00:00:12another edition of ask Evan in today’s
00:00:14video I’m going to answer question from
00:00:16one Reuters Nicole who’s looking to buy
00:00:18a yoga studio and had some questions for
00:00:20me so she rodin dear Evan hoping I can
00:00:22receive your opinion all I can offer you
00:00:24is good karma in return I’m interested
00:00:27in taking over an established yoga
00:00:28school many of the existing students
00:00:30have already bought one month three
00:00:31month packages the seller is claiming
00:00:33that the purchase will not be affected
00:00:35by those and I just have to allow those
00:00:37students to finish whatever they
00:00:38purchase without any compensation to me
00:00:40this seems a little bit unfair what are
00:00:42your thoughts please I may be working or
00:00:44teaching for months before I see any
00:00:46money Nicole so Nicole that is part of
00:00:50the deal and it’s great that you
00:00:52discovered that before signing an
00:00:54agreement but if you’re unhappy with
00:00:56that part of the deal then you can try
00:00:58to restructure the deal and my two
00:00:59thoughts for you are one reduce the
00:01:02price so you know if you know that
00:01:04you’re not going to be making money for
00:01:05a while and he’s keeping the money
00:01:07that’s been paid even though he’s not
00:01:09delivering the services maybe you can
00:01:11knock a certain portion off the price of
00:01:13the deal if he’s unwilling to do that
00:01:15and you still really want to buy the
00:01:17business you can agree to that price but
00:01:20maybe stretch the periods out of when
00:01:21you actually pay him so for example you
00:01:24could say i’ll pay you fifty percent
00:01:25right now when i buy the business and
00:01:27then i’ll pay you twenty-five percent in
00:01:29a month and another twenty-five percent
00:01:31in three months and what that helps make
00:01:34sure is you have some money coming in
00:01:36before you have to pay all the money out
00:01:38to the guy you buying the business from
00:01:40so you might be able to change the
00:01:42structure the deal around a little bit
00:01:43but that you know could be part of the
00:01:45deal whenever businesses bought and sold
00:01:48there’s a million different things you
00:01:50can look at the structure it and so this
00:01:51is one of the things that you want to
00:01:52factor in I think it is a good idea
00:01:55though that there are these packages
00:01:57that are one month three months and
00:01:58hopefully longer as well because what it
00:02:00does is it gives you the opportunity to
00:02:02prove yourself as a yoga instructor
00:02:04teacher and I know when people are
00:02:06taking classes and from my own personal
00:02:08experience my wife is a salsa dance
00:02:09instructor has their own
00:02:11when people sign up to take class with
00:02:13somebody they expect to have that person
00:02:16delivering the classes and so if in the
00:02:18middle of the the class or what they
00:02:21purchase it changes a lot of people may
00:02:23drop off but if they’ve committed to
00:02:25buying one month a few months packages
00:02:27it pretty much make sure they’re going
00:02:29to want to come and can finish off their
00:02:31package and allows you to prove yourself
00:02:33as the instructor and will hopefully
00:02:35allow you to get those people to come
00:02:37back and want to sign up to take more
00:02:39courses with you I think that part is
00:02:41like a really good component of the deal
00:02:42and you want to try to encourage to sell
00:02:44more of those won a few month packages
00:02:46maybe even before you end up buying the
00:02:48business encourage the curler to try to
00:02:50do that as well so I hope that helps
00:02:52Nicole I also invited one of my friends
00:02:54Danny any from fire pull marketing I
00:02:57sent him your question and he had a
00:02:59little video response as well I’m going
00:03:00to turn it over to Danny now
00:03:11well Nicole if I understand your problem
00:03:15correctly you’re thinking about buying
00:03:17this yoga studio and some of the people
00:03:20for and some of the students of the yoga
00:03:22studio have prepaid their memberships
00:03:24and that money has been collected by the
00:03:26previous owner and so the previous owner
00:03:29doesn’t want to reimburse you that
00:03:30amount you just have to think about the
00:03:33entire package of what you’re buying
00:03:35let’s say they’re selling the yoga
00:03:37studio four hundred thousand dollars and
00:03:40they’ve got a hundred students have pre
00:03:42paid a hundred dollars a month for one
00:03:44month so that’s ten thousand dollars you
00:03:46just have to figure that into the
00:03:48purchase price it’s really that you’re
00:03:49buying the yoga studio for a hundred and
00:03:52ten thousand dollars and is it worth it
00:03:53at that price and that’s for you to
00:03:57decide one thing i would consider though
00:03:59is that usually especially the smaller
00:04:01yoga studio people don’t have a
00:04:04relationship just with the studio they
00:04:05have a relationship with the instructor
00:04:07that teaches their class so if the
00:04:09instructors stay is that’s one thing but
00:04:11if the previous owner is the instructor
00:04:13and you’re taking over you might find
00:04:15that you lose at least a portion of
00:04:17those students and so you’ve got to
00:04:19figure that into your projections as
00:04:21well and you figure out whether or not
00:04:22this business is worth acquiring so
00:04:25nicole i hope that’s helpful if you have
00:04:27further questions you can post them
00:04:30where you posted your first question or
00:04:32you can contact me directly at fire pole
00:04:34marketing com thank you very much and
00:04:37I’ll see you all on the next video
00:04:41so I hope that helped nicole i hope what
00:04:44I said was useful and I hope Danny’s
00:04:46words of wisdom also proved to be useful
00:04:48as well and you have some ideas to go
00:04:50home and make a decision on before you
00:04:52go and buy this business if you guys
00:04:54liked the video please give a comment
00:04:55below I love hearing what you guys have
00:04:57to say and I also love seeing thumbs up
00:04:59on all the videos it makes you want to
00:05:01make more of these types of videos for
00:05:02you guys so hopefully you’ll do that and
00:05:04we’ll see you for the next episode
00:05:16you
”