Gym Software Anbieter: die richtige Wachstumsfrage stellen

0:00Unternehmer/Gast We sell a Let's describe this as an able growth platform for gyms. We do $4 million revenue. We'd like to be at 10 in 2 years. It's pretty So what's stopping you? I don't think anything is really stopping us. I guess the question is more like if you can help me identify the right question to ask to kind of ease the path, I guess, cuz there's a lot of ways to skin the cat and there's there's options fulfillment, there's, you know, acquisition.

0:27>> Give me the metrics real quick. So it's $4 million top line, right? What's profit? >> 2.2. >> Okay. I'm just saying 2 whatever. Okay. So you have 50% What's CAC? >> CAC is about 1,000 bucks. >> Okay. And are you What's your primary method? >> Primary method Right now meta. >> What percentage is meta? >> Probably 70% right now. >> Okay. So it's mostly ads. Got it. And you get some referrals or whatever, right?

0:52>> Yeah. We When I was doing more again more content, organic was pulling for a long time, but we started to the growth rate wasn't keeping up. It started to hit like net zero return, so we started to add ads on. That was the plan all along is go organic as long as you could and then start to add ads in and that's where we're scaling now. >> Okay. What's lifetime gross profit? >> Total rev top line for for each client is about 12. I actually need to do some math to figure out bottom line, but it's pretty high. >> Okay. >> Cost like 20%.

1:16Alex >> What's monthly uh monthly and then what's churn? >> Monthly I'm just going to say in 500. We have a lot of annuals, too. And then churn So you get 2 years of stick. >> If there's data risk right now, then we need to tighten up our churn numbers. Stripe sucks for data, so we need to be get better systems for that, but I think we're like 3.5%. >> Okay. >> Yeah. >> Or 3.1 or whatever. Okay. Got it. That tracks. Okay.

1:44All right. And so sales velocity right now, how many selling a month? >> 35. >> Okay. So you sell 35 units a month. Times 12K. So you're you're very very You're like You're a little bit growing, but you're doing this right now. Does that sound right? >> Yeah, we have a lot of room to scale. Yeah, so that's relatively new. Mainly just 5 months ago we figured those out and you know, top line ROAS on that is pretty solid.

2:12>> Yeah, no, no, I mean I can see the [clears throat] math. Yeah. >> [snorts] >> Um okay. So now I'm looking at just for everybody, I'm looking at hypothetical max, which is if you look at sales velocity times lifetime gross profit or lifetime value rather in this situation cuz you said you didn't know what that was. Um not that you don't know what I'm saying. Uh so 35 * 12k so 35% is is uh is 350 + 70 420. Um so basically if you kept his his existing thing he'd be at 4.8 million.

2:40Um Four times yeah. He'd be at 4.8 million instead of four. That's given like we changed nothing about the business. You have a little bit of growth left with the existing sales velocity, right? Um and so you already have a lot of the hard stuff solved, which is that you have I mean basically as long as your annual retention is what it is and it stays at those numbers. You're at 12 to one which is pretty good. Um Yeah, I mean it's a valuable business. Uh you seem to make it bigger. >> Yeah.

3:06Alex >> And so I mean we seem to make sure that the that the CAC CAC scales. >> Sure. >> And you're spending You're spending 35,000 a month in ads? >> Uh 30k, yeah. >> Okay. Yeah, I mean it's just like you have to get to like you know, 300,000 a month in ads. >> Right, you just scale the volume. >> Yeah, so you think it breaks when you when you scale the volume? Why can't we do more? >> It We don't know where it breaks cuz we haven't hit that yet. If anything uh I would say there's a little bit of murmuring on like some of the fulfillment side with part of our offering includes like building websites for them.

3:36>> Huh? >> You know, there's some agency components and coaching components and things like that. >> Yeah. >> Um and the web team's starting to kind of scream a little bit. >> Okay. >> You know, so probably just some bandwidth there. >> Yeah. So you're Yeah. >> [clears throat] >> So Um You couldn't double your sales velocity right now. >> I mean I messaged like my Austin Andrew earlier and he said probably some people could, but some people on the team couldn't. So, yeah, we probably could we definitely have room to go, but I think we're going to copy it so long here soon. So, one of my questions was going to be that follow up like do I stop and fix that now or do we just build the plane as we fly and just keep charging?

4:13Alex >> I'd build capacity. You're you're profitable. >> Yeah. >> And I have found in a business that's like yours as soon as I have cuz like you're you're pulling off the gas right now. I'm >> Feeling it. >> Right. Is that you're not like I'm going to go balls to wall right now? Um you're hesitating, you're pulling your punches. >> Definitely I'm going to. >> Right. And so, rather than you always being pulling your punches, I think this kind of goes from really like how can I, you know, make this happen. Well, um I would say that I like building capacity will keep your ethics high.

4:46Alex And so, one of the one of the interesting things is that like we we either choose to sacrifice profit or reputation. And so, if you're at a capacity constraint, you either have to reach into your bottom line and build capacity or you add to your bottom line by increasing demand and having something takes a hit. And so, it's likely going to be your metrics or reputation. If you're not in a rush, which doesn't seem like you are, um then I would build the capacity for you to get three more reps that can build.

5:17Alex Um how many people are building the sites right now? >> It's one and a couple of like VA you know, VAs that are supporting it. >> Yeah, so it's like you getting double the VAs is not a hard task to do. Right, so I would just do that now. That'll cost you 17 cents. And then Um and then once you have that and then it's like now everything's super, you know, tuned, everyone's really happy. Then it's like then you're going to feel really bullish and you'll feel really good about spending. That would be the Do you that I would have.

5:46>> Yeah. Okay. I got another question. >> From the hip. Yeah. >> More more personal because you obviously work in my space. Work with gym owners for a long long time. And I've heard you talk about something about it. Yeah. And I heard you know and I I share some of your pain when I hear you talk sometimes in some of the podcasts about like why you having a hard time wanting to move on from that because of the There's a great challenge with the gym owners out there that are like some of my best friends that are like you you've hired some of the ones that are your your clients, right? Cuz they are there's talent in there. But most of them have very little level of sophistication. And you know it's one of the things where you feel like, "Okay, level 10 skill set, level three opportunity." You know, at what point did you cross that bridge of like screw this we're just going to move on. Like you know, obviously I'm not there yet.

6:25We have goals in this business. But like I've got like this 7-year itch even though it hasn't been 7 years yet. >> Yeah. >> Yeah. >> Yeah. Um I think that when you are no longer in love with your avatar. >> Mhm. >> And that's what I said when I started the business. Was like I will I like when people ask me the first two three years of gym launch like we were selling stuff like how long was I like I want to you know, save gyms. Like save gyms from the industry of being like we're going to fix the industry the best we can. Um Uh There was a turning point. It might have been cuz I was also like younger and probably more immature than I am now, who knows.

7:00Um where I grew disenfranchised with it. Um And it wasn't if I'm being honest it wasn't a boredom. I I grew resentful of you know, what have you done for me lately? Um and I think that part again I was like 20 I got in the business when I was 26. I was like I was much younger than I am now. 10 years you know, 10 years younger than I am now. Um I like I made some massive mistakes in that business and I didn't see how big it could have been. Like Gym Launch for sure if I were if I were if I could like scoop my brain and put it back in time, like we could have exited for 400 million with changing very little about the business. Um And so there's for sure massive opportunity there.

7:43Um Um So I wouldn't I wouldn't like I wouldn't consider I couldn't see at the time a way to make Gym Launch bigger. And that's why I sold it. I didn't know what else I could do. I now know a lot of things I could have done to make a half a billion or a billion dollar exit. I just didn't have the And some of this is like I wish I knew then what I know now, but like I only know what I know now because I went through what I didn't know, right? And so um you know, the most expensive things in life are the things that we don't know we should.

8:10>> I should have focused on the right spots like you know, cuz obviously you know, I we've actually probably shared some clients and had former Gym Launch clients come to my my company. >> Yeah. >> We have a big little Gym Launch company. >> Clients come to Gym Launch. >> Yeah, of course. Yeah, this we know. We we hear about those too. You know, no matter where they're coming from they always they always badmouth the other guy, right? They always say that guy sucked for any you know, and it's like that's the kind of thing you get resentful about where you're like, but you didn't show up to any of the calls. You didn't do any of the work, right? And like and then like you know, really I'm really like yeah, we're better than Gym Launch cuz you know, we're burning people and then like we realized later that like oh the clients will do the work. And it's like oh, it's not anything you else doing wrong or taking advantage of. It's the same feel that same resentment.

8:46>> Based on the numbers that you demonstrated, you have a good business. The metrics are strong. You have all the makings of something that could become significantly more valuable than it currently is. There's obviously a couple moves off the board that are probably beyond the scope right now. Um but you have all of those I'll say that. There is for sure a nine-figure plus opportunity with the business as it currently stands. Um Just need to get some pieces in place and there's probably a couple of strategic investments that could be made that would make it like really attractive. Cuz I know that you got probably approached about acquisition at some point.

9:17>> Couple times now. Yeah, it really was the things I didn't work cheap that you know, it was kind of mutual on one hand like when they talked about potential amount I was like well, I can make I can collapse that time frame and make the same money in three years instead of the seven figure offering potentially. And then also they were like well, you're kind of really taking you know, so you know, I see it too. It's just a want. >> Yeah. Appreciate you. >> Thanks, Alex. >> Yeah. If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.