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Do you want to start yoga studio business?
Do you want to start a yoga studio business? Well, you can easily start this business with lower investments and can make it successful provided that you plan it successfully and have a passion for yoga.
Before starting a yoga business, the first step you should take is to develop a comprehensive business plan yoga studio covering all aspects of your business. The business plan yoga studio will form the basis of your company’s future policies and will also help you in startup. So, to help you write an effective business plan yoga studio, here we are providing the business plan for a yoga studio business startup named ‘Kelly Yoga’.
Executive Summary
2.1 The Business
Kelly Yoga will be located at a ten minutes’ drive from the main residential district of San Diego. The business will be owned by Kelly Jill, a famous American yoga trainer.
2.2 Management
The company will hire a staff comprising of trainers, assistants and sales executives, all of which will be trained for one month prior to onboarding. Company management and staff is the thing that will make your business successful so make sure to plan it before you think about how to start your own yoga studio.
2.3 Customers
Kelly Yoga will be a licensed yoga studio where people of all age-groups will be taught yoga at different expertise levels by the best trainers in the United States.
2.4 Target of the Company
Our business targets are as follows:
Company Summary
3.1 Company Owner
Kelly Yoga will be owned by Kelly Jill, an experienced yoga master. Kelly has been teaching yoga in various institutes across the United States for more than 20 years.
3.2 Why the Business is being started
Kelly is extremely passionate about learning and teaching yoga. She has been doing yoga since her childhood and has devoted her entire life to it. Her venture is not only aimed at making profits in this industry but she also aims to extend her reach to as many people as possible.
3.3 How the Business will be started
Before you think about how to start a yoga business, you must make a yoga studio business plan model. Kelly Yoga will be located at a ten minutes’ drive from the main residential district of San Diego. The business will be started in a facility which was previously used as a dance studio that’s why just a little work needs to be done so as to convert it into a yoga studio. In addition to the usual inventory, the company will procure stocks of yoga training aides and clothes for selling in the store inside the studio. The costs for startup are as follows:
The startup requirements are as follows:
| Start-up Expenses | |
| Legal | $75,500 |
| Consultants | $0 |
| Insurance | $62,750 |
| Rent | $22,500 |
| Research and Development | $42,750 |
| Expensed Equipment | $42,750 |
| Signs | $1,250 |
| TOTAL START-UP EXPENSES | $247,500 |
| Start-up Assets | $0 |
| Cash Required | $322,500 |
| Start-up Inventory | $52,625 |
| Other Current Assets | $222,500 |
| Long-term Assets | $125,000 |
| TOTAL ASSETS | $121,875 |
| Total Requirements | $245,000 |
| START-UP FUNDING | $0 |
| START-UP FUNDING | $273,125 |
| Start-up Expenses to Fund | $121,875 |
| Start-up Assets to Fund | $195,000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $203,125 |
| Non-cash Assets from Start-up | $118,750 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $118,750 |
| Cash Balance on Starting Date | $121,875 |
| TOTAL ASSETS | $0 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $312,500 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $695,000 |
| Loss at Start-up (Start-up Expenses) | $313,125 |
| TOTAL CAPITAL | $221,875 |
| TOTAL CAPITAL AND LIABILITIES | $221,875 |
| Total Funding | $265,000 |
Services for customers
The most important thing to decide before you start a yoga studio is the business services that you will be providing to your customers
Note
It is important because all subsequent components of your depend on your provided services that’s why it must be considered before opening a yoga studio business plan development.
We will provide following types of yoga classes:
- Yoga 1/Beginner: Yoga 1/Beginner is an introductory class for those people who are new to Yoga. This class emphasizes on the basic alignment of standing poses and will mainly focus on poses to stretch and strengthen the shoulders, back, and legs.
- Yoga 2/Intermediate: Yoga 2/Intermediate emphasizes on refining the standing poses learnt by the students in Yoga 1. This class teaches them basic sitting postures, shoulder stand, and basic back bending poses.
- Yoga 3/Advanced: Yoga 3/Advanced further refines the techniques learnt by students in Yoga 2. This class teaches them back bend poses, headstand, forearm balance, and full arm balance (handstand).
- Vinyasa Yoga: Vinyasa Yoga teaches a vigorous flow style of yoga that synchronizes movement with breath. It offers a balance of endurance, strength, and flexibility, for challenging the fitness enthusiasts.
- Gentle Yoga: Gentle Yoga is the lightest level of yoga and is even less vigorous than Yoga 1. Gentle yoga is often prescribed to people with muscle stiffness, weakness, muscle/joint pain, or fatigue. The class teaches gentle stretches and breathing along with simple movements designed for systematically increasing the range of motion of major joints.
Marketing Analysis of yoga studio business
The most important component of a yoga studio business plan is its accurate marketing analysis because it decides whether your startup will become a success or end in failure. That’s why an accurate marketing analysis must be carried out before developing a yoga business plan. If you are starting on a large scale then it is better to seek the help from the marketing experts who will also guide you through various yoga studio marketing strategies and will help you in developing yoga marketing plan. On the other hand, if you are starting on a small scale, you can take help from this yoga studio business plan template or other yoga studio business plans available online.
Immigration business plan
5.1 Marketing Trends
This yoga studio sample business plan also presents industry and market trends of this business which will provide you a clear demonstration of the market potential of this industry and will determine whether this industry is feasible for startups. The trends in yoga industry can also be taken from different yoga business plans available online. According to IBISWorld, there are more than 34,600 yoga studios or private yoga trainers in the United States as of 2018. The industry is growing at an estimated rate of 10.6% per year with annual revenue generation reaching above $11 billion. The industry is responsible for employing more than 137,000 people across the United States.
According to a 2015 study, around 37 million practice yoga in the United States. This is up from 20 million just three years ago, which means the number of people practicing yoga has nearly doubled in just three years. This increase is attributed to the increased health awareness among people since various studies have outlined how beneficial yoga is for human body. These stats show that this industry is feasible for startups provided that you plan your business successfully.
5.2 Marketing Segmentation
Marketing segmentation shows the various segments or groups of our prospective customers. Our target market is mainly the residential community living nearby at the 10 minutes’ drive from our studio. Our experts have identified following target groups for our services:
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Children (6-18):
The first group of our customers will be the children living in the vicinity of our studio. Children are sent by their parents for learning Gentle Yoga due to its immense health benefits. Many children who are injured or suffering from muscle problems also practice yoga as a part of their medical treatment. However, the number of children learning yoga is very small as compared to the adults or senior people that’s why this group will not have a significant contribution to our sales and revenue.
5.2.2 Adults (18+):
The second and the biggest category of our customers includes teens and individuals who themselves want to learn yoga for any reason and are aged above 18. The individuals lying in this group are likely to learn all 5 types of classes offered by us. Women will form the major part of this group since according to a 2015 study, 72% of the yoga practitioners in the United States are women. Another aspect by which this group will contribute to our revenue will be the sale of yoga training aides, yoga clothes, shoes and mats from our store.
5.2.3 Professionals:
The last category includes those individuals who have a passion for yoga and want to learn it at the advanced level. This group will be trained at a completely different level under the direct supervision of Kelly. This group will also contribute to sales from the yoga store since they will be practicing yoga in their homes.
The detailed market analysis of our potential customers is given in the following table:
| Market Analysis | |||||||||
| Potential Customers | Growth | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | CAGR | ||
| Adults (Above 18) | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% | ||
| Children (6-18) | 18% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% | ||
| Professionals | 34% | 18,322 | 19,455 | 20,655 | 22,867 | 24,433 | 15.32% | ||
| Total | 100% | 52,089 | 65,143 | 80,873 | 94,156 | 111,410 | 9.54% | ||
5.3 Business Target
Our business targets are:
- To become the best yoga studio in San Diego
- To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
- To balance the initial cost of the startup with earned profits by the end of the first year
5.4 Product Pricing
Product pricing is one of the most important factors to decide the success of a startup. For the purpose of encouraging sales, we have priced our services slightly lower as compared to our competitors. We will basically offer three types of packages to choose from:
- Monthly membership for $500 per month
- Semi-annual membership for $2500 per six months
- Yearly membership for $4000 per year
The membership fees of Yoga 3 class will be 30% more since the students in this class will be trained directly be Kelly and other master trainers in the United States. The pricing of yoga-related products available in our store will be the same as in the market.
Good service and attentive
Good service and attentive to requirements square deal thanks.
Strategy
Like marketing analysis, sales strategy is also an important component of any business plan yoga studio so it must be thought through before starting your venture. In case, you don’t know how to make an effective sales strategy for your business, you can take help from this free yoga studio business plan template or other sample plans available online.
6.1 Competitive Analysis
Although we have a tough competition but we have entered the market with several competitive aspects. Our prices are reasonable and comparatively lower than the most of our competitors. We have an excellent team comprising of the best yoga trainers in the United States and our biggest competitive advantage lies in the power and dedication of our team.
6.2 Sales Strategy
We will attract our customers towards us by various efforts, such as:
- We will arrange seminars and awareness sessions on the importance of yoga and the accompanying health benefits
- We will arrange transportation facilities for our members and students
- We will advertise our yoga studio in magazines, newspapers and social media
- We will offer discounts on the membership for the first three months of the launch
6.3 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Yoga 1/Beginner | 187,330 | 260,320 | 258,240 |
| Yoga 2/Intermediate | 802,370 | 815,430 | 823,540 |
| Yoga 3/Advanced | 539,320 | 770230 | 1,002,310 |
| Vinyasa Yoga | 265,450 | 322,390 | 393,320 |
| Gentle Yoga | 1,435,320 | 1,250,430 | 1,762,450 |
| TOTAL UNIT SALES | 3,229,790 | 3,418,800 | 4,239,860 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Yoga 1/Beginner | $140.00 | $150.00 | $160.00 |
| Yoga 2/Intermediate | $600.00 | $800.00 | $1,000.00 |
| Yoga 3/Advanced | $700.00 | $800.00 | $900.00 |
| Vinyasa Yoga | $650.00 | $750.00 | $850.00 |
| Gentle Yoga | $140.00 | $120.00 | $100.00 |
| Sales | |||
| Yoga 1/Beginner | $214,800 | $274,000 | $333,200 |
| Yoga 2/Intermediate | $120,050 | $194,500 | $268,500 |
| Yoga 3/Advanced | $50,110 | $71,600 | $93,000 |
| Vinyasa Yoga | $139,350 | $194,600 | $249,850 |
| Gentle Yoga | $62,350 | $72,300 | $82,250 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Yoga 1/Beginner | $0.70 | $0.80 | $0.90 |
| Yoga 2/Intermediate | $0.40 | $0.45 | $0.50 |
| Yoga 3/Advanced | $0.30 | $0.35 | $0.40 |
| Vinyasa Yoga | $3.00 | $3.50 | $4.00 |
| Gentle Yoga | $0.70 | $0.75 | $0.80 |
| Direct Cost of Sales | |||
| Yoga 1/Beginner | $98,300 | $183,000 | $267,700 |
| Yoga 2/Intermediate | $66,600 | $119,900 | $173,200 |
| Yoga 3/Advanced | $17,900 | $35,000 | $52,100 |
| Vinyasa Yoga | $19,400 | $67,600 | $115,800 |
| Gentle Yoga | $27,700 | $69,200 | $110,700 |
| Subtotal Direct Cost of Sales | $294,100 | $699,400 | $1,104,700 |
6.4 Sales Monthly
6.5 Sales Yearly
Personnel plan
In case, you are starting your yoga studio but you don’t know what staff is required for starting a yoga studio, you can take help from this yoga studio business model sample plan.
7.1 Company Staff
The company will initially hire the following staff:
- 1 General Manager for managing the overall operations
- 2 Administrators/Accountants for maintaining financial records
- 3 Sales Executives responsible for marketing and discovering new ventures
- 6 Trainers for providing yoga training to members
- 8 Assistants for undertaking day-to-day tasks
- 2 Drivers for providing transportation facility to members
- 3 Cleaners for cleaning the studio
- 1 Front Desk Officer for acting as a receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| General Manager | $42,000 | $59,000 | $76,000 |
| Accountants | $85,000 | $95,000 | $105,000 |
| Sales Executives | $85,000 | $92,000 | $109,000 |
| Trainers | $135,000 | $155,000 | $185,000 |
| Assistants | $60,000 | $63,300 | $70,000 |
| Drivers | $63,300 | $70,000 | $76,700 |
| Cleaners | $76,000 | $93,000 | $110,000 |
| Front Desk Officer | $35,000 | $42,000 | $59,000 |
| Total Salaries | $343,300 | $380,300 | $440,700 |
Financial Plan
Finally, you will have to develop a detailed financial plan outlining the development of your company over the next few years. If you’re starting on a smaller scale, you can take help from this yoga studio business plan example otherwise you will have to seek help from financial experts. The financial plan of Kelly Yoga is as follows.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.00% | 11.00% | 12.00% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 26.42% | 27.76% | 28.12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159,740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260.87 |
| Average Per-Unit Variable Cost | $0.89 |
| Estimated Monthly Fixed Cost | $196,410 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309,069 | $385,934 | $462,799 |
| Direct Cost of Sales | $15,100 | $19,153 | $23,206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15,100 | $19,153 | $23,206 |
| Gross Margin | $293,969 | $366,781 | $439,593 |
| Gross Margin % | 94.98% | 94.72% | 94.46% |
| Expenses | |||
| Payroll | $138,036 | $162,898 | $187,760 |
| Sales and Marketing and Other Expenses | $1,850 | $2,000 | $2,150 |
| Depreciation | $2,070 | $2,070 | $2,070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4,000 | $4,250 | $4,500 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $6,500 | $7,000 | $7,500 |
| Payroll Taxes | $34,510 | $40,726 | $46,942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188,766 | $220,744 | $252,722 |
| Profit Before Interest and Taxes | $105,205 | $146,040 | $186,875 |
| EBITDA | $107,275 | $148,110 | $188,945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26,838 | $37,315 | $47,792 |
| Net Profit | $78,367 | $108,725 | $139,083 |
| Net Profit/Sales | 30.00% | 39.32% | 48.64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40,124 | $45,046 | $50,068 |
| Cash from Receivables | $7,023 | $8,610 | $9,297 |
| SUBTOTAL CASH FROM OPERATIONS | $47,143 | $53,651 | $59,359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47,143 | $53,651 | $55,359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21,647 | $24,204 | $26,951 |
| Bill Payments | $13,539 | $15,385 | $170,631 |
| SUBTOTAL SPENT ON OPERATIONS | $35,296 | $39,549 | $43,582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35,296 | $35,489 | $43,882 |
| Net Cash Flow | $11,551 | $13,167 | $15,683 |
| Cash Balance | $21,823 | $22,381 | $28,239 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184,666 | $218,525 | $252,384 |
| Accounts Receivable | $12,613 | $14,493 | $16,373 |
| Inventory | $2,980 | $3,450 | $3,920 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $201,259 | $237,468 | $273,677 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198,839 | $232,978 | $267,117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,482 | $10,792 | $12,102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,482 | $10,792 | $12,102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9,482 | $10,792 | $12,102 |
| Paid-in Capital | $30,000 | $30,000 | $30,000 |
| Retained Earnings | $48,651 | $72,636 | $96,621 |
| Earnings | $100,709 | $119,555 | $138,401 |
| TOTAL CAPITAL | $189,360 | $222,190 | $255,020 |
| TOTAL LIABILITIES AND CAPITAL | $198,839 | $232,978 | $267,117 |
| Net Worth | $182,060 | $226,240 | $270,420 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
| Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
| Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
| Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
| Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
| Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
| NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
| Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
| Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
| Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
| Main Ratios | ||||
| Current | 25.86 | 29.39 | 32.92 | 1.63 |
| Quick | 25.4 | 28.88 | 32.36 | 0.84 |
| Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
| Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
| Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
| Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
| Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
| Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
Download Yoga Studio Business Plan Sample in pdf
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