How to Sell a Yoga Studio

1. Spread the word

As a yoga studio owner, you need to tell others about your decision to leave the business. Ask your instructor friends if any of them wants to take over. You can also tell your students. They might know prospective buyers even if they are personally not interested.

Also, as an entrepreneur, you probably know other people within the small business community. You might regularly go to networking events. Your social circle might also naturally be comprised of other business-minded people. See if any of these individuals are interested in buying a yoga studio.

2. Consider using a business broker

Yoga studio owners can hire a business broker to help with the selling process. There are many benefits to using a broker. For one thing, business brokers make sure the selling process stays confidential. There might be negative ramifications if word gets out. For example, employees will be worried about losing their jobs. Hopefully, the new owner will keep them around. However, there is still uncertainty. This uncertainty will keep employees preoccupied during the day. This might affect the quality of their interactions with students. Therefore, maintaining confidentiality throughout the selling process is important.

In addition, business brokers can act as advisors during the selling process. After all, they have experience selling many small businesses.

Brokers can help with the valuation process to ensure the yoga studio gets sold at a good price. They can also let yoga studio owners know about the paperwork they must fill out to legally transfer ownership of the business.

3. Understand what buyers want

Yoga studio owners know why they are selling the business. However, there are a few reasons why someone might buy a yoga studio. For example, they might have a yoga business of their own and simply want to expand. They might be a new player in the yoga space and think buying an existing business is better than starting from scratch. After all, existing yoga studios have a client base and a well-established brand. Creating these things from scratch might take years.

By understanding what buyers want, yoga studio owners can prepare for questions ahead of time. For example, if buyers want to analyze the scalability potential of the business, then sellers can go over the studio’s profit margins and revenue growth over time. They can talk about the number of students the studio currently has versus five years ago. They can visualize data by providing potential buyers with reports and charts. This can help convince buyers to take the plunge.

4. Conduct interviews with potential buyers

Ideally, you want someone already in the yoga space. If possible, look for someone interested in adding a location to their yoga studio brand. The transition will be smooth since they already know how to operate the business. You want the culture of the yoga studio to remain intact. You do not want your students to feel as if they are in an unfamiliar place.

5. Be transparent

You need to be honest about why you are selling the yoga studio. Is it simply because you are relocating somewhere else, and the yoga studio is something you cannot take with you? Buyers love this reason if the studio is a profitable business. They would be happy to acquire a money-making enterprise.

However, the story changes if the business is struggling and you are losing money. If this is the case, then finding a buyer might be difficult. How can someone else turn a profit when you have been unable to do so? Do you have any suggestions? Nevertheless, you need to be honest to avoid misleading people. Buyers might pursue legal action if they feel tricked.

6. Talk about finances

Potential buyers want to understand the yoga studio’s accounting. Talk about revenue and expenses. Does the company have any debt? What about investors? Does anyone else have an equity stake in the company? Talking about finances will help the buyer and seller agree on a fair price.

7. Transfer digital assets

Most yoga studios today have an online presence. They use email to communicate with students in between each session. They post pictures and videos on Instagram and Facebook. They might even have a YouTube channel where they upload footage of classes. The seller must make sure the new owner has access to these accounts.

8. Notify suppliers

Many yoga studio owners sell products within the yoga space. For example, they might sell yoga mats, bolsters, and blankets. They sell these products directly to students. They may also have an online store where they sell products to everyone else. The new owner must be introduced to suppliers if he or she wants to continue this area of the business. The outgoing owner can make the necessary introductions. In addition, the outgoing owner can tell the new owner about best practices. For example, they can talk about when it is a good time to reorder products to ensure nothing goes out of stock. They can also talk about how to resolve shipping issues.

9. Notify utility companies

Yoga studios have electricity and access to water. The billing information for these utilities must be changed now that the yoga studio is being sold. If applicable, the outgoing owner should turn off autopay. The new owner must find out whether she needs new accounts. Or can she simply use the existing accounts for the studio? If so, then she must be provided with the login credentials.