Category Archives: business

Yoga, Business and Government

Reprinted from YogiJBrown. This is the best article I’ve read regarding the recent flurry of news around taxes and New York City yoga studios. Everyone practicing or teaching yoga should read it so here it is!

Yoga, Business and Government

May 7, 2012
by J. Brown

With all the deserved criticism being leveled upon the yoga industry of late, it’s important to distinguish between the influence of corporate business and what is happening at the grassroots. There is no better example of the disparity between these two mores than the efforts of Yoga for NY, an organization of yoga centers and teachers that have banded together to see that their interests are represented in local government.

In 2009, faced with a decimated budget, the NY State Bureau of Proprietary Secondary Schools sought to re-interpret an old statute and fleece yoga teacher training programs by having them classified as vocational schools. The BPSS sent out 80 cease and desist letters to yoga centers throughout NY state threatening closure and heavy fines. The statute cited had an exemption clause for instruction in “dancing, music, painting, recreation and athletics.” Apparently, they didn’t think to include yoga when the statute was originally written in the 1940′s.

Had the BPSS been successful, the large majority of small independent yoga centers would have been forced to close. Fortunately, the NY yoga community rallied and formed Yoga for NY to challenge the BPSS assault. Yoga for NY was able to raise funds, hire lobbyists and ultimately solicit the support of then Senator and now, Attorney General Schneiderman, who ushered through new legislation that added yoga to the list of exemptions.

Recently, a new set of issues has arisen and, once again, Yoga for NY is being called to action. At a meeting last month, attended by representatives from 55 yoga centers and Senator Perkins, two topics of immediate concern were voiced:

1. Are yoga classes subject to a 4.5% sales tax?
2. Are yoga teachers employees or independent contractors?

When I opened a yoga center in 2007, I was informed by the Department of Taxation that yoga classes are a form of instruction, comparable to say a dance class, and are not subject to sales tax. However, several other centers who are currently under audit are being told something different. Upon further inquiry, the Department of Taxation referred to a vague notice on their website that includes the word yoga and is dated April 20, 2011. When pressed further on the lack of clarity in the notice, they returned that “the matter is under review.”

What I find particularly interesting here is that one of the reasons that yoga centers are being reevaluated for tax liability is the way that yoga is being advertised. There is a specific provision in existing law for taxation of “weight control salons.” So, those who have long lamented the superficialization of yoga in advertising have an even more legitimate gripe. Touting yoga as form of weight loss may well cause yoga classes to become newly taxed, which means that the cost of all yoga classes will go up. The added expense will most certainly be passed directly to the consumer. Smaller centers simply cannot afford to absorb the cost.

The second issue regarding the status of yoga teachers is even more alarming. If it were deemed that yoga teachers must be classified as employees, requiring yoga centers to abide by the corresponding regulations, most smaller centers would again be forced to close or operate illegally.

I made my living as a self-employed yoga instructor for over ten years before I opened a yoga center. In all that time, I never once received a W2. I was always an independent contractor with a stack of 1099′s. Many of the teachers working at my center have only one or two classes a week. Even those that do teach more still have classes at other centers. In order for a yoga teacher to make a living, they must teach at more than one center. Also, yoga teachers have their own websites and contract different pay scales and terms with different centers. Seems to me, yoga teachers are the very epitome of independent contractors.

Both of these issues are unresolved. Senator Perkins has made his office available to help Yoga for NY work through these matters. One important aspect that has become clear is that there is no official, government sanctioned, definition for what a yoga teacher does. From a yogic perspective, this is profoundly appropriate, but when it comes to the taxation of business, it is eminently problematic.

Whether or not a working definition for what a yoga teacher does can be formulated that will allow independent centers and teachers to do the small business of yoga in their local communities and still satisfy their civic obligations remains to be seen. However, these issues stem from the common misconception that yoga has become a lucrative career. In a recent study, yoga is listed as the 4th fastest-growing industry in America, just behind generic pharmaceuticals, solar panels and for-profit universities. From 2002 to 2012, the Pilates and Yoga industry grew an average of 12.1% per year and is projected to expand 5.1% in 2012. In the five years to 2017, industry revenue is expected to grow at an average annual rate of 4.8%.

What is lost in these statistics is the hard fact that little of this incredible growth has found its way into the pockets of independent yoga centers and teachers. In fact, the average pay for yoga teachers has not changed in the last fifteen years. These profits are being reaped by corporate entities who are capitalizing on the soul work being done by heart-felt practitioners who do it for love more than money.

I have often been highly critical of the NY yoga community. After attending the last Yoga for NY meeting, I felt proud to be a part of it. On the whole, the NY yoga community is not only earnest in its efforts to help people but is also doing its best to effect good governance. I sincerely hope that the state, and potentially federal, agencies charged with making the pertinent determinations will not simply play into the hands of corporate interests but do right by the constituents they are commissioned to serve.

Learn to Run a Studioless Yoga Business with BizeeBee and Yogipreneur

“So where’s your studio?”

I get this question from a lot of people who learn about Compass Yoga. Then I tell them that we don’t have a space – studio nor office – and then they tilt their heads to one side in confusion. We built our infrastructure through partnerships with community-based organizations who provide the space for our classes and a captive audience. They also carry most, if not all, of the promotion and marketing expenses which allows us to operate on a shoestring. We provide expertise, empathy, and time. They provide most everything else.

It’s a beautiful way to build and run a business, though it took over a year of experimentation, true trial and (lots of!) error. I was blessed with the time and the resources to figure out this new business model, emphasis on the word “blessed”. I understand how incredibly fortunate I am. There were A LOT of people who helped us along the way and continue to help us.

One of Compass’s trusted friends is my friend, mentor, and all around brilliant femgineer, yogi, and entrepreneur, Poornima Vijayashanker. Poornima and I met last year at SXSW courtesy of our mutual friend, Jennilyn Carson. Since then we’ve been batting around ideas, inspirations, and experiences. Her company, Bizeebee, develops simple, elegant tools to help studio managers manage their business. The Bees have teamed up with Yogipreneur to help others figure out how to run a studioless yoga business through their upcoming webinar on Tuesday, February 7th from 1:00pm – 2:30pm.

A bit about the webinar from the event page:

“The bees have been listening to yoga instructors for the past year. We’ve traveled across the country and even across the world, and we’ve heard you tell us that its hard to make a living off of being a yoga instructor. Opening a studio is not an easy alternative. Moreover, many of you don’t want to be a studio owner, you’re happy being a teacher and focusing on improving your instruction. However, there are a few things you’re probably concerned with like:

- attracting more clients
- having a sustainable business focused on teaching privates
- mindfully making more money

We know you’re bizee and don’t have time to research and piece together information. So we’ve decided to team up with Racheal Cook, the Yogipreneur, and offer a webinar focused on running a studioless yoga business. During the webinar, Racheal will focus on:

- Key steps to improving your current financial situation.
- Providing tips & strategies find more clients.
- Showcasing & sharing secrets of successful private yoga instructors: Guest intructor Liz Vartanian will share her story.”

The webinar is priced at $57. Readers of this blog get a special discount 15% discount with the code yogablogger. Happy yoga business planning!

Can Yoga Save Corporate Executives From A Heart Attack?

From PR Newswire

LOUISVILLE, Ky., Nov. 22, 2011 /PRNewswire via COMTEX/ — According to NAMASTA, the North American Studio Alliance providing support to professionals wanting to pursue careers in yoga, there are an estimated 70,000 yoga teachers in North America, a number that has grown drastically in the past several years due partly to the weak economy and job market. In fact, according to a 2008 study by Yoga Journal, Americans spend a staggering $5.7 billion annually on yoga classes and products, and this number appears to be growing, making yoga franchises one of the most viable industries for corporate executives and entrepreneurs looking for a new career path.

“We’ve seen a growing number of executives that are tired of the daily grind and are seeking a new career that provides financial stability and mental quiescence while allowing more quality time with friends and family,” says Joseph Alexander, Vice-President of Communications for Dahn Yoga & Health Centers, Inc. one of the nation’s leading yoga franchises. “Opening a yoga franchise allows more day-to-day flexibility while providing positive reinforcement to the franchisee’s physical and mental health.”

Dionne Henderson, Chief Operating Officer and Owner of 1st Capital Finance, Inc., a financial consulting firm helping businesses acquire financial capital, implement cost savings, and leverage goodwill, provides a few questions to think about for those who are considering a franchise.

Six Questions to Ask Yourself When Considering A Yoga Franchise

1. Are you financially qualified? Entrepreneurs must meet capital needs of the business including liquid cash and/or collateral requirements that will allow them to invest in the franchise.

2. Do you know your net worth? Most franchises have a corresponding net worth requirement. Potential owners must have concrete documentation to validate their current financial status.

3. Do you know your personal and professional motivation? Opening a franchise requires passion and direction. Defining the motivation to run your business is necessary because temporary drivers will not sustain owners or be sufficient to overcome long-term cycles.

4. Are you committed to developing long-term strategy to insure the lowest operating cost and greatest profitability for the business? Implementing a cost savings strategy to reduce indirect operating expenses will facilitate a faster return on your initial franchise investment and enable you to accelerate the repayment of initial capital expenditures. Whether you’re taking over an existing franchise or starting anew, consulting firms like Alliance Cost Containment ( www.alliancecost.com ) can use their significant purchasing power coupled with unique expense category expertise to negotiate deep savings while freeing up cash flow that franchisees can use to reinvest in the growth of their business.

5. Do you have a support system, both personally and professionally, to help offset the risks inherent to being a new franchise owner? Temporary conditions and unexpected circumstances are inherent when opening a new company. Successful entrepreneurs have flexibility and clearly defined resources to manage the dynamic nature of start-up.

6. Do you need a transition plan to maintain your current lifestyle as you make necessary adjustments for your new opportunity? Corporations provide workers a surefire income stream and the people, processes and technology involved in the end product are relatively stationary. Potential franchise owners should look for what mix of stability and flexibility they require and receive when partnering with a franchise operation.

About Dahn Yoga

Offered at more than 1000 locations throughout the world, Dahn Yoga is an integrated mind-body training method that combines deep stretching exercises, meditative breathing techniques and energy awareness training. Its objective is to help practitioners achieve their highest level of personal potential. Created by Ilchi Lee in 1980, Dahn Yoga has something for everyone. Through diligent practice, Dahn Yoga practitioners can create a healthy body, clear mind, dignified character and bright spiritual nature that is not learned but realized. Most importantly, Dahn Yoga teaches that peace can be found internally through the body and brain, and then will be naturally expressed externally for the benefit of all. For more information, please visit www.dahnyoga.com .

About 1st Capital Finance, Inc.

1st Capital Finance, Inc. is a financial consulting firm founded on a philosophy which asks business owners to view their organizations in a holistic manner, based on what constitutes the MIND l BODY l SPIRIT of a COMPANY, the positive benefits of which are reaped by the corresponding systems within the owners themselves. The Corporate Body receives cash flow injections by funding business loans from 5K-500M (USD). They oblige the Organizational Mind to institute a cost savings strategy to reduce operating expenses so as to maximize the profits of the Organization and find opportunities to accelerate payment of this loan. The Entrepreneurial Spirit is captured by goodwill donations in honor of each client for each closed loan. For more information, please visit www.1stcapitalfinance.com .

SOURCE Alliance Cost Containment

Further Plans for the Future of Compass Yoga

In the past week, I have started to put together a business plan that will facilitate my goal of working on Compass yoga full-time. The admission of this goal has been a long time coming; for years I have tried to figure out what a lifelong career working for someone would look like for me. That picture never fully, or even partially, materialized. I would sit in my meditation practice, go to my yoga mat, and talk to my friends and family in the hopes that some clear picture would reveal itself in my mind’s eye. It was only recently that the answer bubbled up to the surface: my way forward lies in another direction and that direction must be of my own making.

On Sunday, May 15th I had an odd experience in Whole Foods in which I could feel my grandmother very nearby. Later on that day, I went home and began writing down how my own yoga-based business would take shape. I’ve had bits and pieces of this idea floating around in my mind for several years but all the pieces felt very disconnected from one another. On May 15th, some kind of magic found its way in and all of my seemingly disconnected pieces gelled together. I heard a divisive “shoomp” as I typed up my plan. I would ask a question and an answer would quickly rise up to meet it. My friend, Rob, summed up the result this way: “Christa, this isn’t a business plan. This is the work of a life.” I feel that way, too.

I’ve begun to circulate the plan to a very few trusted mentors and friends like Rob, people whom I continually ask for advice and guidance on just about every area of my life. As always they have responded with honesty, grace, support, objectivity, and an astounding amount of creativity. Most of them, while students of yoga or some appreciation for its power, lie outside of the traditional yoga community. They have varied professional and personal backgrounds, savvy business minds, and a lot of heart. I am a lucky lady to know them.

Because so many of you have shown your unwavering support of my ideas through attending yoga classes I teach, comments, tweets, facebook messages, emails, voicemails, and texts , I wanted to share some of the details with you as they’re taking shape:

1.) Compass Yoga will incorporate as a nonprofit. This has been a decision that has required a lot of soul searching, fact checking, numerous hours of consultation, and more pro-con lists / decision trees than I can count.

2.) There will be a physical place that houses Compass Yoga. I have tried this changeable location model and while in many cases this has worked out, for this more refined business vision a permanent physical space is needed.

3.) Compass Yoga will continue to focus on working with underserved populations, and will actually deepen that commitment further with a variety of new programs.

4.) Partnerships will be a key component of the business structure.

5.) Compass Yoga turn a good deal of its energy toward growing the depth and breadth of the yoga field for all practitioners and teachers.

6.) In order to bring this vision to life in as full a way as possible, I will be undergoing a good deal of additional yoga teacher training in the next year. I am grateful for my location in New York City where many of the top teachers in my chosen specialty reside and teach, and I am equally grateful for my current day job that provides me with the personal funding and flexible schedule to make my extensive yoga teacher training possible.

More details are developing every day as this picture becomes clearer and clearer. The way forward is unfolding…

Yoga Made Me a Better CEO

From Forbes Magazine:

Blessed are the flexible, for they shall not be bent out of shape.

I never imagined I’d be writing an article about how yoga makes me a more effective CEO. I don’t even know if I’m more of an authority as a CEO or as a yoga student. I do help run a successful organization, and I drive to and from work with a yoga mat and towel in my car (though it’s not the “green” vehicle you might expect of a yoga student). And I now wear fewer ties and more bracelets when conducting meetings than I would have ever thought (not as midlife crisis or new age attire, but just for fun and self-expression). For kicks I have started off meetings asking employees to take a deep breath and to “live in the moment.” But I promise I am not some counterculture contortionist opposed to standard business practice. Quite the contrary. I love business. I am passionate about growing companies. Still, I can share that since I started practicing more than two years ago, yoga has profoundly influenced my life in every aspect. It has redefined my sense of self. I have changed as a husband, father, friend and leader.

I proudly serve as the CEO of Blue Chip Marketing Worldwide. Even before I started practicing yoga Blue Chip made a clearly articulated pledge to all of our stakeholders. We call it “The Promise of Uniting.” It embodies a philosophy that none of us alone is as good as all of us together. It recognizes that a culture that unites the best of heart and mind will achieve remarkable results. Little did I know that many consider the definition of yoga to come from the Sanskrit root “yuj,” meaning to unite, or the practice of uniting body, mind and spirit. At Blue Chip we have always communicated that we have a social contract. We expect all of our talented professionals to deliver at the highest intellectual level (mind), and in turn we offer a nurturing environment (body) that respects them as human beings and professionals (spirit). We were yoga, and we didn’t even know it. The result has been nothing short of remarkable. Like a yoga studio, we have built an organizational culture that encourages employees to contribute and astound without fear of judgment or failure. Ultimately yoga has encouraged me to build a corporate environment that is less constricting and more community.

On a personal level yoga has been instructive in helping me redefine my expectations for achievement. Perhaps the most salient lesson I’ve learned is that there are no scorecards to define success. In the yoga studio there are no winners or losers. No umpires. No victory measured against the loss of another. In yoga success emanates from within and is defined by self-mastery.

As a CEO I have learned the same goes for effective leadership. We all have quantifiable scorecards in business. We look at our numbers every day. Revenue, stock prices and market share all provide indicators of the success of our organizations. But as CEOs, we have other attributes that gauge our success as leaders, including establishing vision, creating an affirmative corporate culture, demonstrating emotional intelligence, displaying the courage of our convictions, assessing risk and offering buoyancy of spirit.

So how does yoga bring success for a CEO?

Most yoga classes start with a remark from the teacher and a reminder to set an intention for the day’s practice. That might seem a little thing, but it is actually quite constructive. Every day, no matter whether at the office, the studio or the exchange, we must be thoughtful about our mission and disciplined in our approach to fulfilling it. My intention at yoga on any particular day might be to be conscious that each action must originate from a strong abdominal core, or to be cognizant that my breathing needs to align with my practice. My teacher always says that my practice “should never be a blur.” That is also true for the daily activity of a CEO. We can only realize our vision if we pay attention to our intentions.

I always point out to my colleagues that an office is a strange social experiment. We can’t usually select our coworkers. They might not fit the profile of someone we might have chosen as a friend. Yet we spend more time with them than with our families and other cherished relations. How can we make this work so we feel fulfilled at the end of each day? I often observe the same dynamic with the collected students at a yoga studio. Some are policemen, others housewives, and there is sometimes even the occasional CEO. Usually studios are quiet, with not a lot of conversation, yet there is a shared sense of purpose, like an affirmative corporate culture. The environment is an extremely optimistic one. There is clarity in leadership and purpose. The leader-teacher inspires and demonstrates but never admonishes. And the students are all there to celebrate individual and collective accomplishment. Everyone goes through the same sequences together, uniting without ambiguity. At the end of a class the shared accomplishment is completely positive. It is analogous to creating a corporate thematic goal and elevating the culture by supporting the goal at all levels of the organization–from the executive suite to the newest employees–for total alignment. The promise of uniting is very empowering.

As the class continues, the teacher often repeats, “Stay on your mat.” This implies working without distraction. It requires self-discipline and focus. We are surrounded by other sweaty, heavy-breathing and sometimes falling students. Yet we cannot lose our drishti, our gazing point, because yoga, like business, will render us unstable if we are distracted. As CEOs our distractions can carry much larger implications. If we fall, there is a high probability that others around us will also feel insecure. This understanding, this emotional intelligence, is the same in business and in yoga: It is a demand that we always be present.


My favorite form of yoga is the kind called vinyasa. When we practice we speak of “going through your vinyasa,” which means doing a series of sequences incorporating breath and body alignment with varying degrees of strength and flexibility. The idea that we are going to be unconventional and challenge ourselves to try things never before imagined requires perseverance, the courage of our convictions. The notion that I will now do handstands and then drop back to plank push-ups is inconceivable. It was scary at first. But like any decent CEO, I realize that to succeed we must test limits. We must stand for evolution and constant improvement.

We cannot be renegades. Yet there are times when we need to pause and reconsider, to assess risk. We need to prepare backup plans to reduce risk in the event of any unforeseen obstacles. In yoga my teacher calls this “honoring yourself,” which simply means listening to our bodies. If our hamstrings are tight, we assess the condition, follow the backup plan by bending our knees to alleviate the chance of injury and allow ourselves to continue to practice with pragmatism and eyes wide open.

Finally, and maybe most important, yoga helps make me a more effective CEO by reorienting my outlook on life–my buoyancy of spirit. I spend 90 minutes in a studio feeling like a 10-year-old boy. How could I not have fun? I am doing the real work of building muscles and increasing my agility, but with poses with Sanskrit names like Surya Namaskar or equally fun English names like Warrior. I begin in tadasana, or mountain pose, as I set my intention, and I end up in savasana, or corpse pose, allowing my mind and body to clear out from a period of extreme labor.

And the amazing thing is that yoga ultimately delivers as advertised. Unlike any other activity in which I have participated, I never walk out of a class feeling anything less than great, and always a little more than curious about my practice, my business, my family and my life. Yoga allows me to carry both equanimity and enthusiasm through my days. Ultimately it has allowed me to be a more effective CEO by making me a happier, healthier and more mindful human being. And though I promise you will never find me in lotus pose chanting “Om” on my conference room table, I am an eminently more grateful CEO than I was before I started practicing yoga.

Stanton Kawer is the chief executive officer and chairman of Blue Chip Marketing Worldwide.