Preparing Your Yoga or Fitness Studio for a Future Sale
As a boutique fitness/yoga studio owner, you’ve likely put in years of hard work and dedication to make your business successful. From building out your space to building community there are a lot of factors that go into a business beyond the P+L sheet. But if you’re thinking about selling your studio one day, there is some important preparation that needs to be done in order to maximize its value.
Undoubtedly this deserves a longer conversation, but here are a few tips on how to prepare your yoga studio for a future sale.
1. Key Performance Indicators (KPIs)
The first step in preparing your yoga studio for sale is understanding the key performance indicators (KPIs) of your business. Knowing these metrics can help you identify opportunities, set realistic goals and measure progress. The KPIs you’ll want to track include revenue growth, customer retention/attrition rate, membership sales, percentage of revenue that is recurring, first visits and new client retention, payroll expenses, profit margin, and average customer lifetime value. It’s quite a bit of information to follow, but it provides you and your potential buyer with the growth trajectory of the business. And it also provides you with the opportunity to identify potential issues before they become serious problems.
2. Email Marketing Automations
Another way to increase the value of your studio is by leveraging email marketing automations. You know that we’re big fans of automated emails—they not only take the work off of your plate, they also ensure that customers or potential clients do not get left in the dark. Automated emails can be used to send personalized messages to specific customer segments based on their behaviors or interests. This helps increase customer engagement and loyalty and ultimately leads to more sales and higher profits. You should also consider setting up automated email sequences that focus on new client acquisition, win-back offers and membership welcome campaigns.
3. Memberships
Finally, focus on your memberships. This might mean you need to expand your offerings and include both a limited and unlimited membership option. Keep in mind that the goal is to demonstrate that you have recurring revenue each month that can easily support the expenses of the business. It also allows you to better predict cash flow which makes it easier for potential buyers when assessing the value of your yoga studio.
Memberships also help demonstrate brand loyalty, which is vital when looking at the sale of a studio. As you’re beginning the sale process, be sure to nurture your members and new clients just as you would if you weren’t preparing to sell. If you want your business to thrive in a new owner’s hands, you want to make sure you hand over a well-run business with a happy client base.
Preparing your yoga studio for sale requires more than just sprucing up the space—it requires careful planning and an understanding of what future buyers are going to be looking for in a successful fitness studio. We understand the amount of hard-earned time and attention you’ve given your business and want to be sure the farewell feels good both emotionally and financially. With these tips in hand, you’ll be ready when it comes time to sell your beloved studio!
Telomere Consulting provides business consulting and marketing services to studio owners in the boutique fitness and yoga space. The Telomere team helps you navigate business strategy from conception to implementation. We provide end-to-end marketing support and would love to hear from you. Click here to book your free intro call. We want you to treat your business the way you treat your body – making the right choices now to optimize its potential for a long and healthy life. Visit us here to learn more.
