In this episode of The Lat Chat, John, co-founder of Latitude Accountants, sat down with one of our original clients and a truly inspiring Australian entrepreneur, Dean Weight. Dean is the founder of CrossFit 168, a powerhouse fitness brand boasting three thriving locations across Sydney.

His journey from a stable corporate role at Commonwealth Bank to becoming a leading CrossFit affiliate owner is a masterclass in following your passion, managing risk, and, most importantly, building a community that lasts. Whether you are a tradie, a cafe owner, or running a professional services firm, the principles Dean used to scale his business provide a blueprint for any ambitious small business owner.

The Leap from Corporate Stability to Entrepreneurial Risk

Many Australian business owners share a similar origin story: the burning desire to be their own boss and escape the predictable corporate ladder. For Dean, this meant leaving a secure, well-paid role at CBA after 12 years to teach people how to exercise—a move that his risk-averse, immigrant parents found difficult to grasp.

His mother, like many who immigrated to Australia seeking security, viewed “white-collar” success as the ultimate safety net. Turning your back on that to open a gym seemed like “death and destruction” in her eyes. However, Dean felt a different kind of pressure—the pressure of a purpose-driven life. He believed so deeply in the CrossFit methodology that he was training people for free in local parks long before he had a physical lease.

Navigating Family Expectations

If you are currently juggling a “safe” job while building a side hustle, you likely feel that same tension. At Latitude Accountants, we often work with clients who are “crushing it” in their own ventures but still feel the weight of traditional expectations. The key, as Dean discovered, is realising that your parents took a risk to give you a better life. By taking your own calculated risk, you are actually honouring their legacy, not discarding it.

Pivoting During a Crisis: How 168 Survived the Pandemic

The COVID-19 lockdowns were a brutal period for the Australian fitness industry. While gyms were deemed “non-essential,” Dean and his team refused to retreat. While competitors were handing back leases and liquidating, CrossFit 168 leaned into their community.

The Strategy of Extreme Value

When the first lockdown hit, Dean pivoted instantly to maintain member engagement:

• Equipment Distribution: They literally gave their kettlebells and dumbbells to members so they could train at home.
• Digital Connection: They launched Zoom workouts and used social media to keep the “vibe” alive.
• Geographic Problem Solving: Recognising that members were now working from home, they expanded. Instead of closing doors, they opened a new site in Alexandria to meet their clients where they were.

By positioning their locations (Sydney CBD, Alexandria, and Marrickville) within a 15-minute radius, they solved the geographic hurdles of a post-pandemic world.

Community: The Secret Sauce of Business Success

Dean’s most profound realisation was that people weren’t just paying for a workout; they were paying for connection. In an increasingly digital world where many Australians work remotely, the gym has become the “new church”—a place for genuine human interaction.

Why “Partner Workouts” are a Business Lesson

Early on, due to limited space, Dean programmed “partner workouts” where members shared equipment. This accidental necessity became their greatest strength. By forcing people to interact, they bonded the community together.

As a business owner, you must ask: “How am I making my customers feel part of a tribe?” When your customers become “tribe leaders,” your team grows organically from the very people you serve. This reduces your marketing spend and increases your retention—the holy grail of business growth.

Technical Foundations for Australian Small Business Owners

Scaling from one location to three involves more than just a good atmosphere. It requires rigorous attention to Australian business laws and financial structures. Here are the key pillars we discuss with our clients at Latitude Accountants:

1. Choosing the Right Business Structure

As you grow, the “Sole Trader” model rarely provides enough protection. Transitioning to a Company structure (Pty Ltd) is often essential for asset protection and tax flexibility. This allows you to manage risks across multiple sites separately.

2. Tax Compliance and Cash Flow

Managing GST and PAYG for a growing team across different locations requires a streamlined cloud accounting system. Dean’s success was built on having clear visibility over his numbers, allowing him to make bold moves—like opening a new gym during a lockdown—with confidence.

3. Understanding Interstate Variations

If you plan to expand your business beyond New South Wales, be aware that certain taxes—such as Payroll Tax, Land Tax, and Stamp Duty—vary significantly between Australian states and territories. What applies in Sydney may be different in Melbourne or Brisbane. You must explicitly check the local thresholds for the state you are operating in to avoid nasty surprises.

4. Superannuation and Employee Obligations

As your staff headcount increases, staying on top of the Superannuation Guarantee (SG) is non-negotiable. The ATO is increasingly vigilant, and missing payments can lead to heavy penalties and the loss of tax deductions.

The Future: Competitions and Growth

Dean isn’t slowing down. CrossFit 168 is currently preparing for its first major external fitness competition in Sydney. By leveraging relationships built over a decade, they are looking to bring 100 pairs together for a high-energy event. This is a classic example of “vertical integration”—taking the community they built inside the gym and creating a new product for the broader market.

Frequently Asked Questions

What is the best business structure for a new Australian gym?

Most successful gym owners eventually move toward a Proprietary Limited (Pty Ltd) company. This structure offers better asset protection and allows for more flexibility when bringing in partners or investors, which is crucial for multi-site expansion.

How do I manage growth across multiple locations in Australia?

Consistency in culture is key. Technically, this involves centralised cloud accounting and understanding that state-based costs like payroll tax or land tax vary interstate. You need a bird’s-eye view of your total liabilities to stay profitable.

How do I handle the transition from employee to business owner?

Start by understanding your financial “worst-case scenario.” Dean realised he could always return to his corporate career if the gym failed. Having a clear tax strategy and an emergency cash reserve allows you to take calculated risks.

Does my business need to register for GST immediately?

In Australia, you must register for GST if your business has an annual turnover of $75,000 or more. However, many business owners choose to register earlier to claim back GST on initial setup costs and equipment purchases.

How can I foster a better “community” in a non-fitness business?

Focus on adding value before asking for a sale. Whether it’s a free trial, an educational workshop, or a client appreciation event, creating opportunities for your customers to interact with each other builds brand loyalty that transcends price.

Ready to Scale Your Small Business?

Growing a business from a park-side hustle to a multi-location success story requires more than just passion—it requires a robust financial strategy. Whether you are navigating the complexities of Division 7A, managing your BAS, or looking to restructure for future growth, the team at Latitude Accountants is here to help you cross the finish line.

Contact the expert team at Latitude Accountants today for strategic accounting and business advice tailored to your specific situation. Let’s build your empire together.

• Phone: 1300706597
• Email: info@latitudeaccountants.com.au
• Book online via our website.
• Sydney Olympic Park | Marrickville | Melbourne

Disclaimer

The information provided in this blog post is general in nature and does not constitute personal financial or tax advice. Australian tax laws and policies, including Payroll Tax and Stamp Duty, vary between different states and territories. Readers should seek professional advice regarding their specific circumstances before making any financial decisions.