I have the opportunity to purchase a personal training business. In another state. It seems as if I would be purchasing some equipment, taking over a lease and have access to the original owners 50-60 clients. I would hope that at least half of those people would stick with me. The owner is currently running a profit (more than I make currently and I’m in a much larger city). I know you can never get the ‘full’ answer of why someone is selling but the business seems great and I’m not sure why the owner would be selling!
I’ve asked a zillion questions. Can you think of any other questions I should ask other than the obvious ones? Anything I should consider that perhaps I haven’t thought of already? I’ve asked about hours, transferring clientele, equipment maintenance, inventory lists, equipment lists, overhead costs, independent contractors, address, area, timeline, competition,advertising (does mostly free sessions to secure new clients but maintains a full schedule), landlord (is his client), rent, any legal issues with the business or building, no vandal, training style, why the owner is relocating, financing, how long he has been in business, size of studio, no classes.
I’m currently in corporate wellness and have a few private clients. I would love to relocate to this other state and I would love to be my own boss. My fiance works in banking however and is extremely considered about becoming a small business owner as he is seeing many small business owners very very unhappy.
I’ve never purchased a business. I’ve been in the industry since 2002. I have a BS and MS in exercise science. ACE and NASM certified. It would be nice to have some existing clientele when having your own business, instead of starting from scratch. But I’m wondering if it is foolish to ‘buy’ these leads that may or may not be there at the end!?
In any new business, make sure you have the capital to pay all of the bills for at least 6 months if not more. You have no idea who will stay and who will go. It is not a good idea to buy any business based on clients. They may all go and you are left paying for everything and you dont know how long it will take to build up a new client base. Get a good business lawyer and / or accountant to look at her books and go over line by line. Itemize down to the last piece of dust what will be staying and what will be going. Take a look at her current lease contract, and have a contract lawyer look at it. There may be some things you dont like about it and can draw a new of off of that one.
You should treat this as you are going in with nothing. It is not a good business move to buy this business thinking that any clients will stay. This way you will be monetarily prepared.