That Will Never Work #69: Should You Buy or Lease Your Location?
Oct 4, 2022
David Silberman, founder of PingPod, shares insights from his journey of building a ping pong venue startup. He reveals the interesting decision to lease locations instead of buying, reflecting on Marc's valuable advice. David discusses the effects of COVID on demand, raising $3M in seed funding, and the hiring of Olympian Matilda Ekholm to enhance coaching. He emphasizes the importance of culture as they expand into new markets while reversing earlier franchising plans to focus on operational consistency.
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Second Location Validated The Concept
- David reports they grew from one to two locations and will have four by early next year, showing the concept replicated across Manhattan neighborhoods.
- The second site in Midtown West proved demand from a different demographic, reducing the chance they’d caught "lightning in a bottle."
Avoid Buying Real Estate Early
- Marc strongly advised against buying real estate for early-stage expansion, urging founders to avoid property ownership risks.
- David heeded that and continued leasing while keeping buying an option for the distant future.
Market Reopened After COVID
- Post‑COVID demand broadened as vaccinated walk‑bys returned to indoor activities rather than only early adopters.
- That expanded foot‑traffic increased the overall revenue pie for PingPod locations.