Scaling Through Acquisition: Is It Viable For Spa and Gym Owners
Have you thought about an acquisition for your spa or gym?
50% of businesses fail within the first five years of operation.¹ This is why most startups look for creative ways to grow their company. After all, innovation is often a great way to survive formative years.
Expanding a startup organically, however, comes with a variety of challenges. The main one is that the growth process is very slow. Acquiring existing businesses is a faster alternative and comes with a defined customer base. So, should you scale your business through acquisition?
Advantages of Scaling your Whole Body Cryo Chamber Business through Acquisition
It Accelerates Business Growth
An average American business grows at about 15% per year.² This is very slow and results in slow market penetration. Acquiring a whole body cryo chamber business ensures faster growth. Consequently, it allows you to double your business assets and customers without investing much. If the other business is already established, it also comes with a reputable brand name.
A Less Expensive Growth Method
Organically growing your business over time is very expensive. You have to spend a lot to improve business value and gain a customer base. There are also expenses such as talent acquisition, marketing, buying a cryotherapy machine, etc. This could take a toll on you. Buying an existing business may cost more upfront but is cheaper in the long run. You can also take advantage of the existing efficiencies to achieve faster growth.
Ease of Product Diversification
Health and fitness are one of the most competitive industries today. Thus, the best way to keep your business successful is by employing product diversification. This involves creating & integrating complementary services and bundling related ones. Thus, you’ll gain a unique edge and end up achieving competitiveness faster.
Reduced Risk of Failure
You'll be buying into a cryotherapy product that has already been tested in the market. The previous owner has made most of the formative mistakes, so you only have to focus on business growth. You will therefore have a reduced risk of failure.
Enhanced Marketing Synergy
Acquiring related businesses allows you to cross-sell and upsell your services. The two businesses can refer customers between them, increasing their profitability. Consequently, customers in your spa or gym may want to try cryotherapy and vice versa. Directing them to your other business helps you earn extra revenue.
You can also launch joint marketing campaigns for the businesses. For instance, you could appeal to clients by offering discounts on one service if they buy from your other business.
Grow your Wellness Business by Acquiring a Whole Body Cryo Chamber Company
Achieving business growth organically is a slow and expensive process. You can, however, achieve an easier and faster expansion of your brand through business acquisition. You also enjoy benefits such as product diversification, marketing synergy, and a reduced risk of failure.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
Entrepreneurship and the U.S. Economy - https://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm
2013 Pacific Crest SaaS Survey- https://www.forentrepreneurs.com/2013-saas-survey/
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