How a Former Waitress Built the Solidcore Fitness Chain and Made $100 Million

Why it matters:

• Solidcore founder Anne Mahlum turned $175,000 in personal savings into a national Pilates fitness chain.
• In 10 years, she sold the company for $88.4 million to private equity firm Kohlberg & Company.
• That expansion is remarkable since 81% of health and fitness studios fail in their first year due to competition from large chains, coupled with a lack of capital and brand identity, according to the Health & Fitness Association.

It's not every day that a former waitress from North Dakota becomes a self-made multimillionaire by following her passion. But Anne Mahlum, the former Founder and CEO of Solidcore, a Pilates workout fitness chain, defied the odds.

In 10 years, the running and sports enthusiast grew her startup into a company expected to generate $50 million in profits based on $150 million in revenues in 2024. Last year, she sold her stake in the company to private equity firm Kohlberg & Company for $88.4 million. Today her estimated net worth is $100 million.

That's no small feat for a woman entrepreneur considering that women founders receive less than 2% of all venture capital funding annually, and 81% of health and fitness studios fail in their first year due to competition from large chains, coupled with a lack of capital and brand identity, according to the Health & Fitness Association.

CO— spoke to Mahlum to get an insider's view on how she successfully grew her startup into a coveted fitness chain of 100 gyms in 27 states across the United States.

(In September, L Catterton, the private equity firm backed by luxury goods giant LVMH, acquired a majority stake in Solidcore, valuing the company between $600 million and $700 million.)

In a candid interview, Mahlum explained how she did it, and the challenges she faced along the way.

CO—: When did you get the entrepreneurial bug?

AM: I was a waitress in Bismarck, North Dakota, while I was attending high school, and later I went to St. Cloud State University in Minnesota while studying political science and communications. But soon after I graduated and landed my first corporate job at Comcast in Philadelphia, I got an idea to start a nonprofit to help the homeless. It happened by accident. I was doing morning runs and passed a homeless shelter every day. I got to know the residents, and I came up with an idea to combine running achievements with coaching, financial aid, and job training programs to help this overlooked population build self-esteem and reforge independent lives.

So, in 2007, I quit my job and founded Back on My Feet to do just that. Since its founding, the nonprofit organization has helped 15,000 homeless people land jobs and homes. That was my first entrepreneurial venture.

CO—: How did you get the idea for Solidcore?

AM: Six years later I went to Los Angeles to open a Back on My Feet location and attended my first Pilates class. The experience was transformative. The 50-minute, high-intensity, low-impact workout was tough and builds muscle strength for people of all ages. I never saw my body respond so well to exercise, and I was amazed. I realized no one had built a brand around the Pilates concept, so I decided to step down as CEO of the nonprofit and focus on launching a Pilates startup. After building Back on My Feet into an organization with an operating budget of $6.5 million, I decided to do something else. I knew I had honed the leadership and business skills necessary for such an undertaking.

CO—: Where did you get the startup capital?

AM: I invested all of my $175,000 in personal savings to launch Solidcore and bootstrapped the company after that. I had no assets, and I didn't think I could get a bank loan or raise venture capital. I used the startup money to pay for a lease for my first fitness studio in Washington D.C., and then I hired and trained instructors, leased gym equipment, and began marketing the business. I chose D.C. since it was a market with little competition from other fitness boutiques.

CO—: How did you market the business and gain a following?

AM: I focused on building a community of Pilates enthusiasts of all ages. Luckily, there was no boutique fitness chain in D.C., so when I started classes, people were curious and came from Day 1. They quickly spread the word about the workout and our following grew. I also did grassroots marketing. I passed out fliers about my studio at local running events, bought a booth at the D.C. triathlon, and demonstrated how Pilates exercise works. People were amazed. I also used influencers and local media to gain exposure. In just five months I opened a second studio in D.C. The first year I made profits of 50% — about $2 million in revenue. I used that money to buy my first house and plow money back into the business to open more studios and expand. Within two years of launching the business, I had 10 studios.

CO—: The fitness category is crowded with many large competitors. How did you carve a niche for your company and grow your brand?

AM: The timing couldn't have been more perfect. It was the beginning of small workout spaces versus big-box chain fitness studios. My clients loved the results they got from our workouts that didn't beat up their bodies with jumping, pounding, and other high-impact exercise. They also liked the personalized attention they received from instructors who had to know the names and goals of every student in the class. As a result, they couldn't stop talking about us to their friends, and the buzz was our marketing tool. It was our magic sauce.

CO—: How did you keep up with rapid expansion?

AM: It was a commitment to the vision. I picked markets I was familiar with such as Philadelphia, Atlanta, and Bismark, North Dakota, through my work at Back on My Feet, and I tapped private equity investors to fund expansion. In November 2017, I raised $18 million — $6 million I received for selling some of my equity — the rest I plowed back into the business. We grew to 27 locations.

I developed an operating plan that could be replicated market to market, which included how to train and hire talent, recruit clients, and operate each studio profitably. But it was a balancing act; I always had to stay in front of the eight ball to make sure the business was on track.

Once the pandemic hit in February 2021, I raised $50 million in private equity from VMG, which helped the company weather shutdowns. I waited until the economy normalized before looking to sell the business.

[Read more: 3 Investors Demystify Why Some Startups Win Funding Windfalls]

CO—: Why did you decide not to franchise your concept?

AM: I decided not to franchise since our economics were too good at the corporate level. Our capital costs were very low, and our margins were high. We achieved payback on our investment quickly. I thought franchising would be messier and didn't make sense.

CO—: Describe the challenges you faced as a woman entrepreneur.

AM: I didn't look at any obstacles I faced as challenges, I looked at them as opportunities. I leaned into all things that were effective. I focused on my personality, leadership skills, and knowing my numbers. That helped me woo investors. A lot of women want to be amenable and are concerned about everyone liking them. That is just impossible. Demonstrating your business savvy and how you meet your business goals is what impresses investors and leads to success.

CO—: How did you snare a corporate buyer willing to pay nearly $90 million for your company?

AM: We hired Piper Sandler, an investment banker, to find a buyer. We focused on telling the story about the economics of the business and the profit margins each studio had. The business was attractive since it had a good growth trajectory with healthy returns.

[Read more: Why Google, Amazon, and Other Businesses Are Launching Accelerator Programs to Help Women-Led Startups]

CO—: How did you reward your employees through an incentive pool?

AM: I set up an incentive pool in 2018 for Solidcore employees. Without them, the company would have no value, and I wanted to be sure they were rewarded. All full-time employees who worked for Solidcore for a year or longer got a share of the proceeds from the sale.

CO—: Now that you are a financial success, what are your future goals?

AM: Right now, I want to be physically active and focus on my family and friends. I have worked tirelessly over the last 17 years, and now I want to take the time to just have space and enjoy my life. I am also focusing on my speaking career, and I plan to write a book.

CO—: What advice would you give other women thinking of launching a business in today's economic environment?

AM: First, be sure to lean into yourself and who you are. Your skill sets and talents should match what you want to achieve as an entrepreneur. Second, be authentic and hold true to your values. Third, know what your end game is. Every decision you make must be your North Star.

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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