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Starting a Gym | Fitness Center | Health Club Beats Looking for Jobs

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation March 4, 2014

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The Economy
A job search under any circumstances is no treat – rewriting your resume at least a dozen times, job searching on the Internet day after day, and landing maybe two interviews for every hundred gym openings you dig up – but in a shaky economy it can be downright brutal. Business revenue declines, which causes companies to cut payroll, and then the lack of personnel drives frustrated customers away. It’s a vicious cycle. But why get trapped in that rat race if you don’t have to?

Starting a Gym | Fitness Center | Health Club Trumps Job Searching   
Looking for jobs can be a very shortsighted process. Long gone are the days when people worked at the same company for decades and retired with a nice pension. Since at least the 1980s, most professionals change jobs every three to four years, and it’s usually the employer’s choice rather than the worker’s. Starting a gym or fitness center can be a scary proposition – especially if you come to the process with a lot of unanswered questions in your mind – but a job search can take up just as much time, effort and even capital. Besides, here is all you’re left with at the end of that road – just another job that you might hold for five years, after which it’s the same process all over again, except you’re now five years older!

Four Reasons to Drop Job Searching for Entrepreneurship         
If you have reached the stage in your career where you’re earning a comfortable living as an executive or someone with skills honed over many years in business, there are many strikes against you on the job search front. Here are four reasons why starting a business may better serve your long-term financial goals:

  • Experience – Few companies hire at a senior level and expect people to come aboard in an entry- or mid-level role. In your own gym or fitness center, you’re immediately at the top of the heap, both in earning power and in the decision-making process.
  • Location – The job you want may not exist in the city where you live, which either forces you to relocate or else downgrade your desires. Starting a gym or fitness center allows you to work wherever you wish.
  • Security – While it’s true that new gyms can fail, there are no guarantees these days that a 50-year-old company will still exist next year, either. By starting a gym or fitness center, at least you have it within your personal power to be successful. If you’re just another cog in the wheel, most of your own financial future is in the hands of others.
  • Personality – The corporate world forces people to conform to a particular mindset. Not all of us are cut out to operate in this manner, but having a maverick-type personality is oftentimes a dead-ender when working for others. This is, however, the exact trait that makes a terrific fitness entrepreneur. 

Take These Steps to Start Your Business Search
Instead of looking for jobs, try these things instead. Make a list of your skills and experience. Seek out gym and fitness center owners in your area and find out what skills they had before they took the leap – people love to give advice, after all.  Explore your local community college and sign up for a course in entrepreneurship. People just like you who took the plunge and never again looked back at the job searching process are usually the ones who teach these classes. If you’re currently employed but nervous as to how long your job will be there, begin doing some freelance work or consider starting a gym or fitness center on the side. This will let you see if you’re cut out for the entrepreneurial lifestyle, bring in some extra income, and provide a welcome landing spot if that pink slip shows up someday on your desk.

Closing Question
Where would you be today – both financially and emotionally – if you had started your own gym or fitness center the last time you were slogging through a job search?

 

What is a Hidden Market or Hip Pocket Gyms | Fitness Centers for Sale Listing?

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation, Health ClubValuation March 4, 2014

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A Hidden Market or Hip Pocket Gyms for Sale Listing is Broker terminology that a gym, fitness center or health club is for sale but is not formally advertised.  The only way to know that the gym or fitness center is for sale is through a Gym Broker who is aware that is available through their networking connections.

To find out about these opportunities, a buyer needs to be in touch with the Gym Broker about these unique opportunities.

Remember, the knowledge of these gyms or fitness centers is “hidden away” in the broker’s “hip pocket” and the buyer needs to be sure and ask.  You will typically find these opportunities in such hot markets as the Northeast and west coast.

Ask us about hidden market and hip pocket opportunities.

Health Club, Fitness Center and Gym for Sale Broker

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation February 3, 2014

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A health club broker is a professional business intermediary brokerage organization specializing in Health Clubs for sale. They perform business evaluations, Mergers and Acquisitions serving Texas, and represent clients on a nationwide basis in both the small closely held business up through the large private and corporate holdings. Email us today with details on your club.

When is it Time to Sell?

Owner’s of Health Clubs all reach a point in the history of their enterprise when it is time to “hang it up.”

Many factors will tell you when it is time:

  • Owner’s “burn out” Owner’s or key employee’s health problems
  • Business relocation or rerouting of expressways
  • Lease expires and you do not want to renew for another term
  • Changing technology Get estate in order
  • Not interested in investing long-term capital
  • Children do not want to enter family business
  • Under-capitalized
  • Largest accounts in financial difficulty
  • Bank unwilling to renew credit lines
  • Supplier problems
  • Staff problems
  • Customer’s habits changing
  • Seeks retirement
  • Wants to cash out and go fishing

Whatever the reason, you will need to plan an orderly transition to new ownership with less involvement on your part.

For More Information, Please Contact Us: 800-929-2898 | fax 214-292-9553 or Email us today with details on your business

Secrets to Buying a Gym or Fitness Center for Sale

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation, Health ClubValuation January 22, 2014

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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.

How Do You Quit Your Job & Buy Your Dream Gym?

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation, Health ClubValuation January 19, 2014

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Starting a new gym is a daunting prospect for anybody, whether you are a budding entrepreneur or just an ordinary individual that wants to do what you love for a living. Whilst we all dream about quitting the day job that we hate and working for ourselves, there are many factors to consider and the process has to be fully thought through if you want to stand a chance of succeeding with your dream gym.

There are certain things that you should think through and processes you should complete before quitting your day job and buying your dream gym.  The eight steps below will provide you with a quick guide as to what you are supposed to do and help set you on the path to quitting your day job and buying your dream gym.

Step One – Play To Your Strengths
If you are considering the possibility of acquiring your dream gym then the last thing you want to do is to rush into buying any gym that seems cool. You must have a passion for the gym if you want it to be your ultimate dream gym! Assess your hobbies and interests in line with the types of gyms available and ask yourself whether you would like to go into it for a career.

Step Two – Do Your Homework
Research the market and take a look at the gym information you would need to know. Trade journals and listings of available gym will provide you with an idea of what is there as well as give you the knowledge that you need to be able to succeed. However, you still should not quit your job yet!

Step Three – Assess Your Funding Options
Do you have the money to buy a gym outright? Do you have savings to fall back on? Could you get a loan and how much would you need? Is there anyone that you would like as a partner or would you prefer an independent investor? If you cannot afford to buy a gym outright then you should look into all of the above and how much you could borrow in line with your assets. The funding is also a reason why you may want to consider when you quit your job for your dream gym. A steady income can actually help you to get through the initial stages of development after buying a gym when profits are scarce.

Step Four – Draft A Business Plan
You should never ever go into buying a gym without a plan in place. You must have an idea of how you would take your dream gym forward and make a profit. If you are to succeed, you will need to have some sort of plan to follow so a comprehensive business plan is a necessity and not a luxury. If you are to apply for a business loan then you will need a business plan for that purpose as well.

Step Five – Consult With Your Advisors
You will need a lawyer and a business appraiser at the very least, depending of course on how large the gym you intend to buy is. Experienced lawyers and accountants will be able to advise you of the steps to take and how to buy the right gym. He or she will also be there for you during the teething process to lead you when necessary.

Step Six – Wait For The Right Gym
Your dream gym will come to you so do not rush into anything that you are not sure of. A dream gym is worth waiting for, no matter how long it takes so be prepared to hold off for a while if necessary. You can actually hire someone to find the right gym for you if you want to be proactive.

Step Seven – Make Your Offer
The level of your offer should depend on a business appraiser’s assessment. Putting your offer in does not guarantee acceptance but it does open negotiations, so decide how much you would want to pay and go from there.

When you quit your job for your dream gym is up to you, but make sure that the timing is right and you are financially able to survive without a fixed income before biting the bullet and starting your entrepreneurial future!

How to Buy a Gym the Right Way

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation January 14, 2014

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Buying a gym or health club is a big and life-changing decision that also involves your family. You have so much at stake – your savings, energy and time – that the buying process could be overwhelming. Buying an existing gym is less risky than starting a new one. Its advantages include an existing market, trained employees, ongoing revenue and a proven working system in place. With these conditions in place, the question now lies on your capability to run the gym.

Are you ready to be an entrepreneur? How can you avoid making the wrong decisions when buying a gym?

How to Buy a Gym for Sale

1. Choose a gym you are not only interested in, but one that matches your skills and experience. Not knowing anything about the gym will entail spending valuable time and possibly costly mistakes to acquire the necessary knowledge.

What type of gym matches your skills? The gym should thrive from your strengths. Choose a gym that you enjoy and find fulfillment.

2. How much cash can you invest in the gym? Be realistic – buy a gym you can afford. Your financial capability determines the size of the gym you can buy. Be ready with your personal financial documents – assets and liabilities, credit standing and proof of funds. Outline how you plan to pay for the gym.

Your equity usually comprises a third of the purchase price. You can look for a business loan or an investor or partner for the rest of the balance. You can also get assistance from the Small Business Administration (SBA).

3. Discuss your plans with your spouse and family members. Since the purchase uses funds for the family, you owe it to them to listen to their inputs and suggestions. Get their support. Will this gym suit your lifestyle or family needs? How many hours each day will you spend in the gym?

4. Devote time to the buying process. It can take months or longer, depending on how much time you put in. Be patient as you carefully research available gym opportunities. Focus on what is suitable for you.

5. Seek professional advice. A gym appraiser and accountant can help in the valuation of the gym; a lawyer can prepare, review and verify legal documents. You can also benefit from the services of a gym broker who can help you search for the gym to buy until the closing of the sale.

6. Study how the buying process works. Collect information; ask questions; read. Being well informed and prepared will shorten the buying process. You will save time, effort and money. Your accountant, lawyer and broker are there to provide answers.

7. Decide if you need a gym partner. You may need a partner to address an entrepreneurial skill you lack or you require more capital.

8. Search the gyms for sale market once you narrowed down your choice as to the industry, the price range, the size, and location of the right gym for you. www.fmconsulting.net/gymsforsale.

9. Examine the risks of buying the gym. What is the future outlook of the gym? Do you have the capability to continue to run the business profitably? How can you beat your competitors? Do your research.

10. Is the gym priced right? Which assets of the gym are included in the sale? Is the asking price near your valuation? Find out as much as you can about the gym before committing to buy it.

Can Accountants Value a Gym For Sale?

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation January 8, 2014

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Short Answer …
Yes.

The Concept of Gym Valuation
Whether you own a gym, fitness center or health club and want to sell it, or else you’re an entrepreneur who desires to buy an existing gym, somehow or other you need to know what the gym is worth. On the selling side, the plan is to make the price low enough to attract a bevy of buyers, while making sure you’re not giving away potential profits. From the buyer’s standpoint, you want to assess the value of a gym in comparison to its posted cost. The price you pay for a gym can seriously affect months or years of down-the-road profits, so this factor is not to be taken lightly. In many cases, a seller will engage the services of an expert to determine a reasonable market value. Buyers oftentimes hire their own experts to assess the price of a gym they wish to acquire. These dueling experts may arrive at vastly different figures. Their ability to compromise can result in a mutually satisfactory transaction for both buyer and seller, but much of that process may be based upon what method each side uses to arrive at a price.

Determining the Value of a Gym
There are three reasons why an owner of a gym will hire someone to determine its value – a pending sale, some sort of lawsuit, or else tax and estate-planning issues. For the purposes of this article we are concerned only with the first, but the process is the same no matter why a valuation is required. There are three basic methods experts use to value a gym:

  • Asset-based approach
    Under the “going concern” asset-based approach, one takes the net balance of a gym’s assets and subtracts its liabilities. In a liquidation asset-based approach, one adds up the current market value of the assets with the assumption they are to be sold outright, and then calculates the balance as if the liabilities were to be paid off immediately.
  • Earning value approach
    A gym’s past earnings are plugged into various formulas to determine an expected future return, multiplied by a factor based upon the industry in which the company operates.
  • Market value approach
    The value of the gym in question is compared to that of similar businesses in the same field.

Many gym valuation experts use some combination of these methods to arrive at a fair-market value. The process clearly cries out for a person who understands profit-and-loss, balance sheets, and a variety of accounting-type procedures.

Owning a Gym – From Dream to Reality

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation January 3, 2014

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Workout Area (1)

Is owning a Gym or Fitness Center in Your Future?
At one time or another, nearly every gym employee dreams of owning a gym. Perhaps you’re tired of all your hard work ending up helping someone else achieve his or her entrepreneurial success, or you may fear for losing your job in a weakened economy. Whatever your motivation, the compulsion to own a gym is strong in many of us. But the risk involved in turning that dream into reality has, all too often, acted to derail even the best-laid plans.

How to Own a Gym
Every prospective gym owner is forced to wrestle with many different kinds of questions. Concerns about money certainly lead the pack, but knowing what kind of gym best suits you is even more important. The best place to start is by examining the reasons why you want to own a gym. Here are some benefits to consider:

  • Take advantage of all those years of work experience for your own benefit, not for the sake of others.
  • A flexible schedule allows you to spend more time with your family.
  • Enjoy greater wealth and control your own destiny.
  • Self-employed people typically express greater satisfaction with life.

Important Steps to Take
Make a list of your skills, and do plenty of online research to see what kind of gym is best enhanced by those skills. Your three primary choices include buying an existing gym, starting one from scratch, or purchasing a franchise. Each selection has its ups and downs – its pros and cons – and its tradeoffs between cost and the immediacy of success versus long-term profits. Choose wisely, as owning a gym is a decision you only want to make once.

Show Me the Money                
Almost no one these days has tons of cash lying around, so you will probably need to secure some sort of financing in order to own a gym. Begin by talking to a banker or the person who runs your credit union. The SBA (Small Business Administration) guarantees certain loans for people who cannot qualify for standard bank loans. If you’re contemplating the acquisition of an existing gym, the seller may be willing to finance some or all of the purchase. Friends and relatives can be a good source for investment, depending upon how well you get along. There is always the option to take in a partner – either someone who will actively work alongside you to build the gym, or else a “silent” partner who will invest personal funds in return for a share of the profits down the road.

Wake Up and Smell the Opportunity
Owning a gym does not need to be a dream, but the planning you put in at the beginning will return a thousand-fold over the ensuing years. First, understand yourself and your capabilities. Second, do your research and decide which gym suits you best. Third, research how much you will need to get your gym up and running. Fourth, find the funds you require and make sure the gym revenue you realistically expect to generate will cover all your expenses. Fifth, delay your dream no longer – get out there and become an entrepreneur!

If you had started your own gym five years ago – or even two years ago – where would you be TODAY?

 

 

How Do I Get Advice on Buying a Gym?

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation December 18, 2013

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Buy a Gym Today – Profit When?

There’s an old saying that states, “Free advice is worth [only] what you pay for it.” While this is true in many situations in life, how does this homily apply to buying a gym? After all, anyone who wants to buy a gym will need some serious advice on the matter. They will want answers to such questions as, “What kind of gym should I buy?” and “What’s the advantage of a franchise over an existing gym?” and “How do I know it’s a good price?” and so many more. Additional concerns arise once the reality of buying a gym starts to sink in. Then buyers will want to know, “How much money do I need to operate the gym properly?” and “When will I start to show a profit?” The novice may not even know which questions to ask, not to mention having a clue about the answers. In this situation, free advice is both available and worthwhile. Even the cost of paying for such advice is nominal.

Advice on Buying a Gym
So do you settle for free advice, or pay someone for it? In either instance, where do you turn to learn more about buying a gym? There are a number of resources available to prospective gym owners. You simply have to know where to look. Here are some places to start:

Consulting from Fitness Management & Consulting – We can help on how to start a gym, buy a gym, sell a gym, franchises, gym management, gym strategies, business plans, and entrepreneurship.

Local chamber of commerce – As a means for finding out about gyms for sale in your area, the chamber of commerce is an excellent resource, and it’s free. Many FSBO (for sale by owner) gyms are listed through this organization.

Fitness Industry Business brokers – In the same way Realtors list homes for sale, fitness industry business brokers facilitate the matching up of gym sellers and buyers. Fitness Industry Brokers are a good source of information as to which gyms are available to buy.

The SBA – The U.S. Small Business Administration is a terrific resource if you wish to buy a gym. First, their Web site is organized on a state-by-state basis, with listings of gyms for sale as well as direct links to every Secretary of State’s office. This information is valuable because you will learn about things like business licenses, taxes, employment regulations, and many other factors necessary to the purchase and successful operation of a gym. The SBA also acts as a funding resource. In addition to offering advice on how to apply for a bank loan, they have several programs in place to assist small business owners on finding the money they need to buy a gym and keep it running smoothly. For example, in the event you do not qualify for a conventional loan, there are circumstances where the SBA will act as a loan guarantor on your behalf.

Lending institutions – Bankers and credit union managers have their fingers on the financial pulse of a community. As a result, they know whose credit is good, and whose is stinko. They oftentimes know which gyms are for sale before the general public is aware of the situation, plus they’re a great resource for … money. By going to a banker for advice on buying a gym, you begin the process of creating a firmly entrenched professional relationship that could also open the doors to funding the purchase of that gym.

Other professionals – The two primary professions not heretofore mentioned that are intimately involved in buying a business are CPAs (or accountants in general) and attorneys. Both fields attract business-type thinkers, and gym owners require their respective services on an ongoing basis. While rules on confidentiality prohibit them from telling you the specifics on any particular case or client, their level of general knowledge on how to buy a gym is nearly invaluable. Buying a few hours of their time is money well spent.

How to Buy a Gym for Sale

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation December 12, 2013

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Buying a Gym for Sale
Gyms for sale are all around us. There are a number of factors to consider when buying a gym, and plenty of questions to ask once you have settled on a couple of possibilities. Learn as much as you can before taking the big leap.

Examine the Financials
Check over the gym’s profit-and-loss sheets and cash flow statements. You should know everything there is to know about how much money has come into the gym, where it went, and what are the projections for future earnings. Enlist the services of an accountant or CPA to assist with these efforts. Pay special attention to the gym’s liabilities, as new owners usually acquire these along with the gym’s assets. The due diligence package should also include the gym’s income tax returns, legal filings, articles of incorporation, and information on lawsuits both past and pending.

Understand Why the Gym is For Sale
Everyone has his or her own reason for wanting to sell a gym or health club. Retirement is a popular choice, as is the desire to change fields, move to a different city, or use the funds to purchase a larger business elsewhere. But the reason you hear may not necessarily be the truth. You will want to carefully explore this situation and avoid taking the seller’s word without question. Is there an ongoing problem between the owner and employees, or is their relationship so tight that everyone plans to abandon ship when the gym finally gets sold? Is the location a poor one, or possibly so terrific that a major competitor is planning to open up across the street in a few months? Knowing these things before you sign on the dotted line can prevent you from making a huge mistake.

Observe the Gym in Action
Hang around for a week and see if the traffic matches the claims made by the seller. Chat with members and find out what they like about the gym and what they would like to see changed. Scope out the competition, see how they operate, and compare the kind of traffic they enjoy with that of the gym you’re thinking of buying.

Determine the Value of the Gym and Line Up Financing
The seller will have placed a price on the business. As the buyer, you are responsible for determining whether it is a fair price. Here you may wish to consult a consultant or gym business broker, as they oftentimes have a better handle on valuation issues, which can vary depending upon the type of gym it operates. Fast-growing gyms will normally sell for a higher price, as the potential for greater future earnings is factored into the equation. You will then need to determine if the price is something you can handle financially. Your banker and accountant will be of considerable assistance here, as each helps you to reconcile monthly net earnings against the cost of buying a gym.

Ask For the Seller’s Help
Under most circumstances, the seller wants out at least as much as you want in. If you plan to meet the asking price – or at least provide a reasonable negotiating position – it never hurts to ask the gym owner to provide some of the financing. You will probably get better terms from the seller than you would from a bank, including a lower interest rate and longer payback term, and the seller will therefore be motivated to see you succeed. To that end, you may even ask the gym owner to stay on for a while – receiving a fair consultant’s fee, of course – to help with the transition period and make sure you know what you’re doing as the new owner of the gym.

Finding Gyms for Sale with Seller Financing

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation December 6, 2013

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Financing a Gym Purchase
Few people who wish to buy a gym have the kind of cash it takes to pay 100 percent of the purchase price up front. Some sort of financing is almost always necessary. The traditional path to financing the purchase of a gym involves sitting down with a banker, filling out a loan application, and waiting to see if you qualify. Once the loan is approved – assuming everything is in order – you have the funds you need to proceed. Whether you are buying an existing gym, starting one from scratch, the path to gym ownership almost always runs through some sort of financial institution, whether commercial bank, credit union, or private equity firm. But there is another route available to you, if you happen to be buying a gym that is already up and running – having the existing gym owner provide some or all of the financing.

What is Seller Financing?
In its simplest terms, seller financing means that the current owner of a gym offers to carry some or all of the debt incurred by the buyer when taking over the gym. Let’s say the sale price of XYZ gym is $500,000, and the gym owner – Mr. Z – has no outstanding liens or mortgages. In other words, he owns XYZ free and clear. Ms. B, the prospective gym buyer, has only $100,000 to put toward the purchase. Mr. Z agrees to take the hundred grand as a down payment and has Ms. B sign a promissory note for the difference. By entering into this agreement, she now owns XYZ in its entirety while Mr. Z has $100,000 in the bank, plus a promised income stream based upon monthly payments from Ms. B against the $400,000 debt (plus interest).

Why Buy a Gym Financed By the Seller?
Over the past couple of years, traditional sources for financing the purchase of a gym have been severely compromised. Lending today is tighter than ever; interest rates are high and credit rules are such that the old adage, “Banks seem to lend only to people who don’t need it,” is perhaps truer than ever. Qualifying for a loan is an arduous task, and a lender will be very fussy not only about your own financial situation, but also the perceived health of the gym you wish to buy. But eliminating the need to deal with a bank is not the only reason to seek out seller financing. Oftentimes a seller is highly motivated to find a buyer and sees this option as an ideal way to attract serious attention. The buyer can frequently obtain better terms from the seller – a longer period to pay back the loan, and an interest rate more attractive than the current market – while not having to jump through so many hoops to qualify. One more advantage – the seller remains a party to the gym’s ongoing success. Mr. Z wants to make sure that Ms. B does well so she will remain current on her payments against the $400,000 she owes.

Typical Seller-Financed Terms
It is not unusual to see situations where a seller will finance at least half the value of the purchase. This number will go up based upon several factors, including how much the seller may owe to others (real estate mortgage, equipment financing, etc.), or what he or she expects to do with the proceeds. If Mr. Z is planning to retire, he won’t mind taking the majority of the funds in monthly payments, as the deal would look very much like an annuity to him. But if he is buying another business, he may be less inclined to float a loan for the entire purchase price – unless, of course, the business he is buying also involves seller financing! While every deal is different, you can expect to see at least a five- to seven-year payback, and usually an interest rate in the eight to ten percent range. Using a straight-line amortization schedule and the aforementioned purchase of XYZ Company, a $400,000 loan at 8.5 percent over seven years would require Ms. B to pay Mr. Z $6,334.59 per month for 84 months. If this amount does not seem to comfortably fit within the gym’s expected cash flow, the two parties may instead agree to lengthen the term and thereby reduce the amount owed each month – perhaps in exchange for a slightly higher interest rate. For example, changing to a ten-year note at 8.75 percent, the monthly payment drops to $5,013.07 a month. That extra $1,300 in Ms. B’s pocket could make a big difference in the day-to-day operation of the gym. Also, most seller-financed notes allow the buyer to pay it off early without penalty. If Ms. B does better than expected, she can make bigger payments every month or save up for a lump-sum payoff a few years ahead of schedule.

Can a Health Club Broker help you Buy a Gym?

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation November 5, 2013

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If you are considering a health club broker to help you purchase a gym, it is important that you understand exactly what health club brokers do, what help they offer, and what you should look for in a health club brokerage firm.
A health club broker works with you to access your needs and help you through the buying process. In most cases, the health club broker’s fee is a percentage of the selling price, and is paid once the sale is complete, either by the buyer or the seller. Health Club brokers work somewhat like realtors.

A good health club broker will evaluate the gym, and provide you with financial statements and cash flow statements for the gym you are considering. While they do not provide financing, they will usually work with you to find financing, or help the seller to owner finance the gym in a way that protects both parties. A health club broker that is working for you will ask you several questions, including why you want to start a gym, what your educational background is, what special skills and interests you have, the maximum down payment that you are able to put down, if there is a specific type of gym that you are interested in buying, where you would like to be located, and what the minimum income required to meet your living expenses are.

It is important to note that most sellers will not allow the health club broker to give you detailed financial information about a gym until you make an offer. Therefore, it is important to make an offer that is reasonable as soon as you know that you wish to learn more about the gym. You can always withdraw your offer if you find that you are no longer interested. The health club broker should provide you with enough information to make your initial offer.

Good health club brokers usually prove to be an asset to both the buyer and the seller, saving both parties time and money, by offering advice and consultation, handling negotiations for the sale, answering all questions that either party may have, and walking both parties through the process of buying or selling a gym.

Reasons to Buy a Gym Today

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation October 29, 2013

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With today’s rising unemployment, there is a corresponding rise in the number of prospective buyers looking for gyms, health clubs and fitness centers for sale. Many people dream of owning their own gym, being the boss, setting the rules, controlling their lives, and earning for themselves. Starting a gym can be difficult. You have to spend a lot of time and money coming up with an idea or service; testing it; developing its production or operation, marketing and selling it; hiring people; finding a location; sourcing equipment and vendors, and attracting new members. Many of these start-up frustrations are bypassed when you buy an existing gym. There is no better time than today to pursue your dream of owning your own gym.

Why should you buy a gym?

1. The gym has immediate cash flow from day one.
You start earning as soon as you sign the purchase contract.

2. Existing membership base is already in place.
Start-up ventures sometimes fail because new members do not come for some time despite the initial investment and the work you put in. Contrast this with an established gym that has a loyal member base. You should keep your members by maintaining the status quo for some time before introducing any changes.

3. The risk of the gym failing is lower.
Buying an established gym with ongoing cash flow, proven systems, a known brand, existing members, and a good reputation is less risky than starting a new gym.

4. People know the gym brand and logo.
You do not need to introduce the product or service because the public is already familiar with the brand or image of the gym. The gym name and logo are integral to the value of the gym.

5. The gym has a reputation in the market place.
A gym with a good reputation and a popular product or service is a good buy. A positive reputation in the market is a product of years of work.

6. Member’s know the gym location.
It is to an advantage to buy a gym in operation for some time in the same location.

7. There is less need for training of employees.
The current employees are familiar with the internal workings and systems of the gym. Make sure that the key gym employees who are well trained and knowledgeable in the operations of the gym will remain after the sale. They will guide you through the transition.

8. Marketing, sales and operating systems are already in place and working.
It took trial and error and many months or years to fine-tune the sales and marketing, order of procedures, accounting, payroll, operations and inventory systems that are behind the success of the gym.

9. Financial assistance is available.
An established gym is usually offered better financing terms by banks and by suppliers. Even family or friends may be willing to finance part of your new venture, or the expansion of a gym that has proven itself over time. Existing gym purchases are considered safer investments whereas start-up gyms are deemed risky.

10. Interest rates are low.
Most financial institutions offer low interest rates now that the dollar is weak. Established gyms with good credit are getting good terms.

Achieving financial independence and pursuing your passion are two more reasons why you decide to start a gym. However, buying a gym requires capital, time, hard work and handling some risk. Are you ready to own a gym?

Will You Succeed in the Gym Business?

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation October 26, 2013

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The one trait the majority of all millionaires have in common is that they owned their own business. Every year thousands of people attempt to follow in their footsteps and start their own gym. There are certain things you can do that will let you succeed at your own gym business. Here are the skills sets that successful gym owners say are critical to have if you want to succeed.

Defined Goals
The one thing that separates successful gym’s from failures is planning. If you want to succeed then you need to have a well-defined plan. This plan should be in writing and it should include step-by-step directions. This plan will be your roadmap that shows the best and quickest way for you company to gain profitability. All actions taken should be measured against your goals to see if they are driving you one step closer to success. Not having a plan is the quickest way to failure.

Initiative
The hardest part of starting a new gym is taking that first step. You have to have the initiative to get things started and to keep them moving forward. You will not have a manager telling you what you need to do nor will you have co-workers holding you accountable. It is very easy to procrastinate if something needs to be done or the task appears daunting. If something needs to be accomplished, you will have to step up and make sure it is completed. Nothing happens unless you make it happen.

Hard Work
There is no substitute for hard work when you start your own gym. You have to be willing to do whatever it takes to get the job done. Hard work is the cornerstone of success for any new gym and the motto is “if it’s to be, it’s up to me.”

Persistence
If you are working for yourself then you must have persistence. Running a gym is not easy. When a problem exists you do not have a manager or an employee that you can rely on to solve the problem for you. You have to take the initiative to solve the problem. Most importantly you have to have the persistence to push through problems instead of giving up. If you face a roadblock, you need to adapt and change to overcome it.

There is nothing more rewarding that starting your own gym and watching it succeed. While there is no guarantee that a new gym will be successful, there are certain characteristic traits found in almost all successful gym owners. If you have these traits then you are one step closer to building your own successful gym business.

Tips to Buying a Gym Business for Sale

Fitness Center Broker, Fitness Center Valuation, Gym Broker, Gym Valuation, Gyms for Sale, Health Club Broker, Health Club Valuation October 10, 2013

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Will you achieve your dreams or plans for the future by buying a gym business? Will this fit the lifestyle that you want? Buying an existing health club or gym 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 health club opportunity.

Are you familiar with the products or services offered by the gym?
What type of gym do you want? Does it match your background and experience? Having some understanding of the gym will lessen the amount of time you spend familiarizing with the product service, market and industry.

Do you have the support of your family?
Running your own health club or 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 business.

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 product or service. Does the gym, its products or service have a good reputation? Find out what attracts members to the competition. What are its weaknesses? How can you do better? Before buying a gym for sale, compare one to the other gyms. Choose which is better for you in terms of location, the working hours, the work-family balance, etc.

Do you have sufficient funds?
You will have start-up costs. You also bear 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.

Why is the owner selling the gym?
Investigate the real reason why the owner is selling. Does this gym have many liabilities? Is it losing its key members? Is the gym or owner facing lawsuits? Is there a large health club 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?

Did you contact gym owners with similar operations?
Gym owners and consultants offer a wealth of information that can benefit you. What is the gym’s reputation or history?

Did you get advice and assistance from experts?
Professionals with experience in selling a business – lawyer, accountant and consultants – can make sure you pay the right price for the gym. Your lawyer can go over the legal records of the gym to ensure it is free from liens and legal entanglements. He or she can explain the provisions, clauses and conditions of the purchase agreement. The accountant will see to it that you are buying a financially healthy business. He or she can project the cash flow of the business. 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. Take time to investigate and evaluate the gym, fitness center or health club for sale. Be confident that you arrived at the right decision.

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  • Why Use a Health Club Consultant, Coach or Mentor

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    https://www.nreionline.com/retail/gyms-are-expanding-and-many-are-eyeing-mall-vacancies The fitness club sector is flexing its muscles. Fitness and health clubs have grown to be a more than a $30-billion-a-year industry, according to research site Statista, with more than 36,000 clubs across the U.S. boasting more than 60 million members. Top players in the health club industry reported steady growth in 2017 and many are […]

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    Reposted from www.abcfinancial.com There are several key criteria to consider when calculating the cost of owning a gym. If you know all of the included costs ahead of time, you will be able to plan accordingly in order to maximize your profits. Location Location will likely be the largest cost of owning a gym but […]

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    Reposted from www.abcfinancial.com I’ll bet it’s been a while…if ever. The press release is one of the most misunderstood and underutilized marketing strategies in the fitness industry. By submitting quality press releases to your local media outlets, you’ll get plenty of free publicity for your fitness business. Press releases are a free form of promotion, and […]

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    by on October 23, 2018 - 0 Comments

    Reposted from www.abcfinancial.com Are you thinking of opening a gym in a new location but don’t know where to start — or if you are even ready for it? Growing your business involves a lot of new challenges, from employee management to sales strategy. But do not let these growing pains deter you from expanding! Follow these tips […]

A Recommendation of Jim Thomas, President of Fitness Management and Consulting

by Norm Cates, Club Insider Publisher and Tribal Leader Since 1993

Jim Thomas is a talented, experienced, dedicated, determined, and very professional expert in the health, racquet and sportsclub industry. A club industry veteran of over 30 years, Jim has been a Club Insider Contributing Author since March of 2006, when he joined our Club Insider Contributing Author Team. During that time Jim has written and contributed 50 articles which have been published during our 284 months of Club Insider publishing. Jim Thomas is a truly great asset to our publication, and to our wonderful industry, and he can be trusted to deliver great results, over and over, no matter what the challenge.

214-629-7223

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When is it Time to Sell Your Health Club or Gym?

gymsaleMany factors will tell you when it is time:

  • Owner’s “burn out” Owner’s or key employee’s health problems
  • Business relocation or rerouting of expressways
  • Lease expires and you do not want to renew for another term
  • Changing technology Get estate in order
  • Not interested in investing long-term capital
  • Children do not want to enter family business
  • Under-capitalized
  • Largest accounts in financial difficulty
  • Bank unwilling to renew credit lines
  • Supplier problems
  • Staff problems
  • Customer’s habits changing
  • Seeks retirement
  • Wants to cash out and go fishing

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Whatever the reason, you will need to plan an orderly transition to new ownership with less involvement on your part.

For more info, please call us at 214-629-7223.

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