Buying A Gym: 6 Helpful Tips For Buyers To Find Success
Buying an existing gym operation is much less risky than starting a new gym from scratch. The advantages of acquiring an existing gym are an existing marketplace and people to sell something else to such as personal training or nutrition, you will start with a trained staff and management, you’ll have recurring revenues, plus you’ll have proven systems and business relationships in place.
Are you ready to own a gym?
1. Find a gym that is in line with your current skills and experience. Don’t overbuy - in other words, don’t acquire a gym that is well beyond your understanding of the industry (unless you have proven advisors to assist).
2. Know how much you can afford. It’s easy to get excited and go above what you can afford. How much money will it take to sustain the business? How much cash on hand will you need?
3. Who else should be involved in this decision? Certainly your spouse and other family members should be considered. Will they have a hand in the operation of the business? Do they support your decision? Who are your trusted advisors?
4. Do your homework. Be sure you know the numbers and the why behind the numbers. Take your time to understand what is really happening in the business. Does this business play to your strengths?
5. Get an advisor such as a broker or consultant. Be sure to align yourself with someone who has been there and done that. Align yourself with someone who will help you know what you don’t know. Going it alone will be costly.
6. Know the risks. There must be risks otherwise there would be no opportunity. Be sure to identify and understand the risks and how you can mitigate those risks. You should expect risks, but what’s the plan?
I talk to many gyms owners that after owing the business for while claim they didn’t fully understand what they were getting into. Do your research and surround yourself with people who can help you shorten the learning curve and maximize profitability. Acquiring the gym the right way can make your dream a reality.