From Nonprofit Founder To Building A $300M Pilates Business

Who is Anne Mahlum?

Anne Mahlum is a dynamic entrepreneur known for founding the fitness company SolidCore. Before delving into the fitness industry, she made her mark by launching the nonprofit organization, Back on My Feet. This nonprofit aims to help homeless individuals through running and community support.

Her journey began with a concerted focus on assisting those in need, drawing inspiration from her personal experiences. Anne's initial career involved working a standard job before she found her true calling in social entrepreneurship, using her passion for running to make a difference.

Today, Anne stands as an influential figure in both the nonprofit and business worlds, showcasing her versatility and dedication to creating positive change.

How did Anne Mahlum start Back on My Feet?

Anne Mahlum's inspiration for starting Back on My Feet came from her personal experiences and understanding of addiction. Her father, an addict, found solace in fishing as a healthier outlet. Anne believed running could serve a similar purpose for the homeless, many of whom struggled with addiction.

Determined, she approached a homeless shelter's director and pitched her idea. Despite initial resistance, her perseverance paid off. She secured permission to start a running club, promising a supportive community and a structured, goal-oriented routine.

In the early days, she faced significant challenges:

• Convincing the shelter to break its no-contact-with-women rule.
• Acquiring donations for proper running gear to ensure participants felt valued.
• Creating a disciplined program with contracts outlining attendance and attitude expectations.

Her strategy worked. The initiative gained media attention, and local businesses saw potential in providing employment to motivated participants. Anne’s blend of empathy, structure, and relentless drive transformed lives and laid the foundation for her future success in the business world.

What inspired Anne Mahlum to start SolidCore?

While in Los Angeles, Anne discovered a Pilates studio which had an immediate impact on her body and mind. After just 30 days of attending classes, she noticed significant changes and felt addicted to the workout. Back in New York, she found a similar studio and began to see the business potential.

Analyzing the math, she realized the studio's profitability, noting its constant full classes and high per-class rates. This inspired her vision for SolidCore. Anne identified an underserved market and combined her passion for fitness with her knack for community building.

Taking a leap of faith, she moved her savings into the business and began making strategic investments, including negotiating favorable terms with contractors and landlords. Her foresight and dedication laid the groundwork for what would become a highly successful fitness brand.

What were the initial challenges in building SolidCore?

Anne Mahlum faced several significant challenges when she set out to build SolidCore:

• Funding: Transitioning her savings into the business while negotiating terms with contractors and landlords to stretch every dollar. For instance, she financed the expensive Pilates machines due to liquidity constraints.

• Location: Finding and securing the perfect location for her first studio in Washington D.C., which required a hefty four-month security deposit that initially strained her startup funds.

• Building a Team: Assembling a competent team without the financial luxury to offer competitive salaries. Negotiated terms to get people on board and ready to work under promising long-term potential.

• Legal Disputes: Ending an unfavorable licensing relationship required navigating a significant lawsuit, which entailed additional financial and operational challenges.

• Operational Setup: Developing a new training program and custom machines that better suited their vision, all while managing the inherent risks of product development and deployment.

These early hurdles were critical in shaping the foundations of a thriving business in the fitness industry.

How did Anne Mahlum grow SolidCore to a $300M business?

Anne Mahlum used a multi-faceted approach to scale SolidCore into a $300M enterprise. Her strategies ranged from branding to operational excellence.

Branding and Marketing

Anne prioritized innovative branding and community-building. By creating a strong brand ethos around "creating the strongest version of yourself," she attracted a loyal customer base. Clever marketing campaigns like "It's not for everyone" mirrored high-impact Nike commercials, signaling toughness and exclusivity which resonated with fitness enthusiasts.

Operational Excellence

Operationally, Anne was meticulous. She negotiated favorable terms with landlords and contractors to keep costs low. This included forgoing security deposits and stretching payments over extended terms. Her ability to foresee the financial needs of the business allowed her to scale quickly and efficiently.

Strategic Expansion

Anne’s strategy also involved rapid, yet calculated, expansion. After opening the first studio, she swiftly opened four more within the first year. This gave the appearance of a highly successful and growing brand, attracting more customers due to perceived popularity.

Team and Culture

Building a high-performance team was another cornerstone. Anne ensured that coaches were well-compensated, implemented a revenue-sharing model, and provided long-term incentive plans. This fostered a motivated, loyal workforce, crucial for maintaining high standards of service.

Negotiation Skills

Her negotiation skills were pivotal. Whether it was declining investor money to self-fund the business, securing better terms with landlords, or navigating legal disputes, Anne’s acumen made a significant impact. She often used straightforward questions like, “What are you trying to protect against?” to challenge standard practices and gain favorable outcomes.

These combined tactics allowed Anne to turn SolidCore into a well-oiled machine, leading to its impressive valuation and ultimate success.

What role did negotiation play in Anne's success?

Anne Mahlum's negotiation skills were pivotal in her journey from nonprofit founder to the head of a $300M fitness business. She used strategic and assertive techniques to secure favorable terms and conditions across various stages of her ventures.

A critical aspect of her approach was challenging standard practices. When a landlord insisted on a security deposit, Anne questioned, “What are you trying to protect against?”. This straightforward inquiry often led to more favorable arrangements.

Anne’s ability to instill confidence in her vision was another strength. When negotiating investment terms, she once declined a substantial offer because it might signal doubt in her own capabilities. She explained, “I need to feel like I’m being chased by a bear. I need to figure this out.”

To navigate the complexities of the COVID-19 pandemic, she employed advanced negotiation strategies. She and her team read "Never Split the Difference" by Chris Voss, learning tactics such as mirroring and highlighting what the other party needed to win.

By combining these negotiation techniques, Anne ensured funding, favorable leases, and operational flexibility, all crucial for SolidCore's growth.

What is Anne Mahlum's advice for aspiring entrepreneurs?

Anne Mahlum's journey from nonprofit to a thriving fitness business has endowed her with practical insights for aspiring entrepreneurs. Her key pieces of advice revolve around mindset, strategy, and execution:

1. Play a Game You Can Win: Focus on leveraging your unique strengths and experiences. Anne started Back on My Feet because of her personal connection to running and its transformative power. She then moved into fitness, an area she was passionate about and understood well.

2. Believe in Yourself: Confidence is crucial. Anne emphasized the importance of not doubting oneself. She turned down an investor offer because accepting it would signal self-doubt. This resolute belief in her vision helped drive her success.

3. Prioritize Branding and Community: Building a strong brand and a loyal community can set you apart. Anne invested heavily in branding and marketing, ensuring SolidCore was seen as a premium, exclusive workout experience.

4. Negotiate Effectively: Use strategic negotiation to secure favorable terms. Anne often questioned standard practices, asking “What are you trying to protect against?” to land more beneficial deals.

5. Stay Resilient: Entrepreneurship comes with challenges. Anne faced obstacles like legal disputes and financial constraints but remained persistent. Navigating these effectively is key to long-term success.

6. Empower Your Team: A motivated team drives growth. Anne implemented revenue-sharing and long-term incentives to ensure her employees were well-compensated and aligned with the company’s goals.

For more practical tips on entrepreneurship, especially aimed at women entrepreneurs, seeking mentors and testing ideas can be particularly invaluable.

What future ventures excite Anne Mahlum?

Anne Mahlum is currently intrigued by endurance challenge events and AI-driven fitness solutions. She recently participated in the 29029 Everest Challenge, where participants ascend a mountain multiple times to match the elevation of Mount Everest. This experience has ignited her interest in similar endurance events, considering them a growing trend in fitness.

Moreover, Anne is backing Oxfit, an advanced at-home fitness platform. Oxfit leverages AI to personalize fitness routines, incorporating vital data like blood work and metabolic rates. Anne believes that such detailed customization could revolutionize how people approach fitness, making workouts more effective and tailored to individual needs.

These ventures highlight Anne's continuous commitment to innovative and impactful fitness solutions. For insights into similar entrepreneurial endeavors, check out how Carl Pei built a multi-million dollar smartphone brand in just two years.