Feb 13, 2024
When it comes to growing your business, simplicity is key. To make more money, you don’t necessarily need to add more products–you just need to make better use of what you already have.
Tim Calise is an entrepreneur, investor, consultant, and podcast host who helps service business owners uncover the profits hidden inside their existing businesses. By the age of 25, Tim raised over $325 million for his investment company before moving on to building a 7-figure tech-enabled fitness business with his wife.
Tim was one of the four executive team members at GymLaunch alongside Alex and Leila Hormozi, where he oversaw the development and launch of ALAN, a machine learning SaaS company. Currently, Tim helps make founders' dreams come true by implementing his Product to Profit™ Framework.
Transferring Skills from Other Industries
Tim is a big believer in what he calls talent stacking–taking his previous experiences and applying them to a new industry or problem. Launching a side business in college helped him develop his pricing and pitching skills. Working in hedge funds gave him the business and finance expertise he needed to open his first gym alongside his wife.
From there, it was an easy jump to working with GymLaunch, where Tim’s experience nurturing leads put him in the ideal position to launch the ALAN software. After exiting from ALAN, Tim moved on to a new problem he could solve: helping service businesses create recurring revenue.
The Product to Profit™ Framework
The goal behind GymLaunch was to help gym owners make more money. One of the main problems that Tim kept running was poor profit margins–or what he called the “pay and pray strategy”. Most gym owners were spending $50+ to acquire a new customer, but the industry standard of free trials meant it took a long time to make that money back.
Tim came up with a new model where business owners use paid products and offers to get back their acquisition dollars at the time of purchase. For example, if your customer acquisition cost is $50 then your entry-level offer should be at least $100. The key is to use existing offers (like turning an onboarding program into a paid course) rather than reinventing the wheel.
Today Tim uses the same framework to help service-based businesses across dozens of industries generate more revenue and increase their profitability.
Enjoy this episode with entrepreneur Tim Calise…
Quotes
“The core principle was we were our customer. We saw a problem, we solved it, and within 24 hours we had that business launched.”
“So many of us get into business from a delivery perspective. Take fitness, for example–so many personal trainers become gym owners. They’re really good at the service, but most of them have no idea how to run a business…I would say ‘What are your gross margins?’ to a gym owner and their eyes would glaze over.”
“I found peace in being a mentor and a coach, which was unexpected.”
“I’ve moved from me doing the execution to building a community of people who identify with the way I think and my perspective on the world, which is ‘How do we get to where we want to go without selling our souls in the process?’”
“When you have concentrations of revenue–either around a single product or customer–that is a risk to an investor.”
“We take the best stuff and bring it on the front end, and then we demonstrate or document behind-the-scenes, case studies, things like that, to show you what it’s like to be a customer before you pay us a dollar.”
“People resonate with confidence, clarity, and insight, and that’s what I’ve spent the last 20 years building and now it’s a matter of packaging and putting it in the right place.”
Links mentioned in this episode:
Visit Tim’s Website: https://timcalise.com/
Connect with Tim on LinkedIn: https://www.linkedin.com/in/tcalise/