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.