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kiniyogini

Selling My Yoga Studio To Pursue ‘Other' Dream

6 posts in this topic

After fifteen years of owning my own yoga studio, I’ve decided to go back to school on the east coast and pursue a long lived dream of earning a PhD. I’m heartbroken because I love living in California, especially the seaside community that I teach out of. And I will miss my yoga students - we’ve become a close and supportive community over the years.

 

I’m afraid that if word gets out that I’m selling my business, some of my students will lose their trust and go somewhere else, so I’ve decided to look for potential buyers secretly. My broker is listing the business with very vague terms, but the downside is that many of the studio’s great features are kept hidden. It’s a conundrum I can’t seem to get around.

 

I’ve thought about selling my studio to my teachers, whom are great at what they do, but they don’t have the desire nor knack for running a business. Besides, I don’t want the competing studios to find out...word gets around fast.

 

What are my best options for advertising my studio to the most qualified people as possible without getting the word out to the general community? How do I know I’ve found someone who I can trust to run the business as successful or more so than me?

 

This has been very difficult time for me and I’d appreciate any help I can get.

 

Thank you,

 

Kini Yogini

 

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Hi Kini Yogini,

 

first of all, congratulations on your decision to pursue your dream of earning a PhD! I admire your determination and courage to leave something you love and feel comformtable with for another dream and a new challenge. Many people could learn from you!

 

I don't know your situation but I believe honesty is always better than secrecy.

 

You said you are very close with your students and have a supportive community. Why not be honest with them and let them know about your plans? I'm sure they will understand and support you. They trust you, so they know you will find the most qualified person possible to buy your studio. Maybe one of your students even knows somebody who would like to buy your studio.

 

This is only my humble opinion, I've never been in the same situation as you.

 

I hope this helps a bit!

 

All the best

 

Julia

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Hi there! Aw, my heart breaks for you, as I seriously feel like I can sense the sadness through your post. But I am so happy for you that you've decided to pursue your dreams. 

 

I have seen on yoga studios for sale on yogafinder.com - that might be an option. 

 

Would it possible to hire a manager to run the studio while you're away? Wish I were in California, I would do it! Maybe put an ad on craigslist or something similar and as people call in you could explain the situation in more detail. 

 

A part of me also agrees with Julia above - I think honesty is the best policy, but I understand the fear that other studios might sweep in and take your members. That being said, you have already earned their trust, you have developed a beautiful community of people, and there might be someone within your community who would be willing (and able!) to step in and help out or perhaps knows of someone who may be interested in buying it. 

 

Do keep us posted as to what course of action you take. Wishing you the best

Julia and Yogabliss like this

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Wow, this is some really great advice. I'll check out yogafinder.com and give it a try. Yes, I will keep you posted with any new updates. Thanks again for the help.

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Kini - way to go, embracing change and being willing to pursue your dream, I admire that. I'll give you a couple of thoughts on the process as in addition to loving yoga and all it does for me and others I'm also a CPA and lawyer who deals with a number of transactions each year for clients buying and selling their businesses.

 

One of the most important things is determining a realistic value for your business, one that treats you fairly for what you have built and also gives the buyer every chance to succeed. The typical yoga studio has much of its value in its teachers and student relationships, the more the better value you can justify (assuming the business has good cash flow). Related to the value is how the buyer will finance the acquisition. Not very many buyers come to the table with cash. Financing a yoga business (or any other business for that matter) has been difficult for many buyers. Many of the transaction I've seen over the last few years require seller financing, which isn't something you normally want to do. Occasionally the seller can work with their bank, who knows the business, to set up a financing package for a qualified buyer. A transaction with the price on the high side of fair requiring all cash from the buyer will generally take longer to accomplish which makes it challenging to keep confidential the possible sale.

 

When you know you have a fair price set and how the purchase can be financed by your potentional buyer you'll be better equipped to know what avenues to pursue in marketing the business and how long it might take. There are hundreds of articles out there on the process if you are tackling this on your own. Sounds like you might have a broker involved. If you do make sure you understand whether you'll owe them a comission even if you sell the business yourself - generally you will.

 

I know this wasn't very detailed, I've written an eBook on the process and produced a number of videos that you are free to look at. I'll be happy to answer any questions you have. Just like to help out here if I can. Most of the yoga teachers I know aren't making "big bucks" so I try to help them out whenever I can. Perhaps you can check out some of the articles or videos out there or just ask me more specific questions here. I hope it comes together quickly for you and that you can pursue your dream!

 

Steve

YogaByCandace likes this

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Hi! I just read your post and I am currently in the same position now. Where you able to sell your studio? Any insight you can share?

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