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.