{"id":28068,"date":"2023-07-28T11:47:45","date_gmt":"2023-07-28T11:47:45","guid":{"rendered":"https:\/\/usekilo.com\/?p=28068"},"modified":"2024-11-13T19:19:19","modified_gmt":"2024-11-13T19:19:19","slug":"how-to-run-four-7-figure-gyms","status":"publish","type":"post","link":"https:\/\/usekilo.com\/how-to-run-four-7-figure-gyms\/","title":{"rendered":"How to run FOUR 7-figure gyms"},"content":{"rendered":"\n<p>Gym World, I hit two PR\u2019s this week.<\/p>\n\n\n\n<p>The first: an 11mm L4-L5 disc herniation. That\u2019s a 4mm PR \ud83d\udc80.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"472\" height=\"1024\" src=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/IMG_1155-472x1024.jpg?strip=all&lossy=1&ssl=1\" alt=\"\" class=\"wp-image-28069\" title=\"\" srcset=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/IMG_1155-472x1024.jpg?strip=all&amp;lossy=1&amp;ssl=1 472w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/IMG_1155-138x300.jpg?strip=all&amp;lossy=1&amp;ssl=1 138w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/IMG_1155.jpg?strip=all&amp;lossy=1&amp;ssl=1 498w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/IMG_1155.jpg?strip=all&amp;lossy=1&amp;w=320&amp;ssl=1 320w\" sizes=\"(max-width: 472px) 100vw, 472px\" \/><\/figure>\n\n\n\n<p><em>If you have any tips for getting my disc back into my spine, reply to this email &amp; let me know.<\/em><\/p>\n\n\n\n<p>The second: this viral tweet that got over 12k likes and 1M impressions. I guess the rest of the internet hates morning routine videos as much as I do.<\/p>\n\n\n\n<blockquote class=\"twitter-tweet\"><p lang=\"en\" dir=\"ltr\">I love these morning routine videos by 23-year-old \u201cproductivity experts\u201d with no real-life obligations.<br><br>Oh wow, you wake up at 6am, stretch, drink coffee, AND read a book?!<br><br>GTFOH.<br><br>I want my productivity advice from a working Mom with 4 kids and no childcare.<\/p>&mdash; John Franklin (@JohnIsBuilding) <a href=\"https:\/\/twitter.com\/JohnIsBuilding\/status\/1684188169267191810?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">July 26, 2023<\/a><\/blockquote> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n\n\n\n<p>Now, back to our regular programming.<\/p>\n\n\n\n<p>This week I sat down with Matt Wilber.<\/p>\n\n\n\n<p>Matt was&nbsp;<a href=\"https:\/\/fitbodybootcamp.com\/leadership-team\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fit Body Boot Camp<\/a>\u2019s star franchisee. Pre-COVID, he had 10 locations and four were doing 7-figures a year.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"800\" height=\"533\" src=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-2.jpg?strip=all&lossy=1&ssl=1\" alt=\"\" class=\"wp-image-28070\" title=\"\" srcset=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-2.jpg?strip=all&amp;lossy=1&amp;ssl=1 800w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-2-300x200.jpg?strip=all&amp;lossy=1&amp;ssl=1 300w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-2.jpg?strip=all&amp;lossy=1&amp;w=160&amp;ssl=1 160w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-2.jpg?strip=all&amp;lossy=1&amp;w=480&amp;ssl=1 480w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-2.jpg?strip=all&amp;lossy=1&amp;w=640&amp;ssl=1 640w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p>Since then, Matt left the franchise and started his own fitness concept with 4 locations in West Michigan.<\/p>\n\n\n\n<p>Today, we\u2019ll highlight why his franchises outperformed other FBBCs and why he pivoted to a different concept.<\/p>\n\n\n\n<p>Let\u2019s dive in.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Scaling to 10 locations<\/h2>\n\n\n\n<p>Matt went from 1 to 10 locations in 7 years. Three things helped him scale quickly:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Marketing hard<\/h3>\n\n\n\n<p>Matt grew his locations using challenge-based marketing. He was operating his FBBCs during the glory of years of&nbsp;<a href=\"\/making-100k-mo-from-one-facebook-ad-campaign\/\" target=\"_blank\" rel=\"noreferrer noopener\">Facebook ads<\/a>&nbsp;where you could get people to show up at your gym for under $20.<\/p>\n\n\n\n<p>Few gym owners understood the opportunity and Matt capitalized on that. He said at the peak, one of his 5,000 sq. ft locations had over 800 members.<\/p>\n\n\n\n<p>A few of you probably ran New You Challenges during this time and understand how you could absolutely pack out a gym if you had the right marketing.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"486\" height=\"451\" src=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__22_.jpg?strip=all&lossy=1&ssl=1\" alt=\"\" class=\"wp-image-28071\" title=\"\" srcset=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__22_.jpg?strip=all&amp;lossy=1&amp;ssl=1 486w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__22_-300x278.jpg?strip=all&amp;lossy=1&amp;ssl=1 300w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__22_.jpg?strip=all&amp;lossy=1&amp;w=160&amp;ssl=1 160w\" sizes=\"(max-width: 486px) 100vw, 486px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">2. Accessing cheap real estate<\/h3>\n\n\n\n<p>If you want cheap real estate, West Michigan was the place to be. Matt said he was able to open his first location with $30,000 and his second location for $150,000. Since he could fill a gym quickly with paid ads, it didn\u2019t take long to save up enough cash to open another location.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Hiring constantly<\/h3>\n\n\n\n<p>If you want to open a lot of gyms fast, you need a system for hiring good talent. Here\u2019s how Matt approached hiring:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Phantom equity:<\/strong>&nbsp;The hardest hire for any gym is a GM\/operator. You really need someone that acts like an owner. Matt gave his operators phantom equity, which basically means they get to keep a share of profits as long as they work at the facility.<\/li>\n\n\n\n<li><strong>Internship program:<\/strong>&nbsp;Matt formed a partnership with a local university. They hire about 20 exercise sci majors for their internship program each year, and the best interns get offered a job.<\/li>\n\n\n\n<li><strong>Outbound:<\/strong>&nbsp;Matt befriended GMs and coaches at other gyms in the area and would reach out to promising candidates when he had jobs available.<\/li>\n<\/ul>\n\n\n\n<p>He also had edge. He offered a salary and benefits, and because the company was scaling so fast there was clear opportunity for advancement, which helped him stand out in his market.<\/p>\n\n\n\n<p>By the end of 2019 Matt had 7 profitable locations. That\u2019s when he was given the opportunity to take over 3 struggling franchises.<\/p>\n\n\n\n<p>Matt had a winning formula, so his gut feeling was to pass on the opportunity. He ended up buying them.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><\/p>\n<cite>Success breeds confidence in entrepreneurs, but sometimes a hot streak creates over-confidence, which has killed a lot of great fitness businesses.<\/cite><\/blockquote>\n\n\n\n<p>Shortly after Matt took over the new gyms, the COVID lockdowns started, which decimated his revenue. The economics of an FBBC only work if you pack out the classes.<\/p>\n\n\n\n<p>In addition to losing most of his revenue, he had:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An entire facility quit on him<\/li>\n\n\n\n<li>A blow out fight with an operating partner<\/li>\n\n\n\n<li>A difficult time hiring staff<\/li>\n<\/ul>\n\n\n\n<p>Something had to change.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Breaking up with FBBC<\/h2>\n\n\n\n<p>For the next few years, Matt worked on creating a more resilient business.<\/p>\n\n\n\n<p>He closed the 3 struggling studios and sold 2 other ones.<\/p>\n\n\n\n<p>He also started experimenting with&nbsp;<strong>small-group training<\/strong>.<\/p>\n\n\n\n<p>With a small group model he could sell higher ticket services, which could be fulfilled with fewer staff members. One problem: FBBC doesn\u2019t allow its franchises to do small group training.<\/p>\n\n\n\n<p>So Matt left the franchise and started his own concept,&nbsp;<a href=\"https:\/\/tranzformfitness.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tranzform<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"461\" src=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2-1024x461.jpg?strip=all&lossy=1&ssl=1\" alt=\"\" class=\"wp-image-28072\" title=\"\" srcset=\"https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2-1024x461.jpg?strip=all&amp;lossy=1&amp;ssl=1 1024w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2-300x135.jpg?strip=all&amp;lossy=1&amp;ssl=1 300w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2.jpg?strip=all&amp;lossy=1&amp;ssl=1 1234w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2.jpg?strip=all&amp;lossy=1&amp;w=160&amp;ssl=1 160w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2.jpg?strip=all&amp;lossy=1&amp;w=480&amp;ssl=1 480w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2.jpg?strip=all&amp;lossy=1&amp;w=640&amp;ssl=1 640w, https:\/\/exbs4efnfp8.exactdn.com\/wp-content\/uploads\/2023\/09\/Untitled__21_-1-2.jpg?strip=all&amp;lossy=1&amp;w=800&amp;ssl=1 800w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p>Matt says the transition from large group to small group was ROUGH. He said he lost about $20k of monthly recurring revenue per location.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><\/p>\n<cite><a href=\"https:\/\/www.youtube.com\/watch?v=KdPZ2tEUHRg\" target=\"_blank\" rel=\"noreferrer noopener\">Brian Bott<\/a>&nbsp;has mentored a ton of gym owners running small group models. He says pivoting from large to small group is incredibly difficult once large group is already the established model.<\/cite><\/blockquote>\n\n\n\n<p>If Matt had to do it again, he says he\u2019d do a slower transition to avoid a mass exodus of members.<\/p>\n\n\n\n<p><strong>Side note:<\/strong>&nbsp;I think we\u2019ll see more CrossFit gyms running a small-group training model.<\/p>\n\n\n\n<p>Plenty of box gym owners average less than 6 people per class, so they\u2019re already doing small group BUT they\u2019re charging large group prices.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><\/p>\n<cite>The average small group membership is about 3x the cost of a large group membership.<\/cite><\/blockquote>\n\n\n\n<p>For most gyms, pricing their service properly will be easier than doubling or tripling membership.<\/p>\n\n\n\n<blockquote class=\"instagram-media\" data-instgrm-captioned data-instgrm-permalink=\"https:\/\/www.instagram.com\/p\/Cuo3iCOs4Lg\/?utm_source=ig_embed&amp;utm_campaign=loading\" data-instgrm-version=\"14\" style=\" background:#FFF; 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font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:550; line-height:18px;\">\u041f\u0440\u0438\u043a\u0430\u0436\u0438 \u043e\u0432\u0443 \u043e\u0431\u0458\u0430\u0432\u0443 \u0443 \u0430\u043f\u043b\u0438\u043a\u0430\u0446\u0438\u0458\u0438 Instagram<\/div><\/div><div style=\"padding: 12.5% 0;\"><\/div> <div style=\"display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;\"><div> <div style=\"background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);\"><\/div> <div style=\"background-color: #F4F4F4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;\"><\/div> <div style=\"background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);\"><\/div><\/div><div style=\"margin-left: 8px;\"> <div style=\" background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;\"><\/div> <div style=\" width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg)\"><\/div><\/div><div style=\"margin-left: auto;\"> <div style=\" width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);\"><\/div> <div style=\" background-color: #F4F4F4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);\"><\/div> <div style=\" width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);\"><\/div><\/div><\/div> <div style=\"display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;\"> <div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;\"><\/div> <div style=\" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;\"><\/div><\/div><\/a><p style=\" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;\"><a href=\"https:\/\/www.instagram.com\/p\/Cuo3iCOs4Lg\/?utm_source=ig_embed&amp;utm_campaign=loading\" style=\" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none;\" target=\"_blank\" rel=\"noopener\">\u041e\u0431\u0458\u0430\u0432\u0430 \u043a\u043e\u0458\u0443 \u0434\u0435\u043b\u0438 John Franklin (@johnisbuilding)<\/a><\/p><\/div><\/blockquote> <script async src=\"\/\/www.instagram.com\/embed.js\"><\/script>\n\n\n\n<h2 class=\"wp-block-heading\">Matt Wilber on Gym World \ud83c\udf99\ufe0f<\/h2>\n\n\n\n<p>Want a deeper dive on Matt\u2019s story? Check out his full interview on Gym World\u2019s&nbsp;<a href=\"https:\/\/www.youtube.com\/watch?v=SneNiF_n8Ik\" target=\"_blank\" rel=\"noreferrer noopener\">YouTube<\/a>, or listen to it on&nbsp;<a href=\"https:\/\/open.spotify.com\/episode\/0hwnShOPzZQ9aSadj7k4zW?si=Jjq7iksoT66pMaZ9z-Jhbw\" target=\"_blank\" rel=\"noreferrer noopener\">Spotify<\/a>&nbsp;or&nbsp;<a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/building-four-7-figure-gyms\/id1659702465?i=1000622646053\" target=\"_blank\" rel=\"noreferrer noopener\">Apple<\/a>.<\/p>\n\n\n\n<iframe width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/SneNiF_n8Ik?si=gcSPc095dQdM1wgk\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n\n\n\n<p>j<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gym World, I hit two PR\u2019s this week. The first: an 11mm L4-L5 disc herniation. That\u2019s a 4mm PR \ud83d\udc80. If you have any tips for getting my disc back into my spine, reply to this email &amp; let me know. The second: this viral tweet that got over 12k likes and 1M impressions. I [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":28033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_lock_modified_date":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-28068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gym-world"],"acf":[],"_links":{"self":[{"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/posts\/28068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/comments?post=28068"}],"version-history":[{"count":0,"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/posts\/28068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/media\/28033"}],"wp:attachment":[{"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/media?parent=28068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/categories?post=28068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usekilo.com\/wp-json\/wp\/v2\/tags?post=28068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}