After a meteoric increase in new Indoor Cycling studios and other forms of boutique fitness businesses, it makes sense that a few of them will be sold. I've recently received a number of inquires from studio owners, asking for help selling their business – and I went ahead and posted them. Here's a cycling studio in Magnolia, TX and another studio in Marietta, GA for sale.
Our mission here at ICI/PRO is to provide quality information, for all aspects of Indoor Cycling. Wanting to be helpful, while not having any personal experience selling a fitness business, I did what I always do – I found (and vetted) an expert at brokering fitness businesses.
In this episode of the podcast you can meet fitness business broker Shane Massey. Shane explained to me that there are multiple mistakes studio owners tend to make, when selling their business. We decided to focus on these five that he felt were the most important.
AVOID THESE 5 MISTAKES WHEN SELLING YOUR FITNESS BUSINESS
WITH FITNESS CLUB BUSINESS BROKER, SHANE MASSEY
1. THEY DON’T HAVE A LEGITIMATE REASON FOR SELLING THE BUSINESS
2. THEIR BUSINESS VALUATION / SELLING PRICE IS WRONG
3. THEY DIDN’T PLAN (PROPERLY) FOR THE SALE
4. THEY IGNORED POTENTIAL DEAL KILLERS
5. THEY DIDN’T SEEK PROFESSIONAL ADVICE
Listen to our discussion below.
Shane is prepared to assist an owner, regardless of where you're located. He has agreed to provide an initial consultation at no cost for our readers and listeners.
Meet Stephanie (Steph) Cohen – owner of Ride Revolution Cycling Studios in Northvale, NJ!
Steph is a member of our Cycling Studio Owners Advisory Group. In this episode of the Podcast, we discuss some of her most valuable lessons learned from running her successful studio for three years.
Name of Studio: Ride Revolution Cycling Studios, LLC Location of Studio: Northvale, NJ Phone: 201-259-7221 email: Steph@Ride-Revolution.com Owner Name: Steph Cohen Owner Title: Owner Years in Operation: 3 Years Size of studio: 2,000 Sq. Feet Number of members/clients: 2,400 Unique Visitors since opening
If you were advising somebody whose dream is to open a fitness studio — what would be your primary nuggets of advice?
Make sure the financial picture makes sense. The market where you are may not actually be able to hold your initial price per session. What are your earning projections if the price per session is a lower amount than originally offered?
Ensure you have a strong marketing budget. Too many studios forget this part or put it last on their budget list. While you are building your new place you need to begin the online and print advertising so that once you open locals will already recognize your name.
Have a clear mission — the “why” you opened your studio — and have that set the tone for all of your marketing and outreach. Make sure that your employees have the same vision in mind at all times as well.
In addition to having great instructors playing fabulous music, learn your client’s names and remember their unique stories. That is what will make them want to come back again and again.
Be prepared to do EVERYTHING yourself for the first few years. I am the front desk, marketing coordinator, instructor manager AND I wash the towels every few days! No task is too big or too small for the owner to actually do for the studio.
Download all 16 of Steph Cohen's Most Valuable Lessons Learned here – right click > save as.
Could I open and run my own Indoor Cycling Studio?
Step two is research the answers some of your questions:
What's involved in starting a studio?
Do I have what it takes to own and run a fitness business?
What type of Indoor Cycles should I purchase? Audio / Video equipment? Studio design? Finding space?
What's the difference between a “Spinning® Studio” vs. an “Indoor Cycling Studio”?
Where will I get the money? How much will I need?
What about a website? Do I need an App for my studio? How much should I charge per class?
Where can I get help/direction that I can trust?
www.indoorcycleinstructor.com is the trusted independent resource for new and existing studio owners around the world. We have dozens of informative articles from experts you'll feel comfortable following and audio interviews with real-life studio owners that you can use to help make informed decisions about starting, and then profitably running, your very own Indoor Cycling studio 🙂
Links to our most popular content.
Please note: access to these valuable articles requires some level of ICI/PRO user registration – click here to create your FREE PRO-Studio registration.
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This was the interview that launched multiple dozens (perhaps hundreds) of new Indoor Cycling Studios 🙂
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Part 1: Are you an entrepreneur?
If it’s done right, a cycling studio can be a profitable and enormously rewarding way to spend your time. After all, what could be better than treating friends and neighbors to a workout that is helping them live a happier and healthier life?
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Let’s assume (since you are reading this), that you are a great instructor, or at least a great class participant who can recognize and perhaps even create an amazing SPIN® or indoor cycling class. OK, that’s part one. Do you also have world class people skills? Do you like working weekends and holidays? Can you learn to read and create a basic spreadsheet? Can you be nice and smile to people…..even if they are well, jerks? Are you willing to use a pedal wrench and (god forbid) a mop? Are you a never-say-die optimist?
If you are a great instructor, but said no to any of the above, you may want to stick with teaching that amazing class at local health club. If doing all that and building a community of riders sounds like a dream come true —– you may have what it takes!
Where do you start? You gotta have a business plan. I know the business sounds simple, but if you plan on investing a big chunk of your own, or someone else’s money, you should have something in place that outlines financial, operating, marketing and other factors…..in detail. Just the plan development itself will help you assess the fit with your own skills and personality.
In helping dozens of studio-starters create plans, we have noticed a few common themes: First there is a tendency to over-estimate how rapidly you can expect the customer base to grow. You will not open on day 1 with 30 classes / 30 bikes and 70% occupancy. Won’t happen. Second, there is a tendency to under-estimate expenses. Most business plans we produce have over 35 expense lines. Many are small, but they add up. Best to plan for that and understand how you'll collect class payments online.
That being said, with smart, realistic planning, and with crisp execution — wow, you build something amazing……while making the world a healthier place, one rider at time.
