Opening a Yoga Studio: Equipment Prices and Start-up Costs

19 Jul 2024

In 2020 the COVID-19 pandemic shook the world. After long periods of being cooped up inside, we witnessed a surge in the number of Australians expressing interest in health and wellness. In fact, nowadays for 80% of Australians keeping themselves and their families healthy is a top priority¹.

As a result of these fitness trends, ancient exercise practices such as yoga have become increasingly popular. The practice of mental, physical, and spiritual disciplines has doubled over the past decade and shows no sign of slowing down. Currently the yoga industry is worth over $88 billion dollars worldwide and is expected to reach an astonishing $125 billion by the year 2025².

For yoga teachers and aspiring entrepreneurs, there has never been a better time to capitalise on this growing market by opening your very own yoga studio. One of the benefits of opening a yoga studio is the start-up costs are typically low, especially if you are already a licensed yoga instructor. However, while yoga businesses are an accessible small business opportunity, it takes more than the ability to teach a class and a passion for the subject to open a successful yoga studio. Like most businesses, it requires knowledge of business operations along with the right gear – in this case, specialised yoga equipment.

To help you kick off and hit the ground running, read on to discover how much it would cost to open a yoga studio.

How Much Does It Cost to Open a Yoga Studio?

Aside from careful planning, opening a successful yoga studio requires money – but the results can be extremely rewarding to a yoga devotee. To start, you need to build a space that practitioners find most conducive for practising yoga. At the same time, certain types of yoga require specialised equipment for facilitating poses and practices. You’ll also need the right permits and business licences.

Certification

One of the most important pieces of equipment you’ll need before opening a yoga studio is the one you hang on the wall: a teacher training certificate from a registered yoga school. Being certified can be more of an attraction to prospective clientele. Fees can vary, but the Australian Yoga Academy offers yearly membership for $1,550³. You can also try 10 Class Pass for $240⁴.

Lease/rent

When planning how much it would cost to open a yoga studio, the costliest expense you will have to budget for is the lease/rent payment. This will vary considerably depending on several factors including the size of the studio, the location, and the property values in the area. The average rent for retail spaces is around $3,000 to $10,000 a month⁵. It all depends how big your yoga studio will be.

We recommend speaking to a real estate agent to get an indication of the leasing terms in your desired location.

Refurbishments/décor

Once you’ve secured your rental space it’s time to think about any refurbishments. Chances are you will need to invest in some remodelling and redecorating to transform your rental space into an adequate yoga studio. Here are the typical renovation costs you should consider:

Flooring

Since most yoga exercises are practised on the floor, flooring should offer pliability for comfort but be sturdy enough to support typical yoga poses. It should also be water resistant against sweat and water bottle spills and be easy to clean. Vinyl flooring offers these qualities and can be made to look like real wood. Costs range from $26 per square metre to $35 per square metre⁶. But prices can be lower or higher, depending on the quality of the product and the state you live in.

Redecorating

Investing in painting and redecorating is important to ensure your yoga studio has a peaceful and relaxing ambiance. Professional interior painters typically will charge you about $15 – $40 per square metre⁷.

Furnishings

Fortunately, décor can be inexpensive as only minimal furnishings are required, such as comfortable seating in the entryway. Otherwise, think Zen – as in a clean, uncluttered, and open room that is both pleasing and relaxing.

Equipment

Many yoga practitioners bring their own yoga mats to class, but it’s important to have mats on hand for those who don’t. Rebel Sport offers mats for about $35⁸. Some yoga classes use blocks and straps, which cost about $25 apiece from Gaiam⁹.

Software and technology

To run a successful yoga studio, you will need to invest in CRM software, payroll software and point-of-sale systems to help you manage your business. You can expect to pay up to $15,300 for these services¹⁰.

You’ll also need a quality sound system if you plan to play music during yoga sessions. Costs and quality can vary, but a simple sound system will often suffice. Amazon offers suitable sound systems for about $900¹¹.

Insurance

As with any business, opening a yoga studio comes with liabilities. As a yoga teacher and yoga studio owner you will require a public liability and professional insurance licence. You’ll also need to take out employer’s liability and personal accident insurance to protect you against potential lawsuits that may arise should a student hurt themselves during class. Depending on the coverage of your policies, the cost for yoga teacher insurance in Australia can range from $100 to $400 per year¹².

Marketing

If you are an established yoga teacher with a strong clientele, then you won’t have to spend much on marketing. However, as a new practitioner, marketing will be key to getting your first few customers through your door. Setting your budget at 5% of annual sales is a fairly safe number but generally 10% or more is needed to grow or increase market share¹³.

Staff

Employee wages are an ongoing expense that will need to be taken into consideration when assessing the cost to open a yoga studio. In Australia a yoga instructor makes an average of around $36 per hour according to SalaryExpert¹⁴. You’ll also need to think about the hiring process too as this can often be quite costly. Make sure you have sufficient funds to advertise your open positions on job boards and social media to attract high-quality workers.

Establishing Your Prices

The final step is to establish your prices. How much are you going to charge for your services? This will depend greatly on your location – whether in an expensive section of a large city, or a small town where your overhead costs are lower.

The average cost of a single yoga session ranges from $20 to $30¹⁵.

You should start by checking the price of your competition closest to your location and go from there. You can also get creative with pricing by offering a flat monthly rate for unlimited classes, or a discounted rate for clients who purchase a specific number of classes in advance.

Offer a Unique Experience

It’s important that you differentiate your services from other yoga studios and classes in your area. Create unique offerings to ensure you outperform your yoga studio competition.

Another crucial aspect to think about is customer retention. Make your students feel special by sharing your journey with them and encouraging feedback so you can ensure they are getting what they want from your classes. Create loyalty programs and offer giveaways for those who continually come back to your studio. In turn, you’ll organically create student ambassadors for your business, word-of-mouth marketing, and a thriving yoga business.

Conclusion

There are many costs involved with opening a yoga studio, so you need to make sure you take each of these factors into consideration when drawing up a business plan. Opening a new business can be challenging at the best of times but with some careful consideration and planning you have a greater chance of success.

For more tips and tricks on how you can grow a successful business sign up to become a Groupon Merchant today.

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