With the popularity of Mixed Martial Arts there is no doubt you will probably see an increase in Martial Arts establishments. If you are one of those aspiring fight gym owners or martial art experts you may want to do your homework before opening “the greatest fight gym in the WORLD”! Having the ability to run a business and have a career doing something you love is a great thing. However, running a successful martial arts academy is no different than running any other business. That is of course if your main goal is to have a service or product that the public can’t live without, while making millions in the process.
What I’m about to tell you is not Top Secret, just facts that may help you in your quest to become a successful business owner. Let’s address the MMA phenomenon. Now the main demographic for mixed martial arts fans is 18-35. The athletes that do this as their chosen vocation range in age from 18-29. Now I know, there seems like there are MMA shows every other night on TV and in your community I’m sure there is a small show going on this weekend at the local sports bar. Yes, smaller shows are where most MMA stars begin their career. But, what most people fail to realize is that to date, the most successful MMA fighters have been competing in Wrestling, Kickboxing, Karate, Judo or Jiu Jitsu since they were young kids. Does this mean you can’t make a career out of fighting if you couldn’t afford these lessons as a kid. NO! But it does tell you two things. One, most fighters are experts in a particular area and have since developed other skills to compete at high levels. Two, traditional martial arts and wrestling academies will always be accepted for the number of benefits it instills in young people, goal setting, confidence, self defense skills, all the things we want for our kids. You see, to master any art, it takes most people years of hard work and dedication to their craft to become an expert. The reason I state this is for the obvious. For example, you’re ready to open up your gym! You and the boys have had the fight club going and even have some amateur fights under your belt. You’ve thought of the new gym in a great city in the warehouse area. Rent is less then retail and you need a BIG space. You figured you can teach all the classes or fight training. Got the color mats picked out, cool name that should attract more fighters and saved enough for the cage. Ok, that’s all squared away. Ready to go! The owner of the building is willing to put anybody in the space to pay rent at least for a few a months, right? Now, how are you going to make money? Well, there is your fight pay, if you fight and any classes you teach. Most 18-29 fighters can’t afford $75 a month for dues. Well that’s easy, you’ll just take 10% of all the fighters purses for letting them train there. There are thousands of guys that want to fight, right? WRONG! Do you see the problem here? Where is the business plan? How about advertising, most people want to train to develop self defense skills and get in shape. PERIOD! I’m not saying to NOT train fighters. I’m saying that if you want to make money, and lots of it, you must have an established martial arts program that caters to the masses. FIGHTERS DON’T PAY THE BILLS! You may ask, what about when they get into the UFC or WEC? First of all, just like the NBA, MLB or NHL, less than 1% actually make it there. Secondly, it takes years to make big money in those major shows. If you are looking to establish a successful martial arts gym or academy, you must create a business that provides a service that is second to none.
Martial arts academies are notorious for failing as often as restaurants. For the same reason a great chef doesn’t equal great sales, a great martial artist doesn’t equate to success. Often, a master craftsman fails to develop the other skills necessary to succeed. Running a business is different than mastering your art. You should know that a martial arts gym or academy is a service business and there is a lot more to it than providing quality instruction. Those intimidating words like business plan, advertising, marketing, accounting and projections apply to a martial arts school just as they would any other business. Most martial artists make the mistake of opening a gym or academy so they can do something they are good at. Although there is nothing wrong with following your passion, preparing for down times or even success is often neglected. Here are number of tips to help you develop a thriving Martial Arts Academy.
Do: Open the martial arts academy to serve others.
Don’t: Open the academy to have training partners or feed your ego.
Do: Research the area and other competing gyms or academies.
Don’t: Open a gym because it is convenient for you.
Do: Maximize your space with earning potential
Don’t: Have wasted space with oversized locker rooms, games or unnecessary waiting areas.
Do: Have charisma and a drive to be the best instructor possible. (A great teacher is invaluable)
Don’t: Take your existing cliental for granted. Get more and keep who you have!
Do: Keep your relationship with your students professional
Don’t: Party with your students after class or events.
Do: Have a system for the office and classroom
Don’t: Make it up as you go
Do: Continue to personally strive to improve your skills
Don’t: Get complacent – A true martial artist trains and learns forever
Do: Have agreements and hold people accountable for their commitment
Don’t: Go month to month with no obligation
Do: Know your value (You are selling your time, skills and knowledge)
Don’t: Undervalue you or your programs (people get what they pay for)
Do: Have retail sales that promote your gym or academy
Don’t: Promote other gyms, products or events you don’t believe in
Do: Have a curriculum (People need to know what is expected of them to progress)
Don’t: Keep your students guessing when it comes to their improvement
Do: Learn to deal with all personalities (It is a service business)
Don’t: Treat everyone the same (It’s not military)
Do: Keep a spotless and clean facility
Don’t: Miss a day of cleaning
Do: Have 6 months to 12 months of backup to cover all bills
Don’t: Start without backup
Do: Be on time
Don’t: Take peoples time for granted
Do: Take advice from those who have succeeded
Don’t: Listen to outside criticism or negativity from people who have not done anything (Everyone has an opinion)
Do: Love what you do
Don’t: Start a major business for ego or some work.
Do: Start small (Grow into your success)
Don’t: Have a huge space and large overhead before your ready (Biggest and most common mistake)
If you are fortunate enough to succeed, unless your intentions are to pass your business down to your children you should not forget your exit strategy. The value of a martial arts school is based on 5 basic things.
1. Monthly income (Profit and Loss)
2. Monthly accounts receivable
3. Reputation in the community/communities
4. Developed instructors prepared for expansion
5. Location of existing establishment
Finally, take advice and emulate those you know who have had success. You can learn as you go and from your mistakes. But why not save yourself some pain, money and struggle by learning from those who have come before you.