How I Started, Ran and Sold My Small Fitness Business… And Why!
I had the idea late one night while working out on my new piece of exercise kit: A Power Plate Vibration Training Machine. (I won’t bore you with what they are if you don’t know, they simply provide a fast workout, that’s it). I would open my own fitness studio, using only Power plates. It was a vague idea soon to become more concrete. I had an ‘aha’ moment when driving through an area close to where I live in London. “This is the place” I said to my girlfriend, and future mother of my 3 children, whilst driving down the main High Street.
Fast forward a year and I’d undertaken all the training required to start, found an investor, and premises that I renovated mostly on my own, all while still working my day job.
It was a huge amount of work building up to the grand opening and finally the big day arrived. There was quite a buzz. I had around 30 potential clients booked in for a free taster session. All went well, only I didn’t make a single sale. I went home that night utterly exhausted, dejected and wondering what I had gotten myself into?!
It felt surreal at first, opening up every day and trying to get things going. I had to make this work, I had signed a long lease and there was no way out for at least 2 years! Then, on day 3, the breakthrough came, I had my first sale! I’ll never forget the feeling. The moment after the lady left the studio, we all screamed with delight and relief. Maybe, this might actually work!
It took a few months for things to really get going. We started in May, by September it was getting busier and busier. Then, bang! My Mum was diagnosed with terminal cancer. She died 2 months later. It was awful, and nearly sent me and the business over the edge. I almost ran out of money as I was closed for around 3 weeks and prior to that had been so distracted that some of the clients had dropped off. I was in a bad place.
It was close to Christmas and business was very quiet. I was in utter despair, then I had a moment where I just thought screw this! “My mum wouldn’t have wanted me to fall apart.” So I placed a special offer on a local forum and the phone went crazy. I made more money that day than I’d ever made before and suddenly I was back in business!
For the next 2 years the business grew well and I established the studio as a solid local business. Then I became a Dad for the first time. I admit, I took my eye off the ball and let things slip. I got complacent. Business dropped and it took a few months’ creative hard work to put it back on track. After that we coasted for a few years and I was starting to get itchy feet. I needed to grow the business but felt trapped in the day to day running of it and couldn’t see a way out. Then my twins came along and my life changed completely.
Somehow I managed to hold on for 2 more years, with sleep deprivation I wouldn’t wish on anyone. Thankfully, after around 6 months on the market I sold the business. It’s now in the hands of someone who can give it the attention it requires. I will be eternally grateful that I was able to sell and move on with my life.
So, how did I manage to sell it? Not many business sales actually complete according to my accountant, so what made my little fitness studio sell?
First, the buyer said to me he was buying the reputation of the business. I had gained a lot of positive reviews and many loyal and happy clients. This was the main thing.
We were profitable. The business had always made money, not life changing money but a solid income, with the potential for growth with the right stewardship.
It was a turnkey business. The new owner was ready to go from day one. He had a slight learning curve to overcome but the business was running with all the systems in place.
The price was right. I wasn’t greedy and didn’t have unrealistic expectations of what the business might sell for. I was happy it was going to someone who would take it somewhere and I was able to walk away, with some money in the bank ready to start my next venture.
I won’t say it was easy, it was almost as hard as starting the business in some ways. Having 4 different parties(myself, the buyer, the landlord and selling agents) trying to reach agreement on legal and financial issues was never going to be easy, and at times it seemed it may fail.
In the end we got there and I have to say, except for the birth of my children, it’s one of the best feelings I’ve ever had, a sense of achievement that I hope to repeat one day.
So if you’re just starting out, with the hope to sell one day, remember the points above. If you can build a loyal customer base, a good reputation and have systems in place for managing the business then that will put you in a good position to sell.
Now, I’m back to the start up phase again. My new company has just launched! Let’s see where this one takes me.
