Small business opportunity. What ya'll think?
I have been approached about a business venture and have been thinking about it very seriously.
The business is my local fitness center, which I would have never thought about unless it would have been offered. The business is an established business that is running at a 20% operating profit with alot of room to grow with some good managment and planning. Currently, the manager runs the place and the owners have no involvement at all.
The business makes enough money to pay for a 100% finance loan and then some more. That is actually only counting on taking out 50% of the profit for the loan payment. The price of the business is 3.5 times the annual profit dallars which is very cheap from what I have found.
Another plus is that they are paying a huge amount of rent on a building and there is enough money in the operating budget to build about a $300,000 dallar facility without changing op profit. So, that would probably be a priority in the near future.
Another thing is that I can buy half or the entire business. Both options have obvious ups and downs. The other partner is someone that I have known for several years and is a very good guy that is pretty hands off since this is not his primary business.
Give me any thoughts you have. I am pretty excited about the opportunity and I have been waiting for something like this to come along. Any input is welcome.