Hello, klemg-ga
Believe it or not, this has not been an easy question to answer. Most
of the information I have found comes in snippets from one article or
another. Differences in location, size of the studio, type of teaching
and number of classes and instructors are all major influences on the
success and revenue generated by a yoga studio.
You have asked for some very basic information, and I have tried to
provide what is available outside of expensive market research
reports.
DEMOGRAPHICS
==============
About 15 million people practice Yoga in the US!
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"A study released last summer by the magazine Yoga Journal said about
15 million people in the United States practiced yoga - a 29 percent
jump from the previous year. The yoga boom probably peaked a year ago,
according to The Yoga Research and Education Center, but researchers
there still expect interest to remain at higher levels."
"Today, yoga reaches all sort of demographics, from football players
to school children to prisoners....There is yoga for dieters, for
jocks, even for new moms and their babies."
From "Yoga Goes Mainstream In U.S." CBS News. (Feb 19, 2004)
http://www.cbsnews.com/stories/2004/02/19/health/main601267.shtml
==
According to Yoga Journal's survey of 4,000 individuals, titled "Yoga in America":
* More than 12% of the U.S. population, or 25.5 million people, is
very or extremely interested in the practice of yoga.
* One in six respondents, or 35.3 million people, express the
intention to try yoga within the next 12 months.
* More than half of the general population, or 109.7 million people,
has at least a casual interest in the practice of yoga.
"Says John Abbott, president and CEO of Yoga Journal, "We knew
anecdotally that the number of yoga practitioners in this country had
grown exponentially, but had not quantified that until now.
"Yoga has become a cultural phenomenon and an integral part of the
wellness trend in this country. All the data indicates a substantial
growth in the number of practitioners over the next few years-a growth
that I suspect will be sheltered from both a downturn economy and
other world events, as people turn to yoga to help them cope with a
changing world."
The study also collected data on age, gender, income, and other
demographic factors. Of the yoga practitioners surveyed:
Gender:
* 76.9% are women, 23.1% are men.
Age:
* 25.2% are 25-34, 15.7% are 35-44, and 26.9% are 45-54.
Income:
* Over 30% have an annual household income of $75,000 or more, with a
full 15% earning over $100,000.
Education:
* Nearly 50% have completed a college-level education or higher. An
additional 40% have some college education or hold an Associate
degree.
Region:
* Almost 20% live on the West Coast, almost 30% live in the Northeast,
and nearly 30% live in the central United States.
Length and Frequency of Practice:
* 58.4%, or 8.7 million people, have studied yoga for under 2 years.
* 15.4%, or 2.3 million people, have studied for 10 years or longer.
* More than half practice twice or more per week.
"The growth in the yoga market is reflected in the growth of Yoga
Journal. Between 1998 and 2002, the paid circulation of the magazine
more than tripled, from 90,000 to 300,000, with circulation increasing
20.5% and advertising revenue increasing 30% in the past year alone.
From "Yoga Journal Releases First Comprehensive Study of the Yoga
Market." (June 2003)
http://www.yogajournal.com/about_press061603.cfm
==
The average yogi as a "younger, affluent, educated single woman"
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"All About Women Consumers, a marketing industry prospectus, pegs the
average yogi as a "younger, affluent, educated single woman." Can you
say "shopper?" To marketing professionals, this audience, which makes
up 17 percent of the population, is part of a psychographic group
known as "Inward Alternative Seekers," who use techniques like massage
and aromatherapy - as well as yoga - to relax. Perhaps more telling is
a recent survey by American Demographics magazine that found just over
half of those asked had heard of yoga and believe it's moderately to
very effective. No wonder big corporations are trying to woo us. Yoga
is taken seriously by half the general populace. We can't even elect
leaders by that margin."
From "Yoga Sells...Zippos? Advertisers are using yoga to sell
everything from stocks to cars. Are you buying?" by Carol Connare.
Yoga Journal.
http://www.yogajournal.com/views/286_1.cfm
==
Profile of Siddha Yoga Meditation Center of Orlando (2002)
"Most of the members of the Center are white, Anglo-Saxon, and middle
class. They are comprised of families as well as single people, and
the age range is from 2-70. There are a few Indians in the group, but
they are very much a minority."
http://www.pluralism.org/research/profiles/display.php?profile=71731
==
Yoga is practiced by all age groups and all fitness levels
----------------------------------------------------------
"People from all demographics are enjoying yoga classes. There are
generally fewer men, but more and more are showing up. All ages, from
young adults to the mature population, seem to find a common interest
and benefit. Baby boomers are discovering yoga not only for relaxation
and pampering, but also to maintain good health and wellness....Not
only is yoga for all ages, it's for all fitness levels, including
those who are physically and/or emotionally challenged. It is even now
used in the treatment of those like me, who live with MS. It has
changed lemons into lemonade for me. I not only love to teach it, but
I get to share it with those like myself who are physically
challenged. Keeping both the body and mind strong is essential for the
treatment of MS and other illnesses and diseases."
From "YOGA RELAXES BOTH THE MIND AND BODY," by CONNIE McKNIGHT. Long
Island Press. http://www.longislandpress.com/archive/v01/i07/bodymindspirit.asp
==
"American Sports Data Inc., a Hartsdale, Westchester County company
that tracks fitness information, reported that 43.4 million Americans
used a treadmill in 2002,
* 11.1 million took yoga classes, **
and 17.4 million used a stationary bike. There are a lot of people
exercising and looking for a place to do it."
"Owners say area fitness business is in top shape," by Eric Durr. The
Business Review. (March 19, 2004)
http://www.bizjournals.com/industries/economic_view/bankruptcies/2004/03/22/albany_story4.html?t=printable
==============================================
HOW MUCH DO YOGA PRACTITIONERS SPEND ON YOGA?
==============================================
"An estimated 15 million U.S. yoga enthusiasts, up from about 3
million in 1990, spend about $22 billion annually on classes and the
accoutrements: mats, clothes, videos and DVDs."
From "Entrepreneurs cash in on yoga's recent stretch of popularity,"
by Jennifer Davies. UNION-TRIBUNE (Feb 8, 2004)
http://www.signonsandiego.com/news/business/20040208-9999-mz1b8spirit.html
==
A 2002 estimate puts the consumer average expenditure at $1,500/year:
"The average yoga practitioner's yearly expenditure on all things yoga
-- instruction, mats, props, clothing, weekend workshops, books, CDs
-- comes to ballpark $1,500, conservatively speaking. That amount,
times 18 million equals $27 billion."
"Is the bustling business of yoga - a practice rooted in renunciation
and greedlessness -good karma?" By Russell Wild. Yoga Journal (Nov.
2002)
http://www.yogajournal.com/views/769.cfm
=================================
THE YOGA MARKET MAY BE DWINDLING
=================================
Supply may be exceeding demand
-------------------------------
"Trisha Lamb Feuerstein, director of research for the Yoga Research
and Education Center, said Internet searches on yoga are down, as are
media inquiries to her organization. Lycos reported that Web queries
for Pilates - another hot form of exercise built around controlled
movement and breathing - were up 50 percent in 2002, while those for
yoga were down, along with such fitness has-beens as tai chi and
aerobics."
"The yoga boom corresponded with a shift in its identity from a quest
for enlightenment to a prescription for fitness, said Judith Hanson
Lastater, a physical therapist and the author of several yoga books
including "30 Essential Yoga Poses."
"Since many people view yoga only as a way to get in shape, it risks
having no more of a shelf life than kickboxing, step aerobics or
spinning."
"It's just the hot thing and there will be another hot thing,"
Lastater said. "The whole yoga thing is starting to flatten out. The
bubble is bursting."
"Yoga may well be a victim of its own success. As it has strayed from
its spiritual roots, it is more susceptible to the whims of dabblers
and further removed from the loyalty of its devotees. That means an
increasing number of yoga teachers, entrepreneurs and enthusiasts are
going after an ever-smaller market."
"Frank Iszak, a yoga teacher and a board member of the Yoga Education
Society, a local organization, agreed the yoga business may have
gotten too big for its own good."
=
"According to estimates from the Yoga Research and Education Center,
there are some 50,000 yoga teachers in the United States and as many
as 30,000 places to take yoga classes. In San Diego County, more than
70 studios offer some form of yoga."
From "Entrepreneurs cash in on yoga's recent stretch of popularity,"
by Jennifer Davies. UNION-TRIBUNE (February 8, 2004)
http://www.signonsandiego.com/news/business/20040208-9999-mz1b8spirit.html
==============================
OVERVIEWS OF SOME YOGA STUDIOS (incuding some information about revenue)
==============================
* Average revenue is not available as yogu studios vary so much in
size and location. The best way to find a figure applicable to your
future business would be to survey yoga studios in your particular
location (if they will divulge their revenue.)
==
Three Rivers Yoga Institute:
Robert Barton and Yamuna Devi run Three Rivers Yoga Institute, a
2,300-square-foot studio that has become quite successful over the
past six years.
"Barton declined to say exactly how much the couple earns, but he did
say they made more than the average yoga center, which Yoga Journal
places at $25,000 to $50,000 a year. Three Rivers Yoga Institute
charges $68 a month for each of its 90 students, and Barton and Devi
split their income with a third teacher who also works at the center."
"We're above average," he said. "In my eyes, it's very profitable. But
I lead a very simple life. I don't have a need for a lot of
extravagant things."
"Stress relieving: Coraopolis couple uses yoga to earn comfortable
livelihood," by Eve Modzelewski. Pittsburgh Post-Gazette. (September
2001)
http://www.post-gazette.com/businessnews/20010920yoga0920bnp2.asp
==
Lauren Fawcett, who has opened her own studio focusing on Bikram yoga,
teaches full time.
"Fawcett charges $10 per class and offers private lessons for $75. And
since she only opened her doors six months ago, she wasn't sure how
much she would make as a full-time instructor. "I estimate that the
full-time yoga teacher teaches 14 classes a week," she said. "That
instructor will earn about $29,000 a year. A fair range would be
$30,000 to $40,000."
"Stretch Beyond Your Limitations," by Brian Braiker, Salary.com
http://www.salary.com/careers/layouthtmls/crel_display_Cat10_Ser197_Par295.html
==
Please see this excellent and very comprehensive example of a "Company
Makover" by the Strategy Development Group for Brentwood Yoga:
"The issues confronting Iannone are typical of many new businesses,
said Paul Ratoff, principal of Placentia-based Strategy Development
Group. "Sales are barely at the break-even point and cash flow is very
tight," he said. "But if she focuses, I think she has an excellent
chance to reach her goals. There's some risk, but that's what being an
entrepreneur is all about."
"After meeting with Iannone, Ratoff made some initial recommendations.
She should jettison her smaller location to focus completely on
Brentwood Yoga, which is much larger, better located and has greater
potential for growth. Iannone had contemplated trying to run the two
locations simultaneously."
"All your resources should be focused on your Brentwood location,"
Ratoff told her. "This is where your future is."
"He also encouraged Iannone to secure a $10,000 line of credit to add
to the $10,000 in personal savings she's using as start-up money.
Iannone acquired the business by agreeing to take over the studio's
lease payments and giving the previous owner a small percentage."
"That arrangement allowed her to avoid a large initial capital outlay.
But she still needs the funds to pay the eight independent contractors
who teach classes, to spruce up the facility and to cover rent,
advertising and other costs."
* "Brentwood Yoga owner Christine Iannone, left, instructs Linda
'Tish' Tisherman. Iannone hopes to build sales to $700,000 annually."
(Read entire article.....
From "Yoga Entrepreneur Searches for Calm in Business Plan," by GRAHAM
WITHERALL. http://www.strategydevelopmentgroup.com/topics_of_interest_Yoga.htm
==
"Mark and Kim Morrison, owners of Yoga Studio in Costa Mesa,
California, left their respective jobs as attorney and teacher in 1995
to open up their studio with $25,000. Specializing in Bikram yoga,
their 2001 revenue reached $250,000, with business increasing 20
percent annually."
"Larry Payne, co-founder and director of the International Association
of Yoga Therapists, says $100,000 is ideal for starting your own
studio and points to "yoga therapy," teaching yoga to people with
special needs, as the future of the yoga industry. And he's not the
only one convinced of yoga's appeal: According to Yoga Journal, there
are approximately 20 million practitioners in the United States
alone."
From "3rd Annual Million-Dollar Ideas - Yoga Studio," by April
Pennington. Entrepreneur (2002)
http://www.entrepreneur.com/article/0,4621,295932-4,00.html
==
"The interest in yoga does not always translate into big business. Amy
Caldwell, who opened YogaOne studio with her husband, Michael, about a
year and a half ago, said running a successful studio is not easy or
especially lucrative. Expenses include rent, advertising and wages for
additional teachers. The uncertain economy also makes it a
touch-and-go proposition because exercise is often one of the first
things people cut out of their budgets."
"It's hard to make a living doing yoga," Caldwell said. "The average
person that opens up a small yoga studio does it because they love
it."
From "Entrepreneurs cash in on yoga's recent stretch of popularity,"
by Jennifer Davies. UNION-TRIBUNE (February 8, 2004)
http://www.signonsandiego.com/news/business/20040208-9999-mz1b8spirit.html
==========================================================
SOME CONSIDERATIONS FOR SETTING UP YOGA PROGRAM OR STUDIO
==========================================================
The following article has some tips for setting up a yoga program
within a fitness center. While it sounds like you are looking to set
up an independent studio, the following condiderations should still be
helpful.
Read "A NEW TWIST IN YOGA PROGRAMMING," By Beth J. Shaw. Yoga Fit
http://www.yogafit.com/press-more3.html
(Scroll down to "Getting Started.)
=======================
ADDITIONAL INFORMATION
=======================
You might be interested in purchasing the following report:
"TRENDS IN U.S. PHYSICAL FITNESS BEHAVIOR (1987 - Present) (Released
July 2001) $375. http://www.americansportsdata.com/phys_fitness_trends1.htm
Business Planning software
----------------------------
From the North American Studio Alliance
http://www.namasta.com/yoga_massage_business_plan.php
"Are you starting or operating a small business like a yoga studio, a
massage practice, a retail operation etc... ? Planning is something
you do before you launch a business, it is also something that
separates successful businesses from the rest.
"For a limited time, when you join NAMASTA as a Professional Member,
you will receive BizPlan Builder 8 for free."
BizPlan Builder helps you:
- organize your ideas, focus your team
- prove to investors that you have a real business
- cover all the bases from market size, demographics, financing...
- forecast your costs, profits, cashflow...
- calculate your 'deal' and return on investment
- start a business from a raw idea
- launch a new product or service
- evaluate a business for purchase
- secure bank/SBA loans, and lines of credit
- attract angel/venture capital funding
- successfully merge or sell your company.
==
I hope this information provides a start in helping you formulate a
business plan. The most important considerations will be the expense
of doing business in your locale and the potential for a good client
base to maintain revenue.
I wish you the best of luck!
umiat
Google Search Strategy
revenue AND yoga studio
yoga studios AND average revenue
demographics AND yoga
yoga studio earn OR earnings
income of yoga practitioners |
