Yoga Studio Business Plan
1. PROJECT SUMMARY
The purpose of this business plan is to open a yoga studio in the city of Rostov-on-Don. The project will be implemented from scratch, which implies registration of individual entrepreneurs, hiring personnel, selection and repair of premises for rent. The volume of initial investments is 1,650,000 rubles. Source – own funds in the amount of 1,250,000 rubles, borrowed funds (bank credit) – 400,000 rubles. Loan term – 36 months, the rate – 18% per annum.
The project payback period is 13 months. The planning horizon for this business plan is 5 years. The expected average monthly turnover in the first year of work of the studio will be – 260 thousand rubles, net profit – 110 thousand rubles. From the second year it is planned to reach the proceeds in the amount of 440 thousand rubles, net profit – 245 thousand rubles.
2. DESCRIPTION OF INDUSTRY AND COMPANY
Yoga Studio is a specially equipped room, which creates a favorable atmosphere for practical exercises in yoga. Yoga is a set of spiritual, mental practices that is rooted in Hinduism and Buddhism, and aims to control the mental and physiological functions of the body to achieve an elevated spiritual and mental state. Yoga has many directions and trends, each of which has its own history and philosophy. Modern yoga from the school of philosophy has turned into a mass hobby, which has reached great popularity around the world. Of course, due to its mass character, it has lost many ties with traditions, however, it still includes many basic principles of yoga as a teaching. First of all, yoga has gained its popularity due to the fact that it not only promotes health and trains the body, but also allows you to fight the main diseases of the time, such as stress, nervousness, irritability, depression, and so on.
In Russia, the yoga boom began in the early 2000s and continues to this day. According to the TNS Marketind Index, more than 2.3% of the country’s adult population, or 1.37 million people, are engaged in yoga in our country, and their number is increasing annually. Expenses for yoga classes, excluding spending on clothing and accessories, exceed 41 billion rubles. (Yoga Journal data). In connection with the fashion for yoga, yoga studios and yoga centers, promising large and stable profits for entrepreneurs, are becoming a promising business. The flip side of the coin is an increase in the number of non-professional trainers and charlatans who not only distort the principles of yoga, but also often cause significant harm to the health of the population.
In our case, it is assumed to open a small yoga studio, the initiator of the opening of which will be a qualified trainer who has a certificate of yoga instructor. Since the project will be implemented from scratch, an individual entrepreneur will be registered for the opening of the studio, personnel will be hired, preparatory work has been carried out in the selected rented premises (repairs, equipment). The yoga studio will be opened in a new residential area of the city with a large number of apartment buildings and a population of more than 80 thousand people. At the initial stage, classes will be conducted directly by the initiator of the opening of the studio and two more employees, other duties (accounting, advertising promotion) will be partially or fully outsourced.
3. DESCRIPTION OF SERVICES
The main services of the yoga studio will be group classes on Iyengar yoga method – the most common, and most importantly, safe type of yoga. Rights to attend group classes will be realized through the sale of season tickets for several classes. An additional direction will be individual lessons. When choosing a pricing policy, the studio decided to focus on the prices of competitors. At the initial stage, the cost of classes will be lower than the average for the city market.
4. SALES AND MARKETING
The main target audience of yoga studios in Rostov-on-Don are women – 80% of clients, the proportion of men – 20%. Analysis of the target audience of urban studios (data from open sources and social networks were used) showed that 62% of female audiences at yoga studios are women aged 26 to 35 years.