Anne Mahlum's Transformative Journey: From Solidcore to $100 Million Exit

Table of Contents

1. Key Highlights
2. Introduction
3. Leading with Purpose: From Nonprofit to Profit
4. Foundational Steps to Solidcore
5. Scaling for Success
6. Embracing Private Equity
7. An Exit for Growth
8. Lessons in Leadership
9. Reflecting on Growth and Community
10. Conclusion
11. FAQ

Key Highlights

• Business Success: Anne Mahlum founded [solidcore], a fitness studio, in 2013 and sold the company for approximately $100 million in April 2023.
• Innovative Leadership: Mahlum emphasized the importance of community and unique branding in her business model, transitioning from the nonprofit sector to a successful fitness enterprise.
• Strategic Growth: The interview delves into her strategies for scaling, her experiences with private equity, and why she chose not to retain equity during the exit.

Introduction

In just a decade, Anne Mahlum transformed from a nonprofit leader to a fitness entrepreneur, culminating in the sale of her company, [solidcore], for approximately $100 million. She encapsulates the essence of modern entrepreneurship: building a community-driven brand that prioritizes unique customer experiences. But what truly defines her success? Mahlum attributes it to overcoming limiting beliefs, implementing strategic decision-making, and continuously innovating even while facing setbacks. This article unpacks her remarkable journey, sharing insights into her leadership style, the challenges she's faced, and the lessons she's learned along the way.

Leading with Purpose: From Nonprofit to Profit

Mahlum's journey began long before the inception of [solidcore]. In 2007, she founded a nonprofit organization, Back on My Feet, leveraging her passion for running to assist homeless individuals in Philadelphia. By harnessing the physical and emotional benefits of running, she created a structured running club that aimed to instill a sense of self-worth and purpose among participants.

“People don’t realize the power of a good decision,” Mahlum reflects on this formative experience. The idea was simple yet profound—encouraging these individuals to wake up early and make healthy choices could lead to long-term benefits in their lives.

Her early years in the nonprofit world proved pivotal, not only shaping her values but also honing her organizational skills. “I learned to build systems and processes efficiently, traits that translated effortlessly into my business endeavors later on,” she noted.

Foundational Steps to Solidcore

Established in 2013, [solidcore] emerged as a pilates-inspired fitness studio aimed at providing immersive, high-intensity workouts. Mahlum's vision revolved around creating a unique workout experience that would foster a strong community.

The choice of Washington, D.C. for her first studio was informed by her familiarity with the area—I had studied there, volunteered, and built relationships. D.C. is known for its affluent demographic and a strong emphasis on fitness, which combined to create fertile ground for her new venture.

Innovative Branding

Mahlum’s branding strategy was innovative and intentional. Instead of positioning her studio as a typical fitness location, she marketed it as “the hardest workout you’ve never heard of.” This unique tagline piqued curiosity and attracted a buzz before many people had even set foot in a class.

This approach illustrates the power of storytelling in business. By crafting an intriguing narrative around the experience in [solidcore], she effectively tapped into the psychological and emotional aspects of gym-goers' motivations, a tactic she had utilized in her nonprofit work.

Scaling for Success

Within the first year, Mahlum opened five studios—a testament to her commitment to aggressive growth planning. This rapid expansion can largely be attributed to her understanding of market dynamics and operational execution.

“I knew I wanted to build a significant brand,” Mahlum explained. Central to this was her conviction in community building: “People gravitated toward not just a workout but toward being part of something larger than themselves.”

Despite a competitive landscape dominated by established fitness brands, Mahlum’s strategy focused on quality and customer experience rather than directly competing on similar terms.

Mahlum also stressed the importance of exceptional coaching. During hiring, she sought personalities and skill sets that aligned with her vision of delivering unparalleled customer service.

Turning Challenges into Opportunities

Every entrepreneur faces pivotal moments that can either make or break their endeavors. For Mahlum, a critical turning point came when licensing conflicts arose with the manufacturer of her initial machines. After enduring a cease-and-desist letter prohibiting communication with other licensees, she made a bold decision to pivot and develop her own workout machines.

This decisive move paved the way for scaling in ways she hadn’t previously imagined, as it eradicated reliance on external decision-making. Ultimately, her designs, including the now-famous “Sweatlana” machines, became synonymous with the brand itself.

Embracing Private Equity

To further fuel growth, Mahlum sought private equity funding, arguing that “I wasn’t growing fast enough." By raising $18 million from Peterson Partners in 2017, she enabled not just the expansion of [solidcore] but also recruited specialists that could accelerate operations and management.

“I needed to level up talent,” she emphasized, suggesting that every driven entrepreneur must know when to relinquish some control to ensure progress.

Her relationship with private equity proved functional, as they provided insights on operational metrics needed to attract further investment and buyers.

An Exit for Growth

Ultimately selling her stake in [solidcore] in April 2023 for approximately $88 million, Mahlum chose not to roll over any equity. “I wanted to be in control of the ending and move on to the next chapter of my life,” she articulated.

The post-exit valuation from the subsequent acquisition by L Catterton reflected her strong foundation. Those who follow her journey can witness that true entrepreneurial success isn’t merely about financial gains—it’s the impact and legacy one leaves behind.

Lessons in Leadership

Mahlum’s leadership style emphasizes swift decision-making and clarity of vision. “Many people get lost in analysis paralysis,” she explained, stressing that every decision should be evaluated based on its potential financial impact.

Her approach is representative of how successful leaders navigate through uncertainty and competition—by fostering teamwork, rewarding innovation, and incentivizing exceptional performance within her teams.

Reflecting on Growth and Community

Now a celebrated speaker and advisor, Mahlum dispatches thoughtful messages about the importance of community building in business. She recognizes that balancing personal fulfillment with professional success is essential for sustaining one’s passion.

“Growth means letting go,” she reveals. For Mahlum, this realization is liberating, urging aspiring entrepreneurs to embrace new experiences—they can often lead to unforeseen opportunities.

Mahlum’s journey highlights the vital intersection of passion, perseverance, and strategic foresight in entrepreneurship.

Conclusion

Anne Mahlum exemplifies the balance between heart and ambition in the world of startups. During her storied evolution from a nonprofit founder to a formidable entrepreneur, she has not only built a brand but also a community that celebrates wellness and strength.

Her insights serve as invaluable lessons for upcoming entrepreneurs who seek to carve out their own unique spaces in competitive markets while upholding their core values.

FAQ

What is [solidcore]?

[solidcore] is a pilates-inspired fitness studio that offers high-intensity workouts in a community-driven environment.

How did Anne Mahlum make [solidcore] successful?

Mahlum combined innovative branding, community building, operational excellence, and strategic decision-making, resulting in rapid expansion and a sale at an impressive valuation.

What challenges did Mahlum face in scaling her business?

Mahlum dealt with licensing disputes, operational bottlenecks, and the complexities of navigating private equity funding—all of which she transformed into opportunities for growth.

Why did she choose not to retain equity after selling [solidcore]?

Mahlum opted for complete control over her exit, prioritizing her desire for autonomy in her entrepreneurial journey.

What key advice does Mahlum have for aspiring entrepreneurs?

Focus on identifying your niche, embrace growth and uncertainty, and prioritize building authentic relationships within your communities.