Yoga Studio Business Plan
If you want to start your own yoga business or expand your current studio, you need a business plan. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of yoga studio business plans.
The following yoga studio business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Yoga Studio Business Plan Example
Below are links to each of the key sections of a successful yoga studio business plan. Once you create your plan, download it to PDF to show banks and investors.
I. Executive Summary
Business Overview
[Company Name] is a yoga studio based in [Location], with a mission to enhance the lives of its students. It is strategically located in a commercial complex in [Location], not too far from the city but distant enough to be an ideal sanctuary to pause, relax, and be in touch with nature.
The company believes that in order to change the world, one must create positive changes within one’s self. Therefore, its team is committed to guiding students to mind-body wellness, one class at a time, by teaching strength, flexibility, balance, focus, and mindfulness in day-to-day activities.
The instructors at [Company Name] are driven by passion and are highly-qualified and experienced. They genuinely care for their students and offer both nurturing and challenging classes intended to inspire them to live in the present and to the fullest.
[Company Name] also strives to be an inclusive community so its offerings appeal to first-time Yogies as well as experienced participants.
Products Served
Here are the services that [Company name] offers to its consumers:
- Restorative: Focuses on slowing the body down to relax, heal, and recover.
- Pranayama and Meditation: A quick class that teaches breathing techniques to strengthen the lungs and core, and cultivate feelings of calmness.
- Pilates: A well-rounded workout that moves the spine and muscles in all directions.
- Pre-natal: A class that supports the mother as she goes through changes that comes with pregnancy.
- Post-natal: An enjoyable class for moms 4-6 weeks after birth; it helps tone the body after delivery.
- Kids yoga: A class for 3-12 years old that helps children to build confidence, develop physical coordination, and learn relevant skills in a calming environment.
The classes at [Company Name] are available both in-person and online.
Customer Focus
[Company Name] will primarily serve residents of the city. The demographics of these customers are as follows:
- 304,000 residents
- 189,651 workers
- Average income of $52,000
- 40% married
- 36% in Mgt./Professional occupations
- Median age: 38 years
Management Team
[Company Name] is led by [Founder’s Name] who is an athlete and a Business Management graduate. She worked in the fitness industry as a gym instructor for 10 years before she discovered her passion for yoga.
Alongside [Founder’s Name] is a fellow yoga teacher with a background in Business and Accounting who will be her right-hand in managing the business. This assistant director wiill be trained extensively on the business operations so that she will be able to handle the business seamlessly when [Founder’s Name] is out of town.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to attend at least one class once the studio is launched.
- Our location has easy access from multiple residential and commercial districts.
- The management team has a track record of success in the fitness business.
- Yoga classes are popular, and have enjoyed significant success in communities across the United States.
- Local competitors leave a large gap in the market—there are low-cost providers ($20-30/month), and an ultra-luxury options ($120+/month), but nothing in between.
Financial Highlights
[Company Name] is seeking total funding of $230,000 to launch its studio. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $110,000
- Working capital: $120,000 to pay for Marketing, salaries, and other operating costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 |
| Total Expenses | $176,390 | $230,030 | $250,431 | $261,901 | $273,920 |
| EBITDA | $23,610 | $69,970 | $149,569 | $238,099 | $326,080 |
| Depreciation | $0 | $0 | $0 | $0 | $0 |
| EBIT | $23,610 | $69,970 | $149,569 | $238,099 | $326,080 |
| Interest | $0 | $0 | $0 | $0 | $0 |
| PreTax Income | $23,610 | $69,970 | $149,569 | $238,099 | $326,080 |
| Income Tax Expense | $13,344 | $19,409 | $52,349 | $83,334 | $114,128 |
| Net Income/Surplus | $10,266 | $50,561 | $97,220 | $154,764 | $211,952 |
II. Company Overview
Who is [Company Name]?
[Company Name] is a yoga studio based in [Location], with a mission to enhance the lives of its students. It is strategically located in a commercial complex in [Location], not too far from the city but distant enough to be an ideal sanctuary to pause, relax, and be in touch with nature.
The company believes that in order to change the world, one must create positive changes within one’s self. Therefore, its team is committed to guiding students to mind-body wellness, one class at a time, by teaching strength, flexibility, balance, focus, and mindfulness in day-to-day activities.
The instructors at [Company Name] are driven by passion and are highly-qualified and experienced. They genuinely care for their students and offer both nurturing and challenging classes intended to inspire them to live in the present and to the fullest.
[Company Name] also strives to be an inclusive community so its doors are open to people regardless of age, faith, gender, color, or size. It also offers classes for people interested in trying yoga for the first time.
[Company Name]’s History
[Company name] was founded by [Founder’s Name], a fitness instructor based in [Location]. She began her career in [xxxx], earning her fitness trainer certification from [School] and working at [gym name] for [x] years. She became interested in yoga in [year]. Having found a deep sense of peace with the progressive practices of yoga, she decided to start her own yoga studio two years after. After surveying the local population and confirming the demand for a mid-price yoga option, [Founder’s name] founded [company name].
Since incorporation, the company has achieved the following milestones:
- Found a studio location and signed Letter of Intent to lease it
- Developed the company’s name, logo and website
- Hired an interior designer for the studio’s decor and layout
- Determined equipment and fixture requirements
- Began recruiting key employees with experience in yoga and yoga instruction
[Company Name]’s Products/Services
Here are the services that [Company name] offers to its consumers:
- Restorative: Focuses on slowing the body down to relax, heal, and recover.
- Pranayama and Meditation: A quick class that teaches breathing techniques to strengthen the lungs and core, and cultivate feelings of calmness.
- Pilates: A well-rounded workout that moves the spine and muscles in all directions.
- Pre-natal: A class that supports the mother as she goes through changes that come with pregnancy.
- Post-natal: An enjoyable class for moms 4-6 weeks after birth; it helps tone the body after delivery.
- Kids yoga: A class for 3-12 years old that helps children to build confidence, develop physical coordination, and learn relevant skills in a calming environment.
The classes at [Company Name] are available both in-person and online.
III. Industry Analysis
The Yoga Studios industry has benefited from the burgeoning number of individuals that participate in yoga. According to a study done by Yoga Journal, over 37 million Americans participated in yoga last year. Furthermore, an estimated 80 million Americans are expected to try yoga in the coming years, indicating further interest in industry services. Over the past five years, industry revenue is expected to grow at an annualized rate of 5.1%.
Over the next five years, industry revenue is forecast to remain stable, rising at an annualized rate of 0.5%. The industry is anticipated to benefit from relatively untapped customer bases, namely the 34.0% of Americans who did not practice yoga but claimed to be interested in trying it. In addition, many studios will likely aim to expand the number of men who participate in classes by offering men-only classes that focus on mobility. While other yoga studios will likely emphasize the health merits of yoga to attract the burgeoning elderly population.
Key industry drivers include per capita income, which is expected to increase, and time spent on leisure activity, which is also expected to increase over the next five years.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by the upper-middle class; as a result, they have the means to pay for yoga memberships, personal training and other fitness related services.
The precise demographics of the town in which the company resides is as follows:
| Omaha | |
|---|---|
| Total Population | 426,835 |
| Square Miles | 6.89 |
| Population Density | 3,789.20 |
| Population Male | 48.04% |
| Population Female | 51.96% |
| Target Population by Age | |
| Age 18 to 24 | 11.87% |
| Age 25 to 34 | 14.70% |
| Age 35 to 44 | 12.15% |
| Age 45 to 54 | 13.54% |
| Age 55 to 64 | 11.82% |
| Target Population by Income | |
| Income $50,000 to $74,999 | 11.16% |
| Income $75,000 to $99,999 | 10.91% |
| Income $100,000 to $124,999 | 9.07% |
| Income $125,000 to $149,999 | 9.95% |
| Income $150,000 to $199,999 | 12.20% |
| Income $200,000 andOver | 32.48% |
Customer Segmentation
We will primarily target the following customer segments:
- Stay-at-home moms: The town has a large population of stay-at-home moms who are active in the school and community. These moms seek fitness services on a regular basis. Winning the loyalty of a mother often includes winning the business of her children and husband as well. These women are well connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
- Professionals: The business location has a significant number of business establishments with working men and women who are seeking to stay fit and are financially able to pay for services that improve their overall wellness.
V. Competitive Analysis
Direct & Indirect Competitors
Affordable Yoga
Established in 2013, Affordable Yoga was founded on the idea that everyone deserves the opportunity to practice yoga, regardless of means. This studio provides classes solely on a donation basis. Because its students give generous donations, the studio gives half of all proceeds to different local nonprofits each month.
The studio offers private yoga, as well as a weekly class schedule. Weekly classes are held on Wednesdays from 6:30 to 7:30, Saturdays from 9:30 to 10:30, and Sundays from 6:30 to 7:30. The suggested donation for these classes is $10-20.
CLV Yoga Studio
Established in 2015, CLV Yoga Studio is housed in a 3000 sq ft space where it provides a variety of yoga class styles, including Doga (yoga with a dog). In addition, customers may visit the onsite spa, which offers massage, facials, and medium readings. The studio also operates a boutique, which retails a variety of products including jewelry, leggings, skin care products, and essential oils.
The Boutique at CLV offers a full line of yoga essentials for purchase. It offers several online yoga classes, as well as broadcasting Livestream classes daily at 10am and a meditation at 6pm on Facebook.
Yoga Shack
Established in 2018, Yoga Shack operates from two locations. It offers yoga classes for students at all levels, as well as massage therapy and acupuncture. Yoga Shack also provides private yoga sessions for individuals or small groups. Classes are open to club members, and the general public. It also offers multiple 200 hour yoga teacher training classes throughout the year.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is easily accessible. It is close to nature and has a relaxing ambiance perfect for those who are looking for a break from the city’s noise and busy life.
- Great service at an affordable price: The services offered by [Company Name] are similar in quality to its most premium positioned competitor. [Company Name] will offer these services at a much more affordable price.
- Management: The company’s management team has years of business and fitness experience, which allows them to market to and serve customers in a much more sophisticated manner than the competition.
- Relationships: Having lived in the community for 15 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Familiar, regular instructors
- Significant personal attention
- Moderate price point
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 5-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Major Publications
The company will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz and it can be expected to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Pre-Opening Events
Before opening the Gym, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, and sporting events.
Commute Advertising
The company will draw attention by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.
VII. Operations Plan
Functional Roles
[Company name] will carry out its operations primarily on membership and appointment basis. All classes and personal training sessions will be scheduled in advance, but the studio itself will be open 7 days a week from 6am to 9pm.
To execute on [Company Name]’s business model, the company needs to perform several functions. [Company name] anticipates using the services of [X] employees, divided into the following roles:
Service Functions
- Yoga teachers/instructors
- Maintenance Staff
- Sales/membership manager
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Hiring and training staff
- Customer service/front desk functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
[Company Name] is led by [Founder’s Name] who is an athlete and a Business Management graduate. She worked in the fitness industry as a gym instructor for 10 years before she discovered her passion for yoga.
Alongside [Founder’s Name] is a fellow yoga teacher with a background in Business and Accounting who will be her right-hand in managing the business. This assistant director wiill be trained extensively on the business operations so that she will be able to handle the business seamlessly when [Founder’s Name] is out of town.
Hiring Plan
[Founder] will serve as the general manager. In order to launch the yoga studio, the following personnel will need to be hired:
- Personal Trainers (4 to start)
- Assistants (1 to start)
- Receptionist/Front desk (1 to start)
- Maintenance personnel: 1 full-time to work for the day shift
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will primarily be driven through client growth. There will be other initiatives to increase sales as shown below:
- Clients (Packaged Offerings, Camps, and Single-Session)
- Online Course Subscriptions
- Events
- Merchandise
The Company’s largest direct cost will be paying its trainers. [Company Name] will focus on bringing experienced and enthusiastic personnel, and thus, will be paying them a large percentage of fees collected from each class. While trainers’ wage cut will be determined by experience, the Company expects to pay an average of 40 percent of the sales that come in for each class
Other major cost drivers for the company’s operation will consist of:
- Lease
- Marketing Expenditures
- Cost of Goods
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $230,000 to launch its studio. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $110,000
- Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Revenue Category | Percentage |
|---|---|
| Events | 10% |
| Merchandise | 10% |
| Online Courses | 10% |
| Single Sessions | 20% |
| Packaged Offerings | 50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
