How do I assess a yoga studio’s retail and workshop side income?

Start with the income statement. Ask whether retail and workshops have their own lines, or whether they are folded into one total. Request costs too: products bought, teacher fees, room use and marketing. Income that looks attractive can be thin once the costs are counted. Ask whether workshop income is steady across the year or bunched around a few popular events.

Then look at the pattern. How many workshops ran in a year, how full were they, and who led them? A popular visiting teacher or the seller’s own reputation may not carry over. For retail, check what sells, how much stock sits unsold and whether items are on consignment, since consigned stock is not yours. If the seller sells branded items, check who owns the designs and the supplier relationships.

Finally, think about the effort. Side income often needs planning, ordering and promotion beyond the regular schedule. Ask whether the seller has someone to continue that work, or whether you would be taking it on. Your accountant can help you compare the figures with the studio’s financial ratios and the equipment you would acquire. Compare the side income with the studio’s overall results, so you can see whether it adds meaningfully or is a pleasant extra.

Key takeaways

• Get retail and workshop revenue and costs reported separately.
• Check whether workshops depend on the seller or a guest teacher.
• Look at unsold stock and consignment arrangements.