Mostly everyone who has ever thought about running their own Martial Arts Studio have approached the subject very frivolously.
In an article aptly named “What Percentage Of Small Businesses Fail -- And How Can You Avoid Being One Of Them?” Forbes disassembles the common myth that 84% of businesses don’t survive the 1st year, quoting a study that cites numbers that are still dangerously high:
“According to the Small Business Administration (SBA) Office of Advocacy’s 2018 Frequently Asked Questions, roughly 80% of small businesses survive the first year. That number might be surprisingly high to you, especially considering the commonly-held belief that most businesses fail within the first year.
However, from there the number falls sharply. Only about half of small businesses survive past the five-year mark, ranging from 45.4% to 51% depending on the year the business was started. Beyond that, only about one in three small businesses get to the 10-year mark and live to tell the tale."
Becoming one of those business owners that end up bankrupt after a short spell of trying to own a martial arts school is surprisingly easy. Although technically it is possible to run a school on weekends, teaching somewhere like The YMCA, bringing your own equipment and having virtually no overhead, running your own school full-time will most likely consume all your time and require a brilliant and dedicated mind (never mind some kickass strength of spirit).
Tony Robbins is certain that “you will need to work 18-hour days for the first year if you’re going to have your own business”. Besides that, remember the famous quote from Steve Jobs: “work smart, not hard”.
Not only will you have to work a lot, but working smart also comes first, otherwise porters and loaders would be millionaires already. So if you’re seriously considering getting into this business, you must avoid making the #1 financial mistake made by martial arts school owners, which is:
Not Doing Enough Research
You may love what you do and have good relationships with your partners and tons of enthusiasm, but not knowing the rules of this very cutthroat business will more than likely cost you a pretty penny.
Even though it seems simple on the surface, the fight for the top place, especially in large cities (don’t even get us started on New York) is fast, furious, and absolutely incomprehensibly savage. As usual, the people who have been doing something from an early age win 99 times out of 100, so if you’re in your late twenties and you’re just starting to think about getting your own school, others have quite a headstart, and you will need to do a lot of work to catch up.
Fortunately, this is the information age, and there are endless training videos by titans of the financial world like Tony Robbins and Tai Lopez who will introduce you to the fundamentals - and it’ll be hundred times over worth the money.
Let’s take a look at what you should under no circumstances forget to do:
Find good statistics
All success comes from good intel. You must have the right information if you want to succeed, and if you get it from a dubious source, later every decision you have made based on that data may be jeopardized.
Is it a good idea to take a £15,000 loan out, go to Forex and invest it all into a new company that promises a 1000% return in a month? You heard Lipton did it. And look where he is now.
Research the niche, ask people who have done it (that’s statistics too), and find a study by some serious academic or a reputable company that provides hard numbers about whether this the right decision or not.
Here are a few reasons why statistics are underrated and why they can make all the difference in the world. Here’s Statistics By Jim:
“Statistical analyses are used in almost all fields to make sense of the vast amount of data that are available. Even if the field of statistics is not your primary field of study, it can help you make an impact in your chosen field. Chances are very high that you’ll need working knowledge of statistical methodology both to produce new findings in your field and to understand the work of others...Learn how anecdotal evidence is the opposite of statistical methodology and how it can lead you astray!”
How much do you really know about the way customers are attracted to your business? How much effort are you putting into online reviews, for example? You’ll learn, for example, that:
“88% of consumers trust online reviews as much as personal recommendations by word of mouth and 85% of consumers say they will read up to 10 reviews before they commit to a purchase.”
How much revenue could go in through online reviews - and how many potential clients are you losing? Asking the right questions based on logically sound data can make all the difference in the world.
If you get these questions right, you will avoid making the biggest financial mistake of all, which in the end will cost you more than everything else put together - being misinformed.
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