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Members Gymnasium & Health Club Business For Sale
Barrhead, Glasgow, Strathclyde, United Kingdom

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Financials
Asking price:£415,000
Furniture / Fixtures value:£65,000
Business description
SUMMARY
Asking price: £415,000

Sales revenue: £150,000 with potential earning capacity of £360,000

Net profit: £22,500 with potential earning capacity of £40,000


BUSINESS HISTORY
This health and fitness venture was established 2 years ago by the Owners as an addition to their existing core business.

The Owners have made significant investments into the business and the property has undergone a major refurbishment programme to be converted into a health club and gymnasium facility.

The property has an estimated the overall floor area of 740 sq m or thereby.

The Owners come from a fitness background and through their own interest, qualifications and experience in fitness and training, have developed a unique training facility which caters for both the masses and for those who are seriously interested in fitness.

PROPERTY AND EQUIPMENT

This East Renfrewshire business in Barrhead, Glasgow comprises of a three storey and basement building and adjoining two storey annex building to the rear.

The building has undergone a major refurbishment programme to be converted into a health club and gymnasium facility.

The property has an estimated the overall floor area of 740 sq m or thereby.

The accommodation may be summarised as follows:

Basement Area:
Hallway;
2 Gymnasium areas:
– Hammer Strength Gym – 12 pieces
- Large Free weights Gym – extensive range of benches, dumbells, disks, Olympic bars, X-cable, Smith Press and accessories.
Cellar and storage facilities.

Ground Floor:
Entrance Reception Area;
Member’s Lounge Bar - The ground floor of the building is a licensed café bar area. There is an entertainment license with a grant of regular extension of opening hours in place. A gaming permit is also in place under the current license holder and the preparation of hot food is approved.
Ladies & Gents Toilets.

Ground Floor Rear:
Ladies Gymnasium – “HUR” pneumatic ladies resistance equipment – 12 prices; Range of cardio, other resistance machines, mats, etc.

First Floor:
Cardio theatre – 22 pieces of cardio equipment, Life Circuit equipment – 12 pieces.
Ladies & Gents Toilets.

First Floor Rear:
Boxing gym – including 14ft boxing ring with extensive range of punch bags and boxing accessories, wall bars, mats, etc.

Second Floor:
Hallway;
Ladies dry changing area including Infra-red Detox sauna and lockers;
Ladies wet changing area with shower facilities and lockers;
Gents dry changing area with Infra-red detox sauna and lockers;
Gents wet changing area with shower facilities and lockers;
Meeting room;
Private office;
Treatment room;
2 Sun-bed rooms – x2 high powered down sun beds.

The above provides a brief summary of the gymnasium equipment, but a full itinerary of gymnasium equipment is available to interested parties.

The property also benefits from:

- CCTV security both internally and externally.
- A dual security and fire alarm system with 24 hour monitoring service.
- Large plasma screens satellite TV system.
- Music system which facilitates the café/bar and all gymnasium areas.

The property is currently assessed for local rating purposes at a rateable value of £30,204 per annum. The rates payable are 0.441 pounds in the pound.
General information
Years established:2
Employees:The business employs 2 full time staff members who work alongside the 2 owners being responsible for the day to day operations.
Trading hours:The facility is open 7 days a week: Monday - Friday 6:00am to 10:00pm, Saturday & Sunday 9:00am to 5:30pm.
Property
Freehold
Location
The property is situated close to the centre of Barrhead in an established trading position. The property occupies a prominent site within the town and is ideally situated to benefit from passing trade.

Barrhead itself is situated on the south western side of the city of Glasgow and is convenient to the M77 motorway and links to Glasgow city centre.

It should be noted that East Renfrewshire Council are currently promoting a £110,000,000 regeneration of Barrhead town centre and major residential property developments are planned adjacent to the gymnasium and its vicinity.
Expansion potential
Ladies only gymnasium – this area was only recently set up for Ladies within the gymnasium. This facility has not actually been marketed in any way and there is an opportunity to develop this part of the facility through local advertising. Retail – there is adequate space available within the facility to include a retail space which would provide increased turnover. For example to include a supplements shop with other sports goods would provide additional earnings. Catering – the café/bar does not currently provide any food and this is a significant area to develop which would provide further increased earnings. This could even be a rental opportunity for a third party and could be opened to non-members. Hire of licensed bar for functions – the current owners found that this was a very lucrative earning facility and feel that by marketing locally, this could be another avenue for increasing turnover. Corporate memberships – opportunity exists to target local business for corporate membership deals including business in Paisley which is only 3 miles from the gymnasium facility. Rental of free room space – there are two rooms which are available and could be rented to generate more income. Social clubs/nights for members – the social aspect of gym membership has not currently been developed and there is scope to build on the existing customer base on a social level. Slimming clubs or similar health promotion activities – opportunity to hire out café/bar or another gym area during quieter periods to offer further health services to both members and non-members. Classes – again, not developed and is a significant offering to members and non-members to increase the service being offered and in turn increase revenue levels. Expansion – the adjacent property is currently being demolished and is marked for residential and retail development. There is an opportunity here to expand into the adjoining building and offer further services. Key opportunities There are many opportunities which the current owner has not pursued and this is an outstanding opportunity to build on the existing business levels and customer base of this company. There is a very strong capacity to develop the range of facilities and significantly increase turnover and a new owner contributing fresh ideas will have every advantage of building on an excellent platform.
Competition / Market
The nearest competition to the business is the local council facility. Although this is close in proximity, it is not close in relation to the type of facility. The council facility is a general gymnasium and does not offer the extensive range of equipment or variety of training styles which is offers by this facility. The business has used various marketing methods such as local newspaper, radio advertising and leaflet drops. These activities have not been consistent and therefore there are excellent opportunities to increase these activities and to continue to invest in the club’s website to market the business more aggressively and to significantly increase turnover. A high proportion of the business's revenue has been due to reputation, word of mouth and internal referrals through existing member promotions.
Support & training
The current owner will provide all relevant contacts and membership details to allow continuity of trading.
Reasons for selling
As this business area is not the existing core business of the owner, the demands on time to develop the gymnasium and to continue with the core has demanded more of the owner’s time than anticipated and hence has chosen to leave this growing opportunity to a new owner. After a total of 3 years including the refurbishment of the property the owners now wish to concentrate on developing their core business activities. They fully believe that with the correct time to dedicate and with fresh ideas that the health club facility will prove to be a satisfying and worthwhile business venture.
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