How a Pizza Delivery Boy Became a Billionaire

Welcome back guys and girls. Today I’m writing about someone who a lot of people (especially in the UK) have looked towards for entrepreneurial inspiration. He’s young, successful and from humble beginnings. With a focus on meticulously crafting his personal and business brand, he shows the importance of a proper marketing strategy.

But before we hop in, a rapid view of some founder/business news.

Right, enough of that now. Back into the journey of this weeks founder.

Starting with supplements

Most have heard of Gymshark and founder Ben Francis. In 2012, aged 19 and a university student, Ben and Lewis Morgan started the popular gym wear brand. Ben, driven by his fitness passion, saw a gap for quality, breathable gym kit.

Initially, Gymshark wasn't about apparel. Needing capital, Ben and Lewis drop-shipped bodybuilding supplements, acting as middlemen without holding stock. Their first transaction took six weeks, showing initial slow progress.

With tiny earnings from supplements, they bought a basic screen printer and sewing machine. Ben, self-taught in sewing and printing, shifted from reseller to creator. The business began in Ben's Birmingham garage, the initial hub for design, packing, and basic manufacturing.

Early on, Ben grasped the internet and social media's power to reach fellow fitness fans. He actively engaged online and partnered with early fitness influencers, sending complementary kit or paying small amounts for promotion in their videos. This organic marketing proved highly effective.

The Challenges of Day 1

The hands-on hand-made approach was incredibly time-consuming and presented numerous quality control and scalability challenges. However, it allowed them to bring their designs to fruition quickly and iterate based on early customer feedback. The moment they launched their own Gymshark apparel line, they had a transaction on that very first day.

During these intense early days, Ben was also a full-time student at Aston University and worked as a pizza delivery driver to further invest in Gymshark. This meant incredibly long hours and constantly juggling his studies, his job, and his burgeoning business. He eventually quit his pizza delivery job around six months after the official launch of Gymshark's apparel.

Forward wind to 2013-2014 reports indicated that in their second year, Gymshark's revenue reached around 500,000 GBP.

Early Challenges and How They Were Overcome:

• Resources: Initially, Francis and Morgan lacked the funds to acquire stock. To overcome this, they started by drop-shipping bodybuilding supplements through their website. It took six weeks to make their first transaction, gaining some initial capital.

• Creating Their Own Product: Recognising the need for better gym wear, they invested their meagre earnings in a screen printer and sewing machine.

• Budget PR: Gymshark was one of the first brands to make extensive use of social media influencers, paying them small amounts to wear the company's gear in their videos. This strategy proved highly effective.

Then it Clicked

Although GymShark were one of the pioneers of micro-influencer PR they were quickly able to shift to creating long-term relationships with key fitness personalities on social media.

Previously, they predominantly remained a digital brand. How do you combat that? Pop-ups. Getting these going gave a much stronger connection to their customer - putting a face to their customers. A side product of this was creating buzz. Loyal customers wanted to go and visit their stores, deepening their connection to the brand even more.

In 2017, Ben Francis stepped down as CEO, bringing in Steve Hewitt to lead the company through a phase of more structured growth. However, in 2020, Ben returned to the CEO position, signalling a renewed focus on his original vision and the next stage of Gymshark's evolution.

In August 2020, Gymshark achieved "unicorn" status, with a valuation exceeding 1b GBP, after selling a 21 percent stake to private equity firm General Atlantic. This capital injection provided significant capital for further expansion and strategic initiatives.

Where are Gymshark and Ben Francis:

• Gymshark has become a global fitness apparel powerhouse.

• In 2020, the business was valued at over 1b GBP.

• Ben Francis still owns a 70 percent stake in the company, which was valued at 1.45b USD in 2020.

• As of April 2023, Francis's net worth was 1.3b USD.

• Gymshark has expanded its product line to include women's clothing, content creation, and events.

BuyersClub Comments:

Thanks for reading this weeks edition. Ben Francis is a constant inspiration to myself and a loot of others too, so I hope this newsletter gave you a greater impetus to get started with your entrepreneurial goals.

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