizes on word-of-mouth advertising. You can give existing yoga clients discounts on their membership if they refer family and friends to your studio.
- Collect email addresses from your customers and send routine emails, like newsletters and promotions, to subscribers to keep them engaged and thinking about your studio for their yoga needs. Be sure to get permission to add them to your email list.
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7. Financial factors
Your yoga studio business plan is capped off by one of the most important sections—a financial plan. Assessing the finances of your business will help you decide if your business is financially viable. In short, readers will understand if your business can succeed and become a profitable venture.
Start by listing your startup costs—for example, purchasing yoga mats, equipment, licensing fees, or your initial rent deposit. Also, detail ongoing costs that will keep your business operating—such as monthly utilities, property rental, or marketing costs.
Then lay out your pricing strategy. What will you charge customers for drop-in classes? Do you have monthly membership programs? If so, how much do they cost? To give you an idea, the average yoga practitioner spends around $90 per month on yoga.
Once you have a clear picture of money coming in and going out, you can formulate financial projections for the next five years. Mock up income statements, balance sheets, and cash flow statements so readers can understand your realistic growth potential.
Yoga studio business plans are blueprints for success
Opening your own yoga studio can be an intimidating endeavor, especially if you’re new to entrepreneurship. With a comprehensive yoga studio business plan, you remove the uncertainties and pave the way for a successful business.
Follow these seven steps to determine how you’ll launch your small business, how it will operate, and how you can grow into a profitable studio. From there, you can pursue these 11 business growth strategies to take your yoga studio to the top.
The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. Unless stated otherwise, references to third-party links, services, or products do not constitute endorsement by Yelp.