From Nonprofit Founder To Building A $300M Pilates Business

Building a $8M/yr non-profit (0s)

• The speaker described how she started a non-profit organization called Back on My Feet to help homeless people by encouraging them to become runners. (1m4s)
• She explained that she was inspired to start the organization because of her father's struggles with addiction and her belief that running could provide a positive outlet for people in similar situations. (1m36s)
• She shared how she secured funding for the organization by targeting executives who were also runners, leveraging media coverage, and offering opportunities for employee engagement. (12m46s)

The economics of (16m27s)

• The speaker was impressed by the Pilates studio's business model after calculating the potential earnings based on the number of reformers, cost per class, and class capacity. (21m16s)
• The studio had 10 reformers and each class cost $30 with a capacity of 10 people. (21m20s)
• With 10 classes a day, fully booked, the studio had a revenue potential of $3,000 per day and $90,000 per month. (21m59s)

Play a game you can win (22m7s)

• After working with the nonprofit, Back on My Feet, the speaker decided to pursue a business in fitness and wellness. (22m12s)
• The speaker felt that they possessed the skills and experience to be successful in the fitness industry, specifically with a Pilates business. (23m8s)
• At the age of 31, the speaker invested $175,000 of their personal savings, accumulated over five years, to start their Pilates business. (23m29s)

How to be a killer negotiator (24m16s)

• Negotiated net 60 terms with a general contractor to avoid upfront costs. (24m26s)
• Refused to pay four months of security deposit demanded by the first landlord and successfully negotiated it down. (24m53s)
• Generated over $100,000 in sales during the first month of business. (26m36s)

Turning down $75k (27m0s)

• An offer of $75,000 was declined because it was felt that accepting the money would create self-doubt and reduce the drive to succeed. (27m0s)
• The business grew quickly by word of mouth as clients told their friends about the workout and their resulting soreness. (28m18s)
• A lawsuit was filed by a former licensor after the decision was made to create a new training program and manufacture proprietary Pilates machines. (29m32s)

0 - 27 locations in 4 years (30m39s)

• The business was four years old when a minority deal was made in 2017. (32m1s)
• At that time, there were 27 locations, each generating about $700,000 in annual revenue, for a total of roughly $19 million. (32m14s)
• The business was valued at close to $60 million in the minority deal. (32m27s)

Idea: Endurance events (43m50s)

• The 29029 event involves climbing a ski mountain multiple times, with the total elevation gain equaling the height of Mount Everest. (44m51s)
• The event is designed to be challenging, with the intention that most participants will not complete all 29,029 feet of elevation gain. (48m14s)
• Participants who do not complete the full challenge still receive recognition based on the elevation they did achieve, such as a medal for reaching the height of Kilimanjaro. (48m41s)

Idea: Taboo for recruiters (50m21s)

• The speaker believes there is a correlation between people who excel at the game Taboo and strong critical thinking skills. (51m18s)
• Taboo requires players to think creatively and strategically to lead their teammates to guess a specific word without using related terms. (50m39s)
• Individuals who struggle with Taboo, becoming flustered or unable to think quickly, tend to not remain employed for an extended period. (51m12s)

Idea: AI Personal trainer (51m37s)

• An individual expresses interest in the potential of AI in fitness, specifically in personalizing fitness and diet plans based on individual data points such as blood work, age, and hormones. (51m37s)
• The same individual believes that within five years, relying on guesswork for fitness and diet will become unreasonable due to advancements in AI and data analysis. (53m0s)
• This individual is currently prioritizing personal time and exploring interests like beach volleyball and spending time with loved ones, rather than immediately pursuing new business ventures. (56m10s)

Idea: SeatGeek for airlines (56m45s)

• An individual has an idea for a business called Jumpseat, which would function as a platform for buying and selling airline seats similar to how SeatGeek operates for event tickets. (57m6s)
• The individual envisions Jumpseat as a way for passengers to secure last-minute flights or upgrade to better seats by offering money to other travelers willing to swap. (57m16s)
• The individual believes Jumpseat would benefit both passengers and airlines, as it would increase customer satisfaction and potentially generate revenue for airlines through transaction fees. (58m3s)