| Friend,
So how do you know if you're building the wrong type of dojo?
I did this many, many years ago - or at least, I was headed that way until circumstances forced me to stall my plans. I'd signed a lease on a 4,500 square foot space that was being built out to my "dream school" specifications.
It had two separate training floors, plus a third area in the back for my after school program. Two large bathrooms with locker areas. A huge office for me, and another for the sales staff.
It also had a glassed-in observation area for parents and guests, and a hallway that ran the length of the training areas. The hallway would also have windows and chairs so people could watch classes without disturbing the students.
I'd also designed it with a large pro shop area in front. We had pretty much decided the place would look like a Starbucks inside, and planned to have a coffee and juice bar as well.
The funny thing was, the only thing that stopped me from opening the place was a crooked landlord. Long story short, he refused to spend the extra money on the build out that was necessary for us to get the fire marshal's approval on the space.
I'd already given him something like $13,000 of my own money for a deposit, build out expenses, and first month's rent (which should tell you how much I was going to be paying in rent on the place).
I'd already started enrolling students for our after-school pick-up program, and we'd committed to having that program for those families.
And as the months ticked by, I soon realized we weren't going to get into the space in time. I ended up having to cancel half my class schedule in order to accommodate the after-school camp.
That in turn led to me losing about 25% of my students. I was still making more money than before, albeit with more headaches and higher overhead costs (due to the after-school camp), but it hurt to lose those students.
I ended up suing the landlord, and he later settled out of court. We never did get into that space.
And you know what?
That was the best thing that could have happened to me. I would have been miserable running a big school. For one, it was a huge financial gamble, and I was taking on a lot more risk than I was personally comfortable with...
Second, I hate managing staff members. I didn't realize how much I hate dealing with staff, until I had to hire more people to run that after-school camp.
Bottom line was that I realized I was much happier when it was just me, my wife, and one or two part-time staff members running a straight-up karate school. Life was easier, simpler, and I had a lot less stress to deal with every day.
Now granted, some people would enjoy all that extra activity in their business. Some people like managing large teams and working long hours.
But I don't. Fact was, that school wasn't even my dream in the first place. A few years prior, I'd met a guy who tried to become a partner in my business, and that was his idea of how "we" should grow my business.
Truth be told, I had continued to pursue those plans just to show that guy I could do it on my own. And that, my friends, was some world-class dumbassery.
Sure, I was young and feeling my oats, so to speak. So I can look back and blame it on youth and inexperience. But it was still a stupid reason to take my business in an entirely new and uncharted direction...
...especially when it had been so profitable and stable the way I was running it before (following the Small Dojo Big Profits model).
So, consider this as a cautionary tale. Make sure that you not only know what kind of school you want to build, but that you're also sure you're doing it for the right reasons.
Because you might not be as "lucky" as I was, to have a crooked landlord to come along and save you from yourself. ;)
Until next time,
Mike Massie MartialArtsBusinessDaily.com
P.S. - That landlord ended up settling out of court, paying all our legal fees, and paying us a pretty penny on top of the earnest money we gave him, too. So I guess it all turned out okay in the end. But after that experience (and what happened during the recession, which I'll tell you about in Thursday's email) I'll stick to the Small Dojo Big Profits way of starting and running a school for the rest of my life. | 