Capital is so important to growing a yoga studio business. If you don’t have what you need for your business’s development, all you’re doing is paying your bills and just getting by. Having enough working capital to pay those bills on time every month is important, but to take your business further, its growth capital you should be paying close attention to, and a yoga studio small business expansion loan could get you there. To do that, you have to understand how growth capital works, what it does, and how it helps your yoga business develop.
For starters, it's important to know the 3 primary sources of growth capital for a yoga studio:
1. Equity capital from the founder(s) and/or outside investor(s).
2. A combination of operating cash flow and profits left in the business, aka, retained earnings.
3. Borrowed funds, typically from a lender or bank.
It can take time to see a yoga studio develop, but with the right amount of growth capital, that development is certainly possible. Too many yoga studio owners fail to understand the difference between working capital and growth capital, which can mean that they don’t spend enough time developing their growth capital the way they should. When it comes time to expand the yoga studio, there isn’t any money available for that expansion, so the yoga studio can’t develop the way it needs to in order to keep up with the competition. That can have devastating effects on a yoga business that would otherwise be very successful, and it’s something any company needs to avoid.
Financing for Expansion and Remodeling
Once you’re ready to expand, it is key to put a plan and resources into place to handle the controlled growth of your yoga studio. Don’t ignore the signs that you’re on the verge of significant growth.
One of the biggest mistakes yoga business owners make is waiting too long to remodel or expand their yoga studio to accommodate their growth. They may be waiting until they hit a certain milestone or accumulate a certain amount of working capital. By then, it may be too late, with growth making heavy demands that the yoga studio can’t meet. And the yoga studio may be irreparably harmed by failing to deliver. Instead, financing a yoga studio expansion or remodeling can keep you from falling into the growth trap. Getting the right funding, such as a business expansion loan, enables you to put the tools in place for handling additional business before it happens. Not only can small business expansion loans help you better manage your yoga studio’s growth, but having the capital on hand can also propel more growth.
How Do You Know When To Expand?
Don’t ignore the signs, even subtle ones, that your business growth is beginning to control you, not vice versa. A few of the most common ones:
- Staff shortages
- nventory gaps
- Unfilled orders
- Untapped markets
- Competitors pulling ahead
- Rapidly changing industry
What Is Growth Capital?
Unlike working capital, which is used for bills and basic, cyclical expenses, growth capital isn’t tied to any particular business cycle. Instead, growth capital is designed to provide long-term health for the yoga studio. It builds up over time, and can ensure the yoga studio’s well-being. Once a yoga business owner decides that it is going to make a major change, like an expansion, adding another location, or a merger with another yoga studio, growth capital will come into play and be used. These kinds of changes are very expensive, but they are not recurring expenses that are going to be seen every month. Since they aren’t recurring, they don’t come out of working capital.
Without a growth capital fund to pull from, however, a yoga studio can’t really accomplish anything beyond its day to day operations. There will not be any expansion when there isn’t any growth capital to use, this generally comes about from poor financial planning and can be profoundly damaging to a yoga business.
How Does Growth Capital Help Your Yoga Studio?
When people begin to operate a yoga studio, they may not be clear on the major differences between working capital and growth capital. If they don’t begin planning for both types of capital right from the beginning, they may not get what they really need from their business. They also have to be careful that they don’t try to expand too fast, because that can deplete all of their growth capital at once. If it is used up and then more is needed, it can leave a company in a precarious position and stop them from continuing their expansion. If that happens in the middle of growth, it can be highly detrimental and could even spell the end of the business.
The Signs Are There: Now What?
Start building your growth plan by figuring out exactly what you need in the way of additional resources to manage and leverage your growth. There are so many different ways to expand, from remodeling your current facilities to adding a new location. Being specific will enable you to focus on the areas that will yield the most results for your yoga studio.
It’s important that you establish the relationship between capital and results. Once you’ve identified the areas of greatest growth potential and what you’re going to need to leverage them, you can begin to quantify the amount of business financing that you’ll need to apply for and how the funds from business expansion loans will contribute to the results you expect. For example, to expand your yoga studio and yoga yoga apparel brand inventory, you may need a $100,000 small business expansion loan. But you’ve also calculated that this investment will net you well more than $300,000 in the next two years. Is it worth it? You bet.
Financing Your Growth with a Yoga Studio Business Expansion Loan
Small business loans, lines of credit, or short term loans can be used to fund new avenues of business growth. Yoga Studio small business expansion loans also enable you to add critical resources to your existing operation to better manage your growth. Here are some ways additional capital can help your growing yoga studio:
- Adding staff, especially those with specialized or technical skills
- Expand your online presence and offerings
- Expand/remodel your physical location
- Add new equipment or technology
- Add a new location
- Franchise your yoga studio
- Roll out new products/services
- Expand into a new market
- Create partnerships with other yoga studios
- Acquire another yoga studio
- Diversify into new yoga niches or untapped markets
- Create and launch a yoga apparel line and purchase inventory
Don’t let business growth get the better of you. Pay attention to the signs, and have a plan for managing your growth. With our small business expansion loans, lines of credit, short term loans and other yoga business funding options, you can access the capital you need to produce maximum results. If small business expansion loans, or any of the funding products mentioned sound like something you wish to explore, fill out our online form to find out how much you qualify for. CLICK HERE TO GET STARTED!