Business Overview

This unique children-focused activity center has been rapidly growing in its local community. Participants enjoy the one-of-kind recreational space for fitness, physical education and recreation. The center is used by people of all ages and offers coach-led classes, free-use and events to cater to the different age groups and fitness needs.

The business has seen its enrollment grow immensely during the last 2 years. Utilizing primarily a word-of-mouth strategy, the business has rebounded from 2020 closures improved 35% over 2019 sales. The owners, who are focusing on other interests, would like to sell it to a driven entrepreneur capable of continuing the growth and success. Owners currently handle basic admin responsibilities and the new owner would have a staff of coaches dealing directly with clientele. The specific equipment used at the facility can’t be found anywhere else and was professionally designed and built to last.

Key Aspects
+ Equipment is professionally designed, built and installed In a 4,000 Sq FT facility
+ Multiple revenue sources vary from monthly fees, enrollments and events
+ Unique business model with limited competition in the area

Growth Opportunities
+ Owners have considered multiple locations for increasing brand awareness and reach
+ Mobile events to reach new participants and drive enrollment
+ Marketing is currently word-of-mouth. Implementing new advertising campaigns will drive more traffic

Shareholder’s Objectives
+ With growing family and other careers, the current owners can’t commit to growing the business at the rate it is capable of. Owners have decided to pass on this opportunity to qualified and driven individuals.

Financial

  • Asking Price: $130,000
  • Cash Flow: $41,000
  • Gross Revenue: $132,000
  • EBITDA: N/A
  • FF&E: $70,000
  • Inventory: $800
  • Inventory Included: Yes
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,000
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

other interests

Additional Info

The venture was founded in 2018, making the business 4 years old.
The sale does include inventory valued at $800, which is included in the suggested price.

The business has 5 employees and is located in a building with disclosed square footage of 4,000 sq ft.
The real estate is leased by the company for $3,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. However, the real factor and the one they tell you might be 2 absolutely different things. For instance, they might say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, current reduction in earnings, or an array of other factors. This is why it is extremely vital that you not rely entirely on a seller's word, but instead, use the vendor's solution together with your total due diligence. This will paint an extra practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering items such as supplies, payroll, accounts payable, etc. Remember that in some cases this can mean that earnings margins are too thin. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new customers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day revenues. Certain elements such as brand-new competitors sprouting up around the area, roadway building and construction, and also employee turnover can impact repeat clients and negatively impact future earnings. One vital point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the greater the chance to build a returning client base. A final thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood median household income impact future income potential?