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