Starting a Martial Arts School

Things may not be the same all over the country, but in my hometown, new martial arts schools are popping up almost as quickly as corner convenience stores. Unfortunately, most only last a few months and then disappear. It makes me wonder, what exactly are they doing wrong and what does it take to run a successful martial arts school?

Getting started.

Most people starting a karate school are usually doing so because they have a strong passion for the martial arts and want to have a career where they can be doing what they love. The main difference between the schools that fail and the ones that succeed is that most successful school owners look at their school as a business above all else. If you are serious about opening your own school, you need to do your research and realize that there are going to be many aspects of the business world which you may not enjoy, but that you can't neglect.

(Keep in mind that the following are just a list of tips that have been helpful to current school owners and that your results may vary.)

Location, location, location!

It may sound cliché, but yours schools location is one of the key elements to success. I recommend purchasing a local map. On the map, mark the location of schools, apartment buildings and martial arts training facilities. By plotting these locations, you will be able to get a clear picture of your surroundings and of locations that would be most suitable for a new karate school. Since kids will make up a large portion of your student base, you will want to be in an area that is easily accessible to them. A prime location would be an area that has a high concentration of schools, apartment complexes and residential housing. Once you have located these key areas, you will want check to see if there are any other martial arts schools nearby. You should try to avoid areas that have established schools already in place; I would recommend being at least 6 miles away from another martial arts school. After you have located an area that you think will fit your needs, you will want to drive around that area and try to locate buildings that are for sale or rent.

What type of buildings do I look for?

When picking a location, you want to make sure it is in a clean and safe area. Since a large portion of your students will be kids, you want to make sure that you're in an area that parents will feel safe leaving their children. You will also want to make sure that the building you select has enough space and adequate parking. Another big factor is street viability. Ideally you would like your school to be located in an area that is visible from the street. The busier the street, the better. Most beginning karate schools start out in a facility that is 700-1500 square feet and average rent usually varies from $700-$2500 per month, depending on location. Before you sign a lease, keep in mind that everything is negotiable. Most landlords will lower their rent when pressured and many will give you 1-2 months of free rent for remodeling time and often cash up-front for remodeling costs.

Timing can be key.

Although student enrollment varies from area to area, most schools report that they receive that largest amount of new student enrollment between February and June. By starting your school in January or February you should be able to capitalize on this trend. Once established, you should also allow for extra advertising dollars during these months.

How do I advertise?

Most of the larger schools swear by the Yellow Pages. Unfortunately, an effective add in this publication needs to be at least 1/8th page or larger and it's not uncommon for an established school to run a 1/2 to full-page ad. Unless you have several hundred dollars or more a month to spend on this form of advertising, I would recommend just taking their complementary ad which comes with your phone service and spending your money on the more aggressive forms of advertising. Your Yellow Page representative will tell you otherwise, but then again, it's their job is to get your money. The bottom line is that most people will pass up your small ad and call the full-page ad for Master Kim's Mega Karate Super Center. Don't be frustrated, there are other ways to advertise and even Master Kim had to start somewhere.

Low Cost Advertising Options:

Demonstrations - Team demonstrations are a great way to get exposure for you school. The best part is that they can be done for little or no money. If you're having trouble locating an audience, you should contact local schools or the Parks and Recreation office for your city. There are usually groups holding events every month and most would be happy to have you sponsor a martial arts demonstration. Just make sure you are well rehearsed and can provide an impressive and entertaining show.

School Papers - Getting mentioned in school papers and newsletters is an effective way to target younger students. You can often get in such publications by contacting local schools and offering a discount coupon or by providing a student reporter with an interview.

Flyers - This is another great, low cost advertising method. It is best to incorporate a discount coupon or free lesson certificate onto your flyer. Once you make your flyer, you can simply run off copies as needed at any copy shop. You will then want to distribute these certificates to local businesses that cater to your potential customers. For example you can go to toy stores and after-school programs for kids and fitness clubs and nutrition stores for adults.

Word of mouth - Another tried and true method of advertising is word of mouth. A way to encourage this is by offering your current students with incentives for bringing in friends. You can provide the student with a discount for every person they bring in and additional incentives for each sign up. You will be surprised how effectively this works. You can even make a contest out of it and offer monthly and annual prizes for the students who bring in the most people.

Quality and Convenience.

You should tailor individual classes for kids, men and women. When making class schedules, make sure that you accommodate each groups needs. For your younger students you should try to make classes that are available shortly after school. You may also want to add additional classes during extended vacations, such as summer break and Christmas. For your older students you should offer both morning and evening classes. Keep in mind that this hectic world of ours demands that people work different shifts. Also try to avoid running classes during meal times. It is important that your classes are fun and energy packed, but equally as important, they need to be convenient.

Getting paid. How do I insure payment?

This is a tough topic. Most of the larger schools swear by contracts, but with the swarms of new schools opening and closing, many students are very reluctant to sign a contract or pre-pay for many months of instruction. I personally believe that if you provide quality instruction at a fair price, there is no need for a contract. It is also pretty universal that most students who stop attending class, will also stop paying, contract or not.

Whether or not you decide to use contracts, getting paid is a real concern. Many school owners have found that the job of collecting payment can be almost as difficult as running the school itself. Because of this, most schools no longer accept pay as you go plans. Instead, they make their students pre-pay for several months at a time, or require that the student keep a credit card on file that can be charged on a monthly basis. Another option is EFT- Electronic Funds Transfer; this automatically transfers funds from your student's checking accounts to your own. By taking the time and effort required to set up such methods, you will help insure timely payment and bypass the headache of chasing down delinquent students.

Be prepared for the long haul.

One of the biggest reasons for a karate school to go out of business is the simple fact that the owner has run out of money and can no longer pay their bills. It doesn't matter how great of an instructor you may be, or how great your facility is, don't assume that it's going to be easy. Most schools take a minimum of six months to a year before they start to make a profit. You need to make sure that you are prepared for this and that you have enough capital to carry yourself through this time. It is also very important to keep a close eye on your bottom line. I have often seen business owners blindly spend money and simply hope there is enough at the end of each month. By keeping a close eye on your bills and receivables, you can often avoid financial trouble before it arises.

Like most things, a successful school takes time to grow, but with proper planning, hard work and a little luck, you can build it into a prosperous business that you can be proud of.


Article written by Jason Wright and provided by American Martial Art Supply.