The Problem With Owning and Running a Large Martial Arts School

Imagine this: you pull up in your new Jaguar XKabout. So-and-so school owner owns 3 studios,
(eight super-charged cylinders, and you look goodclaims to have over 1,000 paying members, bills
in this baby when the top is rolled down, thankfor over $70,000 a month, has a cadre of 15
you very much), parking in the space that'spart-time and full-time employees,
marked "Chief Instructor" right by the front ofyadda-yadda-yadda. This guy appears to have it
the school.all, right?
The school is front and center in the strip mall,Wrong! He probably isn't taking home as much
right next door to the new Super Grocerymoney as you might think - in fact, the profit
Center. It's 9 AM and people are already startingmargins on his studio are most likely
to walk by and peek into the windows of yourembarrassingly low, maybe in the realm of
school. You grab your non-fat mocha-latte and10-15%. He might even be making less money
the uniform you picked up at the cleaners thisthan he did when he owned only one location.
morning and head in.And, even if he is prosperous, he probably doesn't
You open the front door and take a quick glancehave any time to enjoy it. It takes a hell of a lot
across your brand new school. Wall-to-wall mats inof time and energy to run three locations. Most of
bright colors (the best that money can buy),his time is likely spent going back and forth
mirrors along the length of the studio, a custombetween his studios, putting out fires and trying
heavy bag holder right next to theto keep some semblance of unity among his
state-of-the-art multi-station gym; 8,000 squarestaff. Eighty-hour weeks and no time for vacation
feet of pure training heaven.- he has to make the cover of the next issue of
You walk into your office and the receptionist"Martial Arts Business Tycoon"; bragging rights,
greets you with a smile. "We've had six phoneyou see.
calls already, and they've all set appointments forGive me a break.
intro lessons. Oh, and Bobby Smith's mom calledNow, the smart studio owner sees things much
to thank you for doing such a great job with herdifferently than Mr. Big Studio Owner. He knows
son - he made the honor roll for the first timethat he'll likely never make it on the cover of one
this quarter."of the major industry magazines, and quite
You sit down at your desk with a smile, and logfrankly, he doesn't care. He'll never have bragging
into your online banking center... that's when realityrights to owning the largest studio in the metro,
hits - YOU'RE BROKE! All this luxury has put younor will he ever have the highest enrollment.
in the poor house, and you don't know howWhat he will have, however, is low overhead, high
you're going to make this month's rent on yourprofit margins, and the greatest luxury that
state-of-the-art studio. Better try to cash outmoney can't buy - time. Time plus money equals
some of these intros coming in tonight...FREEDOM, and a quality of lifestyle that Mr. Big
Believe it or not, this is how a large majority ofStudio Owner will never experience, at least, not
the so-called "successful" studio owners in thisuntil he retires (if he makes it that far with his
country operate. While their studios might appearhealth intact).
to be successful on the outside, in reality they areSo, they can keep their huge schools, 1,000
living hand-to-mouth, because they bought into astudent enrollments, magazine cover shoots, and
myth of a lifestyle that never was: the Myth of"billing company gold clubs." I'll take time freedom
The Successful Studio Owner.and high profit margins over fame any day of the
Open up one of the popular industry magazinesweek, thank you very much.
and you'll see an example of what I am talking