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Gymlisted

by Tom ZaragozaLaunched 2017via Failory
See all SaaS companies using cold email
Growthcold email
Time to PMF8 months
Pricingsubscription
Built in1.5 months
The Spark

Tom Zaragoza, a software developer from Toronto, partnered with a high school friend in early 2017 to build Gymlisted after his cousin, who owned a private gym, expressed interest in a platform to manage memberships and process payments online. Tom assumed this pain point was widespread among private gym owners. "Since he was into the idea and wanted to try it out when it was built, I assumed (mistake #1!) other private gym owners would be on board as well," Tom recalls.

Building the First Version

Working his day job during the day, Tom coded Gymlisted every evening and weekend until midnight. Using Python, Flask, and PostgreSQL on the backend with jQuery and Bootstrap on the frontend, he built a feature-rich platform in about a month and a half. The application included gym search by location (powered by PostGIS), gym listing pages with descriptions and photos, membership management with Stripe payments, and a messaging system. "In hindsight, it was way over developed to be a 'basic' application," Tom reflected. "The biggest lesson I learned is that it's important to get real validation before building the next feature."

Finding the First Customers

Gymlisted never acquired a single paying customer. The team attempted multiple marketing strategies: cold emailing gym owners directly, messaging gym owners through website contact forms, using Twitter's search feature to find people asking "where to find a gym," and even buying a 360 camera to offer free photography services to gym owners. While a few gyms responded positively to the free photography offer, these efforts never converted into customers or interest in the core platform.

What Worked (and What Didn't)

Cold email and direct outreach generated the most responses from gym owners, but responses were typically polite rejections or offers of their own services. The core problem was deeper: private gym owners didn't see a need for another payment processing and membership management system. "Private gyms already rely on various other channels for marketing, such as social media, and plenty of gym owners saw no need for membership management and payment processing to be online." Well-established competitors, including a publicly traded company, already dominated the space. The team attempted a pivot toward personal trainers finding gyms for their clients, but burned out and lost interest.

Where They Are Now

After 8 months of development and marketing effort, Tom and his co-founder killed the startup. Tom spent only a few hundred dollars on the 360 camera—his real cost was the server fees on DigitalOcean and his own time. He took the lessons forward: validate ideas before building, balance product development (50%) with marketing (50%), and know when to cut losses. Today, Tom is building Vocalmatic, an automatic transcription platform, armed with the hard lessons from Gymlisted.

Why It Worked
  • The startup failed because Tom validated with only one customer (his cousin) and extrapolated that single data point into a business assumption, rather than systematically testing demand across the broader market.
  • Building extensively before validation meant Tom couldn't cheaply test whether customers actually wanted or would pay for the solution, leading to 8 months of wasted development effort.
  • The competitive landscape was already mature with established players, making it difficult for an inexperienced sales team to differentiate and convince gym owners to switch, even with a novel offering.
How to Replicate
  • 1.Before writing a single line of code, conduct 20+ customer interviews with target users asking directly: 'Would you pay for this?' and 'How much?' to validate demand, not just interest.
  • 2.Build a minimal viable product (MVP) with only 2-3 core features and test it with real customers within 2-4 weeks, not 1.5 months of full-featured development.
  • 3.Spend equal time on marketing and product from day one—allocate 50% of your effort to getting customer feedback and sales conversations, not just building features based on assumption.

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