Hi community.
Here is my story of buying business
I have always been business minded and had an thought of being entrepreneur someday. After my career in racing did not go as planned I started to think about starting an business. So I figured out that now is the best time for it.
I have always been interested in fitness and gym and I know what works in gym and what doesn’t. So I had pretty good start knowledge and had an vision for future. First I was thinking about just building my own gym and go from there, but I noticed there was well working gym on sale and that caught my interest. So long story short we had multiple conversations with seller and I had feeling that it would be the best solution for me. Old owner showed me all papers and numbers and it looked good. I got a good deal after all regarding those numbers. I paid 3x yearly profit. (deal included almost fully paid machinery also)
After the deal I found out that there is going to be plumping services in the building so my gym will be out of water for some time and it was the best season for gym (December-January). That off course had huge affect on sales. The other thing that I found out was that the numbers seller showed me were fixed. He had left unpaid and making dept for last year for 2grand/month. Also there was less paying customers than I was told to begin. That means that when I started the business I am now making minus every month.
So what you can learn from my experience is that you should hire an expert and lawyer to check all documents before hand even if it cost something. Because now I have to pay a lot more for not that.
Bright side is that I have managed to have “good energy and vibe” at the gym and customers are happy. I have managed to get some new members and i am expecting to get the business well working after summer season! I have great plans on bringing the business going well on this season and hope I can write about the great success soon! :)
