Listing ID: 76585
In the U.S., Pilates & Yoga Studios represent a $9 billion industry that has experienced a 7.5% annual growth rate. This boutique Pilates Studio is located in a highly desirable residential mountain community just outside the greater Denver Metro area. This studio includes 5 reformers, hand weights, ballet barres and mirrored walls. It has excellent reviews and a stellar reputation in the community. The price includes the fully equipped studio, name and the clientele database, as well as support by the owner for a smooth transition.
- Asking Price: $75,000
- Cash Flow: $60,000
- Gross Revenue: $86,000
- EBITDA: N/A
- FF&E: $12,000
- Inventory: $500
- Inventory Included: Yes
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The business occupies a shared suite of 2,400 sf. The Pilates studio is approximately 650 sf. The studio shares the suite with a Rolfer/Gyrotonics studio, Functional Medicine practitioner and a Hand Therapist. 2 ADA bathrooms, a kitchen and a laundry area are shared including an entry area with seating.
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations. Pilates certification is required in order to teach Pilates clients.
There are other Pilates studios in the general area, each with its own focus on classes vs private clients and client ages.
A new owner might schedule additional classes of all levels and/or on weekends, market more to private clients and/or add products such as accessories, Pilates clothes or nutritional supplements.
The venture was established in 2019, making the business 3 years old.
The sale shall include inventory valued at $500, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell companies. Nonetheless, the real reason vs the one they say to you may be 2 completely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competition, recent decrease in profits, or an array of various other reasons. This is why it is really crucial that you not depend completely on a vendor's word, yet rather, make use of the vendor's solution in conjunction with your total due diligence. This will repaint an extra reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that revenue margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that need to be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in new consumers? Many times, operating businesses have repeat customers, which create the core of their everyday earnings. Particular variables such as new competitors growing up around the area, road construction, as well as staff turnover can impact repeat consumers and negatively affect future profits. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the better the chance to develop a returning customer base. A last thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? How might the local average house earnings impact future revenue potential?