Dance Studio

0:00I have a dance school, two locations. >> Wonderful. >> We do 2.7. Aiming for 3 mil this year. Constraint will be space. >> Is that just what's stopping you? Is just getting another location? >> Next step in scaling at that point is I don't want to franchise. I think it's acquiring studios and then sell the whole thing. >> What size exit? >> At least 20 mil. >> So, do you want what you want to hear or the truth? >> Truth. I want the truth. >> The hardest amount of money to sell for is between 10 and 30 million.

0:27Because it's just not big enough for people who have real money and it's too big for people who don't have real money. >> Interesting. >> If you wanted to just do this forever, then I'd say like just keep growing. That's amazing. That's fine. But most people make this work in a franchise model. I understand the nature of the business obviously pretty well. They're very hard to sell for a lot of money. You can offload them real easy. I mean, I know a lot of people in the fitness world um who have five locations, 10 locations. I don't know one who sold the whole thing. Every one of them piecemealed it, one to a trainer, one to a customer, one to a competitor, one like they had to break the whole thing up when they got tired.

1:00Honest truth is, the franchise and/or licensing is for sure more sellable. If you look at your current business model, look at your most profitable times, look at your most profitable pricing and packages and say how could I cut down the complexity by 80%? Like how could I get this to the fewest possible people who could run this so that I could open up basically somebody else could do this and then franchise it. That is the most likely path to the goal that you have. I'm not saying it's easy, but it's the most likely path to where you want to go.