This gym owner grew from $2k to $900k in one year

ABOUT THIS ARTICLE

Gym World comes from Kilo co-founder John Franklin, who shares lessons about making money in the fitness industry.

& scaled to 3 locations with 1,000+ members in 3 years…

What’s up Gym World?

Last time, we spoke with our first martial arts gym owner on the pod, Brendan Kalijundic.

💬 Brendan went from nearly bankrupt with 70 members in a 2,000 sq ft gym to managing a 10,000 sq ft facility with 700+ members and $200k/yr from events.

Now, we’re talking to his mentor, Nick Castiglia.

💬 Nick runs three Gracie Barra gyms in Ottawa, Canada, which is 5 hours from Toronto. The franchise focuses on Jiu-Jitsu and self-defence.

In 2018, Nick bought a struggling gym making $2k a year. Within a year, he grew it to $900k. Now, after three years, he owns 3 gyms with over 1,000 members.

Here’s his story: 👇

Becoming a gym owner 👔

Nick got into mixed martial arts (MMA) at a very young age to:

  • Fight bullying
  • Build confidence
  • Improve self-esteem
💬 After high school, he wanted to be a coach, but his parents and trainers didn’t support him. So, he went to college without knowing what to do.

In 2001, Nick met his mentor, Pat, who was an OG in the industry and owned 7 martial arts schools. Nick started working with him, quickly learned the business side of running a gym, and became the manager.

💬 Over time, Nick started consulting for other martial arts owners and opened his own consulting company. But after too many 80-hour work weeks, he got burnt out and thought he’d leave the industry.

In 2018, Pat was selling two of his gyms. One was a 2,700 sq ft space with $2,000 in recurring revenue. Nick saw potential but didn’t want to take it on alone, so he partnered with Mark (who had also worked with Pat) to turn it into a profitable business.

Pat and Nick MMA gym owners

Turning the gym around 🔄

Nick used his 15+ years of experience as a manager to make the gym profitable.

💬 According to him, the “Big 5” for running a successful gym are: a clean facilityprime locationgood productgreat schedule, and flexible pricing options.

Within a year, he took the business from $2k to $900k in revenue with over 500 members by:

  • Renovating the space (a $10-$12k facelift) – Simple updates like painting the walls, fixing the floors, and adding better lighting can make a gym feel more premium and attract the right clients.
  • Raising prices – If you’re making a 10% profit, raising your prices by 10% can double your profit. For example, if a gym makes $100k per year with a $10k profit, a 10% price increase would add $10k in revenue, doubling the profit to $20k.
  • Adding more classes – Top gym owners we’ve talked to focus on filling specific time slots, like Tuesday and Thursday at 9AM. This approach is common in gyms running small group or semi-private programs because it ensures key slots are full before adding more classes.
Nick MMA gym full of members
Nick got a ton of leads with paid ads and a referral program: “Bring a friend, get $50 off if they sign up, or bring 5 friends within a year and get a free year of membership if they sign up.”
  • Improving the program – Coaches are a key part of your product. Fellow gym owner Oskar Johed believes that better coaching leads to better retention, which in turn means better financial results for the owner.
  • Hiring great staff – Most gym owners we feature prefer to hire from within because the candidates already understand the culture and vibes. Plus, you know them better and see their skills, which makes it easier to find the right fit.
  • Seeking mentors – Hiring mentors or consultants can improve your business and give you honest feedback when you can’t spot the flaws of your business yourself. Nick encourages all gym owners to seek mentorship, saying:

You’re one year from changing your life, and you’re one year from having the best year of your life.

The business today 🏋️

Nick offers MMA programs for both kids and adults, where members can choose from:

  • 1 day a week
  • 2 days a week
  • Unlimited training
💬 Advanced programming is available for an extra charge. About 80% of members train 2 days a week, and the average revenue per member is $200-$250 a month.

Nowadays, most leads come from:

  1. The gym’s website
  2. Referrals
  3. Google reviews
👀 One of Nick’s clients has a Kilo gym website that generates so many leads, he turned off his paid ads.

He brings in new members with a low barrier offer that converts 95% of those who try it:

  • A free class
  • 75% off the first 4 weeks
  • A free uniform
  • 30-day cancellation policy
💬 Since many people are intimidated by MMA gyms, Nick focuses on making them feel comfortable through lead nurturing.

There are usually 1 or 2 front desk staff and a couple of instructors for each class during peak hours (3:30 pm-8:30 pm).

MMA small group classes
Each class has 10 participants, so with a smaller group, a couple of coaches can spend more time with clients.

Nick also pays his staff well and invests in their development by giving constant feedback. This helps them improve as coaches and supports member retention.

💬 After reaching capacity, Nick opened two more gyms in 2019 and 2021. These gyms have another 500+ members. And while he didn’t share exact numbers, we can assume that all three gyms are making $1.8M (based on the first location's success).

What you need to know ✍️

Most gym owners struggle to manage a single location, but Nick scaled to 3 locations with over 1,000 members in just 3 years.

My co-host Mateo asked him what the secret to scaling was. Nick said it comes down to:

  • Good systems
  • A solid team
  • Getting help (mentorship, hiring part-time staff, etc.) when you need it

That’s exactly what he did, and now he runs a successful MMA empire.

Nick successful MMA empire

For more insights, be sure to watch or listen to Nick’s full interview on Gym World.

that’s all,

j

📣 P.S. If you made it this far, tell a gym owner to subscribe to the Gym World newsletter.

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