Webinar Membership Area/Studio Ownership 101
Studio Ownership 101 Opportunities & Considerations for Teachers
About Absolute Yoga Academy • • • •
School started out of necessity Huge success right from day one We’re the “United Nations” of yoga English language courses, but nearly 1/2 our students speak another language and go back and teach in other languages • Thailand is our “home base” but we now are introducing courses all over the world
About Me • Yoga teacher, teacher trainer, studio owner • Founder and Managing Director of Absolute Yoga Academy, YOGABODY Naturals & YOGABODY Fitness • Taught in 4 countries at over a dozen studios (including my own) • Taught over 10,000 students • 2,000 students have graduated from our teacher training programs • Currently own/operate 3 of my own studios
Lucas Rockwood
Agenda for Today • How to know if you should own a studio—or just teach • How to choose the right location, right size and right price • Shortcuts to studio ownership: less money, less risk • Insider tips for 10 years in the business
DISCLAIMER Business and financial decisions of any kind have huge implications. Please do not make any investment or business decisions without consulting with experts, friends and relatives to make sure you’re aware of the risk and sacrifices that might go along with your decision.
Own a Studio or Just Teach? • Do you love business? Are you business minded? • Are you excited by the idea of being “behind the scenes” and promoting your teachers (rather than yourself)? • Do you have money to invest? Can you raise money? • Are you willing to give up the next 12 months of your life? • Are you in this for the long term? • If everything goes well, will you be happy?
Time Considerations • Your first year will be a complete wash—you’ll do nothing but work on your studio • Expect to work 40-60 hours per week (or more) to get things started and running successfully • If you are the person running your studio, quit your job • The idea that you’ll “hire a manager” your first year is a myth—you have to do it • From year 2 onwards, it gets easier, but there is no such thing as a business that “runs itself”
Money Considerations • • • • •
Low-end investment (stand alone studio) = $50,000 Average investment = $150-225,000 High-end investment = $200,000+ How will you finance it? You need at least 6 months of working capital to keep the business running while it’s not profitable • Can you survive without a salary for the startup period? • Average time to cash flow positive = 3-9 months • Average time to recoup investment = 3 years
Space Considerations • Practice room should be 100m2 minimum, total studio size should be 150350m2 (includes reception and bathrooms) • Studio room itself must be able to fit 30 mats easily, more is much better • Poles, columns, and poorly shaped rooms are not desirable • 4 rows is the maximum, ideal is 3 rows of 10-14—with too many rows, students get lost in the back • Location is crucial: pop. density, parking, visibility from the street, foot traffic, etc.
Location Considerations • Studio needs minimum of 500 active members to be viable • Needs a city with a population of at least 100,000 people in a very small radius (3-10km radius) • It’s worth paying more for rent if you get visibility or more foot traffic— you’ll end up paying for advertising otherwise • Most locations will offer 5+5 commercial leases, most common lease structure • Renovations needed will determine, to a large extent, how much you’ll have to spend on the build
Shortcuts to Studio Ownership • Take over an existing studio • Partner with a local gym, gymnastics center, dance center or underutilized yoga studio • Rent a rehearsal room or event space ad hoc, as needed • Convert a room in your home into a studio • Move into a bigger home, use the extra space for yoga classes
My Experiences • • • •
Almost no one does the math—do it! Most people “buy a job” for themselves Most studio owners “want out” after the first year Be aware of the business aspects of the business—teaching is just one leg of the stool • Make sure that the best case outcome is enough for you—if everything goes well, will it be enough? • Don’t partner with friends or family members • Talk with other studio owners, make sure it’s a good fit for you!
“Turning passionate yoga students into professionally-qualified teachers since 2006…”
ABSOLUTE YOGA ACADEMY 200 & 500hr Yoga Teacher Training Courses www.AbsoluteYogaAcademy.com
About Absolute Yoga Academy • • • •
School started out of necessity Huge success right from day one We’re the “United Nations” of yoga English language courses, but nearly 1/2 our students speak another language and go back and teach in other languages • Thailand is our “home base” but we now are introducing courses all over the world
About Me • Yoga teacher, teacher trainer, studio owner • Founder and Managing Director of Absolute Yoga Academy, YOGABODY Naturals & YOGABODY Fitness • Taught in 4 countries at over a dozen studios (including my own) • Taught over 10,000 students • 2,000 students have graduated from our teacher training programs • Currently own/operate 3 of my own studios
Lucas Rockwood
Agenda for Today • How to know if you should own a studio—or just teach • How to choose the right location, right size and right price • Shortcuts to studio ownership: less money, less risk • Insider tips for 10 years in the business
DISCLAIMER Business and financial decisions of any kind have huge implications. Please do not make any investment or business decisions without consulting with experts, friends and relatives to make sure you’re aware of the risk and sacrifices that might go along with your decision.
Own a Studio or Just Teach? • Do you love business? Are you business minded? • Are you excited by the idea of being “behind the scenes” and promoting your teachers (rather than yourself)? • Do you have money to invest? Can you raise money? • Are you willing to give up the next 12 months of your life? • Are you in this for the long term? • If everything goes well, will you be happy?
Time Considerations • Your first year will be a complete wash—you’ll do nothing but work on your studio • Expect to work 40-60 hours per week (or more) to get things started and running successfully • If you are the person running your studio, quit your job • The idea that you’ll “hire a manager” your first year is a myth—you have to do it • From year 2 onwards, it gets easier, but there is no such thing as a business that “runs itself”
Money Considerations • • • • •
Low-end investment (stand alone studio) = $50,000 Average investment = $150-225,000 High-end investment = $200,000+ How will you finance it? You need at least 6 months of working capital to keep the business running while it’s not profitable • Can you survive without a salary for the startup period? • Average time to cash flow positive = 3-9 months • Average time to recoup investment = 3 years
Space Considerations • Practice room should be 100m2 minimum, total studio size should be 150350m2 (includes reception and bathrooms) • Studio room itself must be able to fit 30 mats easily, more is much better • Poles, columns, and poorly shaped rooms are not desirable • 4 rows is the maximum, ideal is 3 rows of 10-14—with too many rows, students get lost in the back • Location is crucial: pop. density, parking, visibility from the street, foot traffic, etc.
Location Considerations • Studio needs minimum of 500 active members to be viable • Needs a city with a population of at least 100,000 people in a very small radius (3-10km radius) • It’s worth paying more for rent if you get visibility or more foot traffic— you’ll end up paying for advertising otherwise • Most locations will offer 5+5 commercial leases, most common lease structure • Renovations needed will determine, to a large extent, how much you’ll have to spend on the build
Shortcuts to Studio Ownership • Take over an existing studio • Partner with a local gym, gymnastics center, dance center or underutilized yoga studio • Rent a rehearsal room or event space ad hoc, as needed • Convert a room in your home into a studio • Move into a bigger home, use the extra space for yoga classes
My Experiences • • • •
Almost no one does the math—do it! Most people “buy a job” for themselves Most studio owners “want out” after the first year Be aware of the business aspects of the business—teaching is just one leg of the stool • Make sure that the best case outcome is enough for you—if everything goes well, will it be enough? • Don’t partner with friends or family members • Talk with other studio owners, make sure it’s a good fit for you!
“Turning passionate yoga students into professionally-qualified teachers since 2006…”
ABSOLUTE YOGA ACADEMY 200 & 500hr Yoga Teacher Training Courses www.AbsoluteYogaAcademy.com
