What to Consider Before Buying a Yoga Studio

While ancient people have been practicing yoga for thousands of centuries around the world, the practice took the U.S. by storm only recently. According to research by Ipsos Public Affairs done last year, 37 million people in the U.S. now regularly practice yoga. The figure represents a staggering increase from 20 million just three years ago. IBIS World reports that yoga is a $10 billion industry. Some may think that these statistics alone would make an obvious argument for entering the industry, but there are several important things to consider before buying ayoga studio.

Is Buying a Yoga Studio Right for You?

Just because something is popular doesn’t mean it’s right for you. And while this statement can be applied to nearly every aspect of life, it is especially true when you’re considering buying a yoga studio.

Interest Level

Passion is a necessity in any business venture but all the more so in the yoga industry. Though trendy and accessible for a wide range of consumers, yoga is a practice of physical and mental fitness. And to be an entrepreneur in the fitness industry, you must be passionate about the lifestyle. Owning a successful yoga studio is a hands-on venture. Most yoga studio owner-operators also teach a majority of the classes offered, which requires knowledge of yoga and physical endurance. Unless you’re ready to actively recruit (and pay) yoga teachers on an ongoing basis, it’s smart to be one yourself. With increased interest-level, more people will be looking for class availability, and offering a packed schedule will draw in customers. Plus, having a full schedule of classes gets you that much closer to returning on your investment.

Assets or Stock Sale

It is important to determine what exactly the seller is including with the yoga studio for sale. In a stock sale, the transaction consists of the entire legal entity that owns the yoga business. A stock sale incorporates the shares of company stock as well as the interests, assets, and liabilities. Asset sales mean the seller retains the responsibility for the business’ liabilities and sells only certain assets. If the company is a limited liability company, ownership of the business entity remains in the seller’s possession. Both types of sales are complicated, and it’s important to consult accountants, lawyers, and business brokers before closing the deal.

Market Share

As the yoga community has expanded, so has the number of yoga studios opening up in any given area. Before buying a yoga studio, you’ll want to research the local market. If the ratio of studios to yogis is relatively high in your area, you may want to reconsider your purchase. Or, you’ll need to come up with ways to stand out from the competition, offering things the other studios might not, like:

Specialty classes

• Prenatal yoga
• Hot yoga
• Ariel yoga
• Meditation

More than Yoga

Consider holding other events in your studio that would appeal to both your clients and the community. Host art shows, charity events, or other health-conscious educational classes to diversify yourself from the competition.

Continuing Education

Yoga teacher training for continuing education is a rapidly growing interest among yoga practitioners. After completing yoga teacher training, students are certified to teach classes themselves. Investigate the additional costs and labor it would be to offer certification at your studio.

Competitive rates

With such demand for yoga classes, some studios capitalize on the trend by charging an arm and a leg. Offering introductory rates, drop-in fees, monthly packages or donation-based classes encourages new customers to try your space and incentivizes existing customers to return.

Owner-Student Connection

For a lot of yoga students, where they head for a class is dependent not only on studio quality but also on the personal relationship they have with the owner and teachers. If the current business owner double’s as the studio’s most popular teacher, inquire as to if they are joining another area studio and potentially taking their loyal clients with them. If the yoga studio seller is retiring or relocating, ask about what other ways they can assure the business will continue to be successful after they leave.

Have questions about buying a yoga studio, or any other kind of small business? Contact your local Sunbelt Business Brokers office! With decades of experience buying and selling all types of businesses, we’re sure to be able to point you in the right direction.