Getting involved in the fitness and wellness industry can be incredibly exciting. Few industries can match the combination of financial success and positive community impact that owning a gym or health club can provide. For someone looking to get started in the industry, buying an existing business seems to be a safer bet relative to everything that goes into starting a facility from the ground up. This can sometimes be true, but to think it a completely risk-free venture would be a big mistake. Like anything else, purchasing an existing facility requires the proper due diligence to avoid taking on someone else’s nightmare.
Here are the Gro With Us top tips for purchasing an existing facility:
- GRO Tip 1 – Nothing is more important than the correct due diligence! If you never owned a facility, you will never know where potential problems can be!
- GRO Tip 2 – Is the organization in good standing? Do a credit search and determine if company has good credit score!
- GRO Tip 3 –The best way to determine the true value of equipment is to obtain price from an equipment company.
- GRO Tip 4 – If you are purchasing a business, and using the same business name, you could open yourself up to unpaid taxes.
- GRO Tip 5 – Know what the facility is really worth. How was the quoted price determined?
- GRO Tip 6 – How many existing members are there at this health club?
- GRO Tip 7 – What is the condition of the facility? Does it need renovation?
- GRO Tip 8 – Know the equipment condition. You may need to lease or buy new equipment.
- GRO Tip 9 – Ask yourself: Why is the current owner selling this establishment?
With these tips in mind, you will be well on your way to finding success in the industry. Whether it is wellness, fitness, medical, or another industry, make sure you consider all of the important details before opening up the checkbook or searching for funding. At Gro With Us, we can help you make sure you know exactly what you are buying and the best path for financial success. We have the knowledge and skills to prepare you for such a large investment. If you choose to take us on board, we will make sure that you benefit from our years of experience and are satisfied with the end results.