Top Ten Things to Consider when Starting a Yoga Studio
Top Ten Things to Consider when Starting a Yoga Studio
Top Ten Things to Consider when Starting a Yoga Studio
Would you walk into a restaurant you had never been to before and tell the waiter ìI just want some hot food, and by the way, it doesnít matter what it costs!î Most people think this is ridiculous. But honestly, it is not that different when someone with years of experience as a Yoga instructor decides to open a studio, but does not really want to know about the business side of things.
I know you want to share your practice with others so that they also may benefit, but please believe me when I tell you that you will be able to impact many more peopleís lives if you choose to learn a little about business before starting your own studio.
One of the first things a client planning to open a Yoga studio will often tell me is how many years they have been practicing Yoga. They go on to elaborate on the school they went to and what other Yoga experience they have. I honor and admire this kind of experience and the discipline it takes to acquire it.
At the same time, itís my job to point out that if they primarily want to focus on the teaching and practice of Yoga, then opening a studio is probably not for them. If youíre shocked, thinking ìWhat background could be better than years of experience with Yoga?!î, then this article is for you.
Running a business successfully involves far more than just being good at Yoga. In fact, in a recent conversation with the founder/director of one of the largest and most successful Yoga studios in Baltimore, she revealed that sheís not even an instructor. She emphasized that she is a businesswomen who loves Yoga.
Business is a lot more than just giving a service or product to a customer. It has a whole ìbehind-the-scenesî part that we donít usually see when we walk in the front door. Business is about financial projections, strategic planning, marketing, sales, budgeting, facility maintenance, hiring, sub-contractors, bookkeeping, and so much more.
If you are someone who is willing to learn about these things (and you donít need to be an expert, but you do need to have a working understanding of them), then maybe opening a studio is for you. It can be a wonderfully rewarding and fulfilling experience. It can truly be the fulfillment of a dream for many.
However, understanding what is really involved before starting out is essential to success. Here are some things to ask yourself before diving into opening a studio.
Consideration #1: Are you willing to work long hours in the beginning? Every small business owner will tell you about the late nights and weekends spent on building a business from scratch. Itís just plain hard work. But, it has great freedom as well. If youíre not sure about this, consider buying an established studio, or even a Yoga franchise.
Consideration #2: Are you comfortable learning about finances, budgeting and bookkeeping? For better or worse, money is the lifeblood of every business. Without it, the business fails instantly. To succeed, you need to have a moderate handle on finances. This means knowing how much you earn each month, how much you spend, how much you owe and how much is owed to you.
It also means knowing how much youíll need to earn each month to pay operating expenses (rent, electricity, etc.), payroll (paying employees) and to pay yourself (you need to eat too!). It also means projecting this for the next year, and figuring out how the studio is going to earn this much money (how many students youíll need, private sessions, etc.) This kind of planning is essential for success.
Consideration #3: Are you able to accept that business will never be entirely smooth, but rather that it is wrought with some degree bumps and potholes, and that is just part of owning a business? It is estimated that an average U.S. business faces a ìcrisisî three to four times per year. This might be a key employee quitting, an IRS audit, a major unexpected expense, etc.
In addition, there are ìdaily hassles.î An instructor is late, someoneís check bounced, the stereo doesnít work and so on. This is just part of business. And, as the owner, much of it will be your problem to deal with (until you grow enough to hire a manager, then someone else will worry for you). See it as a wild and exciting adventure that letís you share an amazing gift with the world, and youíll be fine!
Consideration #4: Do you have at least 50% more money available than it seems like youíll need to get started? Most small businesses underestimate their expenses (and overestimate profits) for the first few years. It is rare that running any small business (at least to start with) costs what you expect. It always seems to be more.
This is because there are numerous unexpected and miscellaneous expenses. Everything from having the floor polished to paying business taxes to buying a new phone system. It all adds up. Plan ahead for this one, and you wonít be surprised.
Consideration #5: Are you willing to learn about marketing, or do you have the money to hire a professional marketer who will do this for you? I know, marketing makes you think of tele-marketers and used car salesmen. These are just poor examples of marketing, just as a Big Mac is a poor example of gourmet food, yet it is still food (technically).
Marketing simply means letting people whose lives could benefit from Yoga know that you have something that would really help them. If you donít, you not only miss out on business, but you sell them short of having this benefit in their life. Imagine if you had a flat tire and were having a hard time changing it, and a tow truck was driving by, but he didnít stop because he felt it would be too pushy to ask you to pay him to help you change your tire!
People miss out on something they want and need when they donít know about the awesome experience your studio could offer them. Letting them know about this is what true marketing is.
Consideration #6: Can you accept that while Yoga may incorporate energy, spirit and flow, running a business adds a new kind of energy to the mix: money. If you believe your practice is above needing to worry about money, you may be reassured to know that you are not alone. What may be less reassuring is that very few studio owners who hold this perspective stay in business for more than a couple of years.
Perhaps in an ideal world, this would be different, but her, now, today, money is a part of our life. Like other forms of energy, money is simply a way to create change. This may take the form of having a new studio floor put in, donating to charity , or paying your phone bill.
Money is really just another form of energy. And it is the form that every business today requires to exist. We donít need to worship it, just view it as an important resource. Just as a car needs gas to run, a business needs money. I wish my car ran on something other than gas, but for the time being, I accept that this is how it works. Such is the case that a studio is a business and needs money to operate.
Consideration #7: Are you really passionate, not just about practicing Yoga, but about sharing the art of Yoga with others? Running a Yoga studio is about sharing your practice with others. Many of your students will probably be novices. Some will do things that make you cringe, others will make you proud to have made their mastering the art possible.
In running a studio, you will be quickly frustrated if you are not comfortable offering Yoga for Beginner, to people who like Yoga but do it poorly and people who donít take it seriously, as well as those that are a pleasure to watch practice.
Consideration #8: Are you willing to make mistakes and learn from them? Success is about mistakes. Just as Thomas Edison tried over a thousand different materials for the filament of the light bulb before discovering one that worked, such is business.
Success is not about doing it perfectly the first time ñ striving for this leads to mediocrity. Success is made of trying, failing and learning; then taking what you learned and doing it better the next time.
Sometimes this approach is referred to as ìFireÖAimÖFireÖAimÖî If youíre a perfectionist, running a business may be very frustrating to you. Business is very imperfect, and those who are most successful at it, and who find it most fulfilling, are those who truly understand that things just need to be ìgood enoughî and not perfect.
Consideration #9: Are you able to do this without destroying your personal life, should it fail? While no one plans for a new business to fail, and itís certainly the last thing you want to think about, it does sometimes happen. Plan your divorce while you are still in love.
In other words, you need to design an exit strategy for the business in the beginning. You donít want to lose your house and have to declare bankruptcy if things donít pan out. Do your best to make sure you can personally survive even if the business does not. If you canít, then this may not be the best time to start a studio, or maybe finding a partner or investor to share the burden would help. There are many creative solutions that could work for you.
Consideration #10:Are you willing to make a thorough business plan? I believe this is the single most important item on the list. The business plan doesnít need to be in the form a bank needs to lend you money, but it should be complete.
It is unfortunately all too true that ìfailing to plan is planning to fail.î A real business plan outlines the way your studio will operate. It defines the kind of people who will come to your classes and private sessions, it estimates how many clients and students you need each month in order to pay the bills. It is like having a map with you when you are on a long road trip.
By the way, the reason that banks want to see a business plan before lending money is because they know that most businesses that donít have one will end up failing, and they donít want to lend money if they might not get paid back. Doing a business plan isnít hard (I frequently guide my clients through this process. There are also numerous books available on the subject at your local bookstore). However you do it, make sure you have a plan.
These are among the most important things I believe someone should consider when opening a studio. Take your time, plan it out, then, if it still looks and feels right for you, take the leap.
Owning a studio can be one of the most rewarding things there is. My very best wishes for you on this exciting adventure.
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"Wherever your journey takes you, may you find peace, fulfillment and success."
Al Lipper is the founder of Centered Business and business coach for Yoga studios. He helps studio owners who are struggling to grow their new or existing Yoga business by bringing expert knowledge and comprehensive experience to your unique situation, to help you define your studio vision and get you on track and moving forward. He offers a 100% unconditional happiness guarantee and unlimited support as his commitment to your success. Register online for free monthly tips on running your Yoga studio more easily and with less hassle. Centered Business is all about helping you get to wherever you want to go!