Yoga has become ever more popular and erupted into a huge business opportunity. There are over 6,000 yoga studios and about 36 million people practicing yoga in the United States alone. One report stated that North Americans spend around 3 billion dollars a year on yoga classes. They spend many more billions on yoga clothes, books, platforms, equipment, and yoga teacher training sessions.
Many passionate yogis have noticed this growth and plan on launching a new yoga business. Of course, having a passion is not the only reason to start a business. The main reason to start a business is to make money. So many people wonder what the average yoga studio owner’s salary is.
There is no definite answer on how much a yoga studio owner earns. That answer depends on many different factors. Thus, this article will help anyone interested in starting their own yoga studio to calculate what he might make.
Yoga Studio Owner Salary
Yoga studio owners are responsible for all the expenses of a yoga studio. Their salary depends on the total income of the studio minus expenses. Some yoga studio expenses include rent and yoga studio manager salary. They also include yoga instructors’ salaries, product inventory, and more. Accurate records of these expenses are needed to calculate the yoga studio owner’s salary.
For the most part, rent takes up 15% of a studio’s revenue. Rent prices vary depending on location. Here are some other average expenses to give an idea of what a studio might cost:
Yoga Studio Manager:
According to Salary.com, an average yoga studio manager’s salary in the United States in 2021 falls between $37,249 and $44,874. Salaries differ according to education, certificates, experience, and skills.
Glassdoor says that most yoga teachers make an approximate annual income of $47,500. This averages out to about $40 to $100 per yoga class. In general, the salary paid to yoga teachers takes about 27% of a studio’s income.
Yoga Studio Owner Income:
Yoga studios earn about $14,000 in revenue every month. A yoga studio owner can expect to make about $7,000 in gross monthly income. That adds up to $84,000 a year. Of course, yoga studio owners can take measures to increase their profit margin.
Calculating Yoga Studio Revenue
The most significant variable of a yoga studio’s income is recurring attendance. It isn’t easy to calculate the bottom-line profit estimates of yoga studios. Two reasons are varying attendance and memberships. Some people like to pay for each yoga class, while others like to pay for a membership. Also, some people will show up every day while others will come 2-3 times a week.
Another hurdle to calculating revenue is the seasons where attendance tends to drop. Summertime and holiday seasons usually mean a smaller turnout for yoga classes. This decrease in attendance negatively impacts a yoga teacher’s payment and reduces the yoga studio owner’s salary.
Yoga studio owners need to evaluate expenses and yoga class attendance to determine the revenue of their studios. Once the studio owner has calculated the income of the yoga business, he can make a rough estimate of how much money he will earn.
Here are a few notes about the profitability and attendance of yoga studios that might help calculate revenue:
- Popular yoga studios in New York and Los Angeles bring in more than one million dollars of annual revenue.
- Average yoga studio owners can make six figures if they have 100 to 200 students per month.
- A single yoga practice room can accommodate 250 to 500 students per month.
How to Maximize Profit
One problem that owners face when starting a yoga business is deciding what to charge for yoga classes. Some people are willing to pay upwards of $60 for yoga classes, while others struggle to afford that.
However, profitable yoga studios are the ones that fill their classes daily, including private classes. So to maximize profit, yoga studio owners need to set a reasonable price. One that is appropriate for their area will increase yoga practice attendance.
Overall, the profitability of a yoga studio depends on the following factors:
- Revenue vs. expenses
- Number of students
- Recurring attendance
- Value-based price structure
- Effective use of yoga studio space
- Community engagement
Know the Business’ Numbers
To maximize profit, owners need to understand exactly how much money comes into their yoga business and how much goes out. Analyzing the profit margin is one of the most important factors in determining the success of a business and what an owner gets paid.
Regularly review your financials. Know your monthly expenses, cash flow, and the areas of your business that make the largest net profit. Estimate how much a class makes and how many classes you have in a month. Assess how much the business makes from the sale of extra products.
Knowing these numbers of your business will help you get a clear understanding of your salary. More importantly, they will help you recognize the strengths and weaknesses of your yoga business. Then you can make plans to grow the business successfully.
Expand Beyond Yoga Classes
Surprisingly, yoga classes are not the most profitable aspect of a yoga studio. Yoga studios can only charge so much for classes, plus they have to pay yoga instructors, which reduces their profit. So yoga studio owners have found more efficient and productive ways to make money.
Some yoga studios offer more than one specialized branch of yoga. They offer a wide variety of classes to get more people into their studio. In other studios, the owners themselves teach yoga so that they spend less on instructor costs.
Other ways to make money that are more profitable include the following:
- hosting yoga teacher training
- organizing yoga retreats
- having an in-person and online clothing boutique
Creating an online yoga studio is also a great way to make more money. It can expand your yoga community to an audience that you would not have been able to reach. You can host virtual classes or teacher training. A blog also helps make a little extra money. A blog provides a platform where you can market your studio and get your name in public view.
Linear income means you earn money based on how much work you do. For example, you sell one item, and you get paid for that item. Passive income is when you work once and get paid thousands of times. Passive income can help increase your net earnings beyond traditional methods of earning money.
Passive income avenues may take some time to put in place in the business. They also cost some money upfront. But in the long run, these areas of income can bring a huge positive impact on a business’s bottom-line revenues.
Some passive income ideas include:
- real estate
- writing a book or an informational guide
- become an influencer
- posting videos on YouTube
- renting out the studio
- selling merchandise
As mentioned before, these endeavors might cost some money upfront. But the added revenue and business promotion they provide can be worth it.
As with everything, benefits and earnings are different for everyone. Before embarking on ways to make passive income, make sure to do research. Calculate the cost first to determine if you will, in fact, make more money.
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