The 2-Week Challenge

I challenged myself to generate a business idea within two weeks. It may sound odd, but I felt that if I couldn't conceive something in that timeframe, perhaps entrepreneurship wasn't for me. Crafting an innovative idea is a long and arduous journey for many. Kadakia, however, managed to do it in just 36 hours.

Frustrated by the overwhelming options while trying to book a dance class, she realized that if she struggled, others likely did too. This sparked the inception of ClassPass, envisioned as a "search engine for dance and fitness classes."

After several iterations, she hit upon a billion-dollar concept in 2013: a subscription service granting users access to a variety of fitness classes, from Pilates to boxing. Recognizing the demand for variety, ClassPass became the first fitness aggregator, and by January 2020, with a new $285 million Series E funding round, it was valued at over a billion dollars—making it a unicorn.

Then the pandemic struck, wreaking havoc on the fitness industry.

A Lengthy Journey

My business idea took shape over several years—longer than Kadakia's, but she set a high standard. I operated a cultural exchange and work experience venture focused on young adults wishing to live, train, and work in Australia for 6 to 18 months. Initially challenging, the business thrived, especially as we adapted to market demands.

In conversations with Australian employers, I discovered a pressing need for skilled staff in long-term roles. This revelation led me to launch a program catering to skilled professionals seeking migration, which met significant demand and proved profitable—until COVID-19 decimated the travel and tourism sectors.

Kadakia's Adaptation

With fitness centers globally shuttered, ClassPass experienced a staggering 95% drop in revenue. In April 2020, the company laid off 22% of its 700 employees and furloughed another 31%.

Recognizing the need for adaptation, ClassPass began offering pre-recorded fitness classes for free and allowed gyms to live stream sessions via their platform. They also expanded into wellness offerings, believing that online wellness sessions provided a more personal experience for customers. Additionally, ClassPass introduced corporate wellness packages, allowing teams to work out or meditate together, fostering morale during a time of uncertainty.

These strategic pivots enabled ClassPass to weather 2020, although they faced the challenge of re-engaging customers who had developed new fitness habits or invested in home equipment.

My Adaptation

In March 2020, Australia's borders closed, rendering my travel programs obsolete. Without the option for virtual offerings, I furloughed all staff and turned to writing for income.

Mind, Body, and Wallet - Part 1

In October 2021, Mindbody acquired ClassPass, although the terms of the all-stock deal were not disclosed. Reports suggested that Mindbody would hold a significant majority stake in the newly combined entity, with ClassPass valued well above the billion-dollar threshold.

At the time of the acquisition, ClassPass had 400 employees, still far fewer than pre-pandemic levels, though user engagement and bookings were on the rise. Despite the lingering challenges in the fitness sector—especially with workout studio closures up by 19% in early 2021 compared to the previous year—the acquisition proceeded, marking Kadakia's exit from an active role.

"This has been a decade in the making. We need moments like this to celebrate. For young women especially to know: build any company, build an idea. Women know what women need. We need to keep building companies that solve our own problems."

Mind, Body, and Wallet - Part 2

While ClassPass found a new home with Mindbody, my journey led me to sell my business. Transitioning into writing brought me less stress and greater happiness. I found relief from the pressures of team management, client interactions, and differing visions with my business partner—all of which had taken a toll on my mental health.

With no immediate prospects for funding, an IPO, or acquisition, I chose to sell my share to my partner. Unlike Kadakia, I was selling a dormant business—by June 2021, the borders were still closed, and we had no customers.

I was, in essence, selling my business at its lowest valuation, but it was a necessary decision for my well-being.

To Sell or Not to Sell?

Many advised against selling, suggesting I wait for the pandemic to pass and the business to regain its former glory. Was I wrong to sell during such a tumultuous time? Aaron Muller, Founder and CEO of Advantage Commercial Brokers, shared insights that resonated with me: business owners often focus on maximizing financial returns when contemplating a sale, which can overshadow their intrinsic motivations.

I was indeed conflicted. Should I hold on for another year in hopes of a better valuation? Ultimately, my decision was driven by health and family considerations rather than financial ones, prompting me to move forward with the sale.

Happily Ever After

Kadakia, a skilled dancer, could have pursued a professional dance career. She founded the Sa Dance Company and hopes to perform more as the world stabilizes. Her recent book, LifePass, outlines a goal-setting method designed to help individuals "grant yourself permission to have the life you most want to live."

While Kadakia may embark on new ventures, she appears content, with her passions lying in dance and empowering others through her writing.

Though our backgrounds are vastly different and our bank accounts dissimilar, I find parallels in our journeys. My intention has been akin to hers—pursuing the life I desire, as a full-time writer.

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