Martial Arts School Business Plan Example

The Can-Am Taekwondo Instructors and Schools Confederation has been active in the United States for 30 years. Being part of this organization will benefit Cents and Senseibility Martial Arts School owned and operated by Rolly BonTemps, 5th Degree Black Belt.

The Can-Am Taekwondo Instructors and Schools Confederation (CATISC) is the premier North American organization dedicated to the martial arts discipline of taekwondo. It is the founding organization of international affiliates, overseeing 1,500 schools and clubs with over 300,000 members.

The focus of this program is to provide students high-quality martial arts instruction in a safe and positive learning environment. Rolly BonTemps, a high ranking instructor, will combine excellent student instructor ratios with state-of-the-art training facilities. BonTemps, a graduate of an instructor program representing over thirty years of research and development, will support students to help them reach their goals.

Cents and Senseibility will be a value-priced taekwondo martial arts school providing programs ranging from basic martial arts to self-defense and life skills building. Cents and Senseibility Martial Arts School plans to enhance its programs as it expands, developing new programs to provide access to different aspects of Songahm Taekwondo.

Cents and Senseibility Martial Arts School will also offer self-defense techniques to local Law Enforcement.

Cents and Senseibility offers the best martial art in the world. Taekwondo is known for its dynamic kicking and hand techniques. The planned programs are always evolving to keep pace with the changing world.

Cents and Senseibility Martial Arts School recognizes that each student possesses different abilities. Once students have a strong foundation, BonTemps’ program will enhance their physical capabilities and self-defense skills.

Cents and Senseibility Martial Arts School is not just interested in teaching self-defense. BonTemps is interested in the complete personal development of each student. Individual attention is a feature of each class, allowing all students to progress toward their goals. BonTemps teaches the importance of character, leadership, and good values.

The teaching curriculum at Cents and Senseibility Martial Arts School is based on "positive mental attitude" and "high goal setting." BonTemps promises to give students and their families professional, well-supervised, and high-quality classes.

Future plans for Cents and Senseibility include Cardio Kick Boxing Classes for young adults and Pilates Classes for young and older adults.

Enrollment for Cents and Senseibility Martial Arts School is projected at 120-125 students for profitability. Within the first 6-8 months, the school projects 100-120 student enrollments. Cardio Kick Boxing is projected to have 45-50 enrollments, and Pilates Classes are projected to have 30-45 enrollments within the first six months.

The financial plan is based on reaching sales goals while maintaining a reasonable cost base. Break-even sales volume is expected within four months, with a 30+% bottom line profitability. If financial goals are met, Cents and Senseibility Martial Arts School plans to acquire a stand-alone building to better suit their growing needs.

1.1 Objectives:

– Identify a centrally located area for the martial arts school by mid-summer 2003.

– Secure a lease agreement for a 2,500-3,000 square foot premises with store front, visitor seating area, and dressing/restrooms.

– Recruit membership by arranging visits to local classrooms, demonstrating the benefits of martial arts.

– Generate 8-10 new members per week through marketing at local shopping centers, malls, and grocery stores.

– Offer Cardio Kick Boxing classes for both young and older adults, generating 10-15 members in the first three months and maintaining a class of 45-50 students by the end of year one.

– Offer Pilates classes for young and older adults, generating 10-15 members in the first three months and maintaining a class of 45-50 students by the end of the first year.

– Increase paid membership to 180-200 by the end of the first year.

– Develop a cash flow to support expansion and construct a stand-alone structure to support the school in the future.

1.2 Mission:

To provide the best martial arts training in Taekwondo, Cents and Senseibility Martial Arts School aims to improve self-esteem, concentration, discipline, and self-control while fostering an enjoyable learning experience.

1.3 Keys to Success:

– Implement a solid budget and business plan.

– Establish a unique, modern, safe, and clean martial arts school.

– Focus on an effective marketing plan to actively recruit students.

– Foster a sense of community and maintain positive relationships with students and their families.

– Plan for future expansion to multiple locations.

Company Summary:

Cents and Senseibility Martial Arts School is affiliated with the Can-Am Taekwondo Instructors and Schools Confederation (CATISC), a nationally recognized martial arts organization with over 1,500 member schools across the United States. It serves a large community area, offering Taekwondo and self-defense classes, as well as Cardio Kick Boxing and Pilates. As the school grows, plans include expanding to accommodate a gym for parents.

2.1 Company Ownership:

Cents and Senseibility Martial Arts School is a sole proprietorship owned by Rolly BonTemps, a Fifth Degree Black Belt. All proceeds from school activities belong to the owner. The school is affiliated with CATISC and pays approximately 15% of testing fees to the organization.

2.1.1 Fulfillment:

Trained black belt instructors are selected based on their knowledge and ability to work with students. Instructors are members of the do-jahng club and receive free membership, access to the do-jahng, and payment for private lessons on a contract basis. In the event of no experienced instructors, assistance would be provided by other CATISC schools. Students progress through belt ranks to achieve senior student status and can assist with lower rank classes.

2.2 Start-up Summary:

Start-up expenses include floor carpeting, mirrors, restrooms, office area, front desk sales counter, and store front sign. The remaining funds cover rent until profits are generated. Initial cash reserves and additional assets are required. Start-up costs are financed by equity contributions from the owner, Rolly BonTemps, his parents, and a three-year commercial loan. The insurance needed is provided by CATISC, and other licenses are obtained locally. CATISC offers a Business Clinic to assist future martial arts school owners.

Start-up Funding

Start-up Expenses: $36,000.

Start-up Assets: $59,000.

Total Funding Required: $95,000.

Assets

Non-cash Assets: $15,000.

Cash Requirements: $44,000.

Additional Cash Raised: $0.

Cash Balance on Starting Date: $44,000.

Total Assets: $59,000.

Liabilities and Capital

Liabilities

Current Borrowing: $0.

Long-term Liabilities: $60,000.

Accounts Payable (Outstanding Bills): $0.

Other Current Liabilities: $0.

Total Liabilities: $60,000.

Capital

Planned Investment

Rolly BonTemps: $25,000.

Parents: $10,000.

Other: $0.

Additional Investment Requirement: $0.

Total Planned Investment: $35,000.

Loss at Start-up (Start-up Expenses): ($36,000).

Total Capital: ($1,000).

Total Capital and Liabilities: $59,000.

Total Funding: $95,000.

Company Location

Cents and Senseibility Martial Arts School will be located in a major shopping center. The facility will have a 3,000 square foot training area, 1,800 square foot viewing area (lobby), dressing areas, showers, restrooms, and two offices. The building will face a major street and have parking available. The facility will be leased yearly, with plans to construct or purchase an independent building in the future.

Services

Cents and Senseibility Martial Arts School provides fitness and self-defense training through Songahm Taekwondo. Taekwondo promotes physical and mental well-being, discipline, honor, self-control, respect, courtesy, perseverance, and loyalty. The school caters to ages 3-63 and offers a fun learning experience.

Benefit of Taekwondo:

– Fitness: Taekwondo improves coordination, speed, and power.

– Self-defense: Taekwondo teaches efficient self-defense techniques.

– Self-confidence: Taekwondo builds self-confidence and discipline.

Programs Offered:

Tiny Tots Taekwondo Program (ages 3-6):

– Classes held in the evening and on Saturdays.

– Taught by Rolly BonTemps (5th Degree Black Belt) or experienced Certified Black Belt Instructor.

– Achievement patches and ranks for progression.

Basic Program:

– Classes held in the evening and on Saturdays.

– Taught by Rolly BonTemps (5th Degree Black Belt) or experienced black belt instructor.

Black Belt Club Program:

– Classes held in the evening and on Saturdays.

– Taught by Rolly BonTemps (5th Degree Black Belt) or experienced black belt instructor.

Master Club Program:

– Classes held in the evening and on Saturdays.

– Taught by Rolly BonTemps (5th Degree Black Belt) or experienced black belt instructor.

– Weapon and self-defense training.

Belts And Rank:

– The belt system signifies a student’s level of competency and progression in Taekwondo.

– Each belt represents a new level of skill and knowledge.

– The journey to Black Belt is a continuous development process.

Market Analysis Summary

Cents and Senseibility Martial Arts School will be owned and operated by Rolly BonTemps, a 5th Degree Black Belt with 10 years of Martial Arts Instructor experience and 17 years of Taekwondo training. Rolly BonTemps aims to make a positive impact on children’s lives through Taekwondo instruction. The school is affiliated with the Can-Am Taekwondo Instructors and Schools Confederation. The target market includes the local population, which has shown a demand for martial arts training.

Market Segmentation

Based on national surveys, it is estimated that 3-5% of the U.S. population is currently active in martial arts training. Our county has a population of 251,377, with a breakdown by age group. Kids aged 4-14 make up 70% of martial arts participants, with age groups 15-25, 26-49, and 50+ each accounting for approximately 10% of students. Considering these statistics, our target market in Our County is estimated to be around 51,000 potential students.

Market Analysis

4.2 Target Market Segment Strategy

The target market is divided into four age segments within the city limits and surrounding area. The strategy is based on research from the Can-Am Taekwondo Instructors and Schools Confederation and data collected as Lead Instructor from affiliated CATISC Schools.

Parents want their children to learn karate for confidence and self-defense, adults take karate for exercise and self-defense, and seniors take karate for social aspects and exercise.

Cents and Senseibility Martial Arts School will be placing emphasis on the Hispanic (Latino) market as their population continues to increase in this area. Cents and Senseibility will also target addresses with ZIP codes in medium and higher income brackets within our market.

Target market breakdown:

1. Parents of kids ages 3-14: This market projects the largest potential of students and offers the most potential for new members.
2. Young Adults 15-25: This market is projected to provide 10% of the market. The Cardio Kickboxing program is targeted towards young adults as a fitness program.
3. Adults 26-49: This market is projected to provide 10% of membership. Cents and Senseibility will target this group to increase by 20% through Pilates Classes.
4. Adults over 50: This group accounts for 10% of the membership. The introduction of Pilates Classes may increase participation in this market.

4.2.1 Market Needs

Based on a needs analysis taken at Rolly BonTemps’ current location, our survey reflects similar results to the national survey:

1. Kids 3-14: self-confidence, fun, exercise, discipline, self-defense, and socialization.
2. Ages 15-25: exercise, self-defense, self control, and concentration.
3. Ages 25-35: exercise, self-defense, stress reduction, weight control, and participation with their children.
4. Ages 35 +: exercise, stress reduction, and socialization.

4.2.2 Market Trends

In the mid-1960s, there was a boom in martial arts studios, partially brought on by the success of Bruce Lee movies and the TV show ‘Kung Fu’. In the mid-1980s, interest in martial arts moved towards offering children’s programs. In the mid-1990s, it was estimated that 5 to 10 million Americans were active in some form of martial arts training.

Recent trends, such as the popularity of the movie “Crouching Tiger, Hidden Dragon,” have caused a mini-surge in the number of new applicants. Martial arts for kids has shown a trend towards more activities and less “traditional” training. Today’s kids have a lower level of patience, want to be involved in “movie” type karate styles, and are more demanding of their time.

Another trend is that larger health/fitness organizations are moving into the martial arts field. Companies such as Bally Total Fitness and Gold’s Gym are offering kick-boxing, teabo, and other forms of group “soft” martial arts training such as yoga.

Finally, there is a push in the health/fitness industry to attract the ‘over 50’ crowd. Fitness clubs have a difficult time applying their muscle building, fast-paced fitness programs into this market. However, the ‘over 50’ group is expected to be marketed to more aggressively, as fitness/health clubs realize the potential of the “baby boomers” and the fact that baby boomers have both the time and money to pursue outside recreational activities.

4.2.3 Market Growth

The U.S. Census (2000) shows that our region is experiencing tremendous growth. More families are moving into our community area than ever before. Our region is experiencing a boom in adults ages 30 to 50 with young children.

A national survey indicated there are approximately six million Americans actively involved in martial arts training. A 14% growth rate was expected in the upcoming years as Americans move towards a more healthy lifestyle.

As our area was once known for elderly retirement communities, the trend is turning towards younger families and children moving into the area. This could be a result of the cost of living, causing many seniors on retirement income to move to more affordable locations.

4.3 Service Business Analysis

The business of owning and operating the Cents and Senseibility Martial Arts School is similar to that of running a health/fitness club—membership is everything. The ‘do-jahng’ (Taekwondo facility) is the teacher and place of learning, and can be looked at as a place of experience. The word ‘do’ (way) ‘jahng’ (area) means “the area in which we learn the way.” Respect is given to the place where this training takes place.

Martial arts falls under the SIC (Standard Industrial Code) 7999 – Amusement and Recreational Services. Under this heading we find groupings from Astrologers to Card Rooms, from Carnival Operations to Yoga.

The martial arts industry consists primarily of thousands of small independent schools, most belong to one of hundreds of loosely organized martial arts associations (usually divided by style type). Cents and Senseibility Martial Arts School is proud to be affiliated with one of the largest martial arts organizations in the United States today, with over 1,500 Taekwondo Centers and 300,000 active students and growing.

Other industries should be considered in any competitive analysis. The health and fitness club industry (Bally Total Fitness, Gold’s Gym) and the non-profit (YMCA, YWCA, and local schools) are in competition for the same group of potential customers.

4.3.1 Competition and Buying Patterns

The business of a Taekwondo Center is to offer a facility with martial arts training. Membership is everything, and turnover (attrition) in the industry can be high. Selection of a do-jahng by a potential member is done by the style of martial art the member wishes to participate in. However, selection of a do-jahng by a new student is more basic in nature. Generally, a do-jahng selection is based on the following:

1. Friends/family attending
2. Location
3. Cost
4. Facility environment
5. Class schedule
6. Friendliness of instructors
7. Class size

Cents and Senseibility Martial Arts School will focus on a broad market, with special attention given to recruiting students from local schools. Emphasis will be placed on different age groups for targeted recruitment.

5.1 Competitive Strengths and Weaknesses

• Can-Am Taekwondo Instructors and Schools Confederation is one of the largest martial arts organizations in the United States.
• Cents and Senseibility Martial Arts School will have a convenient location in a major shopping center.
• Mr. Rolly BonTemps (5th degree black belt) is a nationally recognized instructor and marketing specialist.
• Competitive pricing and hours of operation.
• Solid untapped database for marketing.
• Lead Instructor for over 300 active students.
• New School.
• Lack of Instructors during start-up.
• Student attrition.
• No website at this time.

5.2 Marketing Strategy

The target market is broad, including kids aged 3 to 14, young adults aged 15 to 25, and adults aged 30 to 49.

The first marketing initiative is the "Show and Tell" program. This program involves meeting with local School Administrators, introducing ourselves to the community, and visiting classrooms to give demonstrations and offer free lessons.

The second marketing initiative is the V.I.P. program. This involves handing out flyers and business cards to parents and offering 30 days of free lessons.

We will also advertise in the Yellow Pages, local newspaper, radio, websites, and potentially local television.

5.2.1 Positioning Statement

We offer competitive pricing, convenient hours, and quality instruction for adults in the city who want to learn Taekwondo and build self-confidence. Unlike the competition, Cents and Senseibility Martial Arts School offers modern facilities and entertaining programs with the tradition of Korean style Taekwondo.

5.2.2 Pricing Strategy

Our pricing structure is competitive, with membership fees of $80 per month for the Tiny Tots Taekwondo Program, $85 per month for the Basic Program, and $90 per month for the Black Belt Club. We also offer promotional discounts for bringing in new students.

We have introductory promotional pricing packages, including a short introductory package and a six-month introductory package.

5.2.3 Promotion Strategy

Our primary promotion strategy is to meet potential customers through local schools and public places. We also offer incentives for current members to bring in new members, redesign our storefront, hold Taekwondo demonstrations, offer free self-defense seminars, and advertise in print and online media.

5.2.4 Marketing Programs

Our marketing programs include creating a professional brochure, "Show and Tell" demonstrations in schools, participating in local events, advertising in the Yellow Pages and weekly newspaper, and establishing strategic alliances with select establishments for brochure trades.

5.2.5 Strategic Alliances

We will establish strategic alliances with select establishments for brochure trades, offering possible discounts and mutual benefits.

5.3 Sales Strategy

Our sales strategy is to increase membership by making potential customers aware of our do-jahng through effective marketing efforts. When potential members visit, they will be greeted by an instructor or sales associate and provided with sales materials and promotions. Instructors will be available for immediate consultation.

The chart and table below show the sales forecast for our membership growth. Introductory fees will be adjusted after the three-month grand opening. Special classes and weekend activities, like birthday parties, will be available at a minimal price. Additionally, private lessons with Rolly BonTemps, a 5th Degree Black Belt, can be requested. Belt testing will occur every 8 weeks, with fees based on rank and membership. Periodic self-defense seminars for women and law enforcement officers will also be offered.

Sales Forecast:

5.4 Milestones:

The following table lists program milestones, with dates, managers in charge, and budgets. The milestone schedule emphasizes planning for implementation. The most important programs are the sales and marketing programs mentioned earlier.

Milestones:

– Milestone Start Date End Date Budget Manager Department

– Business Plan 6/15/2003 8/30/2003 $150 Fiorello & Rolly Marketing

– Marketing Plan 6/30/2003 9/30/2003 $250 Rolly Marketing

– Find School Location 7/1/2003 10/30/2003 $0 Fiorello & Rolly Marketing

– Secure Financing 8/30/2003 10/30/2003 $0 Fiorello & Rolly Marketing

– Store Front Sign 10/30/2003 12/30/2003 $10,000 Fiorello & Rolly Marketing

– Open School 12/1/2003 1/3/2004 $25,000 Rolly Marketing

– Marketing program – first 25 students 12/1/2003 1/3/2004 $2,000 Rolly Marketing

– Marketing program – first 50 students 1/4/2004 1/31/2004 $1,000 Rolly Web

– Marketing program – Cardio Kick Boxing 50 students 12/1/2003 1/31/2004 $500 Rolly Marketing

– Marketing program – Pilates First 50 students 12/1/2003 1/31/2004 $500 Meg Marketing

– Marketing program – first 100 students 2/2/2004 2/29/2004 $1,000 Rolly Web

– Marketing program – first 200 students 5/2/2004 7/31/2004 $2,000 Rolly Marketing

– Marketing program – first 250 students 8/2/2004 10/16/2004 $1,500 Rolly Marketing

– Marketing program – first 300 students 10/18/2004 1/1/2005 $1,500 Rolly Marketing

– Marketing program – VIP Schools 12/1/2003 12/31/2004 $100/month Rolly Marketing

– Totals $45,400

Management Summary:

Rolly BonTemps, owner of Cents and Senseibility Martial Arts School, is an experienced 5th degree black belt Taekwondo instructor certified by the Can-Am Taekwondo Instructors and Schools Confederation. He is also recognized as one of the organization’s leading Marketing Specialists.

Upon opening the school, an accountant will be contracted. There are currently no other employees, and the owner will oversee operations and provide all of the instruction.

Personnel Plan:

The do-jahng is a small business, but a quality management team (Board of Advisors) will assist with legal, tax, marketing, and personnel matters. Computer graphic designing and software programs will be used for advertising and marketing. The owner’s father and mother will assist part-time as sales associate/receptionist and serve on the Board of Advisors. The Board of Advisors will consist of a three-member team experienced in general business, accounting, small business, legal issues, and human resources.

Cents and Senseibility Martial Arts School will have the following employees:

– Rolly BonTemps, owner and instructor, with extensive experience and success in the Taekwondo industry.

– Meg LeFevre, the owner’s fiancee, who will expand the school into fitness programs for young and older adults after receiving Pilates Instructor certification.

– Fiorello BonTemps, the owner’s father, will serve as a consultant and financial advisor, as well as manage maintenance and construction needs.

– Merry BonTemps, the owner’s mother, will serve as a consultant and financial advisor, as well as manage bookkeeping and financial affairs.

The owner will seek advice from SCORE "Counselors to America’s Small Business", a national non-profit organization, for guidance and counseling on business matters.

Personnel Plan:

– Rolly BonTemps (Owner) – Year 1: $33,000, Year 2: $45,000, Year 3: $65,000

– Meg LeFevre (Instructor) – Year 1: $7,000, Year 2: $10,000, Year 3: $15,000

– Fiorello BonTemps (Board of Directors) – Year 1: $6,000, Year 2: $8,000, Year 3: $10,000

– Merry BonTemps (Board of Directors) – Year 1: $6,000, Year 2: $8,000, Year 3: $10,000

– Total People: 4

– Total Payroll: Year 1: $52,000, Year 2: $71,000, Year 3: $100,000

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