Listing ID: 77207
This beautiful boxing based fitness center is the perfect opportunity for the right buyer to take advantage of a business where the groundwork for success has already been laid!
This business, having been in operation since 2015 has experienced consistent growth in annual sales every year. Up over 17% in 2018, greater than 19%, and more than 30% at the beginning of 2020! Seller’s Discretionary Earnings has grown at average rate of over 280% over the past three years as this business has clearly exited the startup phase and emphatically entering the growth phase. With an inclusive, unique class setting this studio differentiates itself from all off its competitors as evident in its strong membership growth and highly reviewed online reputation. This business sits in an ideal high traffic location in Santa Clara Co, home to the largest names in tech many of whom offer employees allowances for fitness memberships. Providing a substantial pool of potential customers!
Fully staffed with management in place, as restrictions are eased and people are eager to get out and active, now is ideal time for the right buyer to assume this opportunity and continue along on its upward trajectory of success. Contact us now for more info!
- Asking Price: $490,000
- Cash Flow: $129,265
- Gross Revenue: $770,544
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell operating businesses. However, the real factor vs the one they tell you may be 2 totally different things. As an example, they may say "I have way too many various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of other reasons. This is why it is very important that you not rely entirely on a vendor's word, but rather, make use of the vendor's response combined with your total due diligence. This will repaint a much more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that profit margins are too small. Lots of businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be satisfied or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new consumers? Most times, businesses have repeat customers, which create the core of their day-to-day revenues. Certain factors such as new competitors sprouting up around the location, road building and construction, as well as personnel turnover can impact repeat clients and adversely affect future earnings. One vital thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the chance to construct a returning client base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Just how might the regional median household earnings influence future earnings potential?