City Dojo, a karate school, has been active in the community since 1964. The dojo, owned and operated by the Shihan (head instructor) since 1975 has seen many changes at both city level and in the Martial Arts industry.
There are approximately five million Americans who currently practice Martial Arts. Although the boom years in the 1960s are over, the industry continues to see steady growth.
City Dojo and the surrounding area have long been a hub for Martial Arts training. Competition is keen. The dojo is at a turning point in its existence; expansion or closure. Currently the City Dojo is operated on a part-time basis (for the love of the art) offering little, if any income for its owner. The dojo’’s first business plan, the below was developed to identify potential. What was found is that there is tremendous opportunity in the Martial Arts marketplace and that the dojo is in a solid position not only to exist, but thrive in the Martial Arts industry.
The following plans will show you how your dojo can go from its current break-even of 65 members and increase to 200 members (80%) in three years. Based on an expanded membership, sales would grow from $65,000 in 2001 to $198,000 year-end 2004. The business plan suggests the dojo can generate considerable cashflow, if the business is operated on a full-time basis, offering its owner and any investor a healthy income.
To accomplish this growth, dojos require a $20,000 loan over eight years. Secured by the property of the owner, this collateral will be a house.
- Remodel and update dojo by year end 2002.
- Paid membership increased to 200 members by 2004 end (equivalent to 80% dojo capability).
- To reduce membership turnover of 30% by the year-end 2004, measure by number students taking belt testing, from white to bleu.
- Create a cashflow to allow for future expansion.
City Dojo was set up to give people a place to learn karate, have a lot of fun and also to make a commitment towards learning. The dojo will provide a lasting experience for students.
Success Keys 1.3
- You can create a safe, modern, and clean dojo.
- Implementation, tracking and monitoring of a budget or business plan.
- For karate training as well as business matters, we need a strong Board of Advisors.