Eden Yoga Studio is an all type yoga studio focusing on enhancing the well-being and fitness of its clients and the society. The company located in the major Simpsonville, South Carolina where the population and high traffic region anticipates that the high traffic and population will enhance the improvement of health status of everyone. The company understands that family conducive environment is essential to ensure that parents and children can undertake the sessions together. Eden is a family-oriented company that understands the essence of family in improving the social lifestyles thus creating an enjoyable, engaging, and healthy practices and connections with everyone. The company aims to provide enriching mind and body proficiencies valuable in enhancing healthy lifestyles (Gangadhar, 2017). It also targets to offer client specific needs and health objectives to complement the high-quality yoga classes at reasonable prices.
The company understands it has a responsibility to enhance the social growth and empowering the society through social responsibility and creating awareness to the population in the bid to create a healthy state and nation at large. The company also intends to enhance the economic standards of the state by ensuring that 60% of the employees are from Simpsonville. Eden Yoga Studio is adamant that providing the people with the best yoga diets and yoga exercises will transform and improve the lives of all its customers (Gangadhar, 2017). The company understands that Americans are taking initiatives to curb the growing obesity and chronic ailments associated with inactivity. Yoga rapid growth in America provides Eden Yoga Studio with an opportunity to explore the market and improve the lives of its clients.
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Eden intends to provide all types of yoga but with the increasing competition and growing trend towards Bikram yoga makes the company offer the 26-part exercise and mind control as its special class. Eden understands that the growth and preference of Bikram in the last five years is based on the technique’s ability to enhance well-being and fitness thus focusing on Bikram is vital to enhance the company’s name and gain a competitive advantage in an area that does not have a hot Bikram yoga (Tracy & Hart, 2013). Other types of yoga offered are essential in limiting the seasonality that would hinder the company’s revenue during the summer and ensure that it does not discriminate its clients preferring other types of yoga. Apart from physical exercises, the company also offers dieting tips and exercising videos through YouTube where interested people can access and use them to practice yoga.
Safety concerns during for people in their homes without our instructors is an issue the company understands, hence, the move to ensure that clips and instruction guides eliminate such issues through limiting the guidelines to the exercises with the least injury probability and severity (Yoga Alliance, 2016). Online subscribers intending to continue the exercises in a deeper and more engaging manner can either access the physical location or call for home instructors at reasonable costs. Lastly, the company values its clients and intends to ensure loyalty through reasonably competitive pricing, quality and efficient service delivery offered by certified yoga instructors, specializing in client-oriented yoga practices, and enhance health interpersonal relationship with the yoga practitioners.
Industry Overview
Americans and the world’s population is spending most of the revenue in treating chronic ailments. Most of these illnesses are preventable if people can take responsibility for their lifestyles and adopt healthy eating and exercising habits. The exponential growth in the last decade and the projected growth of 5% annually for the next five to ten years portrays that Americans are taking a step to address the chronic ailment catastrophe (Ross, Touchton-Leonard, Yang & Wallen, 2016). Yoga studios and Pilates preference have resulted in rapid growth for instance, between 2011 and 2016 increased with a 9.2% growth annually resulting in over 33,000 and employing over 128,000 people (Ibisworld, 2017). The industry growth has also seen a rapid rise in the number of trained instructors from 20 million to 36 million from 2014 to 2016 (Ibisworld, 2017). Yoga and Pilate studios offer a wide range of services that range from yoga lessons, selling boutiques, accessories, and video production. The industry is still in the initial stage hence the rapid growth and the lack of dominant yoga studios that would limit entry in the market. The lack of major market share by any company may be encouraging but this factor results in high competition with a state having more than 1000 yoga studios. Differentiation and specialization is the norm of the current market with each organization using these practices to gain a competitive advantage and maintain loyal and dependable clients.
In the past 10 years, women between the ages of 25 and 40 years have dominated the yoga market with over 68% of the consumers being within 25 and 40 years (Ross, Touchton-Leonard, Yang & Wallen, 2016). However, recent Yoga Alliance surveys indicate that the trend is changing with men actively engaging in yoga for the past three years. The data demonstrate that male yoga practitioners are nearing one-third of the entire yoga demography. The study further demonstrated that approximately 37% of the women practicing yoga have children below the age of 18 years (Ibisworld, 2017). Yoga is becoming a key element in Americans’ lives but the change towards indoor practice with about one-third of the people choosing to practice yoga in their homes is changing the dynamics and business strategies of the industry. Lastly, people earning over $70,000 annually with more than 70% of these individuals having a minimum college degree practice yoga.
SWOT Analysis
SWOT analysis is a process that enables a company to understand the market and the issues that can threaten a venture. The analysis reviews the internal and external factors that would provide opportunities for the company’s expansion or development or issues that would limit growth. This SWOT analysis provides a detailed understanding of yoga studios in the bid to determine the best approach for Eden Yoga Studio to enter and succeed in the competitive market.
The above SWOT analysis demonstrates the internal and external factors that would determine success or failure if the management fails to address the weaknesses and threats. The management should maximize the strengths and exploit the opportunities to gain competitive advantage and limit the inhibitors in the best possible manner.
Strengths
Yoga unlike most of the other services does not require certification as there is no certificate that qualifies the yoga operations. However, the Yoga Alliance offers training that takes 200 hours and examination to certify an instructor. The certificate and listing in the certified instructors’ registrar although not mandatory increases the competitive advantage of the yoga studio (Yoga Alliance, 2016). The certification enables the civilians or yoga practitioners to trust the company thus enhancing their reputation. The company acknowledges that it is essential to invest in the training and certification process to ensure that it will have an upper hand when approaching the targeted clients. The certification process is cheap and flexible in that the association has many facilities to study. Training an instructor also mitigates safety risks that can be catastrophic for a starting organization if a client is injured during the normal classes (Ross, Touchton-Leonard, Yang & Wallen, 2016). Mitigating injuries eliminates the expenses that may lead to the practitioners filling cases or needing compensation.
Starting a business is difficult due to the expenses needed in starting the venture. However, starting a yoga studio is simpler than most businesses due to the limited equipment needed. Eden Yoga Studio will be a partnership between three individuals. The individuals intend to have an equal share of capital that is from personal saving and family loans to ensure that each person contributes $100,000. The partners also intend to take a bank loan of $200,000 and file an exemption tax to the county to limit the interest loans from the earning. Simpsonville offers exemptions for small businesses in its bid to enhance entrepreneurship and job creation in the State. Due to the financial constraints, the company will lease a flat and engage in legal documentation that enables the company to have one month free to renovate the structure that can fit at least 40 people. The lease also enables the company to focus other finances in expenses such as the hiring of and training of instructors to complement the skills sets of the partners. Two of the partners are currently undertaking the Yoga Alliance training program whereas the other partner is engaging in IT and Business management course that will be completed by the end of the year. The equal partners intend to be equally active while using their skill sets and socio-economic experiences to realize a smooth startup and constant growth.
Hot Bikram yoga growth over the past five years means that the instructors have focused to ensure quality execution and gain an advantage over the competitors. The market does not have another yoga studio offering hot yoga thus making it the first in the close locations (Tracy & Hart, 2013). The company also offers diversified services such as specialized client-oriented yoga, family-friendly environment, and other indoor services provides the needed set of services to keep the company active for an entire year. Hot yoga seasonality problem during summer limits the revenue, which would result in fluctuations in earning even after the company establishes itself.
Weaknesses
Other than capital, building a brand name and reputation is a major challenge of starting a business. The industry may not have a definite leader, but the growth and competition within the market depict that the existing companies have loyal members and have built on their years in the industry to develop their reputation. Image, brand, and reputation of an organization are the main factors a client analyzes before enrolling for membership in a company. A past study demonstrates that people tend to purchase a similar product at a higher price from a brand they know or are loyal to than purchase a product in a less or unknown company. Therefore, it is the task of the partners to use every opportunity and mechanism to build on its reputation. Brand awareness campaigns and other promotional skills discussed later in the paper. The company also intends to provide three full services to new consumers for free to ensure that the clients gain awareness and believe in our skills (Conrad & VanEs, 2014). The company also provides reasonable charges with discounts such as three-year discounts to the first 100 members. Discounts for members that enroll as families to increase the family environment. The company understands that having the best instructors will accelerate the growth and reputation of the studio. However, skilled instructors are not cheap and the company must invest large sums to facilitate changing of their allegiance from other studios. Therefore, the company chooses to use the certification of the Yoga Alliance rather than break the bank to acquire such instructors.
Opportunity
Changing trends towards the yoga and Bikram offers an opportunity to explore for the company. The essence that the industry is still in the initial stages offers the company with the best opportunity to make a mark and grow its market share. The Yoga Alliance survey demonstrated that the industry is immune to economic fluctuations. These valuables and the extent of growing market means that even in the competitive environment, the company will succeed. Engaging family practices also increases the social and family value, which is not a common practice in the market (Conrad & VanEs, 2014). The company’s focus on children enrollment will address the obesity issue of children in the area thus boosting its role in the social responsibility.
The economic constraints and the changing aspects of socialization make technology a vital tool for promotion and awareness campaigns to the potential clients. The expensive mode of advertisements such as TV commercials, weekly or daily newspapers, and radio broadcast are above the company’s reach. Therefore, Eden Yoga Studio invests its efforts and revenue in building a website, blog, ads, and YouTube channels to create awareness of its brand (Conrad & VanEs, 2014). The company will also use social media platforms such as Facebook, Twitter, and Instagram. Free local weeklies and other community print media will be vital in expanding the brand name and awareness.
Threats
The market has no restrictions thus increases the already competitive market. New entrants and merging of other firms can deter the company from growth or acquiring new members. Hence, the move by Eden to focus on consumer’s satisfaction to limit the loss of members and build on its goodwill after its startup. Competition from indirect competitors such as gyms and health-fitness companies also increases the competition in the industry (Conrad & VanEs, 2014). Policy and political changes such as insurance and taxation respectively can result in losses. These threats complemented by uncertainty are difficult to avoid thus the company reserves $18,000 to deal with such risks.
Financial Plan
The table below demonstrates the financial plan that will enable a smooth startup and running of the company. The three partners contributed $100,000 and borrowed a bank loan of $200,000 together as a company. Therefore, the total capital is $500,000
| Expenses | Amounts |
| Lease and Renovations | $230,000 |
| Salaries | $150,000 |
| Insurance | $30,000 |
| Heating and other equipment | $70,000 |
| Website and Promotion | $2,000 |
| Reserves | $18,000 |
In conclusion, the yoga studio is a venture worth investing in due to the increasing popularity and low capital requirements. Simpsonville unlike other cities in South Carolina does not have hot Bikram yoga studios.
References
Conrad, C., & VanEs, H. (2014). The business of yoga: A step-by-step guide for marketing and maximizing profits for yoga studios and instructors . San Francisco, Calif.: Let'sDoYoga.com.
Gangadhar, B. (2017). Yoga for better health. Yoga Mimamsa , 49 (2), 41.
Ibisworld. (2017, December). Pilates & Yoga Studios in the US. Industry Market Research Reports, Trends, Statistics, Data, Forecasts. Ibisworld . Retrieved on October 4, 2018 from https://www.ibisworld.com/industry.../pilates-yoga-studios.html
Ross, A., Touchton-Leonard, K., Yang, L., & Wallen, G. (2016). A National Survey of Yoga Instructors and their Delivery of Yoga Therapy. International Journal Of Yoga Therapy .
Tracy, B., & Hart, C. (2013). Bikram Yoga Training and Physical Fitness in Healthy Young Adults. Journal Of Strength And Conditioning Research , 27 (3), 822-830.
Yoga Alliance. (2016, January 13). 2016 Yoga in America Study. Yoga Alliance . Retrieved on October 4, 2018 from https://www.yogaalliance.org/2016YogaInAmericaStudy
