You may BE AT A LOSS buying this cycling studio! 🚵‍♀️

This cycling studio is for sale for $250,000. They say they're doing a revenue about $350,000 per year and profiting about 50,000. When I see a profit around 50 to 100,000 a business typically, I think that they're probably not including the owner's salary. And if you actually take the owner's salary out, there's probably no profits at all. Now, the red flag about this listing is the fact that their lease is ending soon. And I'm a gym owner. And one of the biggest things you got to look at when it comes to owning a gym is the lease. It's really a real estate play because so much of your costs are fixed expenses when it comes to your lease and your equipment. So this listing requ a brand new location and build out costs of finding new location. Also, just the build up expense of a new facility could cost well over $100,000. So really, the $350,000 in revenue isn't guaranteed because they literally want you to move to a new location and find it. And when it comes to gyms, the vast majority of members only go to a gym within 5 mile radius of their house. So by moving the facility, you really put in jeopardy a large portion of these revenue. For me, this cycling studio is a no go.