When starting a personal training business, you might not have to start from scratch. Sometimes an opportunity will present itself where you are able to purchase an already established personal training business. In many ways, this is a great way to fast forward your business progression. However, there are certain things that you need to check before you rush in and sign your name on the dotted line. Purchasing a business needs to be an informed decision if it is to be truly successful. Here are a few things that you need to think about:
- Assess the business’s current value. This is usually largely determined by the business’s assets. However, it’s not always quite so simple. Make sure that you enlist the help of a business advisor, accountant, or attorney to make an accurate assessment.
- Determine the business’s future prospects. Here you need to look at the business history and determine whether it is likely to be successful in the future. Again, enlist the help of a business advisor, accountant, or attorney to ensure that you have a clear indication of the future prospects.
- Analyse the business’s financial records. You will need to determine whether the personal training business that you’re interested in buying is in fact financially viable. Important aspects of the financial records will include sales, costs, profits, assets and liabilities. As above, seek professional assistance for an accurate financial evaluation.
- Be aware of any associated Intellectual Property (IP) issues. You need to be aware of any IP assets that you might be buying such as trademarks, trade secrets and patents. Speak to your attorney for professional advice.
- Know which taxes apply to this business. As with many other aspects of buying a business, you will need to speak to your business advisor, accountant or attorney in this regard.
- Be aware of your legal obligations. Your legal obligations will be determined by the specific type and structure of the business. Speak to your attorney for more advice on your legal obligations.
- Know your obligations to existing employees. Again, speak to your attorney to ensure that you fully understand any obligations to existing employees in the business.
Make sure to read our next post which will look at what you need to consider if you are interesting in buying a personal training franchise.