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Published May 17, 2018

MY $250k MISTAKE (and how to avoid it) 💵🔥💵🔥💵🔥💵🔥 (ALL GYMS WHO WORK WITH US PLZZ LISTEN) ...and the ONLY strategic advantage a microgym has in the marketplace to command premium prices... | Ep 55

Alex Hormozi reveals a $250k mistake in gym business expansion, offering valuable lessons on prioritizing financial stability and service quality to avoid pitfalls, while highlighting the unique strategic advantage microgyms have in commanding premium prices.
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  • Expansion Pitfalls

    shares his insights on the common pitfalls gym owners face when expanding too quickly. He emphasizes the importance of focusing on profitability rather than rushing to open new locations, as he learned from his own costly mistake of spending $250,000 on a second gym that didn't yield the expected returns 1. Alex advises gym owners to prioritize making money and maintaining a strong financial foundation before considering expansion 2.

    We're opening the second location. It's going to be great. And on my second location, I spent a quarter million dollars. I spent 250 grand on my second location and I opened that up at month 15, as in month zero was when I opened my first location.

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    He warns against the temptation to compete with larger gyms based on facilities, urging owners to focus on what truly drives success.

       

    Scaling Preparedness

    Scaling a business requires careful financial planning, as explains. He stresses the importance of stacking cash and ensuring financial stability before opening additional locations 3. Alex highlights the need for gym owners to be patient and maintain profitability for an extended period to avoid scaling issues 4.

    You should literally be on, you should be bored out of your mind at your gym for six to nine straight months. Cashing in 2020, 5000 a month. Take home before you open the second location.

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    He advises against reinvesting profits too quickly, advocating for a focus on financial freedom and security.

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