Click HERE to watch/listen to an overview of this update
Table of Contents
🙌 Asks
✍️ Thoughts
👍 Highlights
- We ended our second month averaging four group classes per day after averaging one per day during the first month. We expect to be at seven per day by the end of October. Break-even in the group studio space is ~eight classes per day.
- Check out our group class schedule HERE.
- We had two separate wellness professionals make over $1,000 in one one-hour class (instructors working at typical studios average between a range of $30-$75 / class). One instructor was a yoga instructor that had 70 people in her class!
- We're seeing our wellness professionals promoting their classes in a totally different way vs. when they work for traditional studios. Their posts and videos are more personal and authentic when they are promoting their own brand. See some examples in the following hyperlinks: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, & 14. We are providing wellness professionals with space and structure, and they are utilizing their creativity to thrive.
- We already have some of the best instructors in Los Angeles teaching at our studio and it's amazing to see the range of disciplines that we are offering: Spin, HIIT/Bootcamp, Yoga, Martial Arts, Dance (ex: Samba, Dance Fitness), Brazilian Capoeira, Tai Chi, Personal Training, Massage Therapy, Physical Therapy, Meditation, Boxing, Pilates, Sound Bath, Reiki, and Barre. This diverse community of wellness professionals is driving clients across all sectors and is a big reason why Maverick Community will succeed.
- Check out all of our instructors/coaches/trainers HERE (43 and counting!). Growing our instructor base has been all word of mouth. We've done no paid media up to this point - relying only on word of mouth, social media (Instagram + TikTok), and email newsletters.
- We've improved the production quality (sound, video, lighting) for our livestream + on-demand offerings. See sample footage here. Instructors are incredibly impressed with our setup and how easy it is for them to use our equipment. This digital offering allows instructors to make money outside the studio's four walls and provides content for social posts.
📚 Learnings
- Despite the massive amount of funding raised by at-home fitness companies, the trend of solely working out at home is starting to wear off slightly, and in-person workouts are rebounding. Shout out to Fitt Insider for this info.
- Peloton's most recent earnings report showed significant losses, slowing sales, and low margins (net loss of $300M, revenue down 25% from last quarter, 12% gross margins).
- Brick-and-mortar operators are enjoying increased visits and memberships.
- May: US gym visits reached 83% of January 2020 levels.
- July: Studio fitness franchisors F45 Training and Xponential Fitness went public. Both companies reported excellent quarterly earnings in August. F45 earned 54% revenue growth, and Xponential already had sales exceed pre-pandemic levels.
- August: Planet Fitness increased membership by 700K members in the most recent quarter. The company opened 100+ new gyms during the pandemic without having to close an existing location.
- COVID (Delta) is still impacting our attendance and overall instructor booking, but we're noticing that people are getting less nervous as the weeks go on. We're preparing for the November 29th vaccination mandate.
- There are big opportunities to host events and pop-ups as there is a lack of affordable, flexible space that holds 20+ people. This is a pain point for a lot of wellness professionals and brands.
- Utilizing all of the distribution channels on Instagram and TikTok and posting on a set schedule is a full-time job+ but has really paid off for us, especially for attracting new wellness professionals. We've had no ad spend up to this point.
- Boutique fitness studios and larger gyms are laying off instructors (ex: Soul Cycle) to cut costs and instructors are leaving studios on their own. Our timing is excellent.
- 1.5M fitness professionals lost their jobs in 2020
- More studio, wellness professional first concepts are having success. See Self Made Training Facility and Fithood (in Israel). This studio concept is the business model of the future for the fitness and wellness space.
🏃 Next Moves
- Creating high production video with quality, balanced audio and ideal lighting is a highly manual process. Different instructors have different music volume/style preferences, different voices tones, and the natural light changes throughout the day. We're working with great professionals and testing equipment to make this process more automated.
- Reaching out to TikTok and Instagram fitness influencers and building an offering for them to film in our studios during off-hours (~12 pm - 4 pm).
- Attracting entrepreneurs who are selling products with a particular focus on wellness and fitness enthusiasts. We see Maverick Community as the ultimate wellness co-working destination.
- Automating check-in and client sign-up so that minimal studio staff is required.
- Adding more cameras and production equipment to all studios at the Playa Vista location. Additionally, add two-way capability so that instructors can see clients working out at home.
- Working with influential instructors and coaches to help them create their own teacher training. Teacher training will build an additional revenue stream for instructors and foster more instructors to teach at our studios. We are looking to start teacher trainings in the spin studio as there is very little competition.
- Selling services to wellness professionals in addition to space & equipment rental payments with a focus on bringing them more clients. Instructors are eager for help with their marketing and sales, leading to significant opportunity for us. We believe our model is the new-age franchise model.
- Ex: social media management, content creation (filming, editing, photography), brand sponsorships/collaborations, adspend management, sponsored content & product placement, digital content sales (live stream + on-demand), teacher training creation, custom merchandise/fitness equipment procurement, graphic design, fitness + wellness certifications, bookkeeping, legal assistance, insurance reselling, retreat planning, event planning, etc.
- We have already sold on-demand content packages where we handle all aspects of the production (film, sound, lighting, editing).
- Creating a wiki of best practices for wellness + fitness entrepreneurs to learn from each other and grow. Inspiration from Chris Moreno - thank you!
- Creating a brain trust of diverse wellness professionals to make sure all members of our community are well represented and heard, and to gather more information as we move to launch Maverick Forward.
- Waiting for our 501(c)(3) application to be approved for the nonprofit side of our business, Maverick Forward.
🙌 Asks
- Follow us on Instagram and TikTok.
- Introductions to investors active in the creator economy, PropTech/real estate, or fitness + wellness space. We are looking to kick off fundraising in the next couple of months.
- Also, please let me know if you are willing to help review our draft deck and listen to a sample pitch.
- Introductions to personal trainers, group fitness instructors (yoga, spin, HIIT, boxing, meditation), physical therapists, massage therapists, and other wellness professionals in Los Angeles (focused on the west side - Playa Vista, Marina del Rey, Santa Monica, Venice, Culver City, etc.).
- Introductions to digital fitness companies that could utilize our studio space to see their clients in person and/or film content. Ex: FitOn, Future, Moxie, Obe Fitness, Beachbody, etc.
- Advice and guidance if you have expertise driving traffic into physical retail locations. Looking for best practices on how to bring more clients to our instructors.
- Particularly interested in speaking with someone who has experience working with a new fitness studio and running ads (we've spent no ad money thus far - only driving traffic via social). I've spoken with companies such as More Gym Members but would love other referrals.
- Advice and guidance if you have experience with franchises. Exploring similarities on the marketing side of things between franchisee x franchisor and Maverick x wellness professional.
- Introductions to freelance graphic designers.
- Review us on Yelp + Google.
- Introductions to community centers in SPA 5 or 8 that might like to take advantage of our Playa Vista space. We want to begin serving communities with needs immediately.
- Introductions to non-profit leaders doing impactful work in Inglewood or South LA related to entrepreneurship and/or fitness.
🙏 Gratitude
- Marquita, Gabrielle, and Ale for being such great team members. It has been fun working with you all. We're lucky to have such a great team.
- Rachel Lea, Josh, and Madison at Arketa for building great software and continuing to listen to our feedback and improve.
- Pixie Acia for your constant support and guidance. You're an inspiration to us and all wellness professionals.
- Teri Weinberg and Katya Blum for always showing up and supporting your favorite instructors. Can't wait for the kindness documentary.
- The following instructors for believing in Maverick and using our space to inspire and help their clients: Cassidy Rhodes, Milchu Perez, Christina Scavuzzo, Kearstin Nuckles, Chris Pipkin, Gaia Mariani, Manu, Brett Hoebel, Jada Kelly, Alexis Fischer, Rachel McClusky, Tarik Woodbine, Tenaya Figueira, Katie Mullen, Albina Katsman, Pixie Acia, English Alexander, Steph Palomino, Brittany Thompson, Ryan Kelley, Kellie Fell @ Fit4Mom, Demetra Markopolous, Marquita Davis, Nicolea Pettis, Marley Ralph, Derek Garlington, Shay Scott, Ashley Shaw, Ferly Prado, Alexandria Kaye, Jill Robinson, Rebecca Watson, Lorenzo Lawrence, Candace Taylor, Adonus Beal, Dara Lynne Joseph,
- Kelsey Heenan for making helpful introductions and Don Saladino for providing wisdom and inspiration.
- Jim Crowell and Chris Moreno for continuing to brainstorm and make helpful introductions.
- Sammi Alani and David Borrie @ Pirate for providing motivation, guidance, and introductions!
- Alejandra Mikulan for creating and implementing our Instagram and TikTok strategy.
- Naomi at Manduka for your support grommeting our yoga mats. Game. Changer.
- Amira Polack (Struct Club) for making introductions and passing along wisdom on the fitness industry. Shout out to Khaled Jafar for making this intro!
- Ari Engelberg for asking great questions and making helpful introductions.
- Katie Reed (Balanced) for brainstorming about the fitness industry and fundraising tactics.
- Jason Abromaitis (Lanchpad) for sharing your entrepreneurial journey and providing guidance on the fitness space.
- Tom Lovett (WithOthers) for supporting Maverick Community and providing helpful feedback. The OnDeck community has been amazing.
- Ryan Light (Pistol Lake) for continuing to make incredible connections.
- Daenna Farnell at Foy for providing inspiration and tips on how to run a fitness studio.
- Cheryl Kemp and Brandon Jahner (IndiFIT) for the fitness space brainstorm and sharing your story.
- Matthew Scott Jones for making introductions and brainstorming on where things may be heading in the VR x fitness world.
- MainStreet for saving us almost $5K on an employee retention credit.
✍️ Thoughts
❌ Limited time this month to write blogs but I'll leave you with this quote that I wanted to write more about.
Found via a NY Times article about the importance and connection between community and joy.
"Psychologists find that in cultures where people pursue happiness individually, they may actually become lonelier. But in cultures where they pursue happiness socially — through connecting, caring and contributing — people appear to be more likely to gain well-being."
-Adam Grant
Thanks for your support. Please reach out if you'd like to learn more or talk further.
Michael@bemav.co
323.417.9300 (text/call)