Well, think again.
According to a blog post at the Wall St. Journal, a new economic study suggests that opening a yoga or Pilates studio is a good idea right now. Growth in this area is expected to average 5% over the next five years.
Admittedly, though, before you go out and rent that space you’ve been eyeing, the report says that for the past five years, revenue growth (in sales, etc.) has been close to an average of 10% per year.
I may be math-challenged, but that sounds like a slowdown to me, albeit still pretty solid growth. Profit margins are supposed to bump a little, from 12.2% this year to 12.7% in 2016.
That’s a lot of external prana! So, yeah, next time you talk to your yoga teacher, you can figure he or she is way out-performing your 401K investments.
One of the key pieces to the recent growth has been a switch from single-class purchases by students to monthly and yearly memberships. Less per class, but more commitment.
And who can’t use more commitment in their lives?
Posted by Steve