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Most tech start ups take years or decades to see their first profit, investing heavily in growth, at the expense of short-term profitability.
Even a great company like Amazon, which was founded in 1994, didn't have its first profitable quarter until 2001. It didn't become the money-printing machine that it is today, until 2 decades after its inception.
Unless our goal as gym owners is to start a franchise with hundreds of locations, our businesses don't benefit from massive scale the way most tech start-ups do.
We are better off chasing steady, consistent, profitable growth month-after-month that allows us to support ourselves, our teams, and invest consistently back in our businesses.
In today's episode, I break down in detail why the physical and local limitations of most gyms require them to treat their gyms differently from most tech start-ups, and how most of the costs that we view as fixed costs for our microgym are really variable costs that will increase at scale.
By Andrew Frezza5
3838 ratings
Most tech start ups take years or decades to see their first profit, investing heavily in growth, at the expense of short-term profitability.
Even a great company like Amazon, which was founded in 1994, didn't have its first profitable quarter until 2001. It didn't become the money-printing machine that it is today, until 2 decades after its inception.
Unless our goal as gym owners is to start a franchise with hundreds of locations, our businesses don't benefit from massive scale the way most tech start-ups do.
We are better off chasing steady, consistent, profitable growth month-after-month that allows us to support ourselves, our teams, and invest consistently back in our businesses.
In today's episode, I break down in detail why the physical and local limitations of most gyms require them to treat their gyms differently from most tech start-ups, and how most of the costs that we view as fixed costs for our microgym are really variable costs that will increase at scale.