Healthy living is on the rise, and yoga studios are no exception. Over the past five years, pilates and yoga studios have grown 9.1 percent to become a 12 billion dollar industry. Whether you want to relieve yourself of the headaches of day-to-day business operations and get back to teaching and supporting the yoga community, or you’re looking to move onto other projects altogether; if you’ve been considering selling a yoga studio, this may be the ideal time to get started.
The number of participants in yoga in the US is expected to grow to an estimated 55 million people in 2020, making entering the yoga industry an exciting prospect for buyers. Still, before you list your yoga studio for sale, it’s essential to sit down and ask yourself the following five questions to get prepared.
In any business, it’s crucial to have an exit strategy in place. However, when it comes to selling a yoga business, it can be particularly important to detail how you, the small business owner, will leave the studio. Many yoga studio owners also teach the majority of yoga classes in their business. If you’re both the owner and a teacher at your yoga studio, you need to carefully consider how you think your students’ loyalty may impact new ownership. In addition, reflect on how you can make the transition successful for your buyer.
Potential buyers will want assurance that the yoga studio will continue to thrive without you at the helm. Consider the following questions:
If you’re having trouble answering these questions, consider reaching out to a loyal advisor or a business broker.
Next, you’ll want to take a critical look at your business operations, finances, employees, and what your studio is currently offering. Figure out aspects of your business that could be improved and commit to a plan.
Take a close look at your marketing strategy, daily operations, and any issues in your facility itself. Also, note how many students you have enrolled annually. Work to grow and diversify your client base. Identify untapped markets in your area and brainstorm ways to appeal to them. Consider offering new student specials, unique yoga classes such as aerial or hot yoga, or teacher training opportunities. Don’t underestimate the power of marketing these offerings digitally through your website or social media.
Once you’ve determined the plan going forward, you’ll need to get your paperwork in order. Potential buyers of a yoga studio will want to see records of tax statements, payroll information, profit/loss reports, lease information, and more. For assistance in gathering this information, consider reaching out to your accountant, lawyer, or business advisor.
One of the most important steps when preparing your yoga studio for sale is to complete a proper business valuation. Although there are many ways to value your studio, it’s typically best to work with a professional valuator. This way, you can make sure that the worth of your studio is determined fairly and accurately.
The final step to selling a yoga studio is listing the business for sale. Without proper advertising, even if you have the best yoga studio in the state, you’ll never get it in front of interested buyers. If you plan on listing your business yourself, consider using listing websites or paid online advertising.
Alternatively, working with a professional business broker will make for a faster, easier experience. Professional brokers have the expertise to help you walk through the process of selling your yoga studio from beginning to end. With a trusted business broker working with you, you can focus on day-to-day operations.
For more information on preparing to sell your yoga studio, or to request a valuation of your studio, contact Sunbelt Business Brokers. Your local Sunbelt Business Brokers office can help guide you through the process quickly and for the best price possible.