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Separate your hobby from your business
Most school owners end up running a school as their hobby gradually evolves into a job then into a career. Maybe they were recruited to teach by their instructor – then had their “entrepreneurial seizure” and ended up self employed.
This is, of course, considerably different from the more pedestrian career path of most professionals – complete high school – go to college to pursue a degree in a field expected to produce an interesting and lucrative career – find the job and pursue career advancement and consistently improving salary and benefits. Certainly in the new economy that model is becoming increasingly less common – however I walk through this to point out how different our industry usually is.
Although there is a newer generation – many like myself who actually trained to improve their teaching skill – pursued a degree in business and additional training in marketing – and, really approached the martial arts as a career. Generally that's the exception in the martial arts.
If you are really interested in running a quality school and making a reasonable income then you must approach your business as a career – not as a way to pursue your hobby full-time.
I've always held myself to a standard of matching my income opportunities in any other pursuit by plus or minus 10%. I've always planned on consistently matching my other choices.
A quick lesson in economics versus accounting:
If your revenue exceeds your expenses you will end up with what your accountant calls net profit. Although certainly having a positive bottom line is a good thing it misses an important component:
Opportunity cost.
Opportunity cost is in simple terms – what you could have made doing something else
Example:
If you could earn $50,000 per year – in some other career and you make $40,000 running your school.
Your accountant will tell you that you made $40,000 profit – but an economist would tell you that you lost $10,000 compared to your other opportunities. If you made $50,000 from the school – then really you have broken even compared to your other opportunities.
The next issue to always pay attention to is your classroom and curriculum:
Do you teach what you like or do teach what your clients want to learn?
Many, many martial artists pursue their own interests and hobbies in martial arts – then immediately convert their curriculum into these areas.
Example:
The ultimate fighting challenge takes the martial arts community by storm. School owners around the country take up grappling and pursue any of the Gracie clan – or Machado family to teach them this kick ass Brazilian martial art. Convinced that this was the ultimate fighting method – and, enamored of the viciousness of these telecasts they immediately begin teaching these grappling classes on a regular basis and expose their entire student body to this new curriculum.
Ultimately the moderately successful school – that previously had a solid children's and family clientele erodes. The owner has great fun with this new curriculum – the students don't share his new found interest. The owner convinces himself that the kids and parents just love this new curriculum – his active count slowly dwindles.
Do you just love tournaments?
Is that the best thing for your students? I've run one of the biggest tournaments in the country – but I've got to tell you that I've never seen open tournaments have a positive impact on a school or on a student.
Do you just love to train with knives?
Not a great way to impress the parents is it?
Keep in mind that your personal hobbies in the martial arts and your career running a school should be kept separate. That doesn't mean that you shouldn't pursue those things that you enjoy – just step back and objectively evaluate whether what turns you on is the same thing that your clients and prospective clients are looking for when they come to your school.
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