Does your yoga studio, Pilates studio or boutique fitness use Class Pass?
If yes, keep reading.
Class Pass is an awesome tool for your fitness business because it helps you fill up non-peak times. It is also a great marketing and brand building tool.
If you are considering selling your business at any point in the future, we suggest that you use Class Pass in moderation. Too much Class Pass can negatively impact your business valuation for TWO main reasons.
First, if a good chunk of your business comes from Class Pass, that business is not really “yours”. It belongs to Class Pass. This means that a potential buyer might look at your customer visits and customer data and realize that they have a lot of business building to do.
Second, if your business relies too heavily on Class Pass, then you are exposed to fluctuations in Class Pass’s business. If Class Pass’s business isn’t going smoothly, your isn’t going to go smoothly either.
Class Pass is an awesome tool and many studios benefit from making Class Pass part of their business. That being said, think carefully about how you use Class Pass as you consider selling your business.
As always, reach out to us if you want to talk about selling your business. We’re here for ideas, advice and support.
