How to Buy a Gym Business

What Steps Should You Follow for Successfully Buying a Gym/Fitness Business?

Establishing a new business venture and being successful in running it from the get-go can be a daunting task and one that requires a lot of research and carefully calculated steps. At We Sell Gyms, we help you carefully go through all the pros and cons of the buying process and guide you each step of the way. This turns the exceptionally daunting buying process into a much simpler one and ensures you will be making the correct choice for yourself.

1. Weigh the Pros and Cons:

It is essential to do adequate research before an individual initiate the buying process. Knowing all the pros and cons of the business structure will help you make an informed decision and get a better understanding of your business venture.

Some pros of owning a gym franchise include:

Brand Recognition: buying a business franchise means you buy the reputation of the business along with the name. Companies that franchise often have a well-known brand and well-developed reputation. This makes developing a customer base much easier for the business because of its familiarity with the public. This often also means that the franchisor will take control of the marketing for the entire franchise making the work of the owners much more manageable.
Training and support: when starting a new business, there are numerous things to be learned, especially when owning a business such as a gym, which requires an owner to have some technical knowledge. The advantage of buying a franchise is having the support of the franchisor during every step in the process.
Higher Profits: when the profits a franchised business makes are compared to a non-franchise business, they often prove to be higher due to the loyal customer base and the already developed brand recognition of the franchise. Even though the initial cost of buying a gym franchise may be higher, a franchise owner will often make more profits in a shorter amount of time.

As with all business ventures, where there are positive points, there are sure to be a few negatives as well.

Some cons of owning a gym franchise may include:

Lack of Independence: owning a business that is a franchise restricts the owner in various ways. Even though an individual might own the area, they still are an employee to the franchisor and are answerable to them. This takes away the possibility of making the business unique, including the decor, setup, equipment use, as well as the services offered, amongst many other things.
Initial Investment: as mentioned above as well, even though there are numerous benefits of buying a franchise, including an already well-known brand name, these benefits come with a price tag of their own. While buying a franchise means buying a ready-made business plan and marketing strategy, it also means additional cost apart from the usual costs of buying or leasing a property as well as buying the equipment.
Ongoing Cost: in addition to the initial payment for buying the franchise, a franchisee has to keep up with on-going payments in the form of royalty fees or marketing fees. Another expense can include the renewal fee of the franchise agreement.

Even though the costs of buying and keeping a franchise running may seem too much, when a business owner runs a cost-benefit analysis, it is easy to see that the benefits outweigh the costs. However, it is essential that before initializing the buying process, an individual is aware of all the expenses. (click here for a more detailed explanation - why buy a gym franchise)

2. Write a Business Plan

Once you are well aware of the pros and cons of buying a franchise gym, it is important to decide which brand you will be franchising from. There are numerous options available for franchising a gym or fitness business, and choosing the one that suits your requirements, the best can be a bit of a challenge. Going through the services all the gyms offer and choosing one which offers services that are in demand in the area you will be operating from is the best option.

After you have decided which gym franchise you want to invest in, the next step to complete is preparing a business plan for your gym. Although this may seem like a useless task because you will, after all, be following the business plan provided by the franchisor, it becomes useful in giving the owner an idea about the functioning and running of a business.

A few key points much be included in within the business plan without fail, and a market budget and analysis is one of the main ones. As gyms are a service that is mainly affected by the specific area they operate in, a market analysis will be different for each of the franchises according to the area they are situated in and the demand of the customers of that area. It is also important to include information about the upcoming expected costs, the staff that needs to be hired, and, most importantly, what will be the owner’s role in the business.

3. Secure Finances

A major step in starting any business, whether you are starting a business from scratch or buying from a franchisor, the initial cost of a business and the finances required to run it in the initial year or two have to be calculated beforehand. These finances will depend upon various factors including the franchisor you choose, whether the space you have is owned by you or you will be leasing it, how much equipment you plan on putting in your gym, what amenities do you plan on offering your customers and so on.

Typically, people thinking to start business ventures usually fund them via a financing plan. There are numerous business loan options available based on what you require the financing for, for, e.g., buying the property, needing working capital, etc. at times franchisors also offer to share the financing solutions they had used when initiating the business.

4. Choose a Location

Location is one factor that has a great effect on the success of your business, if the location of your business is in an area that is not convenient to reach for your customers, no matter how big the brand name of your franchise may be, customers will be unwilling to make the extra effort just to reach your gym. Choosing a location well suited for your business can depend on many factors, including the cleanliness of the area, the crime rate, the average age of people visiting that area, and if the gym will be located nearer to a shopping center.

Another factor to consider is the interior of the building where your gym or fitness center will be located. This also adds cost to the initial expenses if you have to build the gym’s interior from scratch. However, if there is a building available that suits your requirements and has the fundamental structure already available, it could be of an advantage to the owner to the gym.

5. Permits

Having permits and the proper licenses to run the business are fundamental steps to the operation of any business. There are numerous inspections put in place for the health and safety of the customers of a gym business, and an owner needs to keep all their permits up to date in order to avoid any inconveniences.

Another vital part of the legal requirements for any business is insurance. This can include the insurance of the equipment, the staff, the customers, or the gym building itself. Insurance helps a business owner when faced with unforeseen circumstances.

6. Hiring Staff

The final step to starting your business is to have capable staff in the building that can easily facilitate the customers’ needs and carry out their tasks with ease. Good staff members are one of the main factors of a smooth-running business. Moreover, if the staff of the gym is friendly and helpful, it also boosts the morale in the space and makes customers feel motivated.

The process of buying and starting a franchise gym is for motivated individuals who have the financial means to back up their dreams and turn them into reality. If you are an individual motivated to buy a gym, you have the opportunity to enter the industry, which is expected to see phenomenal growth in the upcoming years, and buying a franchise will ensure a strong start for you.

WHY CHOOSE "WE SELL GYMS" TO CONSULT ON THE DEAL?

Now that we have highlighted the benefits of buying a gym franchise and the steps an individual needs to take to make that a smooth process, we would like to highlight the benefits said individual would receive by choosing “We Sell Gyms” to broker the deal. As with any traditional broker service, “We sell gyms” serves as the facilitator between the buyer and the seller. We offer an extensive list of vendors for the buyer to choose from depending upon their needs and requirements. We take the opportunity to get to know our buyers’ needs and requirements and help them with their purchase accordingly.

Apart from facilitating our buyers with the best choice of franchise or resale business for them according to their demands, we also provide the buyers with the top of the line legal resources as well as adequate funding aids to help make the process easier and a success.