How much does it cost to open a yoga studio?

Assume you are a yoga instructor with 5 years of experience in the fitness industry. During this journey, you inspired a lot of clients and drew their attention towards yoga, which is more than an exercise routine. After serving 5 years as an instructor and acquiring essential skills, you want to inspire people in your locality to start yoga. So, people in your town can improve their body flexibility and recover their muscles from other workouts. To fulfill your dream of inspiring people towards a healthy lifestyle, you want to start your yoga studio. 

Although you are equipped with the necessary PT certification and 5 years of experience in the yoga industry, you still have a question: “How much does it cost to open a yoga studio?” As per Gitnux’s research, the global market size of yoga is expected to grow with a 9% CAGR between 2023 and 2028. Moreover, the yoga apparel market is expected to grow by 8.4% CAGR and reach a market valuation of $40 billion by 2028. Thus, all these statistics from Gitnux show that whether you start your yoga studio or trade-in yoga apparel, you can start a profitable business while inspiring people in your locality to live a healthy lifestyle. 

But you still have not found the answer to your question of how much you need to invest to start your yoga studio. Cost estimation related to your yoga studio is not as easy as it seems. You have to consider several factors, from the lease/rent of yoga space to insurance coverage. Here, we will discuss factors that can influence your initial startup budget. 

How much do you need to invest to start your yoga studio? 

If you want to start your yoga studio and make it a successful business, you have to start thinking as a yoga studio owner instead of a yoga instructor. Instructing yoga to clients and managing a yoga studio as an owner are quite different things. So, before finalizing your decision to start your yoga studio, you begin to think as a yoga studio owner and make a deep analysis of the age limit and gender demographics of your target audience. As per LiveStrong’s research, Around 72% of females participate in yoga practice, while around 28% of yoga practitioners are male. 

Moreover, the same research also indicates that the ratio of practitioners fluctuates with changes in the age bracket, as 19% of yoga practitioners are between the age bracket of 18 and 29.  This ratio changes to 23% when the age bracket shifts between 30 and 39. Furthermore, when you set the age bracket between 40 and 49, this ratio changes to 20%. 

After doing deep research about the target audience, you start to consider the essential factors that can contribute to influencing the cost estimation of your yoga studio. Here are the factors that can influence the budget you have allocated for your yoga studio. 

Lease/ Rent of business premises

When you are making cost estimations related to your yoga studio, the first point that you need to consider is the lease/rent of your business premises. In simple words, you can say you have to do research about your yoga studio space where your clients can perform yoga. During this research about your yoga studio, you can come up with two options: rent the premises or lease the space. The cost of leasing the space can be much higher than renting the place. 

As per Fin Models Lab’s research, the national average for renting commercial space in the US was $35.01 per square foot per year. Moreover, the average lease rate is slightly higher than rent in the US, especially in larger cities. In California, the lease rate was $42.18 per square foot per year, while in New York, the rate was $61.60 per square foot per year. However, the cost of the lease or rent can vary depending on the size and the location of the yoga studio. So, if you want to offer your clients classes such as strength training, meditation, and stretching, you require a large space, which costs you more. So, when you are allocating a budget for the yoga space, you have to make an estimation and select which option suits you, whether you are going to rent the yoga space or lease it. 

Depreciation/licensing of furniture 

While making cost estimations for your yoga studio startup, another factor that needs your consideration is the furniture. The furniture cost can be varied depending on the size of the studio. Moreover, you also have to consider whether you are going to buy new furniture or use the old one, depending upon the location of your studio. The estimated cost you need to spare from the initial investment for purchasing and licensing furniture can vary from $2,000 to $20,000. If you go with the option of buying new furniture for your studio, it may cost you a bit more than purchasing the older one. Buying new standard yoga studio furniture, such as mats and props, can range from $2,000 to $10,000.

 In addition to purchasing the furniture at some place, you also need to buy a license to own the furniture. This license is important for you to buy as it depicts that the furniture used in the studio is up to the standards. The licensing cost of the yoga furniture can vary from $500 to $10,000 depending upon the area and the quality of the furniture. So, the calculation of the depreciation and licensing of furniture enables you to decide the option you should go for when buying your studio furniture, whether you have to purchase the older one or buy the new furniture. 

Personal trainers hiring

If you want to run your yoga studio successfully, you have to ensure you have hired the best personal trainers in the town. However, hiring the best instructors for your yoga studio influences your studio budget. The cost of hiring instructors, including their salaries and benefits, can vary depending on the instructor’s experience and qualifications. The average salary you can pay to an instructor without any experience in the field and with no additional benefit can cost you around $30 per hour. 

However, if an instructor has some years of experience or teaching part-time, you can pay that instructor around $40 per hour. If you want to hire an experienced instructor for your yoga studio, it can cost you around $50 to $100 per hour. In addition to paying the wages, you also have to ensure additional benefits to your instructors, such as paid time off, bonus pay, and teaching materials. These extra perks can cost you around $2,000 to $8,000 per year, depending upon the type of benefit you are going to offer to your clients. 

Yoga studio software

If you want to ensure that your clients have a remarkable yoga experience in your studio and don’t need to face issues while checking in, you need to use yoga studio software. The software enables you to consolidate your studio operations while ensuring a smooth yoga experience. This software enables you to manage your studio classes and clients. Moreover, it offers you an advanced POS system. Thus, yoga studio software allows you to create an environment where your clients can enjoy a healthy lifestyle while performing yoga. 

Apart from a lot of benefits, the software also influences your budget. The cost that you can pay for the subscription to the software can range from $1,000 to $2,000. However, you can cut the cost of yoga studio management software by choosing the best alternative. For example, if you decide Glofox software as your studio software, you have to pay around $2,040. However, if you choose Wellyx as your yoga studio software, it can cost you around $1788, saving up to $252 per year. 

Construction/development of studio 

Apart from leasing or buying the studio space on rent, the construction/development of the studio makes it what you call a place to practice yoga. However, it can affect your investment budget. The cost of construction/ development of a studio depends upon several factors, such as the complexity and size of the building, the material to be used, and the special equipment you add to the studio. As per the research, the average cost that you can spend in the construction of a studio in the US is approximately $20,000. 

Moreover, this cost can be varied depending on the type of building and geographical location. For example, if you want to construct a studio without any insulation and bearing, it can cost you around $5–$7 per square foot. On the contrary, if you want to construct a more complex, insulated, and load-bearing studio, it can cost you around $30–$35 per square foot. However, if you made electrical, plumbing, or heating/cooling fixtures, it can cost you around $1,000–$2,500. A professional architect and engineer can also charge an additional cost that ranges from $50 to $100 per hour. All these expenses add up to the final cost of the construction of your studio. 

Insurance coverages

If you want to avoid the extra expenses caused by legal compliance, you need to buy insurance coverage for your yoga studio. A yoga studio is prone to accidents or injuries that may occur with the facility or caused by it. So, having insurance enables you to cover additional expenses in case of an emergency. Moreover, it also aids you in tackling legal legislation. However, the cost of business insurance coverage can be varied and depends upon the type of coverage you are looking for. The cost of buying insurance coverage for your yoga studio can cost you around $5,000 to $25,000 per year, depending upon the type of insurance your studio has taken. 

In addition to insurance coverage, you also need to buy error and omission insurance that protects your business from claims of negligence by providing additional coverage for lawsuits. This insurance coverage can cost you additional costs that can be varied from $200 to $3,000 per year. While planning your budget, you have to make sure that you have estimated the cost of insurance coverage. 

Advertising & promotional expenses

If you want to grow your studio and attract potential clients to your yoga studio, you have to spend a budget on advertisements. The cost that you need to spend on the ad of your yoga studio can vary depending on the size and advertising goals of your studio. Thus, you can spend around $3,000 to $12,000 per year on advertisements. Moreover, the annual cost of advertisements also depends on how long you want them to run, as well as the location of your studio. 

For example, if your gym is located in a small city, then the cost to run ads can range from $2,890 to $3,972. However, if you want to promote your gym in New York City, it can cost you around $12,000 to $21,072. Although this is an era of digitalization and people make searches on their mobile phones, if you want to run digital marketing ads, it can cost you around $400 to $5,000 per month. So, you have to make sure that you allocate a sufficient amount of budget for the promotion of your yoga studio. 

The final budget for opening a yoga studio 

Final takeaway

If you want to inspire people of your town towards a healthy lifestyle, it is essential for you to start your yoga studio. However, opening your yoga studio is not as easy as it seems. It requires a lot of market research and budgeting to target all the important aspects of a yoga studio. After analyzing all the necessary factors, from personal training hire to advertisement, the final investment you need to start your gym varies from $20,200 to $104,000. If you want to start your yoga studio, you require atleast $20,000 in your pocket to start your business.