Sweat success: The Aussie entrepreneurs mining the health and fitness goldmine

Australians are spending around $5000 per person each year on taking care of our bodies and minds, recent data shows, as the multi-trillion dollar wellness industry continues to explode. 

The Global Wellness Institute reports that the wellness industry grew by 25 % globally between 2019 and 2023, reaching a value of $6.32 trillion. And when it comes to the biggest consumers globally, Australians are way up there.

From morning yoga routines to recovery saunas and bath house sessions, the pursuit of a healthier and more balanced lifestyle is no longer a niche trend – it’s a multi-trillion dollar economic force.

In a saturated, competitive industry, four savvy health and fitness entrepreneurs have revealed what it takes for wellness businesses to thrive.

The yoga studio

As one of the most popular fitness activities in Australia, yoga is big business. But to stand out from the competition, Christian Ralston and his business partner, Noelle Connolly, focused on providing the best possible standard of teachers in the business.

“We knew that the quality of the teachers was the most important element in building a successful studio,” explained the co-founder of Bondi Beach-based yoga studio, Rare. “We had been in the industry a long time and had seen that successful studios are much more about the calibre of teachers than anything else.”

Rare Yoga founders Noelle Connolly and Christian Ralston. Picture: Supplied

Having amassed almost half a century’s worth of experience between them, the go-getting yogis were already longtime fixtures in Bondi’s yoga scene, having previously held senior positions at another established studio in the area. Pooling their resources, the pair decided to start their own space — one with community and expertise at its core.

“The real estate situation in Bondi is very tight so we were very lucky to find the space that we are currently in,” said Mr Ralston. “The space we found was a good size — big enough for 50 yoga mats. And the fact that it wasn’t on the street meant that the rent was a little less expensive than it might normally be in Bondi. Thankfully, a street front for a yoga studio is not important because it’s more of a planned destination.”

Setting a strict budget, the business partners were careful to not get caught up with OTT designs and flashy fit-outs.

“We got a couple of design options and one of them was just a spectacular amount of money and I’m very glad we didn’t go down that path,” explained the 49-year-old. “Having people come along and doing fantastic yoga classes is way more important than the look of the space. Also, we decided to not bother doing showers as it meant we could have a bigger yoga room and save a lot of money on fit-out costs. Because we’re a beach-side yoga studio, most people are coming from home, doing the class, and going back home to get on with their day.”

The build was done in six weeks and Rare opened its doors in May 2023 and very quickly — thanks to the reputation of the teachers — they built a steady membership base.

“All our teachers had a big following in Bondi,” he explained. “So with an extra few Instagram pushes we were able to start with a healthy number of members.”

The simple studio fit out helped keep costs down, foregoing amenities like showers and instead focusing on space and light. Picture: Supplied

However, like with any small business, Christian and Noelle have had to become jacks-of-all-trades, tackling not just the teaching, but also the day-to-day studio management, marketing, social media and everything in-between: “Because Noelle and I are basically doing everything and teaching half the timetable there’s not a lot of bandwidth to celebrate wins. We just had our second birthday and we only just found enough energy to do an Instagram post!”

While they’ve done the hard yards and the workload can be gruelling, Christian asserted that they have no regrets about starting their venture.

“It’s definitely been worth it,” he enthused. “The foundation of a booming yoga studio is to have great teachers teaching great classes. When you get that right, people come to a class and think: ‘I definitely want to come back.’ It’s that simple.’”

The infrared sauna space

Once considered a novelty, saunas have now become an integral part of the wellness journey for many.

Brisbane-based entrepreneur, Neil O’Sullivan, recognised the growing emphasis on post-exercise care and overall recovery and saw its business potential. However, the real ‘lightbulb moment’ came as a result of personal health issues.

“After facing a range of physical and mental health challenges, including autoimmune conditions and chronic inflammation, I became deeply invested in wellness,” said Mr O’Sullivan.

Founded in 2016 with his wife Su, Mr O’Sullivan said NIMBUS CO was, at the time, the first exclusive infrared sauna studio in the entire country. While Swedish saunas have been the standard for decades, newly popular infrared saunas warm the body from the inside out, rather than the other way around.

“Back then no one even knew or had heard of what an infrared sauna was!” recalled Mr O’Sullivan. “Australia was somewhat behind the likes of Japan, Scandinavia and other European countries, so it was the perfect timing for us to get going.”

Specialty businesses like sauna houses require specific fit outs in appropriate commercial premises. Picture: Supplied

Given the unique requirements of the business — specifically space for housing saunas and ice baths — he said selecting the right commercial real estate is paramount for the success of the brand.

“Whilst we were the first to market, today, saunas and recovery are becoming more and more popular. We’re looking for areas where there’s a clear need for what we offer and where we can integrate into the local community in a meaningful way.

“Our spaces are highly customised, so real estate selection is complex. Each site needs to accommodate things like wet areas and specific plumbing and electrical configurations. Whilst some studios we’ve been able to launch from start to finish quite quickly, the process typically takes a minimum of 12 months.”

Though Neil and his partner have managed to succeed they have faced numerous challenges, especially as a small, family-run operation.

“It’s not easy for a small business,” he said. “There is little or no protection for you out there if, for example, a landlord reneges on a deal. You might have spent thousands of dollars on architects, engineers, lawyers, feasibility studies, and it amounts to nothing. We’ve had projects where we’ve invested three years of our lives, our funding, time and energy for them to not come to fruition. This can have a huge impact on us.”

Nimbus now has seven locations in Australia and offers advisory services for developers. Picture: Supplied

Most recently opening an outlet in Melbourne, the band now boast seven locations across the country. “Su and I can’t believe we have seven locations now,” he enthused. “It’s real ‘pinch me’ stuff!”

In addition to the physical spaces the brand has also expanded to include a product line and a consultancy arm that advises how developers can incorporate wellness into their residential and commercial projects.

The fitness studio for mums

Despite Sydney’s innumerable gyms, boot camps, fitness studios, and everything in-between, Sarah Campbell felt one group of consumers were regularly excluded: pregnant women and mums.

“There was a noticeable gap in the market for a fitness studio that truly supported women throughout their entire pregnancy, postpartum and beyond,” said the 32-year-old. “A lot of the time gym and fitness classes do not include pregnancy specific exercise modifications and a lack of knowledge on postpartum recovery. This leaves many women feeling isolated, unsure what’s safe, and disconnected from movement and their bodies.”

With a background as a pregnancy and postpartum exercise trainer, Ms Campbell responded with her business Mummas On The Move, initially operating out of a tiny space from which her community grew significantly over three years.

“I had built up to about 40 personal training sessions per week but had no space left to grow,” she explained.

The business has grown from a tiny studio into a purpose-built studio for pregnancy and postpartum fitness. Picture: Supplied

Ready for expansion, the Sydney-based mumpreneur began to search for her dream studio.

“The space had to be open plan with lots of natural light and enough space to run two classes at the same time with multiple breakout spaces, so women can settle and feed their babies when needed,” she said. “I also required specific amenities including ground floor access with a ramp to keep it pram-friendly and wheelchair accessible.”

Given the list of requirements it took almost a year to find a commercial rental that ticked all the boxes.

“It was like finding a needle in a haystack!” said Ms Campbell. “But I finally found our dream space on [Balmain’s] Darling Street in January this year.”

Mummas on the Move founder Sarah Campbell in her Balmain studio. Picture: Supplied

Differing from the raft of other fitness studios and gyms in the area, given the focus on motherhood, has undoubtedly helped the business owner create a unique offering — an offering she says is key to her success.

“Providing expert-led exercise for the entire continuum from pregnancy, postpartum and beyond has been integral to our success,” she affirmed. “We also train a lot of mums that have returned to work, which means we retain our customer base well beyond the pregnancy and postpartum stages.

Her dream is to grow the studio to become Sydney’s go-to fitness studio for mums and expand Mummas On The Move to several locations across Sydney.

The urban bathhouse

The ancient ritual of communal bathing has had a surprising modern resurgence, and one of the players in this emerging wellness marker is Soak Bathhouse — a small chain of social spaces where guests can congregate amongst magnesium-rich warm pools, saunas and steam rooms.

Founded by Gold Coast-based husband and wife duo, Niki and Alexis Dean, Soak was the result of their own battle with burn out.

“Like so many people, we were burning the candle at both ends,” explained Mrs Dean.

Having previously visited bathhouses while on holiday the pair bemoaned the lack of a restorative bathhouse at home – and the seeds for their new venture were sown.

“We wanted to create a space where wellness felt easy and accessible,” she explained. “Somewhere you could go for a micro-dose of calm, whether that’s before work, after school drop-off, or on a Sunday with friends.”

The bathhouse business model requires highly unique commercial real estate that can house warm pools, saunas and steam rooms. Picture: Supplied

Launched in Mermaid Beach in 2020, the couple spent six months designing, planning, and building out the concept. “It was a huge leap of faith,” she recalled.

Of course, the uniqueness of the business model requires highly unique commercial real estate — one that can house warm pools and saunas and steam rooms and changing areas.

“Our business model is deeply tied to the physical space,” she said. “So our real estate needs were very specific: we look for buildings with good natural light, high ceilings, and in some cases an outdoor area to connect us to the elements. Whether the venue is indoors or outdoors we bring in an abundance of natural materials, plants and water to create a natural feeling environment.

“We also knew from day one that Soak Bathhouse had to be easy. That meant finding locations in urban areas, where people already live, work, and socialise. We like to say we’re an urban oasis, somewhere you can find a moment of calm amidst the chaos of a metro or regional hub.”

Soak Bathhouse now has five locations in Australia, with global expansion plans. Picture: Supplied

What started as a single location in Mermaid Beach has grown into five sites including a rooftop location in West End in Brisbane, followed by Alexandria in Sydney. Next up are South Yarra in Melbourne and Bondi Junction in Sydney, both of which are set to open in 2025.

“The demand has been incredible,” said Mrs Dean. “And yes, we have big plans. We’re focused on expanding nationally to even more communities around Australia, and in time, we’d love to explore global opportunities too. There’s definitely more to come — we’re just getting started!”