Gym owner forced to rebuild 7-figure gym from scratch

Happy Holidays Gym World,

5 years ago, Simon Anderson spent $1.7M building SOMA Health & Wellness Club. Then:

• COVID hit

• The gym shut down (twice)

• It reopened (twice)

• The building was sold

• Simon had to start over from scratch

So, he dropped another $3.2M to rebuild. Two years later:

• SOMA has 560 members

• It’s one of the best-looking gyms in the world

• Celebrities like Glen Powell, Rebel Wilson, and Rüfüs Du Sol train there

Here’s what happened: 👇

SOMA 1.0

Simon spent years as a head chef in high-end restaurants, cooking for celebrities like P!NK and Dr. Phil. Then he worked on superyachts, but eventually wanted a career change.

So, he became a personal trainer, spent 10 years in the industry, and dreamed of building a 5-star gym oasis where rich people could train comfortably, with:

• Top-tier hospitality

• Concierge-level service

• A holistic approach to mind, body, and soul

• A world-class community

• Luxury amenities

He planned to offer:

• Personal training

• Group circuit classes (HIIT, strength, stretch & mobility)

• Reformer Pilates

• A recovery center with saunas and cold plunges

And got a space right in the heart of Sydney’s business district. Rent was $500k a year (💀), and he spent $1.7M building it out.

Simon had a business partner, and together they financed the space with their savings and condo equity. They also got lucky with the landlord, who loved the idea of SOMA, gave a 10-year lease with a $1M incentive, and contributed an extra $350k for build-out costs.

In September 2019, SOMA Health & Wellness Club opened its doors.

The tough stuff

Like many new gym owners, Simon made mistakes before he got it right:

• He didn’t do any pre-sales

• He overpriced his service

• He over-hired staff — then had to fire ‘em.

And just 6 months in, COVID hit:

• The gym shut down for 5 weeks

• Pivoted to online training, outdoor workouts, and in-home sessions

• Reopened, then shut down again 6 weeks later

Then Simon found out Chifley Tower was sold for redevelopment. He had 6 months to find a new space and build out a 7-figure gym from scratch (again 🙃), all while dealing with skyrocketing costs post-COVID. He did, however, end up negotiating a $1.8M payout from the landlord.

He found a space under a 5-star hotel that offered to pay him 10k a month for their guests to use SOMA. But after spending $40k on the design, Simon pulled out of the deal because he realized guests wouldn’t respect the brand like members, and he didn’t want to risk damaging the club’s premium reputation.

So, Simon found a new location with:

• Cheaper rent at $375k a year

• A good landlord

• A $2M incentive (50% cash, 50% rental abatement)

And spent $3.2M to build it out.

SOMA 2.0

SOMA Health & Wellness Club is 7,500 sq ft of pure luxury for corporate professionals and those who love the finer things in life.

Step inside, and you’ll find a 3,000 sq ft gym plus top-tier amenities like:

• A concierge with towel service

• Marble bathrooms and change rooms featuring the latest Dyson hair tools

• A consultation room with body composition scans

• A reformer pilates studio

• A recovery center with saunas and magnesium cold plunges

• Treatment rooms for physio, osteo, and massage

The club has 560 members, and for $96 a week, they get:

• Full gym access, including after-hours availability

• Unlimited use of the recovery center

• Pilates and yoga classes

• Monthly body scans

• SOMA social and networking events

• Towel service and Dyson hair tools

• Premium Australian Leif botanical products

And for an additional cost, members can add:

• An overnight locker and laundry service for $28 a week

• A 45-minute 1:1 personal training session starting at $145

Simon gets people through the door by:

• Optimizing his website

• Updating his Google Business Profile

• Referrals

He also posts on social, and members, coaches, and influencers are tagging and posting about SOMA too:

Let’s rewind ⏪

Simon worked with the world’s richest in elite environments and brought that high-class experience to fitness with SOMA Health & Wellness Club.

But it wasn’t easy:

• Spent $1.7M on his first space

• Survived COVID shutdowns

• Rebuilt from scratch

• Spent another $3.2M

In just 5 years, Simon’s spent nearly $5M and rebuilt SOMA twice. Now, it’s one of the best-looking fitness spaces in the world, where even top celebrities go to hang out.

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

cheers,

j

📣 P.S. If you found this interesting, share it with another gym owner who’d think so too.