Starting a Studio

[twistingcrane]

How many of you have started your own studio? How much money did you need to start? How did you calculate that? How long did it take you to start making money or did it not? Just curious.

[Shaolin]

Start up capital can range from $0 - $500,000

Factors for starting your school:

Real estate - are you teaching out of your backyard, leasing space or buying land/building? How well can you negotiate a contract?

Operating Equipment - desk, computer, programs, printer, scanner, phone, internet, card swiper

Training Equipment - I recommend starting with the bare minimum. Most school owners make the mistake of building their dream school with all the bells and whistles in it. Then they have a beautiful school and NO students. All you truly need to open is mats on the floor, focus mitts, and a few kicking shields. Everything else you can buy when you start to turn a profit.

Marketing/advertising - #1 they are not the same, and not knowing that can get you in trouble real fast. #2 this expense is more important than all that dream equipment you desire. This can include web site, SEO specialist, LED building sign, window vinyls, direct marketing, roadside advertisements, etc.

There is much more involved in opening a school, these are just some of the basics. As far as time frame on turning a profit that's another subject in itself.

[YouKnowWho]

The rent cost may be a major factor. Back in 1973, the rent for my school was only $275 a month. Oneday a TKD school just open. I went to visit that school. The instructor there told me the rent for his school was $1600 per months. That was a lot of money back then. That school didn't last for 6 months and closed down after that.

[Shaolin]

^ That is an excellent point.

Unfortunately most martial arts instructors have a wonderful dream of owning a school, and have lots of knowledge to pass on to the students but don't know how to negotiate a lease. And negotiating the lease goes way further than just what you pay in monthly rent.

This is also why I recommend to build your school from the outside in, instead of the inside out. Focus more of the start up capital on bringing in new students instead of a bunch of equipment.

Just because you open a new school and it looks amazing on the inside doesn't mean people will flock to sign up.

[TenTigers]

if you can find industrial space-in a spot with good visibility, and in a good area, that would be great. Industrial space is a fraction of commercial space.
(in my area, all the industrial space is in the bad areas, off the beaten path.) :-(

The flipside is a storefront in a strip mall in an upscale neighborhood-mucho denaro.
But, you can make it work with offering a ton of classes-different age groups, kickboxing classes, tai-chi, zumba, etc. (you are paying rent for 24 hrs a day. If you only teach four hours a day, then you are paying rent for all the other time. You need to fill that space with income generating classes, even if that means hiring an instructor.
Don't scoff at the schools offering zumba, belly dancing, cardio kickboxing, yoga, etc
They bring in Moms, Grandma, sisters, etc.
and all of them have brothers, children, boyfriends, husbands, etc...
I know of a traditional Karate dojo, that offers, kodokan judo, kobudo, and zen meditation. Keeping it all traditional Japanese, but still filling up his time slots.
I do something similar-All my other classes are still Chinese Martial Arts oriented.
Tao-Yoga, Tai-Chi, Sanda/sanshao, Chinese grappling

[Subitai]

What i'm doing is not for everyone... Especially if you want allot of profit.

i'm one of those who Opt for not going the commercial school type route. No contracts or belts and I don't teach children, adults only.

I bought a house that has a work out room attached. It's got a high ceiling, mirrors and all that. Most i've fit in there is 12 people but my average is only about 8. During the warmer months we do weapons outside. Total student enrollment is less than 30. But I also suppliment with privates and seminars.

I keep my overhead really low and come tax time its just best for me to report everything. I don't make enough to try hiding it from the Gov. Haha.

As has been well put by the guys so far...it's difficult (especially in this Economy) to go the Full Open commercial school setup. I trained to better myself and my Kung Fu but I was never taught "THE BUSINESS of Martial Arts". Over the years many Well meaning and skilled teachers have failed for that very same reason.

I know i'm lucky to be able to do what i'm doing. It's definately not possible for everyone. But it has enabled me to truely focus on my skill progression over the years and not have to worry about the business aspects too much.

[mooyingmantis]

How many of you have started your own studio? How much money did you need to start? How did you calculate that? How long did it take you to start making money or did it not? Just curious.

Twistingcrane,

I have been teaching TCMA since 1978.

INDIANA
In 1978 I started teaching as a part of a church outreach program. There was no overhead, since the church provided the facilities. Thus there was no charge. I had about 30 - 40 students.

In 1983 I started teaching in a local park. It was no longer associated with church activities, but I still did not charge. I had about 10 students.

In 1984 I bought a house and remodeled my two car garage into a martial arts studio. The remodeling cost was minimal (drywall, paint and a few decorations). At this point I started charging students $25 per month for tuition. I ranged between 10 - 15 students. Since I was happy to teach as just a part time endeavor, I was quite satisfied with the extra cash.
At this same time I also taught via a local public access TV channel.
Then I hired a professional cameraman to help me produce instructional videotapes of TCMA forms. I made several thousand dollars for a few hundred dollars investment.

OHIO
In 1986 I moved to Ohio and began teaching in a park. I again charged $25 per student and taught a handful of students over the years.

In 1994 I decided to try a different approach. I offered lifetime memberships for $250 per person. Several people signed up and it was quite successful. Though only one of these students is still in contact with me.
At the same time I started doing seminars in other states which brought in more money.

In 2005 I purchased a house and immediately converted my two car garage into a nice TCMA school. It is small (14 X 22) but very nicely furnished. I no longer charge novices for instruction, though I am considering starting to charge a minimal fee again. My main income source from TCMA comes from teaching other MA instructors. Over the last nearly twenty years I have taught eight paying students who had their own schools or who were already black belts in their own respective art.

Based on my experience, I have learned the following lessons:

If you start teaching without tuition, then try to charge a tuition later, most students will refuse to pay and leave.

Renting a building and paying utilities is the death of most new schools. I have NEVER paid overhead and pocketed almost every dime I have ever made.

No marketing, no students. Word of mouth doesn't get you very far.

If you try to make your living off of your art, it becomes a "job" in every sense of the word.

If you try to make your living off of your art, you will have to water it down for most people. In over 30 years of teaching I only have produced less than ten "hardcore" students. Two of these students have been with me since 1978.

Have good insurance! The student who seems to be your friend today, may have a lawsuit against you in the future.

Just my thoughts.

[GeneChing]

You can get great discounts on all manner of things with a resale license. If you're teaching enough students to be a taxable business, there's no reason not to take advantage of the benefits of a resale license.

Second step: Set up a wholesale account with Tiger Claw.

[Faruq]

How many of you have started your own studio? How much money did you need to start? How did you calculate that? How long did it take you to start making money or did it not? Just curious.

I've fortunately never wanted to open a school. I've always liked how the Pak Mei people say they are businessmen who happen to know gung fu and teach it for free. But if money is your object, and laugh as hard as you want, James Patrick Lacy is rumored to have made close to 7 figures per year at the height of him fame, and 6 figures each of the other years. Never had a job the whole time. But back to being serious, I like what the school owner here on the forum like Mooyingmantis and Tentigers have said. You can't beat going straight to the horses mouth, and they have given you great advice out of their own hard earned experience.

[twistingcrane]

Excellent responses. Thank you all. Did any of you take out loans or have an investor? The thought was not to make tons of money, but to replace the 9-5 job again. It would require making some money. It's quite a leap of faith.

[mooyingmantis]

Excellent responses. Thank you all. Did any of you take out loans or have an investor? The thought was not to make tons of money, but to replace the 9-5 job again. It would require making some money. It's quite a leap of faith.

I never took out a loan or needed an investor.

But I do have a few more things to add.

Start out by asking yourself what you think your time is worth, then start from there.

If you say your time is worth $25/hour and you are going to teach five days a week for two hours each day per month, you will need at least forty students paying $25 each. That will cover what you believe your time is worth BEFORE rent, utilities, insurance, advertising, equipment, etc..

If you charge $50 per student you will only need twenty students to make the same amount of money for your time. Twenty more students then provides $1000/month for your overhead costs.

To replace a 9 to 5 job

Say you need $3000 for your monthly income. At $100/student you would need thirty students just to meet your personal expenses BEFORE rent, utilities, insurance, advertising, equipment, etc..

Now imagine the square feet of space you will need to teach a large class. Of course most days not all thirty students will show up at one time. But you should have adequate space in the rare instance that they would. How much does commercial buildings charge per square foot in your area?

What will liability insurance cost per month? Does the insurance company allow monthly payments, or will you have to provide six months or a year's worth of premiums before you open your doors?

What does this all equal and how many students will it take to support this business?

[Syn7]

Don't scoff at the schools offering zumba, belly dancing, cardio kickboxing, yoga, etc

What is zumba? Some sort of MA boxersizing hybrid or something like that?

[TenTigers]

yeah, I work full time, and I have found ways to work around,"watering down"things in my teaching.
I don't compromise on the horse, but I do save harder sparring for more advanced students who want to go that route.
Classes are an hour long instead of several hours.
I have a syllabus and a ranking system.
I still turn down people who I feel have a bad attitude or are dishonest
("not even for 1,ooo pieces of gold..")
And..I teach children..
(sigh...it's like herding cats...)
BUT...


I look forward to going to "work," every day!
there is nothing I would ever choose to do.


(then again, I'm 55 yrs old-who would hire me? So I'm stuck doing this forever anyway!)

[Subitai]

yeah, I work full time, and I have found ways to work around,"watering down"things in my teaching.
I don't compromise on the horse, but I do save harder sparring for more advanced students who want to go that route.
Classes are an hour long instead of several hours.
I have a syllabus and a ranking system.
I still turn down people who I feel have a bad attitude or are dishonest
("not even for 1,ooo pieces of gold..")
And..I teach children..
(sigh...it's like herding cats...)
BUT...


I look forward to going to "work," every day!
there is nothing I would ever choose to do.

(then again, I'm 55 yrs old-who would hire me? So I'm stuck doing this forever anyway!)

I'm not knocking ya TEN... in fact the opposite. = I admire that you can pull off having a bigger school. Call me Chicken Sh!t but i've always been allittle afraid to take the leap.
I mean for obvious reasons stated, especially when so many new start ups fail.

So long as you have your core group of dudes...I think it's cool.

[TenTigers]

I hear ya bro.
I was afraid to take the leap as well, but when I was working security, I had a supervisor "help" me with that.
He fired me right before Christmas.
I went from part-time to full time teaching from that time on, and never looked back.