How To Build A Martial Arts Business

"What's really disturbing to me is how manyand by the age of 25 he was the head of a million
martial arts instructors somehow feel they mustdollar operation.
"take a vow of poverty" to teach quality martialHe is however, the first to admit that over a
arts. The reality is the better you do atthirty year career in the martial arts is hasn't
developing your students and creating a qualitybeen all plain sailing. "I clearly encountered many
school the easier it becomes to make a livingobstacles over the years. My biggest crisis was
comparable to professionals with similar levels ofback in 1989 when I basically lost about 70% of
training in any field." - Grandmaster Stephenmy staff and went through a protracted divorce
Oliver, 8th Danat the same time. It all coincided with the biggest
This month Martial Arts School Owner intervieweconomic collapse in the Colorado economy ever.
one of the martial arts most outstandingThat took several years to dig out of - and, led
individuals, 8th degree black belt, president andto me going back to get my MBA which was
founder of Mile High Karate, Grand Mastermore for an emotional break than it was to really
Stephen Oliver. From the outset of our meeting Ilearn more stuff on how to run my business.
realize it is more than just a lifetime'sAdditionally, just the fortitude of character to pull
commitment to hard training and technicalthrough all of that and become highly successful
excellence that has enabled Grand Master Oliveragain was an incredibly valuable experience." Yet
to achieve so much in his career that has spannedthrough it all Grandmaster Oliver never lost sight
well over thirty years. Perhaps it is the realof the passion and the drive to be innovative in
passion that he has for providing high qualitythe martial arts with his Mile High Karate school
instruction to his students while providing anchain. "We have done several things that I believe
opportunity for his school owners and staff toare unusual. First, many of the organizations that
make an incredible living and even going as far intry to expand nationally and internationally focus
his marketing campaign to boldly state that 'thaton one, sometimes two areas of the business but
each and every Black Belt ever developed at Milefail to really combine all of them." Adding that;
High Karate has said the experience was not only"with my schools we've managed to support the
worth $1,000,000.00 but literally was priceless!' Orindividual schools by getting their billing, their
is it his unwavering commitment to communityaccounting, and their payroll done for them by
projects such as Chuck Norris' 'Kick drugs out ofsomeone else."
America'? The answer is that Grand MasterAnother key foundation of Mile High Karate is
Oliver's success cannot be attributed to oneproviding focused training programs on all three
particular factor in his career. He combines withcritical success factors that each school must
ease all the savvy marketing and businessfocus on:
techniques available to any business person, at the1.) Effective internal and external marketing
same time demonstrating the true attributes of asystems
traditional martial arts instructor. So whatever2.) Structured pricing systems and presentation
stage you are at with your teaching there isprocesses to effectively enroll and upgrade
something to learn from Grand Master Oliver. He'sstudents - much of it supported with automatic
become the leading consultant in the field throughprocesses or incredibly effective sales tools
his school owner's coaching program and his Mile3.) Effective instructor training systems combined
High Karate schools are busy expandingwith scientifically and structured curriculum to
internationally through Regional Developer "Master'ensure the highest possible quality of students. At
franchises.the same time Grandmaster Oliver remains totally
After graduating from high school Master Oliverfocused on instilling the core values and
moved to Washington D.C to take up furtherphilosophies in the growing Mile High Karate chain,
studies at Georgetown University, and to help pay"the over-all culture of the organization is very
for his education began teaching at a branch ofimportant.
the Jhoon Rhee Institute. However, it soonWe really work to make sure that all of our staff
became clear that the way martial arts wereand black belts are working interdependently. It's
being taught needed change. 'During the 1960'svery important for everyone to always be "a
and 1970's in the United States the martial artsproduct of the product" focusing on both high
appealed most to a lower class of people whophysical skill as well as achieving the highest level
were primarily focused on fighting moreof mental and emotional mastery. We really focus
effectively. Back in Texas and Oklahoma theon having every instructor and member of the
contact rules in competition were really open toorganization always exhibiting the highest levels of
flexible interpretation.' It was clear tointegrity and success motivation."
Grandmaster Oliver that if he was to open up hisDuring my time with Grandmaster Oliver, it was
knowledge of martial arts to a wider audience,clear that apart from being a very talented
and build a sustainable martial arts school businessmartial artist and instructor, he is an individual that
he needed to curtail the 'blood and guts' attitudebelieves the path to success is through constant
that had come to dominate the art in that earlylearning. Although fortunate to have had a
period. Over the years from his early teachinguniversity education and the opportunity for
days at the university 'both the percentage offurther formal training in various business
students graduating to Black Belt - and, theirdisciplines, he firmly believes that anyone with the
abilities when they get there have improveddrive for further self improvement can achieve it;
dramatically and also our students tend to beadding that "most formal education is about
more highly educated as interested in the widerlearning how to learn, not so much about learning
range of developmental benefits that the programanything specifically that is helpful as an
offers.'entrepreneur or as a teacher. Over the years I
It was during this early period at university thathave been very focused on continuing to pick a
Grandmaster Oliver began looking into the ideasubject matter and either formally or informally
that his passion for the arts really could becomeeducating myself to a very high level in areas that
his living. "In the early 1980's I was finishing up myare practical and necessary for my continued
college degree at Georgetown University insuccess not just as a business person but as a
Washington, D.C. I was a branch manager for themartial arts school owner." Building one of the
Jhoon Rhee Institute (which had 9 locations inUSA's most successful chains of martial arts
Washington, D.C.). I thought I was going to go onschools has not been easy, and it has required
to an MBA at Harvard or Stanford University thensome tough decisions along the way combined
a career in a big corporation." When finishing up atwith sharp business acumen and he is quick to
Georgetown Grandmaster Oliver courted severaladd that "I often get a reputation of focusing on
of the worlds most recognized businesses such asthe money -but that is not accurate.
Proctor & Gamble, IBM, and several BigWe've developed an incredible martial arts
Banks such as Chase Manhattan based in Neworganization with Jeff Smith and many other high
York City. However, after thinking about thatquality Black Belts in the leadership hierarchy
path as a career and looking at what he couldmaking sure we have the best possible Black
earn out of college- he decided to put together anBelts and provide a situation where school owners
extensive business plan and move to Denver,and their staff can equal or exceed their income
Colorado to open a chain of martial arts schools.opportunities from any other endeavor." Indeed
"My model was really the Jhoon Rhee Institutethe reality for Grandmaster Oliver is that the
and when I moved I opened five schools in 18better you do at developing your students and
months - with only about $10,000 in capital. Icreating a quality school the easier it becomes to
knew I was ridiculously undercapitalized but justmake a living comparable to professionals with
did it anyway." Following his passion for the artssimilar levels of training in any field.
was something that would pay off in a big way