5 mistakes to avoid when selling your studio
No question – right now is a challenging time to own a yoga studio. You may be considering selling your studio or simply closing your doors. But here’s the thing – now is not the time for rash decisions. When you consider selling your studio, you need to tap into your business mind. Think formulaically and scientifically – because there IS a science to a successful sale.
Truth→ Humans are wired to hold onto things. We don’t want to let go.
It is hugely important that you have an exit strategy. When should that strategy be put into place? From the beginning. You may be thinking, “Why would I think about an exit strategy when I’m so excited about opening a studio and living my dream?”
If you put yourself in the space of thinking about where you want to be five years from now, you may see yourself moving on from your studio. Knowing that you want to be in the place of selling a thriving studio helps you plan for that day. Every action you take in your business now should work toward the business you want to have five years from now.
“But I didn’t plan, Josh. And now it’s time to sell.”
Okay, so let’s talk about that. I get it. You didn’t plan for this year. No one could have. And now might be the time you need to sell your yoga studio. Some studio owners have simply locked their doors and walked away because they didn’t know what else to do.
It’s all about the plan.
The good news is that the market is slowly getting back to normal. We see more buyers coming back and they’re ready to buy. This means you need to be ready to sell.
We’re going to talk about five issues that will come up as you’re selling. Selling doesn’t always go smoothly. Be prepared for hiccups. Be ready for these issues and have a strategy.
Be ready to sell like a wizard.
Issue #1: Landlords
Your buyer may want to simply take over your existing lease. However, be aware that your landlord may have different plans and want to negotiate a new lease. Look out for this issue and keep communication open.
Issue #2: Outstanding Pre-Paid Packages
Members who purchase pre-paid packages are a great asset – for you. When you go to sell, however, the revenue from those packages has already been collected – by you. Realize that having a large number of outstanding packages will not be seen as a positive by your buyer – and have an answer ready.
Issue #3: Attorneys
If you are not using a licensed real estate broker, your attorney will play a larger role. Be aware, this can cause more issues as well as lead to higher costs for you. Things that a broker would take care of as part of their set fee will be charged to you by a lawyer at his or her hourly rate. It’s worth crunching the numbers and considering a broker, depending on your situation.
Issue #4: Cold Feet
There is a well known saying, “Time kills all deals.” Don’t keep your buyer waiting. The sale should move as quickly as possible – keep your buyer’s enthusiasm high! Any delays gives them a chance to look at other options, question how wise an investment is right now and generally get cold feet.
This is another time you need to begin with the end in mind. Before you enter negotiations, decide where you’re willing to give and when you’ll walk away. And stick to it. No matter what gets said in the heat of the moment.
Selling your studio will be emotional.
The reason you are selling your studio doesn’t matter. Whether you’ve planned for a sale or circumstances pushed you toward a sale, you’ll feel all the feelings. Be prepared for a roller coaster ride.
Selling your studio is a process. It will take time. Remember, until the sale is final, your studio is still your business. Do not mentally check out because you’re selling. You are the leader of your business – and business leadership means finishing strong!
For the super relevant information and the tools you need to run your studio, combined with the knowledge of our expert coaches and dedicated yogis check out the Yogapreneur Collective! Run an insanely profitable studio so you can change more lives (and earn a real paycheck)!