Selling your dance studio is quite difficult because it caters to a niche market. Unless you are willing to sell your dance studio to fellow dancers, there isn’t really that big a market for a dance studio. You need to know that the person buying your dance studio will still be able to continue the work you put into it. There is a reason why there are no dance studio chains nationwide and that is because as a part of the arts, dance studios are very personal and are often tied to the founder themselves.
Below are a few tips on how to successfully sell off your dance studio.
- Prepare your documents. One of the first things prospective buyers look for are legal documents proving ownership. You need to pull up your lease contracts, financial records, a list of assets and liabilities, employee records, tax returns dating back to at least three years. All of these will show prospective buyers that you are a legitimate business and will give them a good idea on the financial viability of your dance studio.
- Prioritize buyers from within the industry. Try to find buyers from within the dance industry. Dancers know the real value of a dance studio and will how to grow the business. Dancing comes from passion therefore only dancers will have the passion to continue and grow the studio after you sell it to them. You can let your fellow dancers know about your intention to sell your studio and you can set up meetings with them. Some dancers may pool their money together to buy your dance studio so be prepared to deal with a consortium of dancers wanting to buy your studio.
- Hire a broker. At the end of the day, a dance studio is still a business so you may want to hire the services of a broker to help you facilitate your sale. Brokers may have the necessary contacts to help find you people who are interested in owning a dance studio they can buy off you. Most brokers will require a fee for their services so be prepared to shell out.
- Interview extensively. Once your prospective buyers come, you need to hold in-depth interviews to learn how much they understand about the dance business. Will they continue the type of dancing you taught at your studio? Will they incorporate other styles? Who are they getting to run the studio after they purchase it? These are pertinent questions you need to ask prospective buyers, as they will determine the kind of legacy your dance studio will leave behind.
- Take a good price from it. Don’t get too greedy or don’t sell to cheaply. If your broker has done their job properly, they will have negotiated a good price for you to sell your studio. If it is a good enough amount where you would have turned a profit, take the offer. Never drag out a negotiation out too long as your prospective buyer may lose interest in your studio and end up buying a different one.