Thinking about selling your fitness business?
Here are our top tips to make sure you’re making the right choice (tips one and two), and to maximise the value of the sale (tips three to nine).
- Are you sure?
You should never make a life changing decision when you’re having a bad day or a bad week. Is this something you’ve been considering for a long time, or is it a reaction to a short term negative event? Before you make any decision, sleep on it (for a few weeks).
- Can you simplify?
One of the big things that drives away a business owner is unnecessary complexity. The business has grown in complexity and has so many moving parts that it becomes stressful. Is there a way you could downsize and minimise to make things simpler and less stressful. Can you prune away the bad bits and keep the good bits?
You’re not selling premises, equipment and a client list, you’re selling a business. Before you put your business up for sale, create a detailed operations manual with processes and checklists for every single task in the business. Increase the value of your business by selling your intellectual property.
- Future Projections.
If you’ve fallen out of love with your business it doesn’t mean it doesn’t still have a bright future. Think back to the excitement you had when you started, and the future targets you set. Run this exercise again, breaking down all the potential income streams with potential revenue figures for each. Sell the dream.
- Equipment Valuation.
Get your equipment valued. It all adds to the amount people are prepared to pay.
Make sure your books are up to date. Speak with your accountant and ensure everything is in order. Well presented books send the signal that you’re running a professional business – and that’s what people want to buy. Couple this with the future projections (point four) and buyers will really be able to see the growth potential of the business.
- First Impressions Matter.
Before a potential buyer comes to view your premises, spend a weekend making it look nice. Start in one corner of the premises, and walk around the entire interior with fresh eyes, making a note of everything that needs maintenance or cleaning. A couple of hundred bucks at Bunnings and 10-15 hours work can increase the face-value of your business considerably.
- Ideas to Increase Revenue.
In addition to future projections (point four), consider other potential income streams. What could a new owner add to the business that isn’t currently operational?
- Ongoing Consulting.
No one knows your business and your clients like you do. As part of the succession plan, you should offer to stay on board for a few weeks or months to smooth the transition. Your time is valuable at this delicate stage of the business.
Selling your baby can be an emotional time, but by addressing some of the above points, you can help ensure you’re getting a fair return on the blood, sweat and tears you’ve put in.