Sample Business Plan for Opening a New Yoga Studio Executive

SampleBusinessPlanforOpeningaNewYogaStudio

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ExecutiveSummary

HathaYogaisanancientdisciplinethatexplores,develops,andintegratesthebody,

mind,andspirit.Yogasystematicallystretchesandstrengthensmusclesthroughout

thebody,increasescirculationtointernalorgansandglands,quietsthenervous

system,andimprovesconcentration.Thisancientsystemofself‐carebringsvitality,

health,deeprelaxation,andpeaceofmind.

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ThestyleofHathaYogataughtistheAnusaramethod.AnusaraYogaisanewstyleof

yogathatisheart‐oriented,spirituallyinspiring,yetgroundedinadeepknowledgeof

optimalbodyalignmentintheposes.Instructorsencouragestudentstolistentotheir

body,respectitswisdom,andtoprogressattheirownpace.

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Deeprelaxationistaughtineachclassaftercompletionofthepostures.Theintention

oftheinstructorsatGardenWayYogaCenter(GWYC)istoassiststudentsinthe

developmentofphysical,mental,andspiritualwell‐being:atrulypricelesshealth

advantage.

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TheGardenWayYogaCenteroffersclassesthroughouttheyearandmonthly

workshops.CoursesofferedincludeAnusara‐styleHathaYogaplusworkshopsin

relatedtopics.TheYogaCenterfeatureswell‐trained,professionalinstructors,

progressiveteachingmethods,anon‐competitiveandencouragingatm o sphere,anda

beautifullight‐filledfacility.TheGardenWayYogaCenteralsohasaboutiquethatwill

sellworkshopclothingandyogatrainingaides.

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JohnSmith,Ph.D.,founderofTheGardenWayYogaCenter,isoneofAnusaraYoga's

leadingteachers.Heconductsworkshopsandteachertrainingsnationally,andhas

previouslyestablishedyogatrainingcentersinSantaBarbara,CA;Denver,CO;and

Charlottesville,VA.Heco‐foundedandco‐developedthePortlandYogaCenterin

Portland,OR,whichofferedinstructiontonearly1,000studentsperweek.Hehasbeen

ayogapractitionersince1985andameditatorsince1989.JohnisacertifiedAnusara

instructorandoneofthefewDesignatedTeacherTrainersintheAnusarastyleof

HathaYoga.HeisregisteredwiththenationalYogaAllianceatthehighest500‐hour

level.

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1.1Objectives

TheobjectivesofGardenWayYogaCenterarethefollowing:

• Acquire300customersbytheendofthefirstyearofoperation.

• Achievesalesinexcessof$60,000fromtheboutique.

• Increasecustomerbaseby25%bytheendofthesecondyearofoperation.

• Increasesalesby15%bytheendofthesecondyearofoperation.

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1.2Mission

ThemissionofGardenWayYogaCenteristogivethestudent,whetherabeginneror

advancedaplacetopracticeAnusara.Itisourintentiontokeeptheteachingof

Anusaraasclosetothewaywehavebeentaughtaspossible.Itisincumbentforthe

teachertoalwaysactresponsiblyandwiththestudent'sinterestinmind.Nomatter

whatwelearnorfromwhomwelearntherealandonlyteacheriswithin.

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CompanySummary

TheGardenWayYogaCenteroffersAnusara‐styleHathaYogaplusworkshopsin

relatedyogatopics.TheYogaCenterfeatureswell‐trained,professionalinstructors,

progressiveteachingmethods,anon‐competitiveandencouragingatm o sphere,anda

beautifullight‐filledfacility.

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GWYCwillbelocatedinthecommercialdowntownsectionofCity,intherenovated

CityCenter.GWYC'sgoalistobuildalargebaseofyogastudentsfromthethousands

ofofficeworkersthatareemployeddowntown.

Besidesthetraining,theGardenWayYogaCenteralsohasaboutiquethatwillsell

workshopclothingandyogatrainingaides.GWYCwilloperateasalimitedliability

corporation.ThecompanyisownedbyJohnSmith.

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2.1Start‐upSummary

Thestart‐upexpensesfortheTheGardenWayYogaCenterarefocusedprimarily

onstudiosetup,equipment,andinventoryfortheboutiqueandbookstore,aswellas

initialadvertisingandwebsitesetup.Johnwillinvest$60,000.Inaddition,GWYCwill

securea$20,000long‐termloan.

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StartUpRequirements

StartUpExpenses

Legal $1000

Stationery,etc. $400

Brochures/Website/Advertising $10,000

Insurance/BusinessLicenses $2,000

Rent(first/last) $4,000

Equipment/Renovation $20,000

TotalStartUp $37,400

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StartUpAssets

CashRequired $30,000

StartUpInventory $10,000

TotalAssetsatStartUp $40,000

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TotalRequirement(Assets/Expenses) $77,400

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2.2CompanyLocationsandFacilities

TheGardenWayYogaCenterislocatedindowntownCity,intherenovatedCity

Center.Thefacilityisquicklyaccessibletotheover50,000urbanprofessionalsthat

GWYCconsiderspotentialmembers.

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Withtwostudiorooms,menandwomen'sdressingrooms,andaboutique,GWYC

offersplentyoffloorspaceformultipleclassesbeingconductedsimultaneously.In

addition,parkingisnotaproblem.GWYCiswithineasywalkingdistancefromany

buildinginthedowntownarea.Ifacustomerdoesdecidetodrive,theCityCenterhas

parkingspaceforupto2,000vehicles.

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ProductsandServices

TheGardenWayYogaCenter'sservicesandproductsareasfollows:

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Services

• Yoga1/BeginnerisanintroductoryclassforstudentswhoarenewtoYoga.This

classfocusesonposestostretchandstrengthenthelegs,back,andshoulders.

Emphasisisgiventothebasicalignmentofthestandingposes.

• FundamentalsofVinyasaYogawillpreparestudentsforavigorousflowstyleof

yoga(Vinyasa)thatsynchronizesbreathwithmovement.Itwillofferabalance

ofstrength,flexibility,andendurancetochallengethefitnessenthusiast.The

coursewillbeginwithinstructiononthealignmentoftheposesandmove

towardlinkingalltheposestogetherinacontinuousflowbytheendofthe

session.

• GentleYogaisdesignedforthosewhopreferaclasslessvigorousthanYoga1.It

includesgentlestretchesandbreathingaswellassimplemovementsdesigned

tosystematicallyincreasetherangeofmotionofeverymajorjointandincrease

energy.Thisclassisidealforstudentswithchronicsymptomssuchas

muscle/jointpain,stiffness,weakness,orfatigue,orwhoislookingforavery

relaxingpractice.

• Yoga1‐2/ContinuingBeginnerisacontinuationclassforYoga1.Theemphasisof

thiscourseisonrefiningandbuildingenduranceinYoga1andYoga2standing

poses.Itdoesnotincludetheshoulderstand.ThebasicAnusaraYogaprinciples

ofalignmentarepresented.Thisclassissuitableforstudentswhohave

practicedotherstylesofyoga,butitisnotsuitableforthosewhohavenever

studiedyogabefore.

• Yoga2/Intermediatefocusesonrefiningthestandingposesandlearningbasic

sittingpostures,simplebackbendingposes,andtheshoulderstandusingthe

AnusaraYogaprinciplesofalignment.Itisrecommendedthatstudents

completebothYoga1andYoga1‐2beforetakingYoga2.

• Yoga3/AdvancedcontinueswithrefinementstoposesstudiedinYoga2and

introducesfullarmbalance(handstand),headstand,andforearmbalance.

Additionalbackbendposesareincluded.Regularyogapracticeoutsideofclass

isstronglyencouraged.Permissionoftheinstructorisrequired.

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Products

• WorkshopClothing:Shirts,shorts,athleticbrasandpants.

• WorkshopEquipment:Balancingballs,straps,blocks,mats,andmatbags.

• Yogatrainingaides:Videotapes,instructionalmanuals,inspirationalbooks.

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MarketAnalysisSummary

DowntownCityhasemergedfromtherecentrecessiontoregainitpositionastheheart

ofthecity.Thegrowthhasbeenfueledbytheincreasedemploymentinthecity'shigh

techcompanies.Currently,50,000professionalworkindowntownCity.Webelievethat

ayogacentercanbeveryattractivetoourcustomersifwecreateaprogramthatfits

thetimeconstraintsoftheirjobs.Ourlocationiswithineasywalkingdistancefrom

mostofficebuildingsdowntown.Weplantoofferourmembersaprogramthatwill

allowthemtousetheirlunchhourstoattendworkshops.

JohnSmithwillbeapositivedrawforthosewhohavesomeexperiencewithyoga

instruction.ThekeytothesuccessofGWYCwillbeattractingnewpeopletoyoga

instruction.

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4.1MarketSegmentation

TheGardenWayYogaCenterwillfocusontwocustomergroups:

MiddleIncomeUrbanProfessionals:Thisgroupisthecoresegmentofpotential

studentsofGWYC.Theirdemographiccharacteristicsarethefollowing:

• Ages:26‐40.

• Sex:30%male,70%female.

• FamilyIncome:$30,000‐$70,000.

• Health/LifestyleIssues:Activeindividualswhoarefocusedonhealthyfoodand

dieting.Over70%ofpeopleinthisgrouparemembersofgyms.Approximately,

40%ofpotentialcustomershavetakenyogaclassesbefore.

• SocialPattern:Willmorelikelyattendaspartofgroup.

• Center'ssellingpoint:Closetowork.Thesessionlowersstress.Canbeattended

withworkmatesasgroupactivity.

UpperIncome:Theupperincomecustomerisasecondarytargetgroup.Their

demographiccharacteristicsarethefollowing:

• Ages:35‐60.

• Sex:30%male,70%female.

• FamilyIncome:$80,000+.

• Health/LifestyleIssues:Activeindividualswhoarefocusedonhealthyfoodand

dieting.Over90%ofpeopleinthisgrouparemembersofgyms.

• SocialPattern:Willmorelikelyattendalone.

• Center'ssellingpoint:Closetowork.Thesessionlowersstress.

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4.2TargetMarketSegmentStrategy

EverythingGWYCdoesmustbetailoredtoworkwithinthetimeconstraintsofthe

targetcustomer.Yogaclassescanbenolongerthan45minutesduringtheweekdays

andmustbescheduledtofitthebreakandrollinglunchschedulesthatexistinthe

downtownbusinesses.Eveningandearlymorningclasseswillbelonger(1‐1.5hour).

Thefocusoftheinstructionwillalsohavetobetailoredtoaclientelethatwillbe

seekingmaximumrelieffromthepressureofworkandthenreturningtothe

workplace.IfGWYCcancreateanoticeabledifferenceinthecustomers'senseofwell‐

being,thenthecustomerwillcometodependoninstructionasaescapeduringthe

day.Thesekindsofexperienceswillcreateatremendouswordofmouthandbringin

morefirsttimestudents.

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4.3ServiceBusinessAnalysis

Typically,yogacentersarelocatedawayfromthecity'scommercial/business

center.GWYCislessfocusedonservingalargenumberofbeginnersandismore

focusedonobtaininglongtermstudents.Studentsareattractedtoaspecifictypeof

yogaandthereputationandskillsofGWYC'sleader.



4.3.1CompetitionandBuyingPatterns

Thekeytocompetitionwithintheyogabusinessisthequalityoftheinstructor.There

areanumberofinstructorsaroundCitywhoarewellrespected,andGardenWayYoga

willstrivetoattracttheseteacherstoitsfacility.Thelocation,qualityandambianceof

thefacilityistherealcompetitiveadvantageforGardenWay.Becauseithasthebest

mostattractivefacilityintownteacherswillwanttoteachhereandclientswillwantto

"getaway"here.GardenWayYogaCenterwillfocusofpresentingGWYCasthe

perfectplacetolearnyogaskillsthatwillimprovethestudentphysicallyandreducethe

dailystressoftheworkworld.



Other"schools"intheareawillbeabletomatchthequalityofinstruction,butareoften

heldinchurchhalls,communitycenters,fitnesscenters,etc.anddonothavethe

relaxingambiancethatissoimportanttothediscipline.



StrategyandImplementationSummary

TheGardenWayYogaCenterwillmarketthroughthenumerousdowntownfitness

clubs,beautysalons,tanningsalonsandboutiques,aswellasthroughaprominent

socialnetworkingpresence.TheGardenWayYogaCenterwillofferthefreeopen

workshopforbeginners.Inaddition,GWYCwillinitiateaprogramthatwillgive25%

sessiondiscounttomemberswhosuccessfullyrecruitnewmemberstoGWYC.



5.1CompetitiveEdge

ThecompetitiveadvantageofGardenWayYogaCenterislocationandthequalityand

ambianceofthefacility.BasedintheheartofCity,weofferourmembersexcellent

instructionthatfitsintotheirbusyday,providingthemasanctuaryfromdaily

pressure.Ourfacilityisaperfectcomplimenttoourbrandimage.



5.2SalesForecast

Thesalesforecastoutlinessalesofinstructiontimeaswellassalesofproductsthrough

theboutiquelocatedinthefacility.Instructionsissoldinthefollowingfourways:

• Privatelessons;

• Tenclasspasses;

• Drop‐insessions;

• Monthlymemberships.



Theboutiquewillsellclothing,books,posters,books,DVDsandvideos,mats,and

otherpropsforyoga.Inadditionitwillsellhealthypre‐bottleddrinksandhealthy

energyfood.Inthebeginningallfoodwillbepre‐packaged,sinceJohndoesnothave

thefacilityorexpertisetorunacafefacility.Ifthefacilitybecomesmoreofa

destination,hewillresearchaddingacafe.

TheGardenWayYogaCenteranticipatesthatsaleswillbeslowforthefirstandsecond

monthofoperation.Afterthatpoint,saleswillincreaseasmembershipgrows.

Thefollowingisthesalesforecastforthreeyears.



SalesForecast

 Year1 Year2 Year3

Sales

YogaInstruction 152,000 190,000 240,000

BoutiqueSales 64,000 85,000 106,000

Other 0 0 0

TotalSales 216,000 275,000 346,000



CostofGoodsSold  

BoutiqueSales 20,150 26,000 32,000





Year1yogainstructionsalesestimateisbasedon20classesperweekwithanaverage

of9studentsperclass,plusmonthlyworkshops.



5.3Milestones

Milestonesareimportantprogramgoalswithdatesandmanagersincharge,and

budgetsforeach.Themilestonescheduleindicatesouremphasisonplanningfor

implementation.Ourbusinessplanincludescompleteprovisionsforplan‐vs.‐actual

analysis,andwewillbeholdingfollow‐upmeetingseverymonthtodiscussthevariance

andcoursecorrections.



5.4MarketingStrategy

Thekeytothemarketingstrategyistogetthedowntownlunchtrafficoffthestreets

andintoGWYC.GWYCwillofferfreeinstructionandwillhaverefreshmentavailablefor

visitors.Theinstructionsegmentswillbe45minutesandfocusonexercisesthatwill

producethemaximumreleaseoftension.



PersonnelPlan

JohnSmith,Ph.D.,founderofTheGardenWayYogaCenter,isoneofAnusaraYoga's

leadingteachers.Heconductsworkshopsandteachertrainingsnationallyand

internationally.

Inadditionhehasexcellentbusinessexperiencehavingpreviouslyestablishedyoga

trainingcentersinSantaBarbara,CA;Denver,CO;andCharlottesville,VA.Heco‐

foundedandco‐developedthePortlandYogaCenterinPortland,OR,whichoffers

instructiontonearly1,000studentsperweek.Hehasbeenayogapractitionersince

1985andameditatorsince1989.



JohnisacertifiedAnusarainstructorandoneofthefewDesignatedTeacherTrainersin

theAnusarastyleofHathaYoga.HeisregisteredwiththenationalYogaAllianceatthe

highest500‐hourlevel.



JohnwasthebusinessmanageratPortlandYogaCenter.PYCstartedwithfour

employeeand20students.Withinthreeyears,PYChadastaffof25andover1,000

students.HewasaneffectivemanagerofthegrowthofPortlandYogaCenter.



TheGardenWayYogaCenter'spersonnelwillbethefollowing:

• JohnSmith,director;

• Teachers(5half‐time);

• Administrativestaff(1).



PersonnelPlan

 Year1 Year2 Year3

Director(self) 40,000 42,000 48,000

Teachers(4part

time)

58,000 65,000 75,000

AdminStaff 19,000 22,000 25,000



TotalPersonnel 117,000 129,000 148,000





DetermineMonthlyBreakEvenPoint

EstimatedMonthlyFixedCosts=$15,500

AveragePercentVariableCosts=10%

BreakEven=15,500+1550=17,050



ProjectedProfit/Loss

Belowisayearlyprofit/lossestimate.Formonthlyprojections,youwillusuallyproject

alossforthefirst6monthsduringthestartupphaseandthenprojectprofitincreasing,

butwithalullinthesummermonths.



ProfitandLossProjections

 Year1 Year2 Year3

Sales 216,000 275,000 346,000

CostofGoodsSold 20,150 26,000 32,000

TotalRevenue 195,850 249,000 314,000



Expenses 

Payroll 117,000 129,000 148,000

Marketing/Advertising

(notincludingstartup)



7,500



7,800



8,200

Depreciation 2,500 2,600 2,900

Utilities/Rent 31,300 32,500 33,600

Insurance 2,400 2,500 2,600

PayrollTaxes(14%) 16,380 18.060 20,720

TotalOperatingExpenses

117,080



192,460



216,020

ProfitBeforeInterestand

Taxes



18,770



56,540



97,980

InterestExpense(ifaloan

wasusedatstart)



2,200



1,900



1,300

Taxes 4,140 13,560 24,170



NetProfit 12,430 41,080 72,510

