Yoga has become ever more popular and erupted into a huge business opportunity. There are over 100,000 yoga teachers registered in the US and about 36 million people practicing yoga in the United States alone.
One study by YogaAlliance stated that North Americans spend around 16 billion dollars a year on yoga classes and equipment each year. 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 to 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 the yoga studio manager’s 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 a lot of a studio’s revenue ($50-$120 per hour on Peerspace). Rent prices vary depending on location.
Yoga Studio Manager Salary
According to Salary.com, an average yoga studio manager’s salary in the United States in 2021 was between $37k and $45k. Salaries differ according to education, certificates, experience, and skills. In 2022, the stats look quite similar.
Still, if you compare it to the Glassdoor salary for the same position, you get a $45k base pay with additional $18k, totaling $64k per year.
Yoga Instructor Salary
Glassdoor says that most yoga teachers make an approximate annual income of $64,134 in the United States.
Keep in mind that this is split between a $41,189/yr base pay and $22,945/yr additional pay. And in case what that mysterious additional pay means, it comes down to cash bonuses, commissions, tips, and profit sharing with the studio.
Yoga Studio Owner Income
Moving forward to Yoga studio owners, we’ll use Glassdoor again as a source. For a studio owner, the salary can reach a median of $113,765 per year, split between a base pay of $78,694 and $35,068 per year in additional pay.
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 or she will earn.
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 with a tool like Amelia or Trafft. 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 such as:
- wellness activities
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.
If you enjoyed reading this article on the average yoga studio owner salary, you should check out this one with yoga business names.
We also wrote about other yoga-related subjects like starting a career in yoga, yoga colors to use in the studio, yoga franchises, teaching yoga without certification, yoga studio software, and yoga marketing ideas you could use
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