The WeWork of fitness is finally here
A look into the most innovative microgym to-date...
We’re back. Reviving the weekly newsletter has been on my to-do list for over two years, but other content projects zapped my bandwidth. So, I’ve partnered with the best copy + ghostwriter in the game to ensure this gets in your inbox every Monday.
You can expect weekly wrap-ups of the important happenings in the fitness industry, as well as my take as to how you can leverage that information to grow your business.
Have suggestions for topics to cover? Shoot me a DM @wtfgymtalk.
Today’s Rundown
✔︎ Silofit is entering the U.S. market
✔︎ Celebrities getting in on the microgym space
✔︎ Financial hygiene tips to take home more money
The WeWork of fitness has been tried before, but this Canuck startup actually pulled it off.
And their success creates a very interesting opportunity for microgym owners…
Silo-Who???
Silofit started in 2018 (yes, pre-pandy) in Montreal, Canada. It’s essentially the WeWork of fitness - turning small office spaces or "silos" into high-end, private micro-gyms (their spelling, not mine) used by fitness trainers, their clients, as well as individual gym-goers.
Today they have over 20 locations in Canada and plan to build 50 silos across five different U.S. cities (Miami and Chicago being first).
They serve two main customer avatars:
Personal Trainers who want to pay-per-hour versus getting locked into a long-term lease with brick + mortar.
Gym-goers who opt to train alone or with friends and want their own dedicated space, equipment, etc.
Each silo has a wide array of functional fitness equipment, cable machines, yoga mats, ergs - basically everything you'd need regardless of your workout style.
U.S. Expansion Coming In Hot.
Last week, Silofit announced plans to expand its network of micro-gyms to key US markets. With a host of big-name investors, the company aims to use its $10.25 million to expand locations, grow headcount and invest in new technology to launch a digital ecosystem for fitness professionals to run their business.
The fact that a startup, brick + mortar concept was able to raise that much money during the past 18 months is pretty fucking awesome.
Silofit will be establishing its US headquarters in the coming months as they open up shop in a region that gives zero Covidfucks - Miami, Florida.
My Take
First off, let's address the fact that someone needs to tell the new kids that "microgym" is one word, and they need to get that hyphen shit out of here.
But more importantly, this is something you should care about.
Why should you give a damn? Well, if you're a personal trainer, gym-goer, or gym owner, pay close attention to this company.
Suppose you are one of the many personal trainers who were displaced during the pandemic. In that case, Silofit is a fantastic opportunity for you to continue to grow your business without having to take the risk of opening up your own facility.
For gym-goers, Silofit acts as your own personal gym. With access to a private room and equipment, Silofit offers a fitness sanctuary with no queues, no crowds, and no distractions. You can work out solo, bring friends or hire a professional within Silofit's network of personal trainers.
And for gym owners, Silofit should definitely be on your radar. Here's why:
Do you realize how many companies have attempted this and failed?
So, when someone finally breaks through AND gets a fuckton of funding to expand, your ears should perk up.
Silofit is creating added competition for those of you that run an open gym model. If you're a globo-gym, these guys have created a pay-as-you option that provides a dope workout space where you won't have to wait for the douche to finish curling in the squat rack.
If you're a group fitness microgym, these might be locations you want to collab with and create synergistic offers since they sure as hell aren't getting into group fitness, and you sure as hell aren't looking to replicate their model. I can think of several win-win partnerships you could negotiate.
Personally, I've been waiting for someone to stand this concept up for a while, and you can bet I'll be keeping a close eye on their development in the US.
David Beckham adds to the star power of F45, alongside Mark Wahlberg.
Sure, Becks has 68M followers - but microgyms still have the advantage with local influencer marketing...
You Think Sex Sells? So Does F45.
He's sexy, he's cute, he's popular to boot, and as of last week, he is the new face of F45.
Last week F45 announced David Beckham as their latest global partner. Becks was introduced to F45 by none other than Mark Wahlberg, an F45 investor from the start having purchased a 36% stake in the business in 2019 and leading an investment round that previously valued the company at $634 million.
The timing was perfect as F45 just wrapped up their IPO on the NY Stock Exchange, raising $325 million in their debut.
Becks states that after training at the London F45 studio, he was impressed by the "innovative workouts, community spirit, and unrivaled results," so much so that he decided to get involved with the company.
With over 1500 signed franchises in 58 countries, F45 is becoming one of the largest franchisers in the fitness industry.
My Take
Listen, big brands leveraging big names is nothing new, and big players will continue to jump on this trend.
Pretty soon, The Rock, LeBron James, and Simone Biles will be endorsing huge fitness brands. Hell, Jay-Z already did.
But, if you're a microgym or small business owner who sees these headlines and thinks, "This sucks. I can't compete with that!"...
Let's cut the shit and learn to be resourceful when you don't have as many resources.
Scale their approach to fit your business.
Remember, you don't need to influence millions; you need thousands.
And I guarantee you that there are 3 to 5 local influencers with under 10,000 followers who are a really big deal to your market.
They might be an influencer - an aspiring actress, a cheerleader, a popular bartender, or even a random mother who makes dope-ass cookies and shares the recipes with her following.
The execution here is simple:
research who the influencers are in your market
reach out to see if they would be interested in learning about your service and if a marketing partnership is desirable
negotiate the terms and start siphoning their followers into your business
It's that simple to start creating local influence in your area the same way the big brands do. In fact, Glofox recently interviewed me on this exact topic.
If you give it a try, hit me up. I'd love to hear how it went.
Take home more money, without making more money.
If your financial hygiene is a mess, this is your solution…
If It Don’t Make Dollars, It Don’t Make Sense.
Early on, I used to only think about my money towards the end of the year…
"Oh fuck, how much did the business actually make this year?"
Ultimately leading to…
"Shit, what is my tax burden going to be?"
"How much money will I actually take home this year?"
These questions got me thinking more about the lack of proper cash management deployed by the average microgym owner, so I made the above 60-second video to summarize it.
Overall, there is a general lack of awareness and information on this topic – but let's fix that.
For my businesses, and like many others, 2020 was a dick-slap to the face.
My businesses generated significantly less revenue than years prior due to COVID. However, my actual paycheck to myself (after taxes) was considerably higher than it had ever been.
And the only difference, and I mean the ONLY difference, is that I managed my money more efficiently using the Profit First system outlined in this book.
Since I know that bookkeeping and tax code are not my specialties, I rely on people smarter than me, like my awesome bookkeeper, Eryn Smith, and wicked-smart CPA, John Briggs.
And with all that I have learned, I want to help demystify cash management for microgym owners - because if I can do it, you fuckers can too.
So, if you are still keeping all your money in a singular checking account and stressing out about taxes, and paying yourself a liveable wage - check out the full-length video below for a deeper understanding of cash management for microgym owners.
