Run a Profitable Gym cover image

Run a Profitable Gym

Don't Buy That Gym: Horror Stories, Red Flags and Real Tips

May 16, 2024
37:04

When should you not buy a gym?

In this episode of “Run a Profitable Gym,” host Mike Warkentin dives into this question with Nick Habich, Two-Brain mentor and owner of Shark Bite Fitness and Nutrition in Cape Coral, Florida.

Nick has bought a couple of gyms and passed on several others, and he’s acquired a few horror stories along the way.

Some of the red flags he’s learned to look out for include high expenses—such as a ridiculously costly lease—and mismatches between financial data in the gym’s billing software and its profit and loss statement (P&L).

A lot of gym owners look to acquire businesses because they want to make more money, but they can often find opportunities to generate more revenue within their existing businesses. That’s not to say you should never buy another gym, just that the best plan is to optimize your existing business first.

Nick’s biggest tip? If your gym can’t run without you, don’t even think about buying another one. Start by improving your current gym with mentorship and then pursue other endeavors from a position of strength.

Links

Gym Owners United

Book a Call

0:51 - The buying-and-selling experience

6:52 - Buy a gym that’s unprofitable?

12:57 - Verify the numbers

18:46 - Rates that are too low

27:01 - Temptations and business decisions

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode