Will you achieve your dreams or plans for the future by buying a gym or fitness center? Will this fit the lifestyle that you want? Buying an existing gym or fitness center is advantageous because both have an established member base and ongoing operations. Financing from traditional sources is also easier. Below are tips in finding the right gym or fitness center opportunity.
1. Are you familiar with the products or services offered by the gym or fitness center?
What type of gym do you want? Does it match your background and experience? Having some understanding of the type of gym will lessen the amount of time you spend familiarizing with the product service, market and industry.
2. Do you have the support of your family?
Running your own gym requires a lot of time and effort. There are some tasks that you cannot delegate to your employees. Share your plans with your family, so they understand and support your commitment to the gym.
3. Did you research the market and analyze the competition?
Does the public or consumers prefer the product or services offered by the gym over the competition? Make sure there is continuous demand for the gym or service. Does the gym have a good reputation? Find out what attracts new members to the competition. What are its weaknesses? How can you do better? Before buying a gym or fitness center for sale, compare one to the other. Choose which is better for you in terms of location, the working hours, the work-family balance, etc.
4. Do you have sufficient funds?
The gym will require fees and start-up costs. You will also have the advertising, insurance, and taxes even when your sales are low. Do not forget the salaries of employees, rent, inventory, and other operational costs. Do you have enough money to purchase the gym and run it? It may take some time before you recoup your investment. Have reserve funds for any unforeseen expenses.
5. Why is the owner selling the gym or fitness center?
Investigate the real reason why the owner is selling. Does this gym have many liabilities? Is it losing its key members or corporate accounts? Is the gym or owner facing lawsuits? Is there a large fitness competitor entering the market or area? Are there demographic changes in the area that affect auto- and people-traffic in the coming months or year? Are there changes in the tax code that negatively affect the gym?
6. Did you get advice and assistance from experts?
Professionals with experience in selling a business – lawyer, accountant and consultant – can make sure you pay the right price for the gym. Your lawyer can go over the legal records of the business to ensure it is free from liens and legal entanglements. He or she can explain the provisions, clauses and conditions of the gym purchase agreement. The accountant will see to it that you are buying a financially healthy gym. He or she can project the cash flow of the gym. Consultants can point out the various opportunities based on your field of interest, investment level and professional background.
Follow the above tips and you will be on the right path to owning your gym or fitness center. Take time to investigate and evaluate the gym for sale. Be confident that you arrived at the right decision.
