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When is it time to sell your gym?

This former 8-figure nutrition mogul weighs in...

Author

John Franklin
August 23, 2024

What’s up Gym World?

If you saw Mike Doehla on the street, you’d never guess he built one of the world’s largest online nutrition empires.

In 2015, Mike quit his job to go all-in on Stronger U with no formal business or nutrition background. Like Kevin Higgins, he broke every rule in the book and, in just 7 years, turned his side hustle of training 350 clients 1-on-1 into an 8-figure business that he sold to a global fitness franchise.

We last talked about how he built a massively successful community-driven nutrition company.

TL;DR: Mike focused on one thing—thrilling his customers. He did this by responding fast, offering way more value than he charged for, and creating a cult-like community.

While our newsletter is about making money in the fitness industry, it’s also read by many high-level entrepreneurs who might be wondering what’s next. That’s why we brought Mike back to share how to find meaning outside of work.

Here are his insights: 👇

Dad life 🧢

Mike retired at 40 and is now fully focused on being a dad.

He sold Stronger U to Self Esteem Brands in 2021 for an undisclosed 8-figure sum.

A few months ago, The New York Times wrote about Mike. That’s when I found out he moderates the subreddit r/fatFIRE.

FIRE stands for Financial Independence/Retire Early. The group has 417,000 members, mostly entrepreneurs in their 30s and 40s who retired early with net worths in excess of $10 million.

Mike grew the Stronger U Facebook group to over 20,000 members, so I’m not surprised he’s an elite Redditor.

There are plenty of multi-millionaires in the group, but Mike says a lot of them find retirement disappointing because:

  1. They hit a certain level of wealth and think, “Is this it?”

  2. They lose their sense of purpose.

  3. They struggle with their identity.

  4. They don’t know how to spend their time.

He believes people tie their identity too closely to their business. After talking with many 7-figure gym owners, I’ve noticed that the more successful they are, the more this tends to be true.

Ironically, this obsession drives their success, creating little separation between them and their business.

But when things get tough, the thought of burning it all down is common. And for many gym owners, this is when “retirement” crosses their minds.

So, is it just a rough patch, or is it time to let go?

How to know when it’s time to sell 💸

Mike built his business by:

  • Riding massive trends: CrossFit and Peloton

  • Discounting his services

  • Growing his clientele through referrals

  • Coaching 350 clients 1-on-1 while working a full-time job

  • Delivering amazing results

  • Being available 24/7 to text clients and respond to every Facebook comment

At its peak, Stronger U was adding 700 new members a month and had a team of 80 coaches. 🤯

These strategies turned Stronger U into an 8-figure company with:

Getting lucky 🎰

In 2019, a global fitness franchise approached Mike to acquire Stronger U.

These firms usually look for businesses making over $1M in EBITDA. Once you hit that threshold, more buyers are interested, and offers get higher. This article explains it further.

But he wasn’t ready and felt there was more he could do with the company, so he turned down the offer.

At this point, Mike never planned on selling. Over time, however, the constant focus on service and customer satisfaction took a toll on him.

In 2021, the same franchise came back to Mike with a better offer.

Coaching businesses don’t usually sell for high multiples, but Mike got lucky by riding trends that accelerated his growth. Additionally, COVID had every large fitness company scrambling for an online revenue stream, which made Stronger U an attractive target.

This time, Mike was ready to let go. So, he sold the company and spent another 15 months helping with the transition before fully retiring at 40.

And while many struggle with retirement, Mike was prepared because he knew what kept him happy and fulfilled beyond work. For him, that meant:

  • Spending time with his kids

  • Attending industry events

  • Opening a local pasta shop with a friend

  • Sending friends and family on vacation

  • Helping others succeed

Though he admits it can be lonely, Mike says selling Stronger U was the best decision he ever made.

The short version ⏩

Most gym owners don’t start their businesses with an exit in mind, but building to sell is a smart strategy even if you plan to keep the business forever.

Mike didn’t plan to sell Stronger U, but he got an offer he couldn’t refuse.

Mike doesn’t think he could replicate the company’s success today. But if you position yourself well and make the right moves, you might get lucky like he did.

And unlike others who struggle with retirement, Mike enjoys it because he found new activities that give him purpose.

Now, he’s focused on helping others in the industry and playing pickleball.

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

cheers,

j

📣 P.S. If this was valuable, share it with a gym owner who’d find it helpful too.