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

What’s up Gym World?

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

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

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

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.

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.

Turning the gym around 🔄

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

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.

• 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:

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

Nowadays, most leads come from:

1. The gym’s website

2. Referrals

3. Google reviews

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

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).

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.

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.

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.