Yoga Studio Business Plan Example: Stillfern Yoga

Most yoga studio business plans start with a class schedule. It’s the part a teacher pictures most clearly: which styles run on which nights, and who teaches them.

A lender reads past the schedule to the people on the mats, and to how many of them will pay each month. Our fictional example, Stillfern Yoga, is a one-room studio in Lakeview, Chicago, that will open with a $100,000 SBA 7(a) loan, and its numbers answer three questions:

• How many members the studio expects, and how fast they join
• Which classes fill, and which ones a paid teacher can’t cover
• How the studio pays rent, teachers, and its owner before membership catches up

It explains why Stillfern streams busy classes instead of adding online-only ones.

Treat this sample as a foundation for your own yoga studio business plan.

Executive Summary

Stillfern Yoga is a new neighborhood yoga studio in Lakeview, Chicago, opening on September 7, 2027. Classes will take place in one 24-mat practice room on the second floor of the Thornbury Building, 917 W. Belmont Avenue, Suite 200, Chicago, IL 60657, a short walk from the Belmont ‘L’ station.

The owner, Jenna Castillo, has taught yoga in Chicago for 12 years. Her vision is for Stillfern to become Lakeview’s favorite neighborhood studio, where teachers know every student by name.

Classes and Memberships

Most of Stillfern’s income will come from monthly memberships. The studio will earn money in three ways:

• Memberships on autopay, which bring in half of all revenue in Year 1 and about 60% by Year 3
• Class packs, drop-ins, and a three-week intro offer for newer students
• Live online classes and private lessons, which add about 17% each year

Who We Serve

Stillfern will serve Lakeview professionals who practice before and after work, beginners and returning students, and daytime students who want a gentler class at midday.

In 2025, 81 million Americans belonged to a gym, studio, or other fitness facility. Yoga was the most widely practiced activity among them, with 17.7 million members. Demand is strong, so the studio’s focus is simple: win students in its own neighborhood and keep them coming back.

First Three Years

We expect a loss of $44,643 in Year 1 while membership builds, including $18,500 of one-time launch costs. Profit should reach $55,823 in Year 2 and $84,780 in Year 3, and Jenna draws a salary every year.

Loan Request

We are asking for a $100,000, 10-year SBA 7(a) loan from Wrenmoor Bank at 10.5% interest, and Jenna is adding $50,000 of her savings. This $150,000 will pay for:

• $64,700 of build-out, furniture, props, and sound and streaming equipment
• An $8,500 security deposit and $18,500 of launch costs
• A $58,300 cash reserve for rent, teachers, and Jenna’s salary while members join

Writing business plans takes weeks?

Let AI write your first draft in minutes

Write Your First Draft

Company Overview

Stillfern Yoga’s mission is to give Lakeview neighbors well-taught, welcoming yoga classes at times that fit a working week. Jenna chose a one-room studio on purpose. It is small enough for her to fill, teach in, and manage herself, and it is in the neighborhood where she has lived for nine years.

The studio will teach non-heated group classes, live online classes, and private lessons. Hot yoga, teacher training, and retail are not part of the first three years.

Jenna’s Experience

Jenna holds the E-RYT 500 credential from Yoga Alliance, the highest level for experienced teachers. For the past five years, she has been the lead teacher and studio manager at a Lincoln Park studio. There, she built a 60-class weekly timetable, scheduled 14 teachers, and ran the beginner program.

Jenna formed Stillfern Yoga as an Illinois single-member limited liability company (LLC) in January 2027. She owns 100% of the business and will personally guarantee the SBA loan. The LLC keeps business debts and claims separate from her personal assets.

Studio Space

The studio covers 1,700 sq ft on the second floor. It has a 1,050 sq ft practice room for 24 mats, a lobby with the check-in desk, two changing rooms with restrooms, and a prop wall. Jenna chose a second floor near the ‘L’ for three reasons:

• The rent is lower than in street-level storefronts on Belmont Avenue.
• The space is quiet, which suits slow and restorative classes.
• Most students will walk, bike, or take the train, so the studio doesn’t need parking.

Jenna signed a 7-year lease with one 5-year renewal option, and the landlord gives Stillfern three months of free base rent during the build-out. Rent in Year 1 is $30 per sq ft, including property taxes and common-area charges.

The offices below asked for a quiet tenant. To keep noise down, the build-out includes a floating cork-topped floor and sound baffles.

Goals Through 2030

Jenna has set these goals for the first three years:

Market Analysis

Stillfern Yoga will draw most of its students from Lakeview. Its market is adults who live or work within a short walk of Belmont Avenue and want a class that fits around their workday.

Yoga Demand in Lakeview

ZIP code 60657, which covers most of Lakeview, has 71,904 residents and 40,520 households, based on 2024 Census data. The goal of 176 members by Year 3 is a small share of them. This means the studio can reach its goal with neighbors alone, without drawing students from across the city.

As mentioned earlier, yoga was the most widely practiced activity at U.S. fitness facilities in 2025, with 17.7 million members. The U.S. yoga market is projected to reach $18.90 billion by 2026. Worldwide, in-person classes are projected to make up 62.54% of the yoga market that year.

This is why Stillfern focuses on in-person classes, with live online classes as an extra for members.

What Students Look For

Worldwide, yoga bookings on ClassPass rose 28% in 2025, and bookings between 11 a.m. and 1 p.m. rose 38%. This is why Stillfern teaches a 12:15 PM class every weekday for hybrid workers and daytime students.

In a 2026 survey of 550 fitness studio members, 25% said they won’t book a first class without a low-risk way to try it. Also, 46% said instructor quality is what makes them come back. This is why the studio offers a three-week intro and keeps the same teacher on each weekly class.

Market Trends

Students compare studios on Instagram and in reviews before they visit. Stillfern will post short teacher-intro clips and ask every new student for a review.

Members expect to book, cancel, and join waitlists on their phones, and the studio’s booking app handles all three.

More students now prefer month-to-month memberships with no long contract, and Stillfern’s memberships work this way.

Target Students

The studio’s students fall into three groups:

• Lakeview professionals: Adults about 25 to 44 years old who live or work within a 15-minute walk of the studio. They come before work, after work, and on weekends, and most buy an unlimited or 8-class membership. They want good teaching, a teacher they see every week, and an easy booking app. This is the largest group, about two-thirds of members.
• Beginners and returning students: People who are new to yoga or coming back after years away, and many feel nervous about keeping up. They usually start with the intro offer and Yoga Basics, where a teacher shows them how to set up and use props.
• Daytime students: Hybrid workers on their home-office days, new parents, and older neighbors who want a slower, gentler class at 12:15 PM. They often choose the 8-class membership or a class pack.

Competitive Analysis

Lakeview students already have several places to practice yoga, and some of them are bigger or cheaper than Stillfern. The direct competitors are the other yoga studios within a short walk or ride of Belmont Avenue. The indirect competitors are the other ways Lakeview residents do yoga or similar exercise.

Direct Competitors

Each of the three studios closest to Lakeview students has its own strengths:

Cindervale and Brambleway are the strongest. Cindervale is stronger on schedule size and convenience, and Brambleway is stronger on reputation and teacher training.

Indirect Competitors

Lakeview residents also practice yoga outside studios. Big-box gyms include yoga classes with their memberships, and the Chicago Park District runs low-cost outdoor classes in summer. Class-booking apps let students move from studio to studio, and online videos let people practice at home for little or nothing. Pilates and barre studios also compete for the same monthly workout budget.

Competitive Advantage

Students will choose Stillfern for four reasons:

• Classes stay capped at 24 mats, which helps teachers learn every student’s name.
• Each teacher keeps a fixed weekly class, so students always know who will teach them.
• The timetable fits Lakeview’s workday, with classes at 6:15 AM, 12:15 PM, and every evening until 8:00 PM.
• Beginners get a simple way in through the intro offer and Yoga Basics.

Classes & Pricing

Stillfern Yoga offers five class styles, all non-heated, and sells them mainly through monthly memberships. The prices aim to turn first-time students into long-term members.

The weekly timetable uses these five class styles:

Group Classes

Most classes run 60 minutes, and Yoga Basics runs 75. Each class has a cap of 24 mats, and the studio provides mats and props. Students book through the app, join a waitlist when a class is full, and can cancel up to 12 hours before class. A late cancellation or no-show uses a class from a pack or costs members a $10 fee.

Memberships and Class Packs

Students can choose from six ways to pay:

Memberships renew each month on autopay. Students, teachers, nurses, first responders, and members who prepay for a year get a lower rate. Together with the founding-member rate, these discounts average 8% off the list price. In Year 3, the unlimited membership rises to $165 and the 8-class membership to $129.

Chicago’s amusement tax applies to drop-ins, class packs, and the intro offer, but membership dues are exempt. This means a student who comes twice a week saves money and tax by joining.

Live Online Classes

An online membership costs $39 per month, and an online drop-in costs $15. Several evening and weekend classes stream live from the practice room, and instructors teach two online-only times from home. Online members can watch a replay for 48 hours.

Online students include members who travel, new parents, and former members who moved away. Together, they bring in about 8% of yearly revenue.

Private Lessons

A private lesson costs $110, with a small discount on a 3-session pack. The price rises to $115 in Year 3. Instructors teach them in the studio between 1:30 and 5:00 PM on weekdays, or online. Beginners often book one before joining a class, and so do students working around an injury with their doctor’s approval.

Marketing & Sales Strategy

Stillfern’s marketing focuses on people who live or work within a short walk of the studio, and on keeping the students who come. The goal is to get neighbors through the door with the intro offer and help them become members.

Founding Members and Opening Week

The pre-sale runs in July and August 2027. The first 30 members get unlimited classes for $139 per month for their first 12 months, plus one free private lesson. Jenna will sell these memberships through a sign-up page and free outdoor classes in a Lakeview park on Saturday mornings in August.

During opening week, from September 7 to 12, 2027, the studio will hold a free community class every evening. The one-time launch budget is $7,800 for marketing and $5,200 for the brand, signs, and website.

Marketing Channels

Five paid channels make up the $15,600 marketing budget for Year 1:

Reviews, an email newsletter, and partner visits take time but cost nothing. Marketing spend drops to $14,400 in Year 2, as referrals bring in more new students.

Membership Sales

The studio coordinator texts each intro student after their first class, and the teacher greets them by name at their second. In the third week, the student gets a reminder with a one-click way to join before the offer ends. About 28% of intro students should become members.

Stillfern won’t list classes on class-booking apps in Year 1, which keeps prices clear. In Year 2, the studio may offer a few midday spots on those apps if those classes stay small.

Member Retention

Most members who cancel do so in their first few months. To help new members stay, Stillfern will:

• Check in with every new member at 30 and 90 days
• Host a monthly community class and a Sunday workshop each season
• Let members pause for a month when they travel or get hurt
• Give unlimited members live online classes for days they can’t come in

We plan for monthly cancellations to fall from 5.5% in Year 1 to 4.7% in Year 3. This means the average member stays about 18 to 21 months.

Operations Plan

Stillfern runs from one practice room, and the weekly timetable decides how many students it can serve. A small part-time team, a few trusted vendors, and simple systems help keep the studio running smoothly.

Hours & Schedule

On weekdays, the studio opens for the 6:15 AM class and closes after the 8:00 PM class. Weekends run from 8:30 AM to about 6:30 PM. Monday to Thursday evenings and weekend mornings are the busiest times, and weekday afternoons go to private lessons, cleaning, and office work.

Here is the Year 1 weekly timetable:

Class Planning

In Year 1, weekday evening classes bring in about 47% of visits and weekend classes about 28%. Early mornings bring in 15% and midday 10%. Most new classes will go into evenings and weekends.

In Year 2, a class with a paid teacher needs about 6 students to cover the teacher’s pay and its share of rent. Jenna will teach the midday and some early-morning classes herself while they grow. Her salary is fixed, so these classes cost the studio very little.

Streaming a class that already runs adds about $11 of teacher pay. A separate online-only class costs about $52 to teach and loses money. This is why Stillfern streams its busiest classes and keep online-only classes to two time slots.

The timetable changes by a few simple rules:

• Every new class runs as an 8-week trial.
• A class that averages under 6 students for 8 weeks moves to a better time or merges with a nearby class.
• A class that averages 20 or more students for 4 weeks gets a second class nearby.
• The studio posts changes three weeks ahead, mostly in January and September.

The timetable will grow from 28 classes a week in Year 1 to 32 in Year 2 and 36 in Year 3.

Team

The Year 1 team has three kinds of roles, all on the W-2 payroll:

• Jenna Castillo, owner and lead teacher: Teaches about 10 classes a week and handles the timetable, hiring, payroll, and finances, on a $48,000 salary.
• Five part-time instructors: Each teaches 3 to 6 classes a week, including a fixed weekly class. They earn $55 per in-person class, $45 per online-only class, $10 extra when a class is streamed, and $60 per private lesson.
• Studio coordinator: Works 16 hours a week at $18.50 per hour, covering the front desk at busy times, member messages, and intro follow-ups.

Stillfern will add a sixth instructor in Year 2 and a seventh in Year 3. Every instructor needs RYT-200 training and current CPR certification, and two trained teachers on a sub list cover illness and vacations. All pay stays above Chicago’s minimum wage of $17.05 per hour.

Tools and Vendors

The studio will rely on a short list of tools and partners:

• Momence runs the timetable, memberships, waitlists, waivers, and autopay.
• Zoom runs the live online classes, with two cameras and wireless mics in the practice room.
• ASCAP, BMI, SESAC, and GMR license the music for classes.
• Fennwick Linen Service, a Lakeview laundry, picks up towels and blankets each week.
• Manduka supplies mats, blocks, bolsters, and straps.
• An outside accountant and Gusto handle the books, payroll taxes, and the amusement tax return.

Licenses and Insurance

Before opening, Stillfern will get its business license and build-out permit from the City of Chicago. The studio will also register with the city’s Department of Finance for the amusement tax, which it files monthly, and with the state for payroll taxes before the first payroll.

The studio’s insurance covers general and professional liability, property, and workers’ compensation, which Illinois requires once a business has employees. It costs $4,200 in Year 1. Every student also signs a waiver in the booking app before their first class.

Main Risks

Running a one-room studio comes with a few risks, and Stillfern has a plan for each one.

1) Members join more slowly than planned. In Year 1, the cash reserve will cover the loan payments while membership grows. The lowest cash balance will be $28,409 in January 2028. If members join slowly, Jenna will move more of the ad budget to the intro offer and partner classes.

2) Members cancel faster than planned. The retention steps focus on the first few months, when most members leave. If cancellations stay above 5.5% a month for a quarter, Jenna will ask every leaving member why and adjust class times or teachers based on the answers.

3) Jenna can’t teach for a while. Sub teachers can cover her classes, and no instructor teaches more than 6 classes a week. Jenna also carries her own disability insurance.

Financial Plan

Stillfern Yoga needs $150,000 to open: a $100,000 SBA 7(a) loan from Wrenmoor Bank, a Chicago community bank, and $50,000 of Jenna’s savings. We expect a loss in Year 1 while membership builds and a profit from Year 2.

Startup Costs

Financial Assumptions

Revenue by Line

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow

Break-Even Analysis

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Get Started Now!