We Sold Our Gym, Here's What You Can Learn From It

Why did we decide to sell the business without the clients versus with the clients? Anyone looking in would be like, dumb move. Like sell the business to the whole. Sell the client, sell the contract versus we're basically selling everything besides the client list and the contract.

You know, from the outside looking in, people are like, well, why would you sell it? Like, why would you close it like that Seems really crazy.

Essentially managing the expectations, outcomes and results of, you know, 450 people across two businesses is quite a lot of stress, strain and responsibility to have. So I wanted to honestly be done with literally half of that. Welcome to the Success School podcast. We are on episode 47 and today we're talking about the lessons from selling our first fourth business and what you guys can learn from it. Steph, how you feeling? And give us your personal update. What is going on?

Feeling really good. Feeling a little bit more focused, a little bit more free. We are talking about selling the business today, the business that we just sold. So if you are thinking about selling a business or you're going through the process of wondering what it might be like to, you know, have an end goal for your business, we're going to definitely be diving into that today. But before we do, a little personal update from me. I have been loving our new hot tub. So. So if you haven't seen it on social media, we are spending a lot of time in our hot tub. I have shared my ideal week recently a few times publicly and everyone's like, you spent a lot of time in the hot tub. And you're right, we do. We've been spending a lot of time in our hot tub. And the reason being that it's just such an incredible way for us to connect. We can't work in the hot tub, which is great because you can't have nearly like any, you know, powered electronics in the. Yeah, I do not. I do not. The other thing I, the other only electronics I touch when we're in the hot tub of the music is the music buttons. So it's been amazing. It's been such a great way. I've been calling it the hot tub timeout machine because it is a really cool opportunity for Tim and I. Just connect. It runs on what are the cycles that it runs on? Like 20 minutes, 30 minute lunch bubbles. So the little bubbles come on for like 20 to 30 minutes. And we've just been finding ourselves sitting in there for like two or three hours some days just chatting and, and nutting things out and getting some clarity on our situations that we're experiencing in business or life or, you know, how we might be feeling and what we're processing or anything like that. And it's just been so phenomenal. So I'd say that it's probably the best investment we've ever made from like a furniture perspective or like a. A house item.

Yeah. All the finance people would be like, actually, I'm an investment. It's depreciating.

Well, yes, technically.

Investment in happiness.

It's an investment in happiness. It's an investment in joy and connection.

That's what I say about my Lambo. I'm like an investment in happiness. You know, it might not be a smart financial decision, but it might be, actually.

Yeah. Well, if it brings you more joy, therefore you are more likely to be excited to work, therefore you will make more money. Very logical case in point. Yeah.

Like, sold.

Convinced.

All right, what's going on with me? So I was scrolling TikTok the other day and doing some research. Obviously, just for business purposes only. That's all I'm on TikTok for is business only. So I was like, looking at hooks, looking at copy, looking at how they present, looking at the first two seconds, doing all the shit that I normally do on TikTok to make viral content. And I saw a blonde girl and it was quite a hook because I like blonde girls. And she was well set as well, so I also did enjoy that. And then she was rubbing her face with some ceramic thing and I was like, what the fuck is going on here? Anyway, she was telling this story about how she's met this guy on Bumble. He's in Italy. She's flying over to Italy to meet this guy. I told Steph this story. She was like, what the fuck are you watching on TikTok? Anyway, she was rubbing her face with something and I was like, what? What is the thing? So I commented on it and she replied and she was like, it's a gushwa. Did I say that?

I have no idea. I have no idea what this is.

Gushwa. I looked it up and then I bought a gushwa actually after that. So call me influenced from TikTok. So we were actually in Bali recently as well, and we saw a gooshua at the massage place. So I bought it and now I am health. So essentially it provides lymphatic drainage to your face and makes you look younger. So if you guys are watching on YouTube, please subscribe and in the comments, tell me how much younger I'm looking on video at the moment.

The best thing about the question that we bought. I don't know if that's how you say it, please feel free to tell us how we're saying it wrong. But the best thing I love about it is that the only one they had available was pink. And so Tim has been rubbing his face basically with pink crystals. And it's been, it's been our time, it's been hilarious for us. And just the whole fact that he apparently is on tick tock doing work is even funnier in my opinion.

I definitely am. So let's get into the topic. A little bit of a caveat here, guys. Like, you know, we say sold. You know, at this point in time it is closed and it has been for 24 hours. We've had five inquiries to buy all of the assets, including the contact list, all the equipment, the lease, all that type of stuff. I have no doubt by the time this episode airs that it will be officially sold.

Let me give everyone a bit of context because it's probably very clear in our world what's happened. But for everybody else that's listening, they might not be aware yet. And especially this is quite new news, right, for us. So we have, or Tim, tell us about the business that you just sold. How long have you been running it? What's it look like? Give us a bit of an update on, on this business.

Yeah. So you know, long story short, I moved back to Perth from running or being a strength coach at the University of Arizona, which was it's my craft before I was a business coach and I started a gym in my parents garage. You know, literally no plan, just started a gym because someone said it would be a good idea. And eventually it formed into, you know, one of the highest rated gyms in Australia, definitely in wa and it was an absolute beast and it was an incredible experience and we have just closed the doors, sold, got out and it's been a journey, I must say, it's been a journey and we've learned a lot and I guess it's, it's kind of made me into the entrepreneur I am today, which the fitness industry is incredible for doing. Did that answer your question?

Yeah, it did. And, and what, you know, when it comes to. Because this is like a baby for you, you've had this, this is your first real foray into entrepreneurship and you, you know, had this incredible experience over the last 10 years. Surely selling it kind of felt for you, you know, for anyone who's listening, who's maybe in their first business or it kind of feels like your child. And so how did it feel? How's it been feeling to make that decision or to sell? And what's that process look like coming to the decision to sell?

I'd say this has probably been like three years coming for us to this, you know, day yesterday. It's probably like a three year journey. I'd honestly say, like the last week's probably been the worst week of my life. Coming to this point and knew, knew this was going to wrap up. Like how we did it, how we broke to the members, like the timing, all that stuff has been so up in the air for such a long time now. But honestly, like, how's it been feeling? It feels terrible, to be honest. Like today I feel a little bit of relief. But I've never been through great grief. Like our dog Max died of cancer a couple of years ago and that was the first like, thing around me that I really loved that died. But this feels like a death. It feels like, it feels like Max has died again. That's kind of how it's been feeling this week for me.

And what made you decide to, you know, so you've got this incredible business, you know, you've got hundreds of clients, you've got, you know, it's, it's making heaps of money. It's well and truly paying for itself. Plus some, plus some, you know, we're having to, you know, disperse profits because there's too much money coming through through. And it's a really great business. It's got great systems. You don't work in it a lot. It doesn't, you know, take up too much of your time. Tell me, like, when you have a business going that well, you know, from the outside looking in, people are like, well, why would you sell it? Like, why would you close it? Like that seems really crazy. What were the kind of leading factors for you in making a decision like this?

Yeah, so three main reasons for selling it. I think, like the first one is, you know, like Stephen, our future. We want to start a family, we want to have kids. We've been trying with that hasn't been going super successfully. We think, you know, contributing factor to that is the stress of this. I'm a lot more emotionally invested or was in this business than any other business I've ever run because it was my first baby. So for someone just to be like, yeah, like, don't take it so seriously. It's not that bad, it's not that stressful. They just don't get it because they're not in it and they don't have the, the bias and the history that I do with it. So it's quite stressful. And with that stress comes less chance of having kids and conceiving and all the things. So I'd say, like, you know, the stress reduction of it would be the first thing. The second reason would be the opportunity cost. So, you know, if you've listened to this podcast before, Steph and I are doing pretty well. Like, we make no secret of that on our social media as well. But for us to do even better and change more lives and have more of an impact in the world, like, my focus needs to be on success school as well. So taking 50 of my focus from the gym to successful is going to change astronomically more lives than it would be not. So, yeah, the second one was the opportunity cost, and then the third one was just essentially managing the expectations, outcomes and results of, you know, 450 people across two businesses is quite a lot of stress, strain and responsibility to have. So I wanted to honestly be done with literally half of that or like, you know, a bit less than half, but still like a lot of people. And you can imagine every single person has questions, queries, texts, complaints, issues, grievances, problems with other people, you know, and it just gets. It's. It's a lot to hold. So if you think about, you know, holding the responsibility of 450 people, whether that's meant or not, it's still a big thing. Have I missed anything?

No, for me, like, from the outside looking in and, and really being on the inside also, because even though it was Tim's baby and he did have this business, you know, when I met him, it's. We've. We've definitely both worked on growing it over the last few years. And so, you know, and I'm part of the community and I'm part of the, you know, what makes the fabric of. Of Helix what it is. And so I do feel part of it, even though it has been mostly Tim's decision, and it will. The decision was always going to lie in, in Tim's court. But for me, from the outside looking in, the opportunity cost was the biggest part. It just made. No, it no longer made sense. You know, the only reason that we would keep Helix the way that it was without massively investing and changing things, which is what would need to do if we wanted to take it to the next level. You have to do, like, a cost benefit analysis on, on these sorts of things. And so, you know, we can pump in and probably the gym probably Needed, I'd probably say at least another 50k in, you know, potentially things that we may have looked to do if we were to keep it, to get it to where we wanted to go is probably a bit of a rebrand. You know, bring higher, train new coaches and bring them in, you know, run bigger and better community events. Honestly, I think that Tim would have had to work in it for quite some time to get it where it needed to be to be able to go to the next level. That was going to make it a really financial heck yes for us. And when we looked at all of these things and we looked at how much additional income the gym could bring in, we could make that in successful in a month. And so which was. It's just one of those things that, like, with Tim's 100, like, Tim's a genius and super smart, very driven. You know, as soon as he's got his focus on something, it happens and it happens really quickly. And I just know that our clients are successful and I know that our business, our coaching business, with both of our minds on it, is just gonna. We're really gonna have the impact and change the amount of lives that we want to change really quickly. And so for me, having Tim's 100% focus on the coaching business has been a driving factor for me to know that it was the right decision for us.

Yeah. Steph, I got a question for you. So why did we decide to sell the business without the clients versus with the clients? Because, you know, from the outset, anyone looking in would be like, dumb move, like, sell the business to the whole. Sell the client, sell the contract, sell all that shit versus. We're basically selling everything besides the client list and the contract. So, you know, run us through from your point of view, like why that decision was made.

Yeah. So we decided to effectively close the business rather than sell it, like Tim said. You know, we kind of knew in our heart of hearts, we kind of knew our gut instinct, in our logical mind and our emotional mind that the minute we announced that we'd shut the gym down, we would have people come out and offer to buy it from us. And which has happened. And I think we've had five offers hit the table. And like I said, by the time that we. This episode goes live, I'm sure that a deal will have been done. And so for us, the reason that we decided to close it rather than sell it, we actually had multiple buyers lined up that were interested in buying the gym. The problem was that one of them wasn't A values fit for our community. And we didn't feel comfortable handing it over because we just didn't think that we love and value and cherish our community that we built so much that we didn't want to just roll their contracts into somebody who was going to completely change, change everything for them. And then, you know, they're stuck in a, with a notice with, you know, four weeks notice in a contract. They. That just doesn't. Didn't feel good for us to do that. The second reason was because letting everyone out of their contracts felt better, honestly, like letting our clients make the choice for themselves. You know, we knew that we'd probably sell the facility. We knew that another gym would come in probably because it, it's set up that way. Of course, you know, we have all the racks of all the equipment, we have all the speakers, we have all the, you know, the council approvals, the council approvals that, you know, the fobs. Deer in the door. Like it's set up like a really incredible gym. And so we knew that another gym would eventually come in there and then it gets to be our client's choice where they want to train rather than feeling like they're being locked in. And we just think that it was time to come full circle with the brand as well. You know, we haven't sold the brand, we haven't sold any of the brand assets. We haven't sold any of the IP or systems or knowledge or any of the things that come with running the gym. And at some stage I think maybe you will package that, some of that stuff up and potentially sell it separately kind of maybe a gym in a box sort of thing at some point that could be something that we look to do. But for right now, it was also a time thing was probably the last thing was to sell a business. You know, there's a lot of, you know, to find a buyer, there's a lot of red tape. There's a lot of if you've ever sold a business or contracts and letters of offer and you know, asset lists and liability lists and like it's a big thing for somebody to think about taking on. And so, you know, every time we were lining things up with a buyer, it was always looking like a 6 to 12 month, you know, transition period. And Tim and I were, we were done. We were, it was time and we were done. And by shutting it down and closing it, you know, it got to be our choice and we got to do it on our timeline, which was really awesome. And we knew in our heart of hearts that as soon as we shut it, people would come out of the woodworks and offer to buy the facility. And, and that has happened.

So yeah, I'll just put a bow on that. And like, you know, I built the Helix brand like from day dot and day zero and it felt like right for me to kill the brand and take it to the grave with me. It didn't feel right for someone else to take it, change it, do what they want to do and potentially like ruin the brand rep. And I know that's such a minor thing from the outside and people would say like whatever, but I guess like once you've built something and it has cred and it's well known and you know, like we travel around the world and people know the brand and they know the name and they know it everywhere. And for someone else to come in and take that over and potentially not do the right thing was like, wasn't a good fit for me personally.

So tell me, how did you, how did you tell the clients? Because this was, and I think this is just interesting for other people to listen to because if you've ever, if you're ever considering selling guys, the hardest part of selling a business is having to let people know. And we sold multiple businesses now which, and you know, often when you sell a business you will, you might make, you might fire everybody because the new company might not take on their contracts. So, you know, there's people you have to let down, there's clients you have to let down. Everyone's always disappointed when you sell or close a business, you know, it's super rare that the clients that have learned to love you are going to be stoked with someone else coming in. So you know, being in such an, it's such a beautiful community and because we see each other every day, it's a really tight knit community. How did you make the decision on how to tell them and how did you feel through that process?

Yeah, so it kind of became a little bit more, I'd say like probably like 10 days ago or something. We like made the decision initially we were going to give it six weeks, which is heaps. And then Steph was like, why six weeks? And I was like, no idea why six weeks?

Yeah, it was like end of financial.

Year, pie in the sky type thing.

Yeah.

And then we said two weeks. And then I just thought to myself, like, imagine telling someone two weeks this thing. Like a lot of my clients have been there five, six years. Like, you know, and you're taking Something away. Imagine that two weeks would be like crying, emotional. Like there'd be attendance stuff. It like would just.

Attendance would drop.

Yeah. Tenants would drop. Like team like you gotta, you know, and then everyone stuff and sick days. And then I've just got a full kerfuffle on my hands. So we kind of just ended up with, you know, we're going to give him three days notice. Tell them on Thursday, close on Saturday. Then it went to two, then we went Friday. And then I announced it. And on Friday morning I woke up and I was having like severe panic attacks about it, almost to the fact that I didn't want to do it. And then I was purposely telling my friends during the week that I was going to do it and it was final. So I was backed into a corner and I couldn't back out. And so there was purposeful that I was doing this. And then I scheduled the posts in the groups and the emails and all the. And I had written everything out for like weeks in advance. Like, honestly, I'd gone and rewritten the post over and over and over. But honestly, like when I say it was the worst week of my life, I'm like, I'm not even kidding. It has been a torrid week to go through this. There's so many, like mixed emotions. Like happy, sad, angry, scared. Like, I feel so bad that I've let so many people down. Like it's been such a emotional roller coaster. But eventually, like we gave everyone two days notice, which is fine, ended all the contracts so no one was left in the lurch. And then, you know, we had a few painful. So we refunded them and you know, we did the right thing by the clients. But honestly, like two days notice was. Was good and doing it on a Friday was good. It's kind of like when you make some redundant, you do on a Friday because they have the weekend to process it.

And what would you say? Like, for anyone listening, you know, guys, all of you have businesses and I think there's probably a couple of key lessons that we wanted. You guys just the reason we wanted to do this episode is we do get asked a lot about this. We've been asked already so many times, like, why did you close it versus sell it? You know, what are you going to do with the contracts? What are you going to do with the client list, what we do with the social media, what we do with that? What about all the systems you built? What about this? What about that? So we just thought we'd kind of wrap it up in a bow here for you guys. But what can business owners learn? Like, if someone's listening to this podcast right now and they have. They have a business, which I'm sure all everyone does. What. What are some key takeaways from. From this experience for you? Would you want to share with them?

Yeah, I'll go through the first two, and Steph can go through the other two, but I think the first one is have an exit plan. I built this business with no exit plan. I had no idea what it was going to be or become. I had the mission. I wanted to change a thousand lives with movement, mindset, wellness, and nutrition. Mission accomplished. And then there was no real kind of exit plan when. When we got to X level, I would sell or what would happen with it. And it up being this thing that I just ran over and over and over again for years and years and years, even though the mission was accomplished, even though it was making great money, even though it was highly profitable, even though it was minimal work, but the stress was also there. So my thing to you is, like, if you're listening to this podcast, you. You probably have a business, so you're. You're somewhat successful already. But, like, what does that look like in 5 or 10 years? What about when your circumstances change? What happens with your family? What happens if you, you know, have a divorce or you get a new boyfriend or you move country or, like, you know, the economy changes or. Covid 2.0 is like, you know, we get so stuck in the now in business, and we get so stuck in the, like, what's happening in this exact moment that we have no, like, eye on the future. So if anything, like, the number one lesson for you for listening to this is like, what's your exit plan? What does that look like? What does it look like for your family? And then just have that exit plan and honestly, like, stick to it, I think is a good thing because, like, businesses don't really run forever. No one stays in businesses forever. So, like, what are you going to do when it finishes?

Yeah, no one tells you that, like, the first time I came to my selling my first business, I never. I never started it, planning to sell it. And then one day the thought just dropped in, like, I think you're done. And. And so over time, you know, that that thought grows stronger and it starts to gain some momentum. And then all of a sudden you're like, I'm done with this. And then, you know, for us, like, covert hit. And so, you know, it was just time and and no one ever prepares you for that decision to be made, but you will at some point have, like, it's. I don't think. I think I've heard that, like, there's only, like, one person in the world who's still in the first business that they created, and it's Jeff Bezos. I can't believe that he actually created Amazon in his. As his first business. But the truth is that if you look at any highly successful entrepreneur, they have a string of businesses behind them. Like, a huge string of businesses behind them. Like, your first business is probably not going to be your last business. And. And that's okay. And just making it an intention with every single time. Like, we've been asked many times, like, what will we do with success school? And honestly, we don't. We don't fully know, but we certainly are setting it up to be an asset that could be for sale if ever we decided to go down that road. We don't know if we will, but we would definitely hate for all of this work to go to waste without, you know, being able to generate something on the back end of it. We've seen people sell coaching programs really effectively, and so we don't know exactly that that's what we do, but we're definitely setting things up so that if that was the case and if we ever got to a point where maybe that's what we'd be able to do, and I think that every single person needs to have a think about that. Would you just shut it down? Would you sell it to somebody else? Would you give it to somebody else? God, so many people I know have been given businesses by people who just want it out, who just wanted to be done with it. And so you've just got to have a. Like, if things changed and if I no longer wanted to do this, what would be my plan? And just kind of having that thought process, I think will help you to approach it with a lot more confidence when the time comes.

Point two is it's not really about everyone else, is about you. So I know, like, we do build businesses for clients and, you know, we build it to get results and have, you know, impact and all those types of things. But I'd say, you know, at the end of the day, like, our business is there to serve you, not anyone else. So I think the point, like, probably in the last six months, you know, especially my gym, was less, less, less about me, my happiness, what I wanted, and more about everyone else. And I felt myself running this business for everyone. Else, everyone around me, the clients, etc, where like, you know, you get that from a point of view. But if it no longer brings you like the same light and joy and happiness that it used to, then it might be time to move on. I always say this, but like the most important commodity that you have in entrepreneurship in business is energy. It's not time, it's not money, it's energy. And if you have high energy for something, you'll create magic. And I know for me, when I have high energy, I bring magic to everything I do. And that is evident every business I've ever been in, I've brought amazing magic. If you've been in the room with me, you can feel it, like there's an energy that comes with it. Especially if I'm lit up about a project and this is not a, like blow steam up my ass. It's, it's the reality of the situation. So as the founder, as the entrepreneur, you need to run a business for you as well as your clients. And if that changes, then you need to address the feelings and thoughts and reassess where you're at. It's not just cut and run. As soon as the energy is down a little bit, it's more of a long term approach and zoom out. 24 months, 12 months is like, how's my energy? Does something need to change? Does the business need to change? Does my direction need to change? I would just really encourage yourself to think about you.

And just on that, you know, Tim and I have been making the decision to sell this business or shut it down for the last three years. So the energy has been in and out and it's been waning and it's been slowly getting less and less and he's been less and less excited about it over the last three years. And you know, every time we've tried to fix things so that we could put get more energy back in place, like what if we did this and what if we removed you completely and then what if we add you in this section and then why don't we try doing this and how can we get you more excited again? And it was, we tried everything to get the energy back, but it lost its spark. And so at the end of the day, like that's how we knew it was time. I think that for me, the last two points, and I'll run through this pretty quickly, but at the end of the day, guys, everything has its time limit. Like I just said, everything has a time. It has it, you know, what has a beginning must have an ending. And so everything is going to have its time and you just never know when that time is going to be. I think that's been such a profound takeaway for us. Like even though we were planning to sell this thing over the last kind of three years and we kind of knew that that was the eventual conclusion of it, it was very sudden the way that this dropped in over the last couple of weeks. And so you just don't realize, you know, when that time is going to come. And, but also knowing that it's okay when that time comes and not to punish yourself because yeah, you are going to probably have to let a lot of people down to make this decision for you. But at the end of the day, you got into business for you, so you always end up having to do what is right for you, no matter what. And, and please know. And even we had beautiful messages from people saying that Tim's given them a lot of permission to continue to, you know, focus on and go down the path that he loves. So that gives a lot of other people permission to do the same thing.

I just want to tell a little bit of a story about like the timing and all that stuff. I know we've been going on a little bit long about this, but, you know, last year in November, we had an investor fly over from over east and try to buy Helix from me. Multi six figure deal, great deal. We would have walked away very happy. And I scuppered the deal. Like, I honestly scuppered the deal. Put us in like legal strife because I wasn't ready and I wasn't. It wasn't the time and that was only six months ago. So in that six month period, although we have been thinking about selling it for a few years now, I just wasn't ready. But when it's time, it's time. And you'll know the time.

And then the last thing, guys, for us, and if you listen to our podcast, if you're part of our community, if you are in the biggest one school, the biggest one, the major one, the most important lesson that you need to hear from this lesson is as always, master of one. So you can be the jack of all trades and the master of none, or you can be the master of one. No one wants to go to a GP to have brain surgery. You want to go to the specialist, you want to go to the best specialist. You'll be on a wait list, you're happy to pay extra. You will go, you know, uninsured. You will find the ways to make the money so that you can get the support that you need. When you are a specialist at something, you are able to charge more, do more, you know, get better known, create cult followings, you know, do it better, become, you know, absolutely so in demand because you are so nichely specialized in the thing that you do that everyone's talking about the thing that you do. And when we go master of one, it means that we become the expert at the thing that you do and everyone knows you for and comes to you for. And it is time for Tim to finally step into the master of one. You know, when it comes to business coaching, he's a phenomenal coach. And anyone who's in our community, community will know that. But also guys, like when you have split focus, I think Tim's favorite saying is chase two rabbits, get none. When you have split focus and you're trying to chase two businesses, you know, only both of them are only getting 50. And at the end of the day, like our clients in success school and our clients at helix also deserve 100, which is why we've decided to, you know, shut, shut that one down and, and focus 110 on successful so you can, if you're unsuccessful, get ready. It's going to be freaking exciting. It's going to be a lot of cool stuff happening and if you're not, get ready to like buckle in and witness the journey because it is going to be really, really big. I think the, the later half of this year is going to be huge for, for us. Last but not least, Tim, what's the plan now?

Yeah, so full time business coach feels so weird saying that. I remember like we flew back from Bali last week and the customs declaration was like, what's your occupation? I was like business coach. That feels so fucking weird to say that.

It does.

But yeah, anyone that knows me personally knows like, I don't walk, I swear, sprint. I sprint everywhere and I sprint in business. So I'm excited for this next journey and chapter with Steph and like, I guess we are finally the epitome of master of one. We have one thing. One product, one focus, one goal, one family. United.

Yeah, United for life. No, we're so excited and yeah, it's been a big journey. Thank you guys for coming on the journey with us. Thank you for listening to this podcast. We, you know, really hope that you got something out of that. But if I could recap on anything, it would be have a solid exit plan. Know that you have to be in business for you, not just for your clients. And it has to suit you and your lifestyle at some level. Everything has a time limit. And last but not least, you know, if you can put all your focus into one thing, it's going to grow 10 times faster than having split focus.

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