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Gyms and the fitness industry is worth $2.4 billion in Australia, according to IbisWorld. There has been a marked increase in certain types of gyms including the 24/7 models, such as Anytime Fitness and PlusFitness as well as other models including F45 and crossfit. In order to buy an existing gym for sale you should register for alerts so you are notified when a new business is listed. You can then make contact with the seller and request more information. Usually the seller or broker will ask you to complete an NDA to ensure the confidentiality of the business. Buying a gym or fitness business requires professional advice during the process to ensure the due diligence is conducted properly.
A good gym will have repeat clientele, solid branding, good equipment and be generating a healthy profit. If the business is well established it should have forecasts for the upcoming 12 months and members will be signed up on contracts. You will want to do a competitor analysis, to see what other gyms are operating in the area or are planning to open.
Essentially all gyms are created to provide an area for people to exercise. Gyms may include additional services such as weightloss programs, weight training, PT sessions, bootcamps, massages, health and wellness etc. The type of gym that you buy is usually dependent on what model it is operating under. In Australia we have seen an emergence of franchise gyms such as Anytime Fitness, Plus Fitness, F45 ad Peak Physique Hot Yoga. There are also independent gyms that may provide a full equipment style studio or may provide services such as HIIT, bootcamp, crossfit, boxing etc.
Experience in the fitness industry is a good idea as it can be very competitive owning a gym and maintaining your client base. It is important to understand sales as you will need to continually be obtaining new clients. Typically a gym will have a team in place to service clients, so having a good understanding of management is important.
If you are currently working in the fitness industry it is the ability to own a gym and operate it your way. As the owner you will have creative control over the branding, the communications, the growth, your team, your services and basically drive the gym forward. The more money the business makes, the more profit you can achieve. The drive to succeed is a common trait amongst gym owners.
Like most businesses Gyms are appraised based on a multiple of the net profit to the owner with some market predictions. The determining factor is usually, what will the market pay for this business based on similar sales. Obviously with a gym it may include a lot of paid equipment , equipment under lease, or very little equipment, this can change the market value considerably. When assessing a gym to purchase you will want to have a professional evaluate the equipment to ensure you are paying a reasonable price and understand if any servicing or maintenance is due. .It is important to obtain professional advice when buying a gym as it can be a large investment and you want to be sure you know what you are agreeing to when purchasing. It is important to conduct proper due diligence.
A gym makes money by clients paying a fee for its services. Gyms may provide a number of different services such as; use of equipment, bootcamps, PT sessions, group classes and weight loss programs. Usually clients sign a contract for a certain time period and agree to pay a certain rate.
The best way to keep track of new business opportunities is to save your search result. You will be notified as soon as a new gym or fitness business is listed for sale.
Selling a gym requires preparation. Having a solid exit strategy will mean your gym is ready for sale and has a greater chance of achieving an optimum price. It’s important to be prepared for the sales journey as it usually takes around 6-9 months to sell a business in Australia. Check out Bsales 6 steps to prepare a business for sale which will provide you a checklist and a general step by step guide. Business brokers are licensed professionals who can assist with the sale of your business and market it on websites such as Bsale. Check out the Find a Business Broker section to locate a suitable broker for your business. Bsale also offers advertising direct to business owners.