Posts Tagged ‘Gross Income’

Is Bigger Better When It Comes To Martial Arts Schools?

Do you need a huge school and 500 students to be successful financially? Not by a long shot!

When it comes to running a martial arts school, size is an important consideration. Of course, everyone wants to have a lot of students and nice, spacious facilities. But how big is too big when it comes to running a martial art school?

To answer this question, first we have to determine exactly what our end goal is or starting our school. Then, once we can “begin with the end in mind”, we can determine how large we can get without hindering our progress toward our goal.

What Kind Of Lifestyle Do You Want?

This is perhaps the most important question to ask ourselves when we first set out to open a martial arts studio. You see, your lifestyle as an instructor will be largely determined by the size of your facility.

Now, this speaks not only to the amount of money you can potentially make, but also to the number of hours you will need to work to manage your school and staff. Obviously, the more students you enroll, the more gross income your school will generate.

However, at some point the law of diminishing returns will kick in; this is an economic principle that basically states that, when work output increases beyond a certain point, the relative return will begin to decrease. In other words, after a certain point in growth your profit margins will get more and more narrow.

That’s why size deserves careful consideration when you’re doing your initial business planning before opening your school. Let’s look at this topic in a bit more detail to see how size impacts profit margins in martial arts business. Read the rest of this entry »

One of the most common questions I receive from our
subscribers and readers is, “Which billing company is the best?” I’ve
had my favorites over the years, but I always hated the fact that I’d
end up paying 7 – 10% of my gross income just to get my own money.

Understandably, many school owners simply do not want to use a
billing company – and I respect that. So, what’s a studio owner to do
about their billing if they don’t outsource it?

Here are some alternatives to using a billing company that I
think are worth looking into: Read the rest of this entry »