Business Overview

Here is the opportunity for the healthy minded person who wants a great lifestyle business. This little gem has it all. Dedicated employees, location, loyal following and room to grow. This business has the unique reputation for a friendly atmosphere. Here members can box or kickbox, weight lift, get personal training & conditioning with a wide variety of tools & styles to attract customers.

Financial

  • Asking Price: $199,000
  • Cash Flow: $87,409
  • Gross Revenue: $193,414
  • EBITDA: N/A
  • FF&E: $7,740
  • Inventory: $4,790
  • Inventory Included: Yes
  • Established: 2011

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The space is in a prime location with high visibility. It is situated on the corner with oversized windows across from businesses that generate foot traffic. There is everything needed to service the fitness crazed public. The gym is kept neat & clean conforming to all the COVID requirements.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. At this full service gym, patrons can box, kickbox (for fitness & competition) conditioning (HIIT, Bootcamp) personal training & group personal training. A potential buyer should be friendly, enthusiastic about sports and passionate about helping people improve their health & fitness. Basic management skills, bookkeeping, knowledge of marketing and social media would be a plus for owning this business. Fitness experience and certification through a nationally accredited program is recommended. Great customer services skills combined with a desire to help & connect with people will put you ahead of most professionals in this industry.

Purpose For Selling:

Owner is moving out of state.

Pros and Cons:

The Gym, Health and Fitness Clubs industry has benefited from the health of the broader economy and growth in health-consciousness over most of the five years to 2021. Companies in this industry operate fitness and recreational sports facilities that offer exercise equipment and recreational sports activities for consumers. Some gyms, health and fitness clubs have appealed to consumers by offering low-cost memberships with full operational hours. Comparatively, niche studios have appealed to consumers by offering classes with specific workouts or environments. According to 2020 data from International Health, Racquet & Sportsclub Association, the number of health club memberships in the United States increased to 64.2 million members in 2019 (latest data available), illustrating heightened industry demand. Overall, monthly memberships with low cancellation fees have fared well during most of the period. As the pandemic subsides, industry establishments have been permitted to reopen at a limited capacity. Thus, industry revenue has decreased an annualized 0.9% to $35.3 billion over the five years to 2021, including the growth of 4.7% in 2021 alone.

Opportunities and Growth:

The Owner says there is a huge potential for expansion & growth.

Additional Info

The business was founded in 2011, making the business 11 years old.
The sale shall include inventory valued at $4,790, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell businesses. However, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they may say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, recent decrease in profits, or a range of various other factors. This is why it is really vital that you not rely absolutely on a seller's word, however instead, make use of the seller's answer together with your general due diligence. This will repaint an extra practical picture of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract new clients? Often times, operating businesses have repeat clients, which form the core of their day-to-day profits. Particular aspects such as brand-new competitors sprouting up around the area, road building, and also employee turn over can affect repeat customers and negatively impact future earnings. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the higher the possibility to develop a returning customer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood average house earnings effect future earnings prospects?