- How To Start A Martial Arts School
- How To Build A Dojo Part II: Challenges Make Opportunities
- How To Build & Grow Your Martial Arts School Part IV: Find & Develop Your Niche
- Planning The Building & Growth Of Your Martial Arts School Part III
- Building & Growing Your Martial Arts School Part VII: Create Your Ideal Customer
- How To Start A Martial Arts School Part V: Pre-Selling Your School
- Start Your Martial Arts School Part VI: How To Market Your Martial Arts School
- Building & Growing Your Martial Arts School Part VII: Instructor & Promoter Pay
- Building & Growing Your Martial Arts School Part VIII: Promoting Your School
- How To Start Your Martial Arts School Part X: Social Media For Martial Art Schools
- Building & Growing Your Martial Arts School Part IX: Internet Marketing For Martial Arts
- How To Start A Martial Arts School Part XIII: Outsourcing & Hiring Employees
- Starting A Martial Art School Series Part XIV: Growing & Expanding Your Empire
Planning: From Launch To Netting Your First $1,000,000
Wherever you are at in your mission to build a successful and profitable martial arts training center it is crucial to have a concrete plan. ‘Failing to plan is planning to fail’! You have probably been training for years to become the great martial artist you are today. That is your way of planning to be able to defend yourself and the ones you love. While planning for years to open your school may mean missing too many opportunities it does not make having a plan and a great marketing plan any less important.
Instead of just jumping in and renting or buying a place for your school and trying to figure it out from there or basing all of your numbers on the space that is available. It is much better to work backwards when planning to reach all of your dreams and goals.
Start by defining your ultimate income and revenue goals. Calculate exactly how much money you need to acquire the things you desire and life the lifestyle you really dream of.
DO NOT HOLD BACK!
Want a Lamborghini and a million dollar mansion on the water? Factor it in now or you will never attain it. Let’s choose $1million dollars as a nice round number to start with that is easily scalable. Now remember if you want to put $1million dollars in your pocket per year you have to to bring in a lot more revenues than that. An average school that is doing well may operate on a 35% net profit margin. That is what you take home after you pay all the bills, salaries, expenses and taxes. So if you want to net a million you are going to actually need to bring in $2,857,142.80 in gross revenues. Or in other words $238,095.22 per month.
From here whatever your number is should be broken down into the number or students you need to obtain that goal. Be sure to always use conservative numbers on income and higher numbers than you anticipate on expenses. Things notoriously always cost a little more than you plan. So this will ensure you are on target and if things go the way you really expect then you ought to be pleasantly surprised at the additional income you end up with. Don’t forget that each student can be worth more than just their regular monthly dues. You no doubt will have special events or seminars as well as uniforms and weapons for sale that you will require them to purchase. Also note that some students will be worth more than others in terms of sales.
Create a monthly marketing budget that you can stick to consistently.
Break down the action steps that you need to take to put each part of your marketing into play and create a step-by-step plan. Don’t just plan what you are going to do next week or even next month. The most successful businesses in the world and throughout history are those that plan years in advance. Some even decades in advance. This is especially true in Asia where many martial arts originated from. While this might be overkill, replicating what those who are most successful have done is one way to ensure your own success. You should at least have a detailed plan for your first year, month-by-month and a general plan for the marketing and direction you want to take your business in for the next 5 years.
You must commit your monthly income and enrollment goals to paper and get your whole team on board. Of course you will no doubt be basing part of their pay on their performance but for some this alone is not enough. You must make your goals minimum requirements for your sales team and instructors. Not only should you read your goals yourself everyday but you should have them posted up for your staff to read on a daily basis and hold motivational meetings to get them pumped up.
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Post by: Tim Houghten
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