If you're one of those people who find inner peace by contorting your body into various positions, or if you're just interested in the business side of yoga, then this blog is for you!
In this article, we'll explore the various costs involved in opening a yoga studio in the US and give you some tips on how to save money along the way. From renting a space to buying mats and props, we'll cover it all. So, grab your yoga pants, roll out your mat, and let's get started on this bendy adventure!
The average cost of opening a brand new 1,000 square feet yoga studio is pegged at around $70,000. Of course, the city and neighborhood your studio is located in, your target audience, the interior design and facilities you offer, your marketing strategy, and a host of other factors will affect how much you will eventually spend.
While some people manage to open a simple yoga studio with as little as $15,000, others have been known to spend as much as a million dollars on more lavish setups.
Here’s a look at the points we’ll consider while discussing yoga studio start-up costs.
Let’s now break down the costs involved in starting a yoga studio.
A major chunk of your budget is initially going to be taken up by the cost of renting/ leasing the space to set up the studio. That is, of course, if you’re not buying the real estate outright.
If you’re renting the space, how much you pay will depend on where you’re located. Typically, rental rates are mentioned as a per-square-foot rate.
The average rental of commercial space in the US is around $200 per square foot. Let’s assume you’re renting out 1000 square feet to run a yoga class for around 30 people. Your monthly rent will be the price per square foot multiplied by 1000 divided by 12, around $1666.67 every month.
While leasing out a commercial space, most places will expect you to pay key money as a security deposit. This could be between two months to a year’s rent in advance. Other recurring costs include the monthly costs of maintenance and utilities.
Next, consider what you will need to do to spruce the place up. A large part of the interior decor of yoga studios is flooring and mirrored walls. The most cost-effective and durable flooring is vinyl.
In fact, this could be made to look like wooden flooring as well, at a cost of between $1 and $3 per square foot.
Painting and interior decorations could cost upwards of $6,000, depending on what you have in mind. These costs will include ambient lighting and a music system.
You will also need toilets and changing rooms. If you’re renting or leasing a new space, this could all be negotiated as a build-out budget. While this may make the rent higher, it will reduce the burden of refurbishment.
Of course, your new yoga studio will need signage. This could cost anywhere between $500 to $5,000.
Next up in yoga studio set-up costs, there is the cost of equipment your yoga studio will need to be accounted for. Fortunately, you’re going to get away easy on this one, since yoga is pretty minimal in its requirements.
While most students will carry their own yoga mats, it would be great branding for you to invest in around a hundred yoga mats with your yoga studio’s logo. This could cost between $50 and $100, on average.
The only other things you may need to invest in as far as equipment goes are yoga blocks and straps, both of which average around $10 apiece. Overall, equipment costs will put you down around a couple of thousand dollars.
Two costs you will need to consider as a part of the hiring process are placing job vacancy advertisements and if needed, paying for your instructors to get certified.
Placing an online advertisement could cost anywhere between $0.10 to $5 per click.
A 200-hour certification program could cost between $2,500 to $5,000 on average.
While the general rule of thumb is to spend between 7%-8% of your annual revenue on marketing. However, building awareness about your business is crucial when you’re starting a new yoga studio.
On average, digital marketing agencies charge between $80 to $200 an hour for their services. However, with the vast resources available on the internet, you should be able to reduce that cost considerably by simply doing this yourself.
There are certain legal costs that you will incur as a part of starting a new yoga studio. You will need a lawyer to check your lease agreement and business contracts. On average, lawyers charge around $275 an hour for their services.
You will also need to invest in commercial property insurance when you start your yoga studio. This will put you down around $756 a year, on average. General liability insurance, at $360 a year, will protect you against injury lawsuits.
Legally, you will need to obtain a business license to start a yoga studio. While the actual cost of this will vary depending on where you live, expect it to be less than $200.
Local permit costs will again depend on your location, but this is something you can check with the chamber of commerce. In addition, look at what extra permits you will need, if, for example, you want a cafeteria in your studio or a merchandise store.
While this is not a necessity, this is a great way for you to invite the local community, including other yoga and fitness business owners, rub shoulders with them and introduce your new studio to the world.
The costs you will incur here are limited to catering, and maybe entertainment for your guests.
While we’ve covered most of the setup costs to start a new yoga studio, here are some running costs for your consideration.
You will need to pay your instructors month on month. The average pay for a yoga instructor is pegged at around $31.88.
If you have any administrative and maintenance staff employed, their salaries will also need to be accounted for.
The business taxes you will need to pay will depend on where you live. You will also need to withhold taxes on all your employees' salaries and pay on their behalf.
If you have a merchandise store, then sales tax will also be applicable. This could vary from 2.9% to 7.5%.
If you have a cafe in your new yoga studio that sells merchandise, refreshments, and food, then add inventory and maintenance to your list of recurring expenses.
A yoga studio management software should at least make registrations, billing, and scheduling easy for you. A full-fledged studio management software, like Bookee, will do a lot more than just that for you.
Bookee is a lot more than just scheduling software. We can effortlessly ease the process of registrations, accepting payments, and billing. We can streamline scheduling, both for your staff and your studio members.
We can build you a professional website and an app for your customers to have elevated experiences with your yoga studio. We can help manage inventory for your studio cafe and merchandise store. Want to live stream classes for your global students? We have that covered too!
Find out more about why so many yoga studios and other fitness businesses have chosen Bookee, especially after trying other products in the market by booking a free demo today.