Starting Your Yoga Entrepreneurial Venture: Creating the Paperwork that Goes With It
Being a yoga teacher or yoga entrepreneur is a career that walks down a tightrope. It is creative, passionate, ever-evolving, full of tradition as well as innovation, and overall servicial. To ground all these lofty descriptions is the business of it all. The fact that we need to adhere to the registration, operations and marketing to make a name. How do we face every phase of our business from plan to execution to maintenance? Paper. Everything starts with putting words on a page. No matter the format whether it’s digitized or analogue, a concrete vision of our ideas, wishes, and plans is necessary for any venture. Afterwards, we require to realize said venture with paperwork provided by our governing entities to validate our cause.
This is where our article starts. Today we will talk about the different administrative, legal and in-house writings needed to open and run a yoga business. We will talk about documents that are universal and specific so that this article may serve as a guide or list for your business. However, we strongly advise to check your local requirements. Let’s begin!
Whether local or something more international, you will make a mark that can potentially help people in their practice.
To those of you who are starting your journey
All of us have to start somewhere. After the vision, comes the plan. This is where you streamline your dream to serve the clients you aim for, your financial position, your ability to cover the cost, as well as expectations of your returns. It is at this stage that you lay your cards out on the table so that there is no confusion between you and your partners. Below are some of the legalities you will need for this part of your journey.
This is the blueprint of your aspiration, it will organize and maintain the original vision of your company, check off accomplished milestones, remind one of the risks, and expectations of capital needed, profit, growth, and return of investment–a step not to be skipped. A properly laid out business plan will help ensure the success of your venture. It will also reflect your character as a business owner. This image will be imperative when applying for a loan, renting out a space, looking for partners, etc.
There are 4 types of business structures recognized globally: Sole proprietor or sole trader, General or commercial partnership , Professional or public partnership, and Limited partnership. Most small yoga businesses will either have a sole proprietor structure or Limited Partnership otherwise known as an LLC or Limited Liability Company. Sole proprietorship/trader is the simplest form of ownership. You are responsible for the day-to-day operations to manage the profits to which you are entitled. The downside is that when problems arise, the weight falls on you completely as well. An LLC is owned and operated by one or more members. The income and expenses that fluctuate within the business pertain to the company as there is a separation between the personal funds of the members and the funds brought in by the company’s operations. An LLC will require an operating agreement or partnership agreement which will stipulate the division of profits and buy-out or exit protocols should a member or partner decide to leave. The prime advantage of an LLC is should you run into problems with debt collection or the like, Your LLC protects you and your members’ assets from any actions the banks might take. You can learn more about ownership structures here.
This is the legally binding definition of the ownership of your company. This document will contain a percentage of ownership, distribution of profits/losses, management power/role, length of the partnership, termination options, and buyout options. This way, everyone’s cards are laid out so to speak.
Depending on the size and structure of your company, the law will require you to have company bylaws to be put in place. It covers both ownership and operational procedures and is created by the founders or a board of directors or ownership group.
The essential preliminary paperwork you will need to fill out is all about setting yourself up for success. Your business plan outlines your vision for your business so that others may join in your venture or that the bank may fund your dream. The partnership or ownership agreement lays out the percentages of ownership, responsibilities and exit or buyout procedures so that everything is transparently laid out for you and your partners.
The first steps are always the most difficult. Transferring your conceptualizations can be daunting because you are exploring a new phase in yourself from teacher to business owner. It’s at that moment when you realize, “this is it!” This is where we make a change. It’s scary, it’s a dive in unknown waters–both terrifying and exciting at the same time. It also shows a ton of merit in yourselves because your creation is a contribution to our field. Whether local or something more international, you will make a mark that can potentially help people in their practice. Which represents the essence of yoga. Wondering what the next steps are? Read the next blog in this series.