Bala is transforming simple gym equipment into fashion-forward fitness accessories consumers are dying to get their hands on. When cofounders Max Kislevitz and Natalie Holloway launched the business in 2018, they didn’t intend to disrupt the fitness equipment industry. Instead, their journey began with a disappointing yoga class during a round-the-world trip that sparked an idea: What if workout equipment could be both functional and beautiful?
This question led them to reimagine ankle weights for the modern consumer. “People are dressing up to go to thoughtfully designed gyms, but the products they’re working out [with] in those environments are hyper-masculine, they’re utilitarian, they can be intimidating. … It’s all about function. Not at all about form,” Max says.
This insight became the foundation for Bala’s approach, bringing thoughtful design to a category that had been overlooked for decades. For Bala, it’s always been about, “the small iterative baby steps to bringing something to life,” as Max puts it.
The formula Bala uses to reach financial success
Ahead, discover how Max makes financial decisions and uses “good” debt to strategically grow the business, maintain ownership, and build a cult following.
1. Validate the concept with creative funding
The couple first turned to Kickstarter to validate their idea, followed by an appearance on Shark Tank just before the pandemic hit. They secured investment from Mark Cuban and Maria Sharapova, providing crucial capital at a pivotal moment.
Rather than using the initial investment from the Sharks as a springboard for aggressive expansion or proof for additional venture capital, they allocated it entirely to inventory—which quickly sold out.
“There’s a lot of romance associated with raising a lot of money,” Max notes. However, the couple made the deliberate choice to pursue sustainable growth instead. “It’s actually advice from Mark [Cuban]. … He’s like, ‘You know, that check represents an obligation,’” Max says. Growing at a manageable pace without the added pressure that comes with equity funding better suited Bala’s goals.
2. Embrace good debt
At the core of Bala’s financial strategy is its thoughtful approach to debt financing. For many entrepreneurs, debt is intimidating. But for Bala, strategically leveraging debt became a critical element of its growth strategy. When it came to figuring out the perpetual inventory challenge, leveraging the debt came in handy.
“Literally and sort of metaphorically, debt is a four-letter word. It can be scary and intimidating,” Max acknowledges. “But so long as you’re accounting for the hit on margin associated with their terms, it can be really powerful when used responsibly.”
Bala found itself in the enviable but challenging position of having more demand than it could accommodate. Working with debt partners allowed Bala to be more aggressive in inventory purchasing, buying appropriate amounts plus “a responsible buffer to accommodate for that variability,” Max shares.
3. Balance inventory with demand
As Bala grows, it continues to wrestle with fundamental operational challenges.“We’ve explored ERPs, we’ve explored predictive AI, we’ve used Google Sheets, we’ve used napkins, we’ve used Excel,” says Max, who admits they haven’t yet “cracked the code.”
But strategic use of debt has given Bala flexibility in this area. Rather than having their growth constrained by available cash, they can make inventory decisions based on projections and market opportunities. As Max explains, “Sometimes and uncomfortably, we need to make hard decisions between launching something new that we’re excited about or keeping in stock all the existing products and colorways.” Debt financing allows them to find the middle ground, maintaining stock of popular items while continuing to innovate and expand their product line—a critical advantage in their industry.
4. Market through cost-effective partnerships and collaborations
Without the luxury of unlimited marketing funds, Bala finds creative ways to build brand awareness. They turned to partnerships as a key channel, collaborating with brands ranging from Summer Fridays and New Balance to Pucci and Ralph Lauren.
“We had to find ways to sort of growth-hack our way to cultural relevance,” Max says. These partnerships allowed Bala to reach new audiences without the expense of traditional marketing campaigns.
Equally important are establishing relationships with fitness studios and gyms like Equinox, CorePower, and Lifetime Fitness. These partnerships provide both retail opportunities and allow potential customers to experience Bala products in their natural environment.
5. Maintain a small team
Perhaps most impressive is how Bala has scaled while maintaining a lean team. “A lot of folks are surprised to hear that Bala is actually made up of just five people,” Max reveals. This small team size has been an advantage, allowing for quick decision-making and the “necessary conflict to actually get to a new and better and refreshing place.”
Their small, nimble team can make faster decisions about inventory levels, new product launches, and market changes—all of which help the business run smoothly and effectively.
6. Fund innovation, research, and development
As with any successful product, Bala has faced extensive mimicry, or “dupes,” from competitors. Rather than getting bogged down in defensive legal battles, they’ve chosen to focus on continuous innovation.
“Our answer has been to lead with brand and innovation, to continue to keep our foot on the gas on new product,” Max says. From a single product—the Bala Bangles—the brand has expanded to approximately 20 different products in various weights and colors, with another 20 planned for the next 18 months.
“The biggest learning is the power of persistence and consistency. I’d had plenty of product and company ideas before Bala that frankly died on the vine because I was excited about the idea, but not about the necessary reality of bringing those ideas to life,” Max says. With Bala’s strategic debt strategy and intentional operations, the company has thrived—on its own terms.
Watch Max’s Shopify Masters interview on YouTube for more of his best cash flow tips, and to catch the biggest lessons he’s learned about entrepreneurship along the way.
