Welcome to the “Show Me The Way” podcast with David Seitter
In this episode of “Show Me The Way,” Dave sits down with Hetrick to uncover the twists and turns of his remarkable journey—from his beginnings in the SEAL Teams to building a fitness empire with TRX, and now venturing into a new business with Outfit Training. He discusses the highs and lows of entrepreneurial life, including raising private equity, managing a business during a pandemic, and navigating a company through bankruptcy and bad investors.
Ep. 47 — Redemption from Bankruptcy and Bad Investors with Randy Hetrick
Randy Hetrick was born in Southern California in Santa Ana and spent his formative years enjoying the idyllic beaches of SoCal. His educational journey led him to USC, where he was a rower. Despite an early life filled with athleticism and sun-soaked beaches, an unexpected pivot came during his junior year in college. Driven by a desire to serve his country and test his limits, Randy was drawn to the SEAL Teams, where he flourished.
From SEAL Team to Business Team
Hetrick’s impressive stint with the SEAL Teams included training and missions worldwide. His time with the SEALs instilled in him tenacity and resourcefulness—traits he later carried into the business world. He humorously recounts adding to his slogan thanks to other veteran friends: “If you have two arms and two legs, the suspension trainer loves you. But even with one arm or one leg, it’s a fantastic tool.”
The Birth of TRX
After retiring from the SEALs, Randy attended Stanford Business School, where he used his experiences to incubate what would become TRX. Born out of necessity, the TRX Suspension Trainer was initially just a clever tool for his SEAL teammates. However, recognizing its broader potential, he launched it to the public in 2004.
Hetrick’s journey in building TRX was filled with highs and lows, from experiencing soaring growth to navigating through disastrous private equity partnerships. “The first group of private investors were useless but not sinister,” he mentions, candidly. The second group, however, led the company into significant financial distress, culminating in a near collapse.
Rescuing TRX from the Brink
By 2020, TRX faced deep financial troubles. However, leveraging his experience and an intense drive to reclaim his business, Randy orchestrated a buyout from bankruptcy with a new partner, Jack Daly. Remarkably, they pulled TRX back from the abyss, restoring profitability and stabilizing the brand.
Introducing Outfit Training: A Blue Ocean in Fitness
Hetrick’s entrepreneurial spirit didn’t stop at TRX. Observing the inefficiencies in the traditional fitness market, he launched Outfit Training—a mobile fitness service. Inspired by outdoor activities and the need for accessible and scalable fitness solutions, Outfit Training uses technologically advanced mobile vans filled with fitness equipment. This venture aims to revolutionize fitness by bringing it directly to consumers in parks and personal spaces.
Outfit Training isn’t just about innovation; it’s also about providing opportunities for small business ownership, especially targeting veterans, fitness professionals, women, and minority entrepreneurs. “It’s a business model designed to be capital-light and can be scaled up incrementally, offering a great opportunity for those looking to own a small business,” Randy explains.
Lessons in Resilience and Leadership
Throughout the podcast, Hetrick shares invaluable lessons he has learned over the years:
- Profitability is Key: Keeping a business profitable slows down the clock and allows for better decision-making.
- Culture and Team Matter: A strong team with a solid culture is essential for success, particularly when transitioning ownership.
- Choosing the Right Buyer: Ensuring the buyer aligns with your business’s culture and vision is crucial, especially if you have an earn-out clause.
Randy’s story underscores that success in business, much like climbing a mountain, requires determination, strategy, and resilience.
Connect with Randy Hetrick
Interested in learning more or getting involved with TRX or Outfit Training? Here are some ways to connect:
To reach out to Dave for advice or consultation, please visit www.davidseitter.com or email him at dseitter@spencerfane.com
Disclosure
This podcast is provided for educational purposes. It does not constitute legal advice and is not intended to establish an attorney-client relationship. The recommendations contained in this podcast are not necessarily appropriate for every individual or business. In determining the best course of action, business owners should consult with an attorney on their distinct circumstances.