Should you build or buy?
Have you always dreamed of owning your own fitness or wellness business? Or are you ready to expand a business and brand that you already own?
Maybe you come from a long line of entrepreneurs, creatives, and “chart your own path” kind of people. Or maybe you are ready to stop working for someone else, trading time for dollars. After the past few years of uncertainty, it is understandable if you are ready to be in control of something that is completely your own.
This feeling is so common, and so often the “go-to” answer is to build your own thing from scratch, from the bottom up, bringing something completely new to the market.
Many people presume that the best path to business ownership is to build a brand-new business or location, or to buy into a new franchise, but many people don’t realize that buying an existing business is a path that may be easier in the long run, result in quicker profits, and can be much less stressful than creating a business from the ground up.
Truth…I did this myself…after purchasing my first yoga studio, I built out from shell space three additional locations. Without a doubt, the purchase was so. much. easier.
Let’s explore why this is true, and why buying an existing business is often the better choice for an entrepreneur.
Established customer base: Buying an existing fitness studio comes with an built-in customer base of loyal members, which means you have an immediate source of revenue on Day 1. These customers already know and trust the brand and are likely to continue patronizing the business under new ownership. They come for the amazing classes and the experience, not because of who pays the bills.
Proven business model: An existing fitness studio has a proven business model that has been tested and refined over time. The previous owner built the systems and worked out the kinks, so you don’t have to. No need to reinvent the wheel, so to speak. You certainly can build on and improve what has already been established, but being able to step into existing systems and policies will save you time and money.
Brand recognition: An established fitness studio already has brand recognition in the community. You will be able to spend much less money on marketing and advertising to build brand awareness and attract new customers. And along with the brand recognition comes goodwill, online reviews, and the website and social media presence. Priceless!
Existing equipment and facilities: An existing fitness studio already has equipment and facilities that have been purchased and maintained over time. You likely won't have to invest in new equipment, at least not right away. An investment in heating systems, pilates reformers and gym machines and equipment can cost a small fortune to buy new, and you will be able to walk right into a fully furnished and functional business when you choose to buy instead of build.
Immediate cash flow: Buying an existing fitness business gives you immediate cash flow, whereas starting a new fitness business may take months or even years to break-even. You’ve heard the stories about how long it takes for a small business to be profitable. Why not be profitable from the beginning? This immediate cash flow can help you finance improvements or expansions to the business, as well, so that you can grow much faster than if you started your business from square one.
So what do you think? For all that you get when you buy an existing, profitable business, it is easy to see why buying instead of building can be a great choice for an entrepreneur and can get you on a fast track to success with your fitness business investment.
Ready to find the perfect business for you? Check out our listings here.
Ready to sell your business? We’d love to help you find the perfect buyer!
Reach out to us here.
