Sports
Businesses For Sale

Buying a Sports Business

The sports business industry is a booming one. In fact, sports are the most popular form of entertainment in America and sports-related industries make up more than 5% of the country’s GDP.

This makes sports businesses for sale a hot commodity on the market today. If you’re looking to buy a sports business, then this will hopefully give you some helpful information about what to look for in your future company!

What Are the Different Types of Sports Businesses?

• Sports equipment for sale
• Sports management businesses
• Sports training companies
• Sports venues and stadiums

There are many different types of sports business on the market today, all with their own benefits to offer. Businesses in the sports niche tend to take the form of service businesses. It might be a retail store, a bike shop, or something similar.

Some will be more attainable than others; I’m sure that we’d all like to own a golf course!

However, under this, there is a whole range of businesses available in all different types of price ranges. You could even own an online business which is increasing in popularity.

Here are some of the most popular online business models:

Physical items will be available through Amazon FBA, dropshipping, and e-commerce businesses. This doesn’t mean you must store items in your garage; instead, most come with third-party solutions that allow you to never handle inventory.

This can assist you in devoting more time to promoting your company.

Content sites are blogs that typically make money through affiliate marketing and display advertising. Every time someone clicks on your article or you refer them to a product you could be earning a commission.

SaaS (software as a service) is a business model that provides subscription-based software to customers on an ongoing basis.

Most SaaS solutions are web-based, allowing you to use your product or service from numerous devices. This makes them extremely popular among consumers and purchasers.

How Profitable Are Sports Businesses?

Sports businesses can be hugely profitable if they’re done right. This is why investors often find it preferential to buy businesses that are already established.

It’s also why they like to buy established businesses as they are turn key businesses that will produce cash flow from day one.

You’ll probably be surprised to see the range of profit of businesses for sale in the sports niche. It could be a few hundred dollars a month, all the way up to multiple millions.

Remember, you’ll want to choose something that’s scalable as increasing the profitability of the business also means you sell for a profit down the road. Keep an eye on the profit margin also, if it’s too thin, one issue and you risk losing money.

How Much Will a Sports Business Cost?

The cost of sports businesses for sale will often be different depending on what sub-niche you’re looking at.

On average though, sports businesses can range anywhere from a few thousand dollars right up into the millions for a high-end business! Once again, this is highly variable but whatever your budget you should be able to find something.

When purchasing a brick and mortar business you have to factor in the overheads of things like real estate (the more square feet, the more it typically costs), equipment, and any specialist employees you’ll need.

The location also comes into play, there are places where real estate is more expensive, such as Los Angeles. A great location with a high volume of people usually means that you’ll be paying more.

With an online business, you have a bit more room to maneuver as there are fewer overheads. The prices are also less variable as online businesses aren’t location-based and can be run from all over the world.

Typically, profit-producing online businesses will be priced in the five-figure range and above, while physical stores will start in the six-figures and up.

If your budget is on the lower end then you might have to be prepared to be more hands-on and take more of an owner-operator role. But, this can still make for a great opportunity if it’s the right fit for you.

If you have a higher budget, high-quality businesses that have teams become more on your radar. It also opens the door to potentially buying into a franchise opportunity.

The current owner may accept an offer that’s lower than the asking price. If you’re not familiar with deal structuring, this is something business brokers can help with.

A full-service brokerage can also help with vetting and finding new listings that represent good business opportunities for your skillset.

Can You Run a Sports Business From Home?

Sports businesses tend to need specialist equipment or particular locations which means they’re not the best business model to be home-based. However, sports businesses are popular because they’re profitable.

If you want to work from home you’ll have to buy a business that already has a team attached to it. That way, they can run things for you while you spend more of your time away from the business.

Alternatively, you could buy an online sports business. These are easier to run because they don’t require any commercial premises. This means you won’t need to commute anywhere or build a team up in a particular area.

They also tend to be less time-consuming because you can outsource things like content creation and product packaging easily.

How To Find the Right Business For You

You have a lot of options to weigh up when it comes to purchasing a sports business.

• The sports they specialize in (if you don’t know about it, make sure it’s something you don’t mind researching or hiring someone who does specialize in it).
• Their current income and expenditure
• Is it seasonal? (Sports businesses often are)
• Social media following and email lists
• The number of products and how are they distributed? (if there are any)

Take all of this and more into account. Buying a business is a big decision but there is an active market for businesses in the sports niches.

Comparing Online Businesses to Brick and Mortar Businesses

The location of a company is another distinction between an online business and a traditional one. Traditional companies must be centrally located, but internet-based firms may operate from anywhere with access to the internet.

Online enterprises also tend to be more scalable since they may reach out to a much larger number of customers and sell 24 hours a day, 7 days a week.

The most significant benefit is that internet businesses may be established with less capital and make use of underutilized areas.