There is a point in every business owners life when they think about selling "the business". I have a friend informed me that he would like to get out of the MA business. He said he would probably put his business up for sale in the next year or two. He contacted me first since I talked about opening a place during a conversations. He said he would give me an opportunity to buy it before he put it on the open market. My question to all the Dojo owners etc is how do you dtermine what an existing dojo is worth. I have a business now that run fine but i just can't seem to put my finger on the worth of the business...
This is how it is now:
1. He leases a 2000 sq bld... net net lease
2. 75% 0f his student are under three year contracts
3. He charges $150 per month
4. He sells MA gear
5. He is open six days a week
6. I would assume he has about 150 student and adults
7. He has no inventory or assets except some heavy bags,mirrors, floor mats, chairs, desk and misc office supplies. Estimated value...$5000.00
I know to look at his W-2 to see his yearly income
If someone wanted to buy him out,the only price I can come up with would be the remaining time left on the open contracts plus the $5000.00 ?????? Can anyone help me out..
The way of the warrior does not include other ways... Miyamoto Musashi