When selling your gym or fitness center, there are a number of areas to focus your attention to ensure that your business is prepared to sell and attractive to potential buyers.
There are 3 important areas that sellers of gyms must focus on in order to attract qualified buyers and properly prepare their gym business for sale.
These areas include owner involvement and management, a gym’s lease, and equipment considerations.
Owner Involvement And How Your Exit Will Impact Future Performance
Whether you were a hands on owner, or an owner who casually managed the operations of your gym behind the scenes, you will want to know that you have built a business that can continue to find success long after your exit.
Your gym’s ability to retain members after you have sold your business is critical to finding a qualified buyer and ensuring their long-term success. Ask yourself: Do members go to your gym because of you or because of the brand and environment that you have created? If you leave, will your members follow you to your next endeavor or remain loyal to the gym that you have developed for them?
Being able to identify what your members like about your gym and what keeps them coming back, as well as ensuring that you have knowledgeable management in place to maintain the status quo, will support a smooth transition after you have found a buyer to take your place.
Is Your Landlord Willing To Work With Your Successor To Secure A New Lease?
Gyms, fitness studios, fitness centers, and other fitness-related rely heavily on their location. The longer your gym has been established, the longer the public will have associated your business and your brand with your location. Having an easily accessible gym in a high traffic area with ample visibility is crucial to not only attracting new members, but attracting buyers as well.
With more and more gyms popping up throughout the United States, meaning more competition for both you and your business’s buyer, having a landlord who is willing to work with your buyer and negotiate a long-term lease is paramount to selling your business and providing your buyer with the opportunity to build off your past success. Be sure to inform your landlord of your impending sale long before you bring any prospective buyers to the table, and foster your relationship with your landlord from day one to avoid any hiccups when it comes time to sell.
Failure to secure a new lease will ultimately hinder your ability to sell your gym, leaving you stuck, or forcing your buyer to find a new location and start their newly acquired operation from square one, drastically impacting your business’s value.
Does Your Gym’s Equipment Hold Any Value To A Potential Buyer?
An important asset to pay attention to when selling your gym is the equipment that you have on hand. Old equipment that is no longer functional holds almost no value to any buyer, as they will have to spend the time and money to replace it. The newer your equipment is, primarily equipment that is less than 2 years old, will retain more value than equipment that is 3 years or older. You will need to determine if the costs associated with replacing your equipment prior to your sale will add enough value to your business, or if you should settle for a slightly lower value and provide your buyer with the opportunity to replace the equipment with the equipment of their choice.
Working with a gym broker or fitness consultant who specializes in selling gyms will ultimately allow you to make the best decisions when preparing your gym business for sale.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
|Shalonda Chappel: Escrow & Bulk Sale Services - Southern California
Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.
|Timothy Cunha JD, Business Broker: SF Bay Area
SF Bay Area experienced attorney, & business broker. I & my EvergreenGold team offer owners sound advice & expertise to build business value & achieve profitable sales. Call today for a FREE business evaluation & SWOT analysis for your business. Call me direct at 650-600-3751, 650-866-5393 Text.
|Brad Steinberg, Business Broker: Laundromat Specialist
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Randall Barondess, CBB, Business Brokerage Services
Experts at: Preparing Businesses For Sale, No-Cost Valuations and Lease Modifications. Troop Business Services Division prepares small, mid-sized and large businesses for sale by confidentially packaging the business and providing guidance throughout the sales process.
|Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
|Peter Siegel, MBA: Business Purchase Financing Solutions
Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.
|Bob Hughes, Business Broker: Coachella Valley Area
Business broker & President of Hughes Properties. I have a wide variety of entrepreneurial experience with personal ownership & sales of numerous businesses, and have sold over 200 small & mid-sized businesses in the Riverside County marketplace. Phone me at 760-275-6914 Cell.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|4 Reasons To Buy An Existing Gym Or Fitness Business: Jim Thomas Shares Why
For those hoping to enter the fitness industry and own their own business, buying an existing gym operation is the best way to minimize risk and improve your chances of finding success. Gym Broker Jim Thomas shares 4 reasons why buying an existing gym is smarter than starting a gym from scratch.
|Preparing Your Gym For Sale: 3 Areas To Focus Your Attention On When Selling
National gym broker and fitness consultant Jim Thomas shares 3 important areas that sellers of gyms must focus on in order to attract qualified buyers and properly prepare their gym business for sale. These areas include owner involvement and management, a gym's lease, and equipment considerations.
|What Should I Do If Other Buyers Are Trying To Buy The Same Business As Me?
Buying a small business is hard enough when there is no competition, so how might a buyer navigate the process when there is additional competition from other buyers? Potential small business buyers are offered a few key ways that a buyer can beat out other potential business buyers in this article.
|Buy A Business Or Start From Scratch? 5 Key Differences For Business Buyers
Some buyers believe it's better to start a business from scratch rather than buy an existing enterprise. While this may be good advice in some cases, usually it's not the best strategy. Here are five tips to help a buyer make the right decision from from Peter Siegel, MBA (BizBen Director).
|Buyer Beware: Does A Company's Culture Effect The Sale Of A Small Business?
When purchasing a small to mid-sized CA business, there are a many items to evaluate. One area that is often overlooked is the business's office culture. Peter Siegel, MBA with BizBen discusses with business buyers the importance of understanding how the business "feels" on a day-to-day basis.
|5 Myths About Selling A California Business: Best Tips For Sellers & Brokers
Peter Siegel, MBA (at 925-785-3118) - BizBen Director discusses myths associated with the process of selling a business and some of them can actually cause deals to fall through. Don't let your sale be comprised, be aware of these common misconceptions related to the process of selling a business.
|Uncover Hidden Problems In Due Diligence When You Buy A Small Business
Most everyone who's decided to buy a small business in California knows the importance of due diligence. That involves close examination of a business prior to removing contingencies. But not everyone knows how to uncover problems that are not obvious. Here are five of the most common hidden issues.
|Tips When Using Escrow Bulk Sale Services When Buying Or Selling A Business
The final part of the business for sale transaction is the escrow and bulk sale process by Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor) answers questions and describes the escrow and bulk sale process. Peter can be reached direct at 925-785-3118.