How to Buy a Health Club - Part One

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Did you know that 7 out of 10 well being club purchasers feel that they were mislead or over paid for their fitness business enterprise?

The health club industry was lately rated a best 5 organization to own or buy in a recession by several respected sources. The lifestyle is appealing, the revenues are predictable and the services they present are amazing. But, now a lot more than ever buyers are biting off more than they can chew and getting mislead obtain sellers, brokers and franchises.

For years Fitness Marketing and advertising Group has been consulting health clubs worldwide. The number one complaint we receive from new operators on a day-to-day basis is that the enterprise they purchased is not what the seller represented. Essentially, they had been ripped off. Revenues, membership numbers, profit centers, liability and additional had been all improperly represented.

However THEY ONLY HAVE THEMSELVES TO BLAME!

Of course sellers, brokers and franchises are going to represent their product in the brightest light! They can do this simply because they know the small business and YOU Don't. In truth 8-10 fitness club purchasers have never owned or operated a fitness enterprise ahead of.

Typically times even the brokers do not have an understanding of how to correctly value and represent a fitness club. If they can't do it how are you supposed to? You cannot.

Here's why:

1. Represented membership numbers are Never ever accurate

2. Attrition rates cannot be represented efficiently in financial statements

three. Capital requirements are underestimated for continued business enterprise growth

4. Paid in Full memberships and upcoming contract expiration dates of EFT memberships are not

represented properly in monetary statements

5. Franchises routinely more than promise and under deliver

The reality is, like any business these health clubs are for sale for a reason. Memberships may possibly already be on
the decline. If you are unable to properly investigate an health club accusation the likely hood is that it will not be what you believe it is.

HERE'S THE Fine NEWS!

The wellness club industry is nonetheless a superb home business. Even in the recession well run facilities have been able to improve profit. Starting or acquiring a fitness center is a good notion for persons who are educated on the risk and rewards of owning a fitness club. Even purchasing distressed health clubs can be lucrative if you are ready for the turnaround