Most people who open yoga studios do so out of their passion for the practice, not their entrepreneurial spirit or love of business management. However, passion alone cannot power a business. It is important to create a thorough yoga studio business plan to concisely summarize your goals and strategy for your yoga studio.
By putting together a business plan for opening a yoga studio, you will have all the information in one place. A business plan is a summary of your services, sales and marketing strategies, funding requests, and financial projections. This document can be presented to potential lenders, business partners, or other necessary parties during the start-up phase. More importantly, it allows you to keep all your plans in one document.
Overview of Business Plan Sections
- Executive Summary
- Product & Services
- Business Operations & Structure
- Target Market
- Location Breakdown
- Sales & Marketing Strategy
- Funding Plan
- Financial Analysis
Benefits of Creating a Business Plan for Your Yoga Studio
The main benefit of creating a business plan for your yoga studio is looking at all the facets of your business and compiling all the information in one place. Instead of jumping in without a plan, you have already taken the time to analyze and strategize the different components of your business. When opening a gym or studio, it is best to go over detailed plans instead of just brainstorming the basics.
Additionally, other people may ask to see your business plan on your path to opening your yoga studio. Lenders, property managers, and potential business partners sometimes want to see a business plan. This allows them to see that you have a complete plan in place. They can quickly and easily get all the information they need. A business plan can be especially important if this yoga studio is your first business. Sometimes, it is the thing that helps someone decide to take a chance on you and your studio.
How to Write a Yoga Studio Business Plan
Use our yoga studio business plan template to put together all your business information into one document. You may need to consult with any business partners (such as an accountant, marketing team, etc) to paint a complete picture within your business plan. Yoga studios and gyms do not operate like most service or retail businesses. A complete yoga studio business plan makes it easy to explain your business structure, financial projections, and other components.
The executive summary is an overview of your entire business plan. It highlights the most important information in an easy-to-read manner. First, include your “elevator pitch.” This is a short description of your business and why it is special.
Follow up with quick blurbs about the most important topics. This can be bullet points, a table of information, or paragraphs. If you are looking for lenders or business partners, this section must catch their eye. Like skimming an applicant’s resume, this section should grab someone’s attention and entice them to keep reading.
Depending on your situation, there are a few different things you can include in your executive summary. Some options include:
- Target market
- Mission and vision statements
- Growth and sales projections
- Services offered
- Location demographics
- Short biography of owner or manager
- Funding requests
- Marketing and sales strategy
Product and Services
This section should include the types of yoga classes you offer (Bikram, Vinyasa, Hatha, etc.). Additionally, you can include class times and length, hours of operation, and any other information about the product you will be providing.
If you have already determined your pricing information, include it here. List drop-in fees, cancellation fees, personal class rates, and membership rates. You should include as much information as possible.
In addition to class and pricing information, feel free to list why your product is superior to competitors. Explain what sets you apart from other yoga studios. Furthermore, explain your plans for client retention.
Your business operations and structure will outline your staff and procedures. This includes the studio owners, managers, yoga instructors, and any other employees. Include information about required certifications or training for your yoga teachers. Also, you should outline which staff members are considered employees and which are independent contractors. Check your local regulations for rules about employees versus independent contractors.
This section can also include plans for opening hours, staffing schedule, who will have keys to the studio, any incentives for employees, sales expectations or commissions, and pay rates. If you are planning to have an employee handbook, you can include a link to a PDF copy. Any projected dates for hiring and training can also be included in this section.
There are a couple of different ways that you can break down your target market in your yoga studio business plan. The first is to outline your ideal client. Not every client will fit into this description, but it can help remind you who you are doing this for and explain to other people your target client. Include why your dream client wants to go to your yoga studio.
If you don’t want to be that specific, you can also list a few different market segments that your business is geared towards. For a yoga business, this can include groups like fitness enthusiasts, stay-at-home parents, and retirees. By breaking down your location demographic into segments, you can work to target your marketing more specifically.
Another option for outlining your target market is to include the current market demographics for your location. The breakdown can include topics like median income, population, male to female ratio, number of competitors, and anything else pertinent to your market. From there, you can explain which segments of the market you plan to target. Additionally, include any obvious obstacles (like median income or high competition) and how you plan to overcome them.
Your location breakdown should first outline the general area of your yoga studio. This would be the neighborhood, town, or city where it is located. If you have not yet chosen your specific location, describe the general area where you are hoping to open your yoga studio. Include the location demographics like population, prominent industries, median income, etc.
From there, you can narrow in on the type of studio space you would like to have or already have. Is it in a strip mall or a stand-alone business? Or, are you renting out class times in an existing gym space? Include any location challenges such as traffic flow or limited parking.
This section can also include any renovation or build-out plans for your studio space. Newly constructed commercial buildings are typically left as blank slates until the first tenants move in. The developer may even offer a build-out budget to get the space ready. Include what work needs to be done in the space and your renovation budget. Be as specific as possible and make conservative estimates for your budget.
Sales and Marketing Strategy
Start by explaining how you plan to handle your marketing and advertising. Will you be handling it in-house, hiring a consultant, or working with a firm? You may be doing a combination, such as working with a design firm for branding but handling a social media marketing plan yourself.
Make sure you include any specific marketing strategies such as print ads, social media accounts, events, online ads, and sales promotions. Grand opening events or pre-opening special offers should also be listed here.
You can also include your brand identity in this section. Explain the imagery, colors, and phrases you plan to use in marketing material. You can include photos and links if branding has already been created.
Your social media and website information should also be included. Today, an online presence can be the greatest marketing tool for reaching potential customers. Business partners or lenders will want to know if you are capable of keeping up with social media apps that are constantly evolving. If you are planning to hire a website designer, website manager, or social media manager, include that here.
Your business plan is frequently used when you are working to gain funding for opening a yoga studio. As the business owner, you need to be able to provide accurate numbers for necessary funding. If you already have a lender or other funding in place, include that information here. Any funding provided directly by the owners should also be listed. All obtained and requested capital should be clearly stated because potential business partners or lenders will want the numbers upfront.
This section can also include your estimated start-up costs, ongoing costs, and project break-even date. Try to be as specific but conservative as possible. Even well-projected dates can be off because of variables out of your control once the business opens.
In this section, include the cost to open a yoga studio. Start with your expected upfront costs, like location renovations, business permits, equipment, and studio deposits. Then, list out your expected ongoing costs, such as rent/mortgage, payroll, taxes, and yoga studio management software.
Make sure you include as many specific examples of expenses as possible. Lenders or business partners will need to see how the funding is being used. They will and ongoing operation costs. As the business owner, your salary or profits will depend on the projected growth rate and break-even point. Include a cash flow analysis with as much information as you have currently.
In terms of projected growth and profits, you will need to do your best analysis. Specific numbers will depend on your location, expected costs, membership rates,and other factors. If you have an idea of what you expect your salary to be or how it will change with studio growth, include these numbers.
Some of those costs will include:
- Electricity & utilities
- Phone & internet
- Yoga management software
- Website hosting
- Initial startup costs (furnishing, mats, flooring, etc.)
- Cost of goods to sell each month
Be realistic when projecting your expected revenue. It is easy to be too optimistic and assume quicker growth than you will most likely have. Look at all of your yoga studio revenue streams, including memberships, merchandise, and additional services like corporate wellness. Realistic projections allow you to see when your expected break-even date is. After that, you can see how your revenue will increase with a growing membership base and/or additional revenue streams.
As you get closer to opening your business or once you are operating your studio, update this section whenever you are sharing your business plan with anyone. It is important to provide the most up-to-date information.
Tips for Writing Your Business Plan
- Get Help: Use free resources, such as our yoga studio business plan template or advisors like SCORE. These aids can help you to create the best business plan for your fitness business.
- Be Detailed: Since your business plan will be presented to potential landlords, investors, and business partners, it is imperative to include as many details as possible. This allows them to get the best understanding of your business and your plans.
- Include Personality: The numbers and strategies are important, but you should also be sure to inject your personality into the business plan. Business operations can be adjusted but the business owner is the heart of the company.
Free Yoga Studio Template
Click here to use this template now. You’ll have a complete yoga studio business plan in no time!