Buying a new business is a nerve-wracking yet exciting decision. But buying a fitness business is a great way to turn a healthy lifestyle into a profitable venture. Before closing that deal on your new gym, there are a few questions you should be asking to ensure you are ready for that next step.
Be Ready
Fitness businesses are popular investments which can make them harder to purchase than businesses in other industries. So when you find the perfect fitness business to purchase, you must be ready to buy quickly. This means having all of your questions asked and paperwork ready to get a quick sale. To ensure that you are ready to purchase a fitness business, doing some work beforehand can help you quickly make a decision. This includes coming up with a list of criteria that you would want in your fitness business before looking at potential businesses to acquire.
Franchise or Independent
When it comes to fitness businesses, there are two options that you can go with. You can purchase a franchise or an existing independent fitness business. When going with a franchise, some pros include brand recognition, training, and support from upper management. There is also potential for high profits. But some of the cons that go with a franchise include large initial investments, ongoing costs, and a lack of independence when making decisions about your business. Going independent will allow you to have that independence you may crave but may come with higher costs when it comes to the general upkeep of your establishment. If you choose to go the independent route, it is a great idea to make connections with existing fitness clubs and fitness business owners. So when you are ready to buy you can go directly to the source.
Questions
In buying any business, there are a few questions that you must ask before making your purchase. Some general questions you can ask when you find someone selling a fitness business include, why are they selling the business? How did they get to their asking price? These questions can help you gauge whether or not it is a good investment for you. You should then get into the nitty-gritty of the finances. Ask about tax returns, the business’s relationship with the bank, and any outstanding debt the company may have and why. Make sure you consult with your legal team before making any purchases and layout any potential legal problems the business may be experiencing before getting ready to buy.
If you have any further questions about purchasing a fitness business, Alliant Capital Advisors is here to help. Contact us today to speak with any of our expert brokers. We are more than happy to work with you towards purchasing a fitness business.