How a 22-year-old built a $6M gym from scratch

What’s up Gym World?

Some of the most interesting gym stories start long before anything looks successful.

At 22, Wayne Zhou Li had about $30K AUD (~$19.5K USD) in savings, no experience running a business, and the only gym he could take over was a failing squash court. Rent was $100K per year, and the previous owner was losing money. There was almost no equipment, no staff, and Wayne didn’t even know how gyms made money when he walked in as the owner.

It was a risky starting point.

Over the next four years, he reinvested everything, upgraded the space slowly, and built the culture from the ground up. Today, Training Day Gyms have multiple locations and generate nearly $6M AUD (~$3.9M USD) in annual revenue.

See how Wayne turned a struggling gym into a business that works, or keep reading for lessons that could help your gym grow.

Starting lean and building carefully

Most gym owners know what it’s like to start with very little. Wayne had about $30K AUD (~$19.5K USD) and a failing business, so every decision about the gym mattered. That approach helped him survive early challenges and spend money where it counted.

Some things he did:

• Used mostly second-hand equipment in the early years, keeping costs low while still giving members a usable training space

• Renovated in stages, doing much of the work himself, which helped him learn which upgrades mattered to members

• Focused on improvements that added real value rather than spending on things that didn’t benefit members

• Preserved cash to handle surprises. For example, when the gym finally became profitable, the rent increased by 60 percent, and the saved cash made it manageable

Attracting members through visible effort

Wayne’s early growth didn’t come from marketing. Members joined because they could see the work being put in.

• He was in the gym all day, which made him approachable and accountable

• Other coaches trained there and brought their clients, helping the gym grow naturally

• Members connected to the process of building something meaningful, even while the space was still unfinished

Wayne worried the gym didn’t feel professional because the space was unfinished, but showing up consistently and being engaged earned trust anyway.

And over time, Wayne created a space where timid people could feel safe getting strong, effort was valued over ego, and the training environment remained serious but approachable.

Introducing structure after building culture

As Training Day grew, Wayne realized culture alone wasn’t enough to keep operations running smoothly. Once he had the right team, he introduced structure to support them and make daily operations more reliable.

Some of the steps he took:

• Held weekly staff meetings with simple scorecards tracking attendance, revenue, and tasks

• Assigned clear accountability for responsibilities to reduce tasks falling through the cracks

• Made operational improvements, like sending immediate payment links for overdue memberships

• Focused on member experience adjustments, especially during COVID, to keep service consistent

These changes didn’t transform the gym overnight, but over time, they improved consistency and profit margins while keeping the core experience intact.

Managing growth and finances

Training Day now runs multiple locations, but expansion was deliberate. Wayne carefully monitored budgets and expenses to make sure growth didn’t compromise the business.

Some of the ways he managed finances:

• Marketing accounts for 8–10 percent of revenue (about $450K AUD, ~$290K USD), split between paid ads and content created by coaches. Wayne sees marketing as a way to communicate the gym’s culture and attract both members and staff

• Wages make up 25–30 percent of revenue (roughly $1.7M AUD, ~$1.1M USD)

• Other expenses stay under 30 percent of revenue

• Each new location required a seven-figure investment (about $2M AUD, ~$1.3M USD for the last gym)

Beyond finances, Training Day invests heavily in the things that matter for members and staff:

• Facility experience

• Program evolution

• Team quality

• Paid advertising

• A robust content engine

TL;DR: lessons from Wayne’s early years

Wayne started with almost nothing. The gym was a failing squash court; he had $30K AUD (~$19.5K USD) in savings, no staff, and minimal equipment. He spent years reinvesting carefully, building culture, and adding structure gradually.

Today, Training Day has multiple locations, nearly $6M AUD (~$3.9M USD) in annual revenue, and systems that keep operations and member experience running smoothly. Marketing combines paid ads with content from coaches to attract both members and staff.

What stands out from Wayne’s experience:

• Small, deliberate investments can help navigate early challenges without overextending the business

• Being present and involved builds trust, attracts members and coaches, and reduces reliance on formal marketing

• Introducing structure once the team is aligned makes daily operations more reliable and supports consistent member experiences

• Tracking expenses and planning carefully enables steady, sustainable growth

• Investing in facility experience, program development, and staff quality pays off in retention and long-term growth

For more stories and practical insights from gym owners and experts, visit Gym World.

later,

j