SoulCycle: 2 moms turn a dingy funeral home into a multi-million dollar fitness empire

Hey rebel solopreneurs

Are you staring at your half-finished Notion template?

Maybe you've got a course outline about Instagram growth sitting on your desktop, and you're wondering, "Will anyone actually buy this?"

I see you there, second-guessing whether your digital product is good enough to launch.

Take a deep breath. Julie Rice and Elizabeth Cutler felt exactly the same way when they started SoulCycle.

Friends told them spinning was "dead."

They had zero business experience.

Their first studio didn't even have showers!

Yet these two regular moms - both juggling 5-month-old babies - turned a tiny hidden studio into a $180 million fitness empire.

Ready to discover how they did it? Grab your favorite drink, get comfy, and let's dive into their incredible journey!

1: 🤝 When Two Dreamers Found Each Other (2006)

Picture this: A sunny day in early 2006, New York City.

Two women walk into Soho House for lunch, complete strangers about to become business soulmates.

In one chair sat Julie Rice, fresh from nine years in Hollywood where she'd spotted and developed acting talent.

Exercise in LA? Pure fun!

Social meetups on yoga mats, laughing through workout classes.

But when she moved to New York in 2002 with her husband Spencer, exercise felt more like punishment than pleasure.

Across the table? Elizabeth Cutler, a former luxury real estate agent turned certified healer.

After moving to New York in 2005, she struggled with those stubborn 45 post-pregnancy pounds.

Elizabeth was intimidated by cardio classes and found them terrifying.

But when a friend suggested indoor cycling, she tried it and really liked it.

That's when the lightbulb moment happened. "Everybody needs cardio," she realized, "and most people hate it!"

She was onto something - after all, she'd just discovered a form of cardio she actually enjoyed after dreading traditional cardio classes.

Separately, they'd both been telling friends about their dream to open an indoor cycling studio.

Enter Ruth, their cycling-instructor fairy godmother, who thought, "These two need to meet!"

The lunch lasted hours.

They scribbled ideas on napkins, finished each other's sentences, and dreamed up their perfect studio.

No stuffy gym vibes - they wanted a sanctuary.

A place where exercise felt like a party!

Hey digital rebels - remember this moment next time you're feeling alone. Your future business bestie might be just one connection away!

2: 🏗️ Starting Super Small (Spring 2006)

Nobody thought it would work.

"Spinning is dead," warned one friend, trying to save them from embarrassment.

"Who's going to pay for just cycling?" asked another, shaking their head.

Julie's dad visited their first studio, looked around for showers (there weren't any), and quietly worried his daughter wouldn't be able to send her kids to college.

But here's what made Julie and Elizabeth different: Instead of letting doubt creep in, their eyes lit up.

"We can totally flip this on its head," they told each other. "We can make this incredible!"

With some money from Elizabeth's previous investment (lucky break - she'd invested in a friend's juice company that PepsiCo bought), they went hunting for their first location.

Talk about a challenge! Nobody wanted to rent to two moms with zero business experience.

Then Elizabeth spotted something on Craigslist (yes, Craigslist!) - a sublet in an old funeral home on West 72nd Street.

The catch?

• Hidden behind a gym

• One tiny bathroom

• Zero showers

• No sign allowed outside

• Definitely not glamorous!

Sound familiar? Maybe you're worried your home office isn't professional enough for recording courses, or your Notion templates aren't fancy enough to sell. Remember, digital rebels: these two built an empire starting in the back of a funeral home!

What did they do next? Grabbed Elizabeth's station wagon and headed to IKEA.

Not once, not twice - thirteen times!

They built their front desk from IKEA furniture, painted their own walls, and did all the dirty work themselves.

In those early days, it was just Elizabeth and Julie - they worked the front desk, cleaned the rental shoes, painted the bathrooms, fixed the bikes, and even took out the trash.

The only employees they had in the first six months were part-timers who agreed to also babysit their kids!

3: 🎯 Getting Scrappy (Summer 2006)

No sign outside? No problem! These two got creative:

1. Found a rickshaw on eBay

2. Painted it bright yellow (because happy vibes!)

3. Added their logo and a cheeky arrow pointing to their door

4. Parked it outside like their own little billboard-on-wheels

The city officials weren't thrilled.

While they managed to avoid tickets from the police, they kept getting citations from the local community board for parking the rickshaw outside.

They kept parking it there anyway, trying to figure out what to do as the citations piled up.

Finally, the community board demanded to meet with them - but before that showdown could happen, someone stole their makeshift sign!

Best "disaster" ever.

Why? Because their "hidden" location suddenly became part of their mystique.

People started whispering about this "secret" studio that nobody could find.

Julie remembers the day a vendor called and said, "Are you that secret place on 72nd Street that nobody can get into?"

That's when they knew - their biggest obstacle had become their biggest asset.

4: 💪 Growing One Rider at a Time (Fall 2006)

Picture this: An empty studio, two nervous owners, and sometimes just one lonely rider showing up for class.

Talk about scary! With only $2,500 left in their bank account (gulp!), they had to get creative.

Their brilliant idea? They printed 200 bright yellow t-shirts and asked friends to wear them around town.

Free walking billboards - how's that for smart thinking?

But here's where they really showed their smarts.

They charged $34 per class when gym memberships cost $25 per month.

Crazy, right?

"You want us to pay WHAT?" people would screech into the phone.

Julie's answer? "It's the same price as two cocktails in New York."

Suddenly, that price tag didn't seem so wild!

But they didn't just take people's money and run. They:

• Remembered everyone's names (like, actually remembered them!)

• Put hair ties and gum at the front desk (because they knew what riders needed)

• Called to check in when someone missed class for two weeks

• Created custom playlists for every single class

Running low on course sales? Rather than slashing prices, could you add more personal touches like they did? Maybe send welcome videos or personalized feedback?

One day, they found out they were getting coverage in the New York Times.

This felt huge!

Julie was so excited that she begged her husband to watch the kids so she could get to the studio at 5 AM.

They sat by the phone, imagining it would be ringing non-stop once the article came out.

Want to guess how many calls they got?

Two, just two calls all day! The day was exactly like any other - no flood of customers, no phones ringing off the hook.

But here's what made them different: Instead of letting this disappointment crush them, they simply kept going.

They focused on what they could control - showing up every day, making each class better than the last, and creating what they called a "meaningful experience" every single time a member walked through their door.

"We really put a lot of time and energy into making sure that every single time you come, you get a wonderful experience," Julie says.

5: 🌪️ Turning Crisis into Opportunity (2008)

Just as things started looking up - BOOM! The 2008 financial crisis hit like a tornado.

Elizabeth's husband lost his job at Lehman Brothers after 26 years there.

The stock market crashed.

Everyone said luxury fitness would be the first thing people would cut.

Time to panic? Nope! These two had a different idea.

They noticed something fascinating: people needed their classes MORE during tough times, not less.

When the world felt scary, SoulCycle became everyone's happy place.

They had another major challenge too: noise problems.

Since they were located below a gym, they knew soundproofing would be crucial.

Their first attempt? Hiring a contractor who'd built adult movie studios in Midtown.

"He's got to be the perfect guy to build it, right?" they thought. Wrong!

The contractor had no idea what he was doing, and soon they had furious neighbors and tenants complaining about the noise.

During classes, you could hear people dropping weights from the gym above - not exactly the peaceful sanctuary they'd imagined!

The complaints kept coming from neighbors, other tenants, and landlords.

They spent tons of money trying different solutions, facing countless frustrating days.

But instead of giving up, they became determined to master soundproofing themselves.

They tried solution after solution until they finally figured it out.

This challenge became another blessing in disguise.

Today, SoulCycle has mastered the art of soundproofing like no other fitness brand, with their studios successfully operating in all sorts of sensitive, old buildings.

As Elizabeth likes to say, "We look at every mistake as tuition. Since we didn't go to business school, this is our education!"

Feeling nervous about launching in a crowded market? Remember: tough times make people look for solutions even more. Your productivity template or step-by-step guide could be exactly what someone needs right now!

6: ⭐ From Hidden Gem to Celebrity Hotspot (2007-2011)

Here's a fun twist: In 2007, a regular rider wanted to raise money for Hillary's presidential campaign.

Next thing you know, Bill Clinton shows up at their tiny studio!

They stayed up all night getting a huge SoulCycle logo ready for the press.

And boy, did it pay off!

Their yellow wheel logo popped up everywhere:

• Entertainment Tonight

• The New York Times

• Every news channel in town

Soon, their studio turned into celebrity central:

• Lady Gaga threw her birthday party there

• Bradley Cooper couldn't get enough

• The Beckhams became regulars

• Kelly Ripa and Katie Holmes kept coming back

But here's the best part - they treated everyone like a VIP, whether you were a movie star or an accountant named Bob.

When their booking system crashed because too many people tried to get in at once? They fixed it.

When riders wanted SoulCycle gear? They made everything from tank tops to Christmas ornaments.

The people who work here absolutely love what they do - after all, they're riders themselves!

They only hired people who were as crazy about cycling as they were.

Even with 1,200 employees, Julie and Elizabeth still cleaned shoes and picked up towels.

"Getting our hands dirty keeps us in touch with what matters," Elizabeth explained.

Dreaming of that big influencer sharing your course? Focus on making your first ten customers super happy instead. Word will spread. Trust the process!

🎉 The Happy Ending

Holy smokes, look how far they came:

From:

• A hidden studio behind a gym

• 36 bikes and zero showers

• An IKEA desk for their front counter

• Two nervous moms figuring things out

To:

• 60+ beautiful studios across America

• 15,000 happy riders every single day

• $18.6 million revenue in 2013

• $112 million revenue in 2014 (that's not a typo!)

• Their own clothing line that people couldn't get enough of

• A SoulCycle bike you could use at home

• And finally... a $180 million buyout from Equinox Fitness in 2011

Not bad for two moms who started with a borrowed rickshaw and some yellow paint, right? 😉

🌟 Ready to Rock This?

Look at you sitting there with your amazing digital rebel idea!

Sure, it might not feel perfect yet.

Maybe you're worried about the timing or the competition or whether anyone will buy it.

But remember: Two moms with zero business experience turned a hidden studio with an IKEA desk into a $180 million empire.

And unlike them, you don't need to:

• Make 13 trips to IKEA

• Clean sweaty shoes

• Beg doormen to let you hand out flyers

• Deal with stolen rickshaws!

You've got the entire internet as your playground.

Your Notion template, course, or digital product could be the next big thing.

The only question is: Are you ready to start your success story?

Because somewhere out there, someone's struggling with exactly the problem you can solve.

They're just waiting for you to show up and help them.

Keep Rocking 🚀 🍩

Yours "Making you win" Vijay Peduru