Sunday

Thinking of Selling Your Business?

Fun, short story. . . A man wakes up in the morning after sleeping on an advertised bed, in advertised pajamas. He will bathe in an advertised tub, wash with advertised soap, shave with an advertised shaver and have advertised juice, cereal and toasted bagel (toasted in an advertised toaster) for breakfast. He'll then put on advertised clothing and glance at his advertised watch.

He will ride to work in advertised car, call in to let his gym know he's running late from his advertised cell phone, and sit down in an advertised desk chair when he gets to the office. He'll work at his advertised computer, and write with an advertised pen.

Yet this man hesitates to advertise (or market his business), saying that marketing and advertising don't work and are too expensive. Finally, when his unadvertised gym isn’t doing well, he will advertise it for sale.
Hmmmm

After spending many hours and years in this challenging industry, it might be time to sell. Only you know the answer to this question. 

Jim Rohn, a motivational speaker, once said, “You cannot change your destination overnight, but you can change your direction overnight.”

If your fitness center has been a success, you've probably had to pour most of your time, energy, and money into it. You may see your company as an extension of yourself, and it may be hard to even imagine life without it. 

On the other hand, your fitness center may have been only marginally successful, and something you can't wait to get rid of. Or, perhaps you entered into the fitness industry with the idea that it would be a short-term opportunity and that you'd sell out whenever you got a decent offer.

Whatever your situation, selling your fitness center will be one of the most important things you'll ever do, because unlike virtually every other business decision you've made over the years, you'll only do this once. You get a single chance to put a price tag on possibly years and years of effort — and once you sign the sales documents, it's over.

You'll come out way ahead, both financially and personally, if you make an effort to understand the steps in selling, formulate your plan carefully, and when the time comes, take the opportunity to negotiate a price and terms that satisfy your reasons for getting out of the fitness industry.

The information below will guide you through the steps, which will make selling your fitness facility painless, less stressful and at the same time receive top dollar:

Placing an appropriate value on your business - Your fitness facility has value to a buyer based on several measurable calculations. Thus it is crucial to evaluate your business properly in order to increase your selling opportunities.

Presenting your business to potential buyers - Finding a qualified buyer is the first step. Qualified buyers will want information about your membership base, competition, financial history and lease. This information must be provided in a professional and organized manner to ensure your credibility. Your financials may also need to be reconstructed to show your business in the proper light.

Maintain confidentiality - Confidentiality is essential when trying to sell your business. If employees know that you are selling and changes are coming, they may seek other opportunities. Competitors may use this information against you, and members may seek cancellation and stop bringing guests. 

Structuring a deal - From financing terms, personal guarantees, tax implications, leases, royalties, non-compete agreements, and more. All of these areas are very important, and are part of the sales process.

Progressing and closing the deal - From the Letter to Intent, to the Purchase Offer, these are some of the typical, but time consuming, steps that will lead you to a successful closing date.

With over forty years in the fitness industry, the team at Global Fitness Association understands there are many tasks and challenges you don’t enjoy doing, and selling your fitness center might be one of them. We are available for private consultation and encourage you to give us a call today. We will be happy to discuss your situation, with no obligation on your part. If we feel that we can be of assistance to you, we will provide you with specific recommendations, including objectives, time frames, and costs.

Important note: If you are contemplating closing your business and throwing in the towel, you may have a huge liability and exposure on the remaining term of your lease. In addition, you probably have another huge liability, which is your membership base. Each of us contributes to the industry's success in our individual ways, but we also share a collective responsibility to "do the right thing" when closing a business. Let us put our years of experience to work for you, and we will show you how to negotiate full closure of your business and limit your risk and exposure.
We know of many creative ways to help you come out a winner and, yes, you’ll be left standing on your own two feet. In addition, in many situations, you’ll be able to recoup thousands of dollars from various sources by using our proven methods. Give us a call today.

For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information. 

Please place your comments in the section below. Your participation is encouraged and appreciated. Thank you.