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Take it or leave it alone
One of the locations of the pole studio I go to is looking for a new owner. The location is about 30min from my house – not too bad. Running my own studio has been a dream of mine for a few years but I made a very big promise to myself. I had to win a competition first before I started teaching/running my own studio. So far I have no titles to my name just yet. I would have to give up going for the client compeition since I would be an employee but there are plenty of other competitions out there that I could compete in.
I asked for more info – doesnt hurt to ask right? They are selling the location for almost 100k. The lease is up in Oct so I have to jump on it ASAP!!! Im paritally scared since there are some unknown variables but my heart is in the right place with this.
My husband is totally against me doing this since there could be a very big loss that comes with it. Plus we dont have that money just sitting around.
If I do get on this, where do I even start? Or should I wait until another time?
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10 Replies
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Hi Mini…do you know why the current owner is selling? Do you know what the lease and all utilities/extras are running? Do you know what the current studio is pulling in monthly? Would you have to quit your day job to run it? If it fails how bad of a position will your family be in. How much of the 100K do you actually have? What is the amount you need to make to cover all costs monthly (teachers fee's, insurance, rent, utilities, additional monthly bills, accounting/bank fee's, salary to yourself etc.). Is it a franchise and if so what is the franchise fee and how much leeway do you have in class style structure etc. Why do you want to own/run a studio? All of these questions will help you weigh out the pluses and minuses.
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yep what VB said 🙂
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Totally agreeing with VB. This is not a snap decision that can be made. Full discovery of everything she has listed needs to take place. Then and only then can you make an informed decision. Also, I know you have children….you have to take into consideration how this will affect them regarding finances and time you will have to dedicate to being a business owner.
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We (as in the clients – they offered us the opportunity first before they really sell it) were informed due to the owners personal reasons she has to leave. We all know that can be a broad amount of things.
I would have to quit my current job to run the studio ( there all classes from 10a to 7p Mon-Fri and 9a to 3p on Sat). I would also commit to being there for at least a year – that I can totally understand. They want some one there for the long haul. If this fails, im SOL big time. I dont think I could get my current job back (im a title clerk for a car dealer) but I could find another dealer to work with. That is the scariest part of making this decision.
I didnt ask for all the monthly numbers, I just wanted to get some initial info before I really started asking for more and looking for $ to fund it. I have NONE of that money they are asking for. I can put my car up for collateral for the loan but thats it. This is a franchised studio and they are willing to waive the transfer fee to sweeten the deal to the potential buyer.
Im not really to make a quick decision, Im still weighing out all my options. I actually talked to a good friend of mine who owns a franchised tanning salon (funny thing is we were both born on the same day) and asked her what its like for her. She brought up a good point, sometimes she does misses on alot of things b/c she has to work late since folks wont show/call out etc and shes very lucky she has a support system to help her out. She brought up some very good points. I think if im going to run and operate my own studio, I want more control on what I get to do. There arent alot of guest workshops, fun group outings and other things I would want to do with a studio. So I may just pass on this for now. I should just focus on my pole stuff and my personal accomplishments before I bring a full business into it.
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Think of impact on husband and children … if he's against it, it will be a sore spot, possibly destructive. Now is the age when the children need you available at home, and you hubby wants you there. You'll be strapped financially for a good ong time, and possibly financially devastated.
First, write a business plam! you'll need to for the loan anyway. And that will help you decide when the time is right.
Giving up a paying job in this economy … yikes! Because of the economy, people have less disposable income.
Plenty of studio owners have not competed, let alone won a competition. It's great that you set that goal for yourself, but is it really what you need? Maybe focus on getting a teaching certification first? Again, back to the business plan!!
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I would suggest not giving in to the sense of urgency. That is a lot of money so before you entertain buying the studio, you need to take a good hard look at the financials from when the business started to now and do this with an accountant. Also, buying into a studio you'd want to ensure there will be a seamless transition for customers, meaning the current owner would need to stay on board and train you on their systems (teaching, their site, scheduling, newsletters, marketing, etc) before leaving. Lastly, an asking price is just that…. when buying a business (or a car or a house, etc) NEGOTIATE. You'd be surprised how much you can save from a motivated seller. 🙂 Good luck with whatever you choose to do!
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Are you planning on buying the Xpose in Owings Mills? I really hope somebody buys it because it's the Xpose that i go to and i would hate for it to shut down. she said she was selling it cheap cuz she's just trying to get rid of it.
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If you are talking about the Owings Mills Xpose, I also think she's selling it because she was probably losing money by running it. she's not a very good business woman, although she tries to be. I think that for it to be more successful, there would have to be some changes to the way things are run. PM me for more info if this is the studio you're talking about. It sounds like it because she said the lease would be up around that time
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https://www.studioveena.com/users/view/bc9a8ce2-d89d-11df-ab19-12313b090e12 – your totally right about it being a sore spot. I joined Mary Kay in 2006, and I got so much crap for it all the way up until I was done in 2010. Im now more of a yes, hubby kind of wife. Avoid confrontation as much as possible.
I want to have a teacher cert under my belt but the only time you can do one around here is done by that studio- so id have to be hired. I want to do climb and spin but its alot of money to put up. I do want to do Angels cert as well. I think she provides alot of great info that sometimes doesnt get talked about.
Ive dont want to give into the urgency. I have alot going on in my life so I cant really put thinking about it on my top list. Between the earthquake and hurricane, the thought has been put off.
I think for me im ready for a new change. I like the job of have due to the people I work with. Im already in line for a promotion (im just waiting for the other person to quit/get fired which ever comes first) and we are opening and new dealer next door to us and I will be doing accounting for both dealers. Im just tired of the same routine (up at 4a, work by 6a, off at 3p to get the kids, help with homework, clean, cook, take oldest to cheer, in bed by 11-12p and repeat 5 days a week). Im also ready for a new challenge as well.
Yes, im talking about the OM Xpose. I just was trying to be very generic about it since I dont want to give out details that arent meant to get out, KWIM?
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I am a business owner myself and it it toally has to be a FAMILY decision if it is to work out. Our business affects not only me but definitely my husband and my children. Being a business owner comes w soomany responsibilities and stresses. I couldnt imagine even thinking about it unless my husband was onboard. If I were you- I would definitely WAIT. You need to knwo the numbers inside out- If the numbers are close and dont work out so well on emo- its your pocket that has to pay the difference (been there done that) That could possibly lead to resentment and destruction of your marriage if you dont have his full support ahead of time. ANyway- Just from experience – you need to know all the numbers will work at WORST case scenario (for me its occupancy- so I make sure I can still pay my bills w a 20% vacancy rate or I wont do it!) Otherwise you are buying a liability and that is NOT a good thing! THere are somany littel expenses you need to take into account- and need to know what they are all before considering. If its a time crunch decision- do yourself a favor and say no. If its meant to be, you will find a studio- w all your numbers (not just hope) you can share w your husband, get his full support – cause believe me you will need it no doubt. Otherwise its just not gonna be worth it. Being a business owner is EXHAUSTING! When it works its great- when its stressful- believe me you dont wanna loose your family and finances – unless you are sure inside out what you are getting into. I just know the stress involved w my husband supportve- If it fails he will be so full of resentment- its just not worth it without him! (my 2 cents) 🙂 You just need to know ALL the facts before doing somehting like this. ANother thing to keep in mind- not many business owners are iwlling to sell something "cheap" that is bringing in cash flow to them… there has to be a reaosn why besides personal. I have personal problems and would hire a manager before I gave up my cash flow from something I poured my heart, soul and sweat and time into.. Just a thought
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