Garden Yoga Centre Business Plan

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. 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. 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. The Garden Way Yoga Center offers 8 eight-week sessions of classes per year. Courses offered include Anusara-style Hatha Yoga plus workshops in related topics. The Yoga Center features welltrained, professional instructors, progressive teaching methods, a non-competitive and encouraging atmosphere, and a beautiful light-filled facility. The Garden Way Yoga Center also has a boutique that will sell workshop clothing and yoga training aides. Jill Gordon, Ph.D., founder of The Garden Way Yoga Center, is one of Anusara Yoga's leading teachers. She conducts workshops and teacher trainings nationally and internationally, and has previously established yoga training centers in Santa Barbara, CA; Denver, CO; and Charlottesville, VA. She co-founded and co-developed the Four Winds Yoga Center in Portland, OR, which offered instruction to nearly 1,000 students per week. She has been a yoga practitioner since 1985 and a meditator since 1989. Jill is a certified Anusara instructor and one of the few Designated Teacher Trainers in the Anusara style of Hatha Yoga. She is registered with the national Yoga Alliance at the highest 500-hour level.
Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan 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.
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 atmosphere, and a beautiful light-filled facility. GWYC will be located in the commercial downtown section of Monroe, in the renovated Millman 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 sole proprietorship.
2.1 Company Ownership

The Garden Way Yoga Center is owned by Jill Gordon.
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2.2 Start-up Summary

The start-up expenses for the The Garden Way Yoga Center are focused primarily on workshop setup and equipment, and inventory for the boutique and bookstore. Jill will invest $60,000. In addition, GWYC will secure a $80,000 long-term loan.
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Start-up Requirements
Start-up Expenses Legal Stationery etc. Brochures Insurance Rent Expensed Equipment Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements $1,000 $100 $8,000 $1,000 $3,000 $20,000 $33,100 $66,900 $10,000 $0 $30,000 $106,900 $140,000
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Start-up Funding
Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up $33,100 $106,900 $140,000 $40,000
Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Jill Gordon Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding
$66,900 $0 $66,900 $106,900
$0 $80,000 $0 $0 $80,000
$60,000 $0 $0 $60,000 ($33,100) $26,900 $106,900 $140,000
2.3 Company Locations and Facilities

The Garden Way Yoga Center is located in downtown Monroe, in the renovated Millman Center. The facility is quickly accessible to the over 50,000 urban professionals that GWYC considers potential members. With five large workshop 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 Millman 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: 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. 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 also included. Regular yoga practice outside of class is strongly encouraged. Permission of the instructor is required. Products Workshop Clothing: Shirts, shorts, athletic bras and pants. Workshop Equipment: Balancing balls, belts, weights, and mats. Yoga training aides: Video tapes, instructional manuals, inspirational books.
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Market Analysis Summary
Downtown Monroe 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 Monroe. 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. Jill Gordon 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. 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-$50,000. Health/Lifestyle Issues: Active individuals that are focused on healthy food and dieting. Over 70% of 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: 40-60. Sex: 30% male, 70% female. Family Income: $60,000+. Health/Lifestyle Issues: Active individuals that are focused on healthy food and dieting. Over 90% of this group are members of gyms. Social Pattern: Will more likely attend alone. Center's selling point: Close to work. The session lowers stress. Start Your Plan TodayOnline Business Planning Made Easy. Includes Tutorials and Books.
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Market Analysis
Year 1 Potential Customers Middle-Income High-Income Total Growth 15% 9% 14.49% 15,000 1,500 16,500 Year 2 17,250 1,635 18,885 Year 3 19,838 1,782 21,620 Year 4 22,814 1,942 24,756 Year 5 26,236 2,117 28,353 CAGR 15.00% 9.00% 14.49%
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The key to competition within the yoga business is the quality of the instructor. There are a number of instructors around Monroe 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. 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 Monroe, 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. Sales & Marketing Pro 2012Your Sales and Marketing Plans. Start Today. Instant Download.
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Includes Tutorials and Books. 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 three ways: 1. Private lessons; 2. Eight week courses; 3. Drop-in sessions. 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 Jill does not have the facility or expertise to run a cafe facility. If the facility becomes more of a destination, she 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 Sales Yoga Instruction Boutique Sales Other Total Sales Direct Cost of Sales Yoga Instruction Boutique Sales Other Subtotal Direct Cost of Sales $152,000 $64,000 $0 $216,000 Year 1 $0 $20,150 $0 $20,150 Year 2 $190,000 $85,000 $0 $275,000 Year 2 $0 $26,000 $0 $26,000 Year 3 $240,000 $106,000 $0 $346,000 Year 3 $0 $32,000 $0 $32,000
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Milestones
Milestone Brochures Center Setup Marketing Campaign Totals Start Date 3/1/2002 4/16/2002 6/1/2002 End Date 4/23/2002 5/10/2002 7/31/2002 Budget $8,000 $20,000 $5,000 $33,000 Manager Jill Gordon Jill Gordon Jill Gordon Department Marketing Department Department
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 Jill Gordon, Ph.D., founder of The Garden Way Yoga Center, is one of Anusara Yoga's leading teachers. She conducts workshops and teacher trainings nationally and internationally. In addition she has excellent business experience having previously established yoga training centers in Santa Barbara, CA; Denver, CO; and Charlottesville, VA. She co-founded and co-developed the Four Winds Yoga Center in Portland, OR, which offers instruction to nearly 1,000 students per week. She has been a yoga practitioner since 1985 and a meditator since 1989. Jill is a certified Anusara instructor and one of the few Designated Teacher Trainers in the Anusara style of Hatha Yoga. She is registered with the national Yoga Alliance at the highest 500-hour level. Jill was the business manager Four Winds Yoga Center. GWYC started with four employee and 20 students. Within three years, GWYC had a staff of 25 and over 1,000 students. She was an effective manager of the growth of Four Winds Yoga Center. The Garden Way Yoga Center's personnel will be the following: Jill Gordon, director;
Teachers (5 half-time); Boutique Staff (1).
Personnel Plan
Jill Gordon Teachers (5) Boutique Staff Total People Total Payroll Year 1 $36,000 $54,000 $19,200 7 $109,200 Year 2 $36,000 $65,000 $22,000 7 $123,000 Year 3 $39,000 $75,000 $25,000 7 $139,000
Financial Plan
The following is the financial plan for Garden Way Yoga Center. 7.1 Break-even Analysis The monthly break-even point is $14,492. Bplans School of BusinessGreat Discounted Courses to Help you Start and Run a Successful Business
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Break-even Analysis
Monthly Revenue Break-even Assumptions: Average Percent Variable Cost 9% $14,492
Estimated Monthly Fixed Cost
$13,140
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Pro Forma Profit and Loss

Year 1 Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Utilities Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $109,200 $24,000 $2,400 $3,300 $2,400 $16,380 $0 $157,680 $38,170 $40,570 $7,721 $9,135 $21,315 9.87% $123,000 $26,000 $2,400 $3,300 $2,400 $18,450 $0 $175,550 $73,450 $75,850 $7,226 $19,867 $46,357 16.86% $139,000 $28,000 $2,400 $3,300 $2,400 $20,850 $0 $195,950 $118,050 $120,450 $6,710 $33,402 $77,938 22.53% $216,000 $20,150 $0 $20,150 $195,850 90.67% Year 2 $275,000 $26,000 $0 $26,000 $249,000 90.55% Year 3 $346,000 $32,000 $0 $32,000 $314,000 90.75%
7.3 Projected Cash Flow The following table and chart highlights the projected cash flow for three years.
Pro Forma Cash Flow

Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures $0 $0 $0 $0 $0 $0 $0 $216,000 Year 1 $0 $0 $0 $0 $0 $0 $0 $275,000 Year 2 $0 $0 $0 $0 $0 $0 $0 $346,000 Year 3 $216,000 $216,000 $275,000 $275,000 $346,000 $346,000 Year 2 Year 3
Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $5,160 $0 $0 $0 $179,850 $36,150 $103,050 $0 $0 $0 $5,160 $0 $0 $0 $233,996 $41,004 $144,054 $0 $0 $0 $5,160 $0 $0 $0 $269,714 $76,286 $220,340 $109,200 $65,490 $174,690 $123,000 $105,836 $228,836 $139,000 $125,554 $264,554
7.4 Projected Balance Sheet The following table highlights the projected balance sheet for three years.
Pro Forma Balance Sheet

Year 1 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets $30,000 $30,000 $30,000 $103,050 $2,750 $0 $105,800 $144,054 $3,548 $0 $147,603 $220,340 $4,367 $0 $224,707 Year 2 Year 3
Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
$2,400 $27,600 $133,400 Year 1
$4,800 $25,200 $172,803 Year 2
$7,200 $22,800 $247,507 Year 3
$10,345 $0 $0 $10,345 $74,840 $85,185 $60,000 ($33,100) $21,315 $48,215 $133,400 $48,215
$8,551 $0 $0 $8,551 $69,680 $78,231 $60,000 ($11,785) $46,357 $94,571 $172,803 $94,571
$10,478 $0 $0 $10,478 $64,520 $74,998 $60,000 $34,571 $77,938 $172,509 $247,507 $172,509
7.5 Business Ratios Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7997, Membership Sport and Recreation Club, are shown for comparison.
Ratio Analysis
Year 1 Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets 2.06% 0.00% 79.31% 20.69% 2.05% 0.00% 85.42% 14.58% 1.76% 0.00% 90.79% 9.21% 4.00% 31.80% 40.90% 59.10% 0.00% Year 2 27.31% Year 3 25.82% Industry Profile 15.20%
Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth
100.00% 7.76% 56.10% 63.86% 36.14%
100.00% 4.95% 40.32% 45.27% 54.73%
100.00% 4.23% 26.07% 30.30% 69.70%
100.00% 31.60% 28.00% 59.60% 40.40%
100.00% 90.67% 80.80% 2.78% 17.67%
100.00% 90.55% 73.69% 2.91% 26.71%
100.00% 90.75% 68.23% 2.89% 34.12%
100.00% 0.00% 72.30% 2.70% 2.60%
10.23 9.96 63.86% 63.15% 22.83% Year 1 9.87% 44.21%
17.26 16.85 45.27% 70.03% 38.32% Year 2 16.86% 49.02%
21.45 21.03 30.30% 64.54% 44.98% Year 3 22.53% 45.18%
1.23 0.83 59.60% 2.80% 6.90%
n.a n.a
3.95 7.33 27 1.62
8.26 12.17 33 1.59
8.09 12.17 27 1.40
n.a n.a n.a n.a
1.77
0.83
0.43
n.a
Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
0.12
0.11
0.14
n.a
$95,455 4.94
$139,051 10.16
$214,229 17.59
n.a n.a
0.62 8% 9.96 4.48 0.00
0.63 5% 16.85 2.91 0.00
0.72 4% 21.03 2.01 0.00
n.a n.a n.a n.a n.a
Appendix
Sales Forecast
Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11
Month 12
Sales
Yoga Instruction
0%
$0
$0
$7,000
$9,000 $14,000 $16,000 $18,000 $20,000 $15,000 $15,000 $18,000
$20,000
Boutique Sales
0%
$0
$0
$3,000
$4,000
$5,000
$6,000
$8,000
$8,000
$6,000
$7,000
$8,000
$9,000
Other
0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Sales
$0
$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000
$29,000
Direct Cost of Sales
Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11
Month 12
Yoga Instruction
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Boutique Sales
$0
$0
$1,000
$1,500
$1,750
$2,000
$2,400
$2,400
$2,000
$2,200
$2,400
$2,500
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Direct Cost of Sales
$0
$0
$1,000
$1,500
$1,750
$2,000
$2,400
$2,400
$2,000
$2,200
$2,400
$2,500
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Personnel Plan
Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 Jill Gordon Teachers (5) Boutique Staff Total People Total Payroll 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 0% $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 7 7 7 7 7 7 7 7 7 7 7
Month 12 $3,000 $4,500 $1,600 7 $9,100
$9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100 $9,100
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 12
Plan Month
10
11
12
Current Interest Rate
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
10.00%
Long-term Interest Rate
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
10.00%
Tax Rate
30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
30.00%
Other
Pro Forma Profit and Loss

Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
Month 1 Month 2 Month 3 Month 4
Month 12
Sales
$0
$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000
$29,000
Direct Cost of Sales
$0
$0
$1,000
$1,500
$1,750
$2,000
$2,400
$2,400
$2,000
$2,200
$2,400
$2,500
Other Production Expenses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Cost of Sales
$0
$0
$1,000
$1,500
$1,750
$2,000
$2,400
$2,400
$2,000
$2,200
$2,400
$2,500
Gross Margin
$0
$0
$9,000 $11,500 $17,250 $20,000 $23,600 $25,600 $19,000 $19,800 $23,600
$26,500
Gross Margin %
0.00%
0.00%
90.00%
88.46%
90.79%
90.91%
90.77%
91.43%
90.48%
90.00%
90.77%
91.38%
Expenses
Payroll
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
Sales and Marketing and Other Expenses
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
Depreciation
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
Utilities
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$300
$0
Insurance
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
Payroll Taxes
15%
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
$1,365
Other
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Operating Expenses
$13,165
$13,165 $13,165 $13,165 $13,165 $13,165 $13,165 $13,165 $13,165 $13,165 $13,165
$12,865
Profit Before Interest and Taxes
($13,165) ($13,165) ($4,165) ($1,665)
$4,085
$6,835 $10,435 $12,435
$5,835
$6,635 $10,435
$13,635
EBITDA
($12,965) ($12,965) ($3,965) ($1,465)
$4,285
$7,035 $10,635 $12,635
$6,035
$6,835 $10,635
$13,835
Interest Expense
$663
$660
$656
$652
$649
$645
$642
$638
$634
$631
$627
$624
Taxes Incurred
($4,148)
($4,147) ($1,446)
($695)
$1,031
$1,857
$2,938
$3,539
$1,560
$1,801
$2,942
$3,903
Net Profit
($9,680)
($9,677) ($3,375) ($1,622)
$2,405
$4,333
$6,855
$8,258
$3,640
$4,203
$6,865
$9,108
Net Profit/Sales
0.00%
0.00% -33.75% -12.48%
12.66%
19.69%
26.37%
29.49%
17.34%
19.10%
26.41%
31.41%
Pro Forma Cash Flow

Month 1 Month Month Month Month Month Month Month Month Month Month 2 3 4 5 6 7 8 9 10 11
Month 12
Cash Received
Cash from Operations
Cash Sales
$0
$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000
$29,000
Subtotal Cash from Operations
$0
$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000
$29,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received
0.00%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Investment Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash Received
$0
$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000
$29,000
Expenditures
Month 1
Month Month Month Month Month Month Month Month Month Month 2 3 4 5 6 7 8 9 10 11
Month 12
Expenditures from Operations
Cash Spending
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
$9,100
Bill Payments
$13
$380
$467
$3,100
$3,880
$5,572
$6,446
$8,792 $10,348
$7,656
$8,762
$10,076
$9,113 Subtotal Spent on
$9,480
$9,567 $12,200 $12,980 $14,672 $15,546 $17,892 $19,448 $16,756 $17,862
$19,176
Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities Principal Repayment
$430
$430
$430
$430
$430
$430
$430
$430
$430
$430
$430
$430
Purchase Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Purchase Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Dividends
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Cash Spent
$9,543
$9,910
$9,997 $12,630 $13,410 $15,102 $15,976 $18,322 $19,878 $17,186 $18,292
$19,606
Net Cash Flow
($9,543) ($9,910)
$3
$370
$5,590
$6,898 $10,024
$9,678
$1,122
$4,814
$7,708
$9,394
Cash Balance
$57,357 $47,448 $47,451 $47,821 $53,412 $60,310 $70,334 $80,012 $81,134 $85,948 $93,656
$103,050
Pro Forma Balance Sheet

Month 1 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $0 $0 $0 $0 $80,000 $80,000 $60,000 ($33,100) $0 $26,900 $106,900 $26,900 $367 $0 $0 $367 $79,570 $79,937 $60,000 ($33,100) ($9,680) $17,220 $97,157 $17,220 $365 $0 $0 $365 $79,140 $79,505 $60,000 ($33,100) ($19,357) $7,543 $87,048 $7,543 $2,972 $0 $0 $2,972 $78,710 $81,682 $60,000 ($33,100) ($22,731) $4,169 $85,851 $4,169 $3,695 $0 $0 $3,695 $78,280 $81,975 $60,000 ($33,100) ($24,354) $2,546 $84,521 $2,546 $5,360 $0 $0 $5,360 $77,850 $83,210 $60,000 ($33,100) ($21,948) $4,952 $88,162 $4,952 $6,155 $0 $0 $6,155 $77,420 $83,575 $60,000 ($33,100) ($17,615) $9,285 $92,860 $9,285 $8,443 $0 $0 $8,443 $76,990 $85,433 $60,000 ($33,100) ($10,760) $16,140 $101,574 $16,140 $10,094 $0 $0 $10,094 $76,560 $86,654 $60,000 ($33,100) ($2,502) $24,398 $111,052 $24,398 $7,366 $0 $0 $7,366 $76,130 $83,496 $60,000 ($33,100) $1,138 $28,038 $111,534 $28,038 $8,427 $0 $0 $8,427 $75,700 $84,127 $60,000 ($33,100) $5,341 $32,241 $116,368 $32,241 $9,719 $0 $0 $9,719 $75,270 $84,989 $60,000 ($33,100) $12,207 $39,107 $124,096 $39,107 $10,345 $0 $0 $10,345 $74,840 $85,185 $60,000 ($33,100) $21,315 $48,215 $133,400 $48,215 $30,000 $0 $30,000 $106,900 $30,000 $200 $29,800 $97,157 Month 1 $30,000 $400 $29,600 $87,048 Month 2 $30,000 $600 $29,400 $85,851 Month 3 $30,000 $800 $29,200 $84,521 Month 4 $30,000 $1,000 $29,000 $88,162 Month 5 $30,000 $1,200 $28,800 $92,860 Month 6 $30,000 $1,400 $28,600 $101,574 Month 7 $30,000 $1,600 $28,400 $111,052 Month 8 $30,000 $1,800 $28,200 $111,534 Month 9 $30,000 $2,000 $28,000 $116,368 Month 10 $30,000 $2,200 $27,800 $124,096 Month 11 $30,000 $2,400 $27,600 $133,400 Month 12 $66,900 $10,000 $0 $76,900 $57,357 $10,000 $0 $67,357 $47,448 $10,000 $0 $57,448 $47,451 $9,000 $0 $56,451 $47,821 $7,500 $0 $55,321 $53,412 $5,750 $0 $59,162 $60,310 $3,750 $0 $64,060 $70,334 $2,640 $0 $72,974 $80,012 $2,640 $0 $82,652 $81,134 $2,200 $0 $83,334 $85,948 $2,420 $0 $88,368 $93,656 $2,640 $0 $96,296 $103,050 $2,750 $0 $105,800 Starting Balances Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Read more: http://www.bplans.com/yoga_center_business_plan/financial_plan_fc.php#ixzz1qA0jJ5Kx
Top Ten Things to Consider when Starting a Yoga Studio
Would you walk into a restaurant you had never been to before and tell the waiter I just want some hot food, and by the way, it doesnt matter what it costs! Most people think this is ridiculous. But honestly, it is not that different when someone with years of experience as a
Yoga instructor decides to open a studio, but does not
really want to know about the business side of things. I know you want to share your practice with others so that they also may benefit, but please believe me when I tell you that you will be able to impact many more peoples lives if you choose to learn a little about business before starting your own studio. One of the first things a client planning to open a
Yoga studio will often tell me is how many years they have
been practicing Yoga. They go on to elaborate on the school they went to and what otherYoga experience they have. I honor and admire this kind of experience and the discipline it takes to acquire it. At the same time, its my job to point out that if they primarily want to focus on the teaching and practice of Yoga, then opening a studio is probably not for them. If youre shocked, thinking What background could be better than years of experience with Yoga?!, then this article is for you. Running a business successfully involves far more than just being good at Yoga. In fact, in a recent conversation with the founder/director of one of the largest and most successful Yoga studios in Baltimore, she revealed that shes not even an instructor. She emphasized that she is a businesswomen who loves Yoga. Business is a lot more than just giving a service or product to a customer. It has a whole behind-thescenes part that we dont usually see when we walk in the front door. Business is about financial projections, strategic planning, marketing, sales, budgeting, facility maintenance, hiring, subcontractors, bookkeeping, and so much more. If you are someone who is willing to learn about these things (and you dont need to be an expert, but you do need to have a working understanding of them), then maybe opening a studio is for you. It can be a wonderfully rewarding and fulfilling experience. It can truly be the fulfillment of a dream for many. However, understanding what is really involved before starting out is essential to success. Here are some things to ask yourself before diving into opening a studio. Consideration #1: Are you willing to work long hours in the beginning? Every small business owner will tell you about the late nights and weekends spent on building a business from scratch. Its just plain hard work. But, it has great freedom as well. If youre not sure about this, consider buying an established studio, or even a Yoga franchise. Consideration #2: Are you comfortable learning about finances, budgeting and bookkeeping? For better or worse, money is the lifeblood of every business. Without it, the business fails instantly. To succeed, you need to have a moderate handle on finances. This means knowing how much you earn each month, how much you spend, how much you owe and how much is owed to you. It also means knowing how much youll need to earn each month to
pay operating expenses (rent,
electricity, etc.), payroll (paying employees) and to pay yourself (you need to eat too!). It also means projecting this for the next year, and figuring out how the studio is going to earn this much money (how many students youll need, private sessions, etc.) This kind of planning is essential for success. Consideration #3: Are you able to accept that business will never be entirely smooth, but rather that it
is wrought with some degree bumps and potholes, and that is just part of owning a business? It is estimated that an average U.S. business faces a crisis three to four times per year. This might be a key employee quitting, an IRS audit, a major unexpected expense, etc. In addition, there are daily hassles. An instructor is late, someones check bounced, the stereo doesnt work and so on. This is just part of business. And, as the owner, much of it will be your problem to deal with (until you grow enough to hire a manager, then someone else will worry for you). See it as a wild and exciting adventure that lets you share an amazing gift with the world, and youll be fine! Consideration #4: Do you have at least 50% more money available than it seems like youll need to get started? Most small businesses underestimate their expenses (and overestimate profits) for the first few years. It is rare that running any small business (at least to start with) costs what you expect. It always seems to be more. This is because there are numerous unexpected and miscellaneous expenses. Everything from having the floor polished to paying business taxes to buying a new phone system. It all adds up. Plan ahead for this one, and you wont be surprised. Consideration #5: Are you willing to learn about marketing, or do you have the money to hire a professional marketer who will do this for you? I know, marketing makes you think of tele-marketers and used car salesmen. These are just poor examples of marketing, just as a Big Mac is a poor example of gourmet food, yet it is still food (technically). Marketing simply means letting people whose lives could benefit from Yoga know that you have something that would really help them. If you dont, you not only miss out on business, but you sell them short of having this benefit in their life. Imagine if you had a flat tire and were having a hard time changing it, and a tow truck was driving by, but he didnt stop because he felt it would be too pushy to ask you to pay him to help you change your tire! People miss out on something they want and need when they dont know about the awesome experience your studio could offer them. Letting them know about this is what true marketing is. Consideration #6: Can you accept that while Yoga may incorporate energy, spirit and flow, running a business adds a new kind of energy to the mix: money. If you believe your practice is above needing to worry about money, you may be reassured to know that you are not alone. What may be less reassuring is that very few years. Perhaps in an ideal world, this would be different, but her, now, today, money is a part of our life. Like other forms of energy, money is simply a way to create change. This may take the form of having a new studio floor put in, donating to charity , or paying your phone bill. Money is really just another form of energy. And it is the form that every business today requires to exist. We dont need to worship it, just view it as an important resource. Just as a car needs gas to run, a business needs money. I wish my car ran on something other than gas, but for the time being, I accept that this is how it works. Such is the case that a studio is a business and needs money to operate. Consideration #7: Are you really passionate, not just about practicing Yoga, but about sharing the art of Yoga with others? Running a Yoga studio is about sharing your practice with others. Many of your students will probably be novices. Some will do things that make you cringe, others will make you proud to have made their mastering the art possible. In running a studio, you will be quickly frustrated if you are not comfortable offering Yoga for Beginner, to people who like Yoga but do it poorly and people who dont take it seriously, as well as those that are a pleasure to watch practice. Consideration #8: Are you willing to make mistakes and learn from them? Success is about mistakes.
studio owners who hold this perspective stay in business for more than a couple of
Just as Thomas Edison tried over a thousand different materials for the filament of the light bulb before discovering one that worked, such is business. Success is not about doing it perfectly the first time striving for this leads to mediocrity. Success is made of trying, failing and learning; then taking what you learned and doing it better the next time. Sometimes this approach is referred to as FireAimFireAim If youre a perfectionist, running a business may be very frustrating to you. Business is very imperfect, and those who are most successful at it, and who find it most fulfilling, are those who truly understand that things just need to be good enough and not perfect. Consideration #9: Are you able to do this without destroying your personal life, should it fail? While no one plans for a new business to fail, and its certainly the last thing you want to think about, it does sometimes happen. Plan your divorce while you are still in love. In other words, you need to design an exit strategy for the business in the beginning. You dont want to lose your house and have to declare bankruptcy if things dont pan out. Do your best to make sure you can personally survive even if the business does not. If you cant, then this may not be the best time to start a studio, or maybe finding a partner or investor to share the burden would help. There are many creative solutions that could work for you. Consideration #10: Are you willing to make a thorough business plan? I believe this is the single most important item on the list. The business plan doesnt need to be in the form a bank needs to lend you money, but it should be complete. It is unfortunately all too true that failing to plan is planning to fail. A real business plan outlines the way your studio will operate. It defines the kind of people who will come to your classes and private sessions, it estimates how many clients and students you need each month in order to pay the bills. It is like having a map with you when you are on a long road trip. By the way, the reason that banks want to see a business plan before lending money is because they know that most businesses that dont have one will end up failing, and they dont want to lend money if they might not get paid back. Doing a business plan isnt hard (I frequently guide my clients through this process. There are also numerous books available on the subject at your local bookstore). However you do it, make sure you have a plan. In Conclusion: These are among the most important things I believe someone should consider when opening a studio. Take your time, plan it out, then, if it still looks and feels right for you, take the leap. Owning a studio can be one of the most rewarding things there is. My very best wishes for you on this exciting adventure. Register online for the free expert guide "Seven Biggest Mistakes Yoga Studios Make in their Business" to find out what you can do to start improving your business today. There's no obligation, and you have everything to gain, not the least of which is your peace of mind.
"Wherever your journey takes you, may you find peace, fulfillment and success."
Al Lipper is the founder of Centered Business and business coach for Yoga studios. He helps studio owners who are struggling to grow their new or existing Yoga business by bringing expert knowledge and comprehensive experience to your unique situation, to help you define your studio vision and get you on track and moving forward. He offers a 100% unconditional happiness guarantee and unlimited support as his commitment to your success. Register online for free monthly tips on running your Yoga
studio more easily and with less hassle. Centered Business is all about helping you get to wherever you want to go!
Obtaining Enterprise Funding When obtaining a business mortgage for a yoga studio organization, it is imperative that you have a properly structured business program that will assist you in showcasing how you intend to run your Yoga Studio, how the business will operate, how you intend to marketplace the enterprise, the anticipated economic outcomes of your firm, and how you intend to repay your debt obligations. This sample loan business program will provide you with the framework that you want in order to acquire a company loan for commencing or expanding this form of organization. Executive Summary Introduction When obtaining a organization loan for a Yoga Studio, it is imperative that your business prepare has a clear and concise executive summary that gives an outline of what are looking for to accomplish, how much funds you are searching for to elevate, the management biography of the enterprise proprietor, and an overview of the anticipated profit and loss statements of the enterprise. Right here is an illustration of how the title paragraph should be published: Yoga Studio, Inc. (the Company) is looking for a organization loan of ,000 in buy to launch the operations of a yoga studio organization that will be based in San Francisco, California. The Company was founded in (Insert Yr). The company was founded by Mr. John Doe. Goods and Solutions In the following segment of the company loan and company planning document, you need to showcase the products and services that you will be delivering to the standard public. For instance: The Yoga Studio will present a broad range of courses that pertain to teaching the entire body by way of yoga and connected stretching practices. The company will create revenue from the ongoing fees connected with yoga classes at the studio even though concurrently generating secondary revenues through the sale of yoga mats and related accessories used throughout the program of yoga coaching. The 3rd area of the enterprise strategy will even more talk about the companies offered by the enterprise. Business Mortgage Terms Now it is time to discuss the anticipated terms of the organization prepare that you are searching for. An instance paragraph of how this is stated: At this time, Mr. Doe is looking for a typical company mortgage in the amount of ,000. The interest rate, loan terms, and mortgage covenants are to be determined for the duration of negotiation. Nonetheless, this business plan assumes that the business will receive a 7 year organization loan with a 7 percent interest rate due on the exceptional principal harmony. Management Biography Now that the summary of the company has been supplied, it is time to supply a quick overview of the operator of the business. An illustration paragraph summing up the owner is as follows: Mr. Doe is a hugely knowledgeable business man or woman that has a long time of encounter relating to the direct ownership and management of organization. He will be in a position to successfully deliver the operations of the Yoga Studio to profitability while guaranteeing that the organization loans payments and its covenants are met at all occasions. Fiscal Statements
The most critical issue to your financial institution when applying for a enterprise loan is how you intend to repay the financial institution. In this part of the enterprise prepare, you ought to offer an overview of the finances of the organization discussing the anticipated revenues, costs, and revenue/losses. You can also examine the relevant collateral within the organization plan that will be utilised to safe your organization funding. Expansion Plans One particular of the most critical features of your company strategy is how you intend to broaden the business more than a 3 to five year period. Banks and finance businesses constantly want to see that the enterprise will encounter a reasonable to strong degree of expansion. This is specifically true in organization lending because as your organization grows the money circulation that secures your business loan will lower proportionality towards your monthly credit score obligations. An instance of how this is stated is as follows: The Yoga Studio will continue to expand by means of natural indicates like increasing the Companys advertising spending budget through the reinvestment into the right after tax cash flows of the business. Furthermore, if the company is hugely successful then the Business may possibly find to create added Yoga Studio areas soon after the third 12 months of operations. The Financing Use of Business Mortgage Proceeds In this segment of the company program you really should concentrate on how the proceeds of the company mortgage will be used. An example of this would be as follows: Yoga FF&E Doing work funds ,000 Management Equity In this segment of the business strategy you should discuss the proportion ownership of the organization amongst the proprietors of the organization. For instance: Mr. Doe will personal one hundred% of the Yoga Studio. Board of Directors When applying for company financing, the bank will also want to know who serves as the board of directors. For little companies, normally the operator serves as the director of the enterprise. An instance of how this is worded: Mr. Doe will be the sole director of Yoga Studio, Inc. Exit Technique Any financial institution or financing organization is also going to want to know what you intend to do with the enterprise around a set period of time. Numerous company proprietors will build and broaden a business with the intent to market the firm to a third celebration at a later on time. When drafting this aspect of the company prepare you need to focus on what you intentions are in regards to probably selling the company. This is frequently worded as: Mr. Doe would most probably sell the Yoga Studio to a 3rd party for a important earnings numerous. Yoga Studio typically sell for about a single to three instances earnings provided the economic strength of the business. In this occasion, the business would be sold by a organization broker and the enterprise mortgage sought in this program would be repaid in accordance to the covenants of the business mortgage agreement. Goods and Solutions Studio Establishment ,000 ,000
When establishing a business program that is ideal for acquiring a business loan or other enterprise credit facility you need to clearly showcase the solutions or merchandise that you will be offering to the general public. An example of how this part is worded goes as follows: As stated in the executive summary, the key income center for the company will arrive from ongoing yoga classes hosted at the Companys retail storefront place. For each yoga session, Management intends on charging a fee of around . The average yoga class will have five to ten students. Courses will be held five to six times per day. The enterprise will also create sales via the sale of yoga mats and other goods as they relevant to yoga training. Industry and Market place Analysis The Current State of the Financial system It is important to allow your financial institution know that you are nicely apprised of the financial predicament of the general economic system when you are applying for a company loan. This is specifically correct in todays surroundings where lending has become a lot more hard and will continue to be far more hard in the foreseeable long run. Specifically, you need to gear this section of the organization prepare evaluation towards the business that you are working within. For illustration: The latest financial system has remained hard over the past couple of a long time. However, Yoga Studios have faired properly in spite of the existing economic issues. This is simply because yoga, by its students, as seen as an integral aspect of their lives. As this kind of, the Yoga Studio will be capable to stay worthwhile and money movement constructive in any financial climate. The Yoga Studio Business In addition to providing your business mortgage officer with an knowledge of the standard economic system, it is crucial that you showcase that you have an equal understanding of the marketplace in which you are operating inside of. As such, you will want to provide you enterprise mortgage institution of a quick overview of your marketplace and any prospective modifications that may possibly have an effect on the way that your company does organization. An illustration of how an market overview is as follows: Inside the United States, there are about 10,000 places that operate as Yoga Studios. The popularity of yoga has elevated considerably more than the previous ten years as more Americans have turn out to be concerned with their fitness. Each and every year, the industry generates more than million of revenues. The excepted progress fee of the Yoga Studio industry is anticipated to continue to be in line with that of the basic American economic system. Target Market place In this area of the enterprise mortgage application and organization program evaluation, you should focus on the demographics of your localized market (or nationwide marketplace if applicable). This area should talk about how several folks dwell in your region, the anticipated range of men and women that would demand the use of Yoga Studio, the median family revenue of folks living in the location, poverty line statistics, and any relevantlaws that would use to your operation of Yoga Studios. Competition Several men and women that are creating new businesses or expanding existing businesses frequently really feel that their enterprise does not have any competitors or restricted opposition at finest. Even so, this is almost never ever the scenario. Unless you have re-invented the wheel you will have competition. When applying for a enterprise loan, you need to obviously showcase your opposition in your company plan. This is particularly essential to your banker as they will be capable to gauge your capacity to be effective in your targeted marketplace. Several organization loan underwriters will aggressively confirm that aggressive nature of your local marketplace and your regional marketplace.
When drafting this area of the plan you ought to heavily talk about the competitive strengths that you intend to have around your competitors. Advertising and marketing Plan In addition to all of the above details that we have covered, your business loan officer is also going to want to know how you intend to market place your business to the general public. Most people do not fairly comprehend how to effectively market place their organization exterior of prominent signage or flyer distribution. When applying for a organization mortgage (once more in this difficult lending climate), your banker is heading to want to see that you have a clear methodology of how you intend to industry your services or items to the general public. In this section of the organization strategy we will overview how to showcase your solutions/goods to the basic public. Marketing Overview Illustration The Yoga Studio will place prominent signage on the facility to draw a important volume of foot site visitors. The business will preserve listings in the Yellow Publications. Yoga Studio, Inc. will also maintain an world wide web website that showcases the Companys operations, hrs of operation, and appropriate contact information. Marketing and advertising Strategies Overview Additionally, you will be necessary to even more drill down (in your company prepare) how you intend to put into action your methods when you start or increase your businesss operations. In this area of the company loan and company strategy paperwork, you really should amplify the bullet points from the part above. For instance: The Yoga Studio intends to use a number of techniques that will generate immediate traffic and buyer flow to the Companys area. These strategies contain not only using prominent facility and street signage, but also distributing flyers to people that fall into he Companys targeted demographics. The enterprise will also regularly get out advertisements in localized newspapers that showcase the Companys hrs of operations, yoga studio providers, and specials that are occurring inside of the Yoga Studio on a normal basis. The enterprise will also retain a highly educational internet site that showcases the Yoga coaching companies, its hours of operation, and other pertinent information in regards to the Companys providers. This site will be listed on significant search engines these kinds of as Google as a lot of folks now use the internet to find local companies such as Yoga Studios. The Economic Strategy Past any other portion of your company mortgage application or organization prepare, the financials area of these documents are what matters most when applying for a organization loan or any other form of credit facility. Eventually, this part of the business program showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed by way of your business financing facility. An illustration of how this section is framework is as follows: Assumptions Yoga Studio, Inc. will have an regular yearly growth rate of 10% per year. Mr. Doe will obtain ,000 via a business loan in purchase to launch the operations of the company. Proforma Financials for a Company Loan Now it is time to showcase how you intend to repay your mortgage, create a revenue, and boost the ebook worth of your business over a 3 to five 12 months period. BusinessPlansForLoan.com has produced an straightforward to use monetary design that you can use when drafting out the monetary model for your enterprise prepare and enterprise loan application. Through your organization mortgage application, you will be essential to have the following .
Seven Mistakes Yoga Studio Owners Make

Do you remember when you first started your
yoga studio?
Remember the excitement? Do you recall how it felt when the phone rang or someone walked in the door? First, let me commend you on entering a profession that is true to your passion, and furthermore, one that serves others. In this article, Im going to share with you some of the common mistakes that yoga studio businesses often make. If youve fallen prey to one or more of these, it simply means that no one told you about them yet. Once you know, then you can focus on solutions. And, perhaps youll find that you are already entirely on track, and this may re-affirm that you are headed the right way. MISTAKE #1: OBSESSION WITH THE SERVICES YOU PROVIDE OR THE PRODUCTS YOU SELL. In business, we ideally view the products and services we sell as generic black boxes that either make money or dont. Imagine you own a gas station the old fashioned kind that just sells gas and maybe fixes cars (no mini-mart inside). One day, a salesman comes to you and says Hey, I want to put a soda machine in front of your gas station. You can buy cans of soda at $0.25 each and sell them for $1.25 each you make $1.00 on every can of soda someone buys. He offers to rent you the soda machine for $100 per month as long as you agree to have him be the one you buy soda from. You agree and find that you sell 20 cans of soda per day, or 600 per month. In other words, you make $600 per month selling soda, then pay the sales guy $100 of that for renting you the soda machine. In the end, you make $500" class="related_products_container" profit each month. So, what does this have to do with running a yoga studio? You probably couldnt care less about selling soda, may not drink it and may even emphasize how unhealthy it is for people. Exactly. And the gas station owner feels the same way. He couldnt care less about soda or soda machines, but as a business owner, its a black box that earns him $500" class="related_products_container" per month in cash. He puts some stuff into the black box (rents the machine for $100 and fills it with soda) and money comes out of it ($500" class="related_products_container" in profits). THE SOLUTION: For any business to be truly successful, the owner needs to be able to step back and view it as a collection of black boxes that either generate money or support another black box in generating money. Evaluate each major method or strategy your company uses to make money. Let go of emotional attachment to things like favorite services or products if they dont make money for you, change them so they do, or eliminate them. If you cant bring yourself to do this, acknowledge that this is an area of charity or contribution that your company participates in. But whatever you do, be honest with yourself. Remember, if your studio doesnt make money, it wont be around to help anyone in the future. Keep it profitable! MISTAKE #2: BEING IN A RUSH. Business usually takes time. Our society is so wrought with instant gratification, we often overlook the fact that things take time. Just as the farmer cant plant crops too late in the season, then try to rush them to grow, certain aspects of business take time. If you are trying a new type of advertising strategy, it might take three months before you can tell if it works or not.
THE SOLUTION: Learn from someone else who has done it successfully before, and ask them how long they waited before seeing results. If we plan ahead and act early, we wont be in such a rush at the end. For example, dont think about holiday promotions in November, instead plan them in September in case some actions need to be taken early. We can often save money by starting early as well after all, have you ever been to a workshop that cost more if you signed up last-minute than if you registered a month or two in advance? (Hopefully you use this strategy yourself with any programs you offer.) As you get better at a particular aspect of running your studio, youll be able to do it faster, but in the beginning, it takes time. Be patient, evaluate your results and make changes as needed. MISTAKE #3: BELIEVING THAT TECHNICAL SKILL IS THE KEY TO SUCCESS. So often, we believe that with lots of ability in our art we will succeed. We assume that if we enhance our skills and have perfect form that this will make our business more successful. Sadly, this has relatively little truth to it in business. Technical skill alone is not the key to success, and in fact, technical skill is only a small part of success. If business is slow, we often tend to consider getting more training, another certification or something like that. The real solution usually lies somewhere in business skills and management. Ask yourself about these areas of your business: Marketing, Sales, Accounting & budgeting, Customer service. I certainly dont want to minimize the value of your mastery of your field this is definitely important. Rather, I am emphasizing that in business, other things usually count more. I know it doesnt seem right that someone who doesnt have nearly the ability that you do should have all the clients, but that is generally the reality in business. Consider the example of the most successful restaurant in history, McDonalds. Could you cook a better burger than they do? Of course anyone could. Its not their skill in making burgers that makes them such a success. They do the other stuff so well that people have learned to like their marginal food. THE SOLUTION: Just as you can watch someones form and point out specific errors that they are oblivious to, you also have the potential to see your business in the same way. With the right perspective and knowledge, a
studio owner can very specifically identify a problem area and what needs to change. But only in rare
cases is the problem actually the technical skill of services being delivered to the customer. MISTAKE #4: BEING SO EXCITED THAT YOU ARE DRIVEN BY EMOTIONS, NOT LOGIC. Sometimes we get so attached to an idea maybe one we created ourselves that we forget to do a logical analysis. I remember a small store that sold specialty food products. The owner loved spicy food, so decided to offer hot sauces from all over the world. He expanded the concept such that a great deal of his inventory was essentially hot sauce. For months, he didnt acknowledge that his sales had significantly decreased, because he was so excited about the idea that people love hot food he loved hot food. Less than a year later, he was sadly forced to face the reality when he could no longer pay his bills and had to close the business. Its always easy to see it in other people, but very hard to see in ourselves. Is there a class or service that you created, which for whatever reason has few sales? Consider areas of your studio business where you are being guided by emotions, not facts. THE SOLUTION: When we are emotionally driven in business, our strengths become weaknesses. Self-confidence becomes arrogance, ambition becomes ruthlessness, quick-thinking becomes impulsiveness, strategic risk-taking turns to gambling. And one clear sign that emotions are taking over is that in discussions of a given topic, there is a clear need to be right instead of a striving to do what is best for the company.
The solution is simply to back away and treat it like the Black box we discussed earlierits just a soda machine that makes money or it doesnt. Another technique is to ask someone else for their honest opinion with the understanding that you will not interrupt them, or offer any feedback other than asking informational questions. Remember, successful business is driven by facts, not emotions. MISTAKE #5: NOT HAVING A BACKUP PLAN. This one is pretty straightforward. Any time you try something new, at least have a rough idea of what you will do if it doesnt work. When an airplane flies toward its destination, before it even takes off, the pilot always selects an alternate airport in case he cant land at the original destination. And, he makes sure he has enough fuel to get there. He doesnt plan all the details, but just knows what the alternative is and that theres enough gas in the tank to make it. THE SOLUTION: I encourage you to do the same thing with any new business tactic. If you take a lot of money to invest in new product inventory, expecting you can make a killing selling it, have a backup plan. What would you do if it didnt sell? What if it was a total disaster? In a case like this, you might decide that you could sell it at half its value to a large retailer, but at least it wouldnt be a total loss. You want to make sure that youre not going to go out of business if an idea doesnt work. Always have a rough idea of a backup plan. MISTAKE #6: RUNNING OUT OF CASH. This one sounds obvious, so let me clarify. This mistake is about having a plan for what needs to be done to create a successful business, but running out of money before it gets there. For example, suppose a new yoga studio owner has estimated that it will cost $150,000 to open the yoga studio, buy all needed equipment, supplies and inventory, and
pay operating expenses for one
year. After this point, the owner expects to have enough students, clients and customers that she will be able to cover the cost of all her monthly expenses (including paying staff and herself) and begin paying back the $150,000. However, imagine that getting things going ended up costing $200,000 and even at that, there isnt much left for an advertising budget. After one year rolls around, shes not even close to making enough money each month to pay expenses (in part because she didnt have money for advertising), let alone repay the debt. She has run out of cash. THE SOLUTION: First, make your cost projections worst-case. A quick way of doing this is to figure out best-case, then double it. No kidding, youll be pretty close to the actual cost about 80% of the time. If you think it will cost $10,000, then make sure you have $20,000 available (but still try to do it in $10,000 and in fact, base your whole budget on $10,000). Next: Plan, Plan, Plan! So many people dive in without a plan, only to find out they spent lots of time and money on things that do not generate any return. Bottom line: Expect it will take twice as much cash as you think. MISTAKE #7: RE-INVENTING THE WHEEL. Lots of people (and companies) have opened and operated successful yoga studios for years. There are people who know the answers to questions that frustrate you and problems that cost you money. One reason franchises are so successful is that they give a business owner answers to nearly every question regarding running the studio. There are even yoga studio franchises do a search for them on the internet and youll find them. THE SOLUTION: So, dont re-invent the wheel. I cant emphasize this enough. There are people who know how to run a small business very profitably. Find them. Observe them. Talk to them. Model them. They may even be willing to actively mentor you. If you find a successful studio similar to yours in a non-local area (that is, they dont compete with you), the owner may be more than happy to share.
If you need to hire consultants for marketing, web site design, business planning, accounting, and so forth, then do it. Its expensive up front, but once you learn the right way to do things, you can either take it over on your own or hire someone lower-priced and tell them what to do. Bottom line: If someone else has done it before successfully, learn from them before trying to figure it out on your own. IN CONCLUSION: There you have it the seven most common mistakes yoga studio owners make in business. Few of us ever had a class or mentor to teach us how to run a business or studio. Unfortunately, 8 out of 10 small businesses will fail because of this lack of experience. Do whatever you have to in order to do it right (remember, dont re-invent the wheel!) Read books, get online courses, find a mentor, get a good business coach and model a successful business just like the one youre trying to do. There are so many people who are really successful at running a studio. Learn from the experience of others and be one of the ones who has passed the stage of hard work, and now enjoys doing just what you want to in your studio business. Al Lipper is the founder of Centered Business and business coach for yoga studios. He helps studio owners who are struggling to grow their new or existing yoga business by bringing expert knowledge and comprehensive experience to your unique situation, to help you define your studio vision and get you on track and moving forward. He offers a 100% unconditional happiness guarantee and unlimited support as his commitment to your success. Register online for free monthly tips on running your yoga studio more easily and with less hassle. Centered Business is all about helping you get to wherever you want to go! Register online for free monthly tips on running your yoga studio more easily and with less hassle. We are all about helping you get to wherever you want to go!
So You Want to Open a Yoga Center... Practical Advice from One Whos Done It
By Jane Wolfe You are teaching a yoga class at a local recreation facility. Students are packed into the small room mat-to-mat, unable to stretch out their arms without hitting another student. Loud music blares from the hallway. Fluorescent lights cast a harsh glare onto the cold, less-than-pristine floor. You dream of a large, tranquil, clean and quiet place in which to hold your classes. You dream of opening your own yoga center. But where do you begin? You will find masses of information in books and magazines, on the Internet and from government agencies on how to start a business. Some recommend that before you start you perform a feasibility study to examine your personality, financial status, personal relationships, time constraints, the competition, etc. In my experience, however, it is like deciding whether or not to have a baby: if you approach the decision from a purely logical standpoint, you will never do it. Instead, practice svadyaya (self-study) and look inside your heart. If you wish to pass along the joy that you have experienced from yoga, if you feel blessed and would like to be a blessing to others, if it is your dream to open a yoga center, then by all means begin today. Once you decide to pursue your dream, a good place to start is to choose a name for your business. Of course, the business name should hold meaning for you but also consider what might appeal to the population you will be serving. You can perform an online search of yoga studio Web sites for inspiration and to find out which names have been taken. The Illinois Secretary of State Web site
(www.sos.state.il.us) will give you the names already taken by businesses registered in Illinois. If you are going to do business nationally, you may wish to trademark your name--check with the U.S. Patent and Trademark Office. Your next steps will be to decide on the legal structure of the business and to register the business. Most yoga studios are sole proprietorships, LLCs (Limited Liability Companies), or S-Corporations. There are also several ways to organize a partnership. I suggest that you consult with a CPA and/or an attorney to determine which structure is appropriate for your business. Keep in mind that an LLC or S-Corp structure will help to protect your personal assets should your business encounter legal liability; a sole proprietorship will not. More information is available in the Step by Step Guide to Starting a Business in Illinois, which can be found at www. commerce.state.il.us. Once your business is registered, you will need to set up your Federal Employer ID number (FEIN) with the IRS. This number is similar to your personal Social Security number and is usually required before you can sign a lease, open a bank account, accept credit cards and/or establish a wholesale account. Call the IRS or check its Web site at www. irs.ustreas.gov. I recommend that you establish a checking account as early as possible in the process so that you will have funds available while you prepare to open. Go to several banks to compare fees, minimum balances and services. If you plan to buy or sell products either wholesale or retail and/or hire employees, you will have to register with the Illinois Department of Revenue. This includes the wholesale purchase of props for use at your center. Go to www.revenue.state.il.us for more information. Next you will formulate your business plan. If you are planning to obtain outside financing, your lender will probably require a formal business plan. In any case, your business plan will give you an idea of how much you will need to invest and will function as a budget for starting and running the center. You will find many books at your local library and bookstore on how to write a business plan. I suggest that you start by estimating your revenue and expenditures for the first year. A brief (and surely incomplete) list of expenditures includes: accounting and legal services, advertising/promotion, association dues, banking fees, brochures (design, printing and postage), cleaning supplies, credit card fees, printing (business cards, stationary, etc.), Internet/Web site design and maintenance, liability insurance, loan interest, maintenance and repairs, office supplies, postage, purchases for retail sales, rent, teacher salaries, telephone, travel, utilities and workshops. In addition, you will have some start-up costs, which may include furniture and equipment, purchase of props, decorating, remodeling, signage and security deposit on rent. Research thoroughly and remember that these expenses will change as you gather more information. To estimate your revenue, decide how much you will charge for your classes and lessons. Look at the local competition and on the Web for yoga centers in similar areas. There are a number of ways to structure your fees: per session (drop-in), multi-session packages, monthly memberships, etc. If you already have a clientele, consider what they might expect in terms of fees. Keep in mind that many people associate price with quality; your clients may value your services more if you charge the same or more than the competition. When you develop your schedule and fees, consider that time and convenience may be more important to your clients than price. Next, set a preliminary schedule of how many classes per week will be offered. Finally, estimate the average class size. This is the most difficult part of the plan to predict, so just make your best guess. Consider the cycles in the yoga business: generally lower attendance in December and during the summer, with higher attendance during early fall and January/February. From your fees, class schedule and attendance estimate, you can project your revenue. If you plan to sell retail products, you may include these profits in your revenue. Once you have the revenue and expenditures, you can put together your business plan. Begin with a cash-flow statement, since this will tell you how much financing you will need. Your lending institution may also require an income statement and balance sheet. See the list of resources below for information on how to prepare these statements, or have your CPA prepare them. You will then need to decide how to finance your business. Talk to several banks and lending institutions. Also call or visit the local office of the Small Business Association (www.sba.gov) for advice and information on financing. If you are this far along in your preparations, you have probably already started searching for a space to lease. Just as the right teacher appears when the student is ready, the right space will appear when you are ready--but it will almost definitely be sooner or later than you expect. For commercial property, driving around and calling the phone numbers on For Rent signs or reading the classifieds may be more effective than consulting a realtor.
There is no MLS (Multiple Listing Service) for commercial property, and my personal experience is that commercial realtors will show you only their own listings (usually their own investments). There are a number of things to keep in mind during your property search. Parking is a big issue. If your clients have difficulty finding parking, it will discourage them from attending classes. The local municipality will probably require you to have adequate parking before it issues a business license or occupancy permit. The size of the studio space is extremely important--you will limit the growth of your business and therefore your revenue if the space is too small. You may estimate 35 square feet of floor space per student, but the shape of the space will make a difference. Visit the space at different times of the day and week to check the noise level and parking situation. Also check the noise level of the heating and cooling systems--and make sure they are functional. It is important that you have sole control of the temperature in the center; be aware that some spaces share thermostats (and utility bills) with other renters. Trust your instincts about the landlord--this will be one of your most important business relationships. Once your space has found you, you will be ready to negotiate the lease. Usually this means that the landlord prepares a lease that includes everything that protects him or her. I suggest that you have an attorney review the lease to make sure that everything is covered and worded correctly. The lease tells you who pays for what. Some things to think about in addition to the monthly rent are: utilities, water, real estate taxes, build-out, repairs and maintenance, heating and cooling system maintenance and outside property maintenance (plowing or shoveling snow, grass mowing, painting, etc.). Check with the local municipality for zoning, permit, license and inspection requirements before you sign the lease. Most municipalities do not have yoga center in their zoning charts. Find out if your center is allowed in the space; you may have to go through a costly zoning hearing before you can locate there (I did!). Also check on the local sign ordinance. A fire inspection will be required--you may want to have a preliminary inspection before signing the lease so that the landlord can make any necessary upgrades. Most likely you will hire other yoga instructors to teach some of the classes at your center. You may hire them as employees or as independent contractors. If you hire them as employees you must withhold income taxes and the employees share of Social Security and Medicare contributions, and you must pay the employers share of Social Security and Medicare contributions. You must also pay workers compensation and unemployment insurance. Because this can be very expensive, most yoga centers hire teachers as independent contractors. If the IRS determines that a worker should have been classified as an employee, there are tremendous penalties and even criminal sanctions. However, in the yoga business, most teachers are independent contractors. If you choose to hire teachers as independent contractors, it means that they are in business for themselves and are contracted by you. You should therefore have a contract with each instructor (see the book Small Business Kit for Dummies for a sample contract) that expressly delineates the services to be rendered and the fees to be paid. Also, be careful not to provide any employee benefits, and do not allow them to represent themselves as employees of your company (this should be included in the contract). It is a good idea to consult an attorney and/or CPA regarding the hiring and contracting of teachers. Liability insurance is essential for your center and will probably be required in your lease. Shop around for this, also, but be sure to compare apples with apples. If your instructors are independent contractors, they should have their own liability insurance that names your center as co-insured, and this requirement should be included in their contract. Before you open your doors, figure out how you are going to keep track of attendance, classes and payments. Make sure the procedures are clear to the other instructors and anyone else who will be greeting clients or collecting money. There are several types of computer software available specifically for yoga center financial management, check-in, attendance and reporting, but these tend to be expensive. If you are going to accept credit cards, be advised that there are thousands of companies out there that would love to have your business. The credit card swipe box will probably be the most expensive part of the process, so shop around to find out the price for the box, monthly charges, flat fees and percentage of sales fees. As you prepare to open your yoga center, you will encounter countless details, frustrations and joys. The best advice I can give you through all of this is to sustain your daily yoga and meditation practice. Practice the yamas (restraints) and niyamas (disciplines)--especially ahimsa (nonviolence). Be kind to yourself--the exhaustion, frustration and worry are a natural part of the process of opening a business. The Bhagavad Gita says, The wise unify their consciousness and abandon attachment to the fruits of action. Your personal practice will keep you focused on what is important: to realize your dream and to help yourself and others find joy. I wish you all the best in your endeavor. Namaste.
Disclaimer: While the information above is deemed to be accurate, some of it may have changed or contain unintended errors. Please consult an attorney and/or a CPA for definitive advice on legal, tax and/or financial issues.
Resources: Step-by-Step Guide to Starting a Business in Illinois booklet, available from the Illinois First Stop Business Information Center at www.commerce.state.il.us, or call 800.252.2923. Cutting through the Red Tape for Small Business booklet, available at your local Small Business Association office. Small Business Kit for Dummies, by Richard Harroch. This book includes lots of information, and sample forms, along with a CD-ROM containing many sample documents. Steps to Small Business Start-up, by Linda Jinnett and Jerry Pinson. The Business of Teaching Yoga, by Larry Payne, PhD. A comprehensive loose-leaf manual by a yoga center owner and teacher with more than 20 years of experience; published by Samata International, www.samata.com.
So, youd like to open a yoga studio. Its easy to understand why. Given that yoga is an optimal way to counter the stresses of work, it isnt hard to imagine that practicing and teaching throughout the day, in your own corner of the world, could create a happier, more peaceful lifestyle. The moneymaking potential of opening a studio is encouraging, too. No one knows exactly how big the yoga market is, but with the number of yoga practitioners in the United States reaching the neighborhood of 15 million, many estimates place it in the hundreds of millions of dollars. The question is whether you have what it takes. Starting any business venture requires not only determination but also close consideration of a large number of economic and personal issues. Especially with growing legions of studios already competing for the same students--along with fairly low barriers to entry--it has become more important than ever to identify every last variable before plunking down that security deposit. Yoga Studio Costs and Revenues
Bill Wyland, who owns and directs one-year old Bernal
Yoga in
San Francisco with his sister Savonn Wyland, created this financial checklist of what to expect when opening your studio:
Start-Up Costs
rent and deposit renovations (cosmetic and code) furnishings advertising
mats and props business permits retail license (if desired) phone and utility connection fees computer equipment
Do you have, for example, a tolerance for risk and uncertainty? You need to be willing to make sacrifices and even lower your standard of living until the business takes off. Are you good at managing money? Chances are that the capital you initially pool will have to carry you for at least one to two years, the time it takes many yoga studios to begin turning a profit. Finally, how tenacious are you? Are you prepared to be Chief Salesperson, along with Chief Handyman, Chief Administrator, and Chief Customer Service Person? Because opening a studio necessitates a major life change, you'll want to be as informed as possible before making your decision. For help in determining whether you should take the leapand to assist you if you decide to move forward-Yoga Journal here presents the first in a series of articles offering constructive intelligence. First Things First: Create a Business Plan You've undoubtedly heard it before, because its true: the first, crucial step in charting your businesss path to success is writing a winning business plan, even if you arent seeking investors. Having a dream to be a business owner is laudable, but it's advance planning that will turn that dream into a reality. After all, if you don't understand what your expenses are going to be, it makes no sense to get started at all. A business plan can be a blueprint that will help you better how to select the right space, hire an appropriate number of employees, and determine how much risk you are able to take. Still, perhaps the most important factor to keep in mind when authoring your business plan is that no matter how much planning you do, your costs will be a moving target. Jonathan Fields, a corporate lawyer-turned-yoga teacher and owner of two-year-old Sonic Yoga in Manhattan, smartly prepared three years of financial projections when constructing his plan. Because Fields had created and run a personal training business for two years prior to opening Sonic Yoga, he knew the importance of calculating even the unexpected. "I took into consideration everything from corporate structure to renovating a space to unforeseen costs." And Bill Wyland, co-owner of Bernal Yoga in San Francisco, encouraged studio owners to view their business plans as an organic documents. "We had a formal business plan and knew what we needed to do, but as soon as the studio opened, we started to understand what worked and make adjustments based on the needs of the people who were coming."
Ongoing Costs
rent phone, utilities teacher and staff salaries insurance ongoing advertising taxes bookkeeping/accounting expenses banking fees (including interest payments on loans) credit card fees (if you decide to offer this service) water (if you provide bottled water for your clients)
Revenue Sources
classes workshops renting the space
Writing a business plan is less daunting than it seems. There are many books and online aids to get you started, such as Successful Business Planning in 30 Days by Peter Patsula and The retail One Page Business Plan by James Horan. Organizations within your community are eager to help as well. Cyndi Lee, founder of OM yoga center in New York, says she might not have assembled a business plan without the help of a now-defunct outfit called Manhattan Renaissance Local Development Corporation, whose purpose was to help women or minority-run small businesses located on 14th Street or south in New York City. The plan gave her something tangible to show the students shed been teaching at a variety of locations--students who ultimately gave her $25,000 in seed money. "It really wasnt enough," she says with a laugh. "But I was too nave then to know how quickly everything--the toilet paper, tissues, candles, curtains, mats, phone lines--adds up."
community events
Indeed, while you'll want to design your plan to incorporate a wide number of variables-an analysis of the market and a description of your marketing strategy, among others-one of the most important pieces of your overall strategy will be your best estimates of startup costs, revenues and expenses. Begin by asking yourself how big a business you want to run. Its a crucial consideration, not least because the answer will determine how big a space you will need. Telari Bohrnsen, the owner of the 1,700-square-foot One Yoga Studio in Minneapolis, says she postponed writing a business plan until securing her dream space, and shes thankful she did. "It took nine months to find the right location, but it was really important because I didnt know how much money Id need beforehand. If Id written a plan for a 500-square-foot space it wouldnt have worked. I would have had to rebuild the plan entirely." Because leasing and building out a space will be your biggest startup cost, it is imperative that you assess how much space you will need per student and where, exactly, it makes the most sense to open your doors.
Though there are no hard-and-fast rules, a good rule of thumb is to figure on needing roughly 21 square feet for every practitioner. This estimate takes into account a two-by-six-foot mat and still allows for one to two extra feet per person. (In cities, because rent is expensive and space is often limited, you may have to squeeze people into
a slightly smaller area. Thankfully, urban dwellers are usually comfortable being in closer quarters than suburban students, who will expect their space.) If your life is portable, compare market prices before making any decisions, as it will cost you much more to open your doors in some cities. For example, in New York City commercial property owners command an average of $80 per square foot, according to the commercial real estate advisory firm Grubb & Ellis. Meanwhile, Bostonians pay an average of $30 per square foot; folks in Portland, Oregon pay $23 per square foot; and in Oklahoma City, average rates are $8 per square foot. In post dotcom-bust San Francisco, rates that soared as high as New York City prices are now as low as $25 per square foot. In general, knowing your options will help you take advantage the market's current opportunities. When writing a business plan, be as realistic as possible about your start-up time, what percentage of your revenue will be spent on marketing, and what percentage of your revenue should go to rent. Naturally, the duration of your start-up time--the period between signing a lease and opening your studios doors--depends on how long it takes to prepare your space for business. How much you spend on marketing will be driven by how many students you can rely on at the outset. (Fliers, which most fledgling studios rely on heavily to get the word out, are blessedly cheap, especially if you design them yourself. Advertising in publications, on the other hand, will cost you. A business card-size ad in the free San Francisco paper SF Weeklycosts $180, for example.) The percentage of your income that should go toward rent will vary by location, but many studio owners advise that you anticipate spending up to a third of your revenue on rent in the first year, and a quarter or less in subsequent years. The fact is that while writing a business plan will force you to write down literally everything you are going to need to start your business, some of your initial assumptions about those needs will be correct while otherswell, wont be. Dont be surprised. More important, dont be disillusioned. Adapting to the unforeseen is all a part of the process.

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Executive Summary

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2.1 Company Ownership

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2.2 Start-up Summary

$66,900 $0 $66,900 $106,900

$60,000 $0 $0 $60,000 ($33,100) $26,900 $106,900 $140,000

2.3 Company Locations and Facilities

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Market Analysis Summary

Business Start-up GuidesStep-by-step instructions you need

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Teachers (5 half-time); Boutique Staff (1).

Research Your IndustryNeed to Get Figures on Your Industry?

Estimated Monthly Fixed Cost

Pro Forma Profit and Loss

Pro Forma Cash Flow

Pro Forma Balance Sheet

$2,400 $27,600 $133,400 Year 1

$4,800 $25,200 $172,803 Year 2

$7,200 $22,800 $247,507 Year 3

100.00% 7.76% 56.10% 63.86% 36.14%

100.00% 4.95% 40.32% 45.27% 54.73%

100.00% 4.23% 26.07% 30.30% 69.70%

100.00% 31.60% 28.00% 59.60% 40.40%

100.00% 90.67% 80.80% 2.78% 17.67%

100.00% 90.55% 73.69% 2.91% 26.71%

100.00% 90.75% 68.23% 2.89% 34.12%

100.00% 0.00% 72.30% 2.70% 2.60%

10.23 9.96 63.86% 63.15% 22.83% Year 1 9.87% 44.21%

17.26 16.85 45.27% 70.03% 38.32% Year 2 16.86% 49.02%

21.45 21.03 30.30% 64.54% 44.98% Year 3 22.53% 45.18%

1.23 0.83 59.60% 2.80% 6.90%

3.95 7.33 27 1.62

8.26 12.17 33 1.59

8.09 12.17 27 1.40

n.a n.a n.a n.a

0.62 8% 9.96 4.48 0.00

0.63 5% 16.85 2.91 0.00

0.72 4% 21.03 2.01 0.00

n.a n.a n.a n.a n.a

$9,000 $14,000 $16,000 $18,000 $20,000 $15,000 $15,000 $18,000

$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000

Direct Cost of Sales

Subtotal Direct Cost of Sales

Month 12 $3,000 $4,500 $1,600 7 $9,100

Current Interest Rate

Long-term Interest Rate

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4

$0 $10,000 $13,000 $19,000 $22,000 $26,000 $28,000 $21,000 $22,000 $26,000

Direct Cost of Sales

Other Production Expenses

Total Cost of Sales

$9,000 $11,500 $17,250 $20,000 $23,600 $25,600 $19,000 $19,800 $23,600

Sales and Marketing and Other Expenses

Total Operating Expenses

Profit Before Interest and Taxes

($13,165) ($13,165) ($4,165) ($1,665)

$6,835 $10,435 $12,435

($12,965) ($12,965) ($3,965) ($1,465)

$7,035 $10,635 $12,635