8 Profitable Martial Arts Business Ideas for 2022

you've got to be able to put enough money away and or borrow enough money to really give yourself a shot to start the business correctly it's 2022 why are people still messing up their martial arts business with all this knowledge and resources and we've never been at a i think it's a difficult question and i think there's multiple different answers um we the sport itself there's a lot of ego in this sport right there i mean some people can set it down at the doorway but most carry a little bit of it onto the mat with them and maybe that's maybe that's healthy but they do the same thing with business first and foremost just because you love jiu-jitsu and it's a part of your life and all your friends are jiu-jitsu people and their friends are jujitsu people does not mean that you yourself should own a gym just because it's all you know how to do and you know maybe you didn't like school so much it doesn't mean that you need to go borrow money from your family or for worse from a bank or someone and like i want to go set up a jiu jitsu and this is what i want to do the rest of my life now have there been people who have done that and created a a business that allows them to live absolutely yes it is you don't it is amazing in this life how people with little talent but a lot of nerve and grit can make something work that doesn't mean you should though okay it really doesn't mean that you should just because you have the grit and determination you have to ask yourself one i want to form a business that is a martial arts center the next question is is this a business or is this a hobby that's that's a lot of these guys out here is a hobby it's just a hobby it's a hobby so i'm going to be a what could afford a lot of off time uh a firefighter i want to be a firefighter because they're going to get you know they're going to work what like 3 12s or 3 or whatever they're gonna work something crazy some 48 hours a week but they're gonna do it in three days right and then they're gonna have all this other time that's a good example because i have seen people who are firefighters then start their uh like a jujitsu martial arts center that doesn't mean that because you have the time that you should do that um because if it's a business if you're opening your doors to the public and it's a business then it needs to be that it does not need to be a hobby there are too many this is of course it's my opinion we're talking right but it's my opinion but there are two there are a lot of people that hurt our sport and it's our sport i mean you've been doing it what 20 years yeah close yeah and i've been doing it 23 since really 18 19 19 you know 98 99 so a long time and there are people out here that really hurt our sport because a first and foremost the guys that are doing it well and we can think off the top of their heads the guys that are really are doing it well maybe one hand yeah one hand right you devalue our sport when you a it's a hobby for you b you don't really open a space you go to you go to uh i don't know i'm making something up now but you go to a gym and you lease out you know a part of aerobics room floor with some mats for a hundred dollars a month and you've got people in there training and you're charging you know if you're charging fifty dollar in my opinion if you're charging fifty dollars for jiu jitsu you're hurting our sport because the amount of time and a not only hurting our sport you're devaluing yourself what did you spend to become a black belt jiu jitsu as far as time and energy time energy my money yeah i spent i spent more time than it would have took me to get a doctorate and you name whatever doctorate or phd that's how long it took me plus the money the time away from the family as we discussed before the two jesus christ you throw my two divorces in there and i've really i've really put some money behind jiu-jitsu not saying jiu-jitsu was responsible for both of them but it had something to do with it it was the time away so if you put all that time and effort and money i really can't stand it when i see you know quasi schools they're not really skills quasi places that are charging 50 bucks a month for jiu jitsu and i'm just like you're devaluing what it really means and the time it took to get and you know and i know it there's all these all these instructors out there too they they need money they want money they want to teach and they're getting paid to teach and then they're bringing in 50 a month for jiu jitsu and it's just you need to decide if it's going to be your business and then you need to really focus on it i'll focus on what okay then now to get to the nitty-gritty what do i what do i see being successful a you've got to build a big enough business so that you can reinvest constantly like back in the gym days when we were when i was running gyms and back real early jiu jitsu days there wasn't social media right there wasn't any of that what we're doing right now you couldn't even do this when we started so if you wanted to drum up business you had to do like uh free giveaways and you would do like lead boxes i bet that's something most people listening don't even know what the hell it is but a long time ago you may see them some places but it kind of went away but back then you would you had to think about where are the people going outside my business what other businesses are they using that it kind of coincide with my business so you had like supplement stores right you had supplement stores you had gnc you had you know more athletic people so you would think most of the time hopefully to god our police are more athletic sometimes they're not sometimes they're not so athletic but you would think police you would think fire departments you would think you know local school athletic tent you would think more athletically right and then you would do like lead boxes maybe you know subway was supposed to be healthy a long time ago oh yeah right yeah we thought it was healthy so we would put lead boxes in subways and people would come in that sign their name they'd sign their phone their sign their email they'd tear off a slip and they'd stick it in the box and they what they were putting their name in for was uh a free year membership oh yeah wow yeah oh free uh it wasn't free because we were gonna you know salespeople which on the other end a long time ago i was on the other end that we're gonna hound the hell out of you right we're gonna call you we're gonna email you trying to get you into the back then it was jim's or martial arts and we'd try to get you in and then you know sell your membership get you to start it but today you're still doing that right but it is so much in my opinion simpler is there more noise yes but what we had to go through a long time ago to get those names together to create a lead system to call all these people to get them in think about all the running around it took and money you had you had to fold these cardboard boxes that you bought from these marketing companies and then you had to go out and you had to service them every week had to pick up these names and then do the run the calls i mean it was hell now the algorithm on the on instagram or facebook or whatever you're going to use knows they know who your people are right so all you've got to do is spend the money to get your advertising in front of those right people which the algorithms are smarter than exactly oh matt has this hobby that's correct it knows the hobbies this age he makes this much he he's friends with that guy he knows my friends right they looked if facebook looked at my friends and they saw i have 50 jillion jiu-jitsu friends it's just like well that's the advertisement i'm gonna get right so but i know martial arts centers now that don't even do that their advertisement is like oh i have a web page yeah how are you getting people to your web page i have uh you know i you know i do a little bit of marketing i market myself but um you know for me to get my friends to post is tough like hey man you have a school just post just get your phone do this during the class and post it right that's like i'm pulling hairs yeah they just they they don't again it's not a business for them it's a hobby for them and i you know i feel for them in a lot of ways because in a way you got to build your business big enough to where you can get an allotment of money to put towards that so it'll then build build bigger but you got to think about that lots of businesses there's people out here all over the place that are doing side jobs and that's from everything from everything everybody's got some kind of side gig now you've got to be able to put enough money away and or borrow enough money to really give yourself a shot to start the business correctly and one and foremost and four is going to be you got to have one a good product so if you're a purple belt or a blue belt out there don't start a gym in my opinion have the money and for it to go by to go pay somebody to actually be a good teacher for you but there are so many times where the the answer for well i'm gonna get a structure is i'm gonna go get a world champion from whoever's the world champion at the time you know they change every year and i'm going to bring them in we're going to start school and i'm going to pay them so much and my my school's going to be that does just because you're a world champion does not mean you're a good instructor does not mean that you can connect on a personal level with all these students and comes back to the first thing we said is it a business or is it a hobby you just want to train with a world champion you're willing to pay them whatever you're going to have to pay them per year to teach your classes okay but that doesn't mean you're gonna have a successful business that's true yeah so great product two you've got a market and the best way to market now is through social media i mean by far and foremost that's where you should be spending eighty percent of your advertising dollars and then what i that's when i think the real hard work starts the real hard work starts after the marketing piece of it because now you got to work on the internal piece of your martial arts center so for lack of a better word we can call it mentorship right i talked to a friend actually last weekend uh we got into conversation about martial arts business and and i thought he did a good job of calling it a mentorship because when we started a long time ago it was a lion's den right you came in you were like the fresh steak and they just tossed you on the mat and the lions went to work on you right they they tweaked an arm they tweaked the knee they tweaked the ankle and that maybe you had purple belts rolling with white belts and purple belts that were trained to completely they were never taught to go let's roll with these white belts let's tease the moon don't tap them right no no no just roll with no we were gonna crush you we're gonna and if you made it if you were tough enough to make it the first six months of the year well welcome to the team but until that point i don't even want to know your first name because we're we're losing so many people out the back door because they're hurt they're beat up they got they're going home to their family you know with you know ghee marks across their face and on their wife's like what are you doing i thought you were just trying to lose some weight right or get in better shape so the third thing is you got to create like a mentorship um white belts in my opinion should train with white belts and then should train with above like purple brown not blues not blues cause blues are in my opinion white belts have been the one that hurt me the worst in my career just because i i didn't give them enough respect for like just pure brute strength you know and get caught in something or they fall and land on me or just something like that right but blue belts are dangerous because they know just enough to be dangerous right we teach and we give them a blue belt and they all of a sudden they can they can kick ninety percent of their friends asses which they've tried it right we don't think so but they've tried it on some beer brawl night right over at their house or out at the bar they grabbed some friend doesn't know what tail they're doing they're like wow i can really manhandle these people right the blue belts are the most dangerous people in the gym in my opinion that's why i have as a black belt i have no mercy on a blueberry right i go just as hard as they go but as soon as they turn up the dial it's on because they're the most in my opinion they're the most dangerous the the white belts you know but the mentorship i'm sorry i got off track but let me give the mentorship white belt should train with like purple belts i mean i know we don't do it that way because now we have like intermediate we're saying like when we pair up for taking when we pair up for techniques when we pair so they can learn but the purple belts have to all and brown belts black belts brown belts black belts probably already know at least most of us have the mentality to know it we got to pull those purple belts aside and go listen your job now is to be almost an instructor to these guys they need to look up to you right they need to look up to you you need to be answering the questions you need to be checking in with them you know that's the key word and you know just where we are in society today but checking in where are you what do you feel about this what do you not understand here are the things here's an easier way to do it or hear something that you're missing that's what the purple belt should be doing for the white belts uh i don't know what we do with the blue belts right now do anything we just them up i mean i don't know what we do with the blue belts right now i'm a little lost there but from white they should go for the purple purple should help of course browns and black should help them out but we shouldn't tap them right you there's a way to roll with people where they know it oh my god i have no chance whatsoever without putting them in a bow and arrow every three seconds rug you know key marks across their face they can't even you know they can't even defend themselves we don't have to do all that blue belts i think are fair game but um we need that mentorship within the with number three we need that mentorship within the team and the team needs to understand it right that's how we keep more of the blues that's how we turn more of the whites into blues and kind of keep more of them um and then we need to identify people within the our our schools that could be instructors now let me say this this is not your best competitor and i want to say that i'm going straight out to the camera for people who run schools who may be thinking this it is not your best competitor right in sales we have this uh and i've been selling since i was 15 for medical sales and finance financial lots of lots of different things your best sales people are not tend to be not your best managers it is two different things is same with your best competitors or not your best instructors it is two different things can you instruct teach pass your information on versus can you win gold medals two different type of mindsets not can i can your best competitors become it sure but it takes time yeah it's a different skill set different skills all way too often we see business owners go well your best competitor you won the world so you're gonna be there you're gonna be the instructor and you go into these classes and they're terrible at instructing they're in terrible at teaching and it's like this is not what you again is this a hobby or is this a business because if this is a business i'm trying to show empathy to my class and you have to be empathetic because 99 of the people that are supporting your business and growing your business are not going to compete and don't care about it right half of them don't even know what the world is right or the pan am they don't they're never going to watch it they're never going to pull up showroom what does not show roll it show your room flow roll or float flow grappling slow grappling they're not gonna pull up flow grappling and watch the adc or the you know the pans or the worlds they're never gonna do any of that they're gonna be playing in the park with their kids on saturday so what are we doing it's just a it's just a bad decision to make to to put a competitor especially a young one that's just in their prime as an instructor you shouldn't in my opinion you shouldn't do that it just doesn't translate well um because you're trying to build up your base um and then you have to have a good kids program number four jesus christ so alec you tell me why do you think you need a good kids program that means more students if you guys watch the other podcast we talked about having access to more wallet you know with the parents two parents okay yes yes so it is always easier to hold more clientele where someone else is paying for that clientele and what do parents want parents want their kids to be to have a better life than they did right so you know if they got picked on as a kid they don't want their kid to be picked on if they see their kid in a situation where you know they're they don't have a lot of friend or they're they're kind of going inside right they don't have as many friends or they're they're less apt to get they want to get them in environments where they have more friends and jiu jitsu will martial arts will build their confidence makes them feel better makes them feel like you know if they have a bully at school it makes you feel like i'm not that afraid of that bully i know what it feels like to be in combat you know so it's it's good and too many people again what do they do they have the same instructors that are teaching the advanced adult classes teaching the kids classes and that is a way different skill set yeah right different skill set how much i mean the level of patience you've got to have versus teaching adults versus teaching kids and being able to get on their level and connect with them and and manage that chaos of herding cats out there i mean i couldn't do it i couldn't do it i've seen i've seen you it's all darren back then i said it takes a it takes a different sort mentally to control and run all that and again what they do is they just pull the instructor from from whom wherever but again some of these small some of these schools they can't invest they can't invest on a new instructor that's that's needed but the kids program is so so important because again you have to control as we talked about before you have to control more wallet and controlling wallets is really simple it's just i have a clientele who comes into my business and this is whatever business every business out here does it just martial arts centers do it very very poorly especially advanced if i have adults coming in and they're teaching and they're training martial arts with me they're probably taking supplements they're probably doing protein they also want to they also want other people to know that they're trained in jiu-jitsu so they want t-shirts they want athletic gear they want bags they want there's a host of different things that you should be supplying to your clientele and often the pro center as we would call it in gem cells the pro center is kind of an afterthought the hanger it would be like you'd be hanging off right there one t-shirt one really extra small t-shirt yes yeah with some cobwebs on it right there's never there's never enough t-shirts there's never the right sizes uh the geese come in you know notoriously late like they'll come in six months nine months late and it's like well we don't have any keys we don't want you guys wearing keys from like you know wherever we can order them and just putting our patch on there no no no you need a uniform for the school but i can't supply you the uniform for the school because i didn't do my job as a business owner right so you run into a lot of that a lot of that in martial arts centers um kids program i got to find some old t-shirts we used to wear like there was some of the ugliest god bro the ugliest just everything written on it they're almost nostalgic now though yeah i kind of miss i have them all i really do i have stacks of them like that i refuse to throw away because they have some holes in them they do they've got holes in them but it's almost nostalgic like sometimes like maybe ufc fights if i know there's a bunch of old guys i might put one of them all because it's you know it's 20 years old some of those shirts are 20 years old but that that needs to be done better um also executive programs right we want we want to we want a thriving kids program we want to control the wallet or more wallet of those parents through those kids that's how the successful business rolls out and then we want more wallet of our of our more successful adult clients okay so business ladies and gents doesn't matter which one but one one thing we don't do is or some some places do a good job of it some places do not but um you want that you want to be able to wash ghees you want a washer and dryer because for me i would pay more for a gym membership if they held my gear and held my stuff because when i have you know appointments all over town i have this and that and oh it breaks up oh i can make this lunch class today but i don't have my stuff i gotta what run to my house get my bag come back no i'm just not gonna do it but i would pay you more if i had a if i had a small locker i trained jiu jitsu at the end i dropped i dropped the gee off of the manager of the of the gym that day they watched it put it in my put it in my little stowaway cubby locked it up did whatever you know i don't know how it would uh how you would want to do that but i would pay for that service and then along with that executive membership i get one private a month right i get just a little bit extra if i'm paying a little more money what am i paying for what's that value i've seen a couple of schools do it and they do really good the better schools do a really good job at it and then team camaraderie the last one you've got to be able to separate those people who are going to compete because i think there's something good about competition schools right and there's there's something good about being known as a competition school because it's quality training because you're having to up your right you're having to up your level of education of jiu-jitsu yeah to be competitive right so what i've what i often find is those schools who are not don't have a competition team are not competitive in the you know in the worlds the pans the jjf you name it the level of jiu jitsu in that school is much much lower the reason it's much much lower is because they don't compete they don't have to so they just regurgitate that same jiu-jitsu over and over and over and over and the level just kind of stays the same so i think you need a hybrid you need a team that's competing that's that's raising that level of jiu jitsu but you also got to know who your market is there's only a certain certain group of people is actually going to do that 90 of the people where you make all your money we're going to focus on self-defense we're going to focus on stuff we were doing in 1998 to 2004 because if they if they know how to get out of headlocks get out of bear hugs defend against a guillotine you know understand the closed guard understand the open guard understand how to scissor sweep from the bottom understand how to block a punch that's what those 95 of the people want to do and so if you're teaching them the 50 50 and just a lot of the stuff is i mean it's good for tournament it's good for those people who are going to compete but for 95 percent of the people it makes you that coming in all right new guy 50 50 hill hook what is that what the i mean all that 10 years of information that it took to get to the 50 50 and the hill hook and everything else it's just like why are we doing this i don't understand uh that kid's program that's uh an area everybody is having issues with i'm seeing a lot of schools they're having trouble just getting instructors for the kids program so i i would i can agree it takes a like we spoke about before it takes the right type of mindset to teach a child and it takes a level of patience that most instructors are not going to have my friend my friend in town kenny kim i think does one of the best jobs at a kid's program because he he knows his strengths you know he knows where his strengths are and whether his strengths are not and so he has a great instructor for the kids program and they've had a good relationship him and the instructor for years now and his kids program thrives so and even just assistance i see some i see some massive programs like my my our good friend jeff cummings has a i go on on saturday he's got about 30 40 kids wow and two instructors you know him and the assistant and i'm just like man jesus christ dude like they're outnumbered out gunned right how do you deal with 30 or 40 kids with two people best you can right yeah you just what do you think is the right ratio five to one six to one yeah it's got yeah it's got a it's got to be more than two to two to thirty you know yeah two to twenty one to twenty i you know i don't know what it is either but maybe one to five one to six but i think it also goes back to it goes back to the point of mentorship and raising people up right there's the opportunity to get purple belts involved if they can and and and give them the ability to start instructing right and then but your job as a head instructor you know maybe you have to instruct your five kids maybe it's one to five ratio maybe you have to instructors five kids but your job also is to watch the instructor instruction from like the purple belts and the people below that have showed some interest in being instructed because you've got to help them be better right and that's in any organization of business right you know right now you're talking about um you know leadership leadership leading from the middle leading not leading from the front but leading someone leading somewhere from the middle so you've got to give them an example of what the best instruction is but you also have to help them along because the biggest problem that martial arts centers face besides the five things we've talked about is scalability right the reason they can't scale there was a martial arts center in in atlanta years ago i think it's still here but years ago and they had locations all over the place right and it failed no after what five to six years if maybe it's just business cycle but it failed but it failed because you couldn't you couldn't get any great instruction at any of them right it was just whoever could show up at what other place that day and i mean so if you really want to build something that lasts you've you've got to build basically the training from bottom up and that's what i think the the market is missing is missing like um like i flipped the switch here's the bit here's the business model and plan for your martial arts center this is how you do it and i know they're out there and i've read some of them but i think some of them missed the mark on a lot of different boats maybe that's something we should create together but maybe that's something we should create together it's like a flip your switch this is the bible this is how you do it you know this is the billing platform company that you use this is the system that you use this is how much money you should be putting into marketing every month this is i mean really just a step by step um because when i really think of it no matter what a person charged for for that it would be too little yeah because because any business owner go well that's way too much i can't afford that my answer would be you can't afford not to i mean it's obviously obviously not working like i've seen so many schools you know come and go and just so many schools struggling right head instructor is teaching all the classes he's burned out he's teaching kids classes he hates i mean it it happened well you got to think longer term and and most people can't right most people if they're thinking about the present day they get up at whatever hour they get up and they're just thinking about making it through their day and that's the difference in between being a business owner and being an employee right and just because your name is on that llc and just because your name is on those checks does not mean that you're an owner there are many people out here that have those things and they're still an employee because what they did is they just bought themselves a job they saved up fifty thousand dollars or pick whatever number you want to invest in their business and what they did was they just traded the income they were getting from some other job for their jiu jitsu gym that's giving them the same amount of income but yet they can't grow their income in their business because they're an employee they're the head instructor that's burned out because you can't teach kids kids classes advanced classes and all these other things because they didn't think about what it was going to take to have a true business because if you have a business that means that there's enough profit in your business that you are actually out or up above let's see it's a better advantage point you're up above like a 30 000 foot looking down on your business and you can see everything and you can make changes because you have a manager that's actually managing your business and you're working to make it bigger and more importantly if your goal is a business you're in a martial arts center you're working on more locations you're working on now i've got one i've got two now i've got three you're working on owning that that city that you're in owning that town owning that market you can't do that if you're working in the you're in the trenches no if you're in the trenches you can't see the forest or the trees yeah you're just wow i've got 10 students this week i've got 15 the next wow i'm growing oh we lost what we've lost well we lost two last month so i'm about equal you can't you've got to be far enough above and away from the business to to actually look at the financials you know and how many of these how many of these owners that we've got today don't understand a balance sheet yeah don't understand simple i'm not saying they don't understand simple math but don't understand a balance sheet don't understand accounting don't understand when they should buy certain things so that you know if they don't count for taxes this year the count for taxes next and there's a lot to it and uh you need to be able to either understand all of it yourself or pay people appropriately to to help you build that that's the problem they won't open that wallet even if it'll save them no i've seen too many examples of um too many examples of classes growing from you know just pick a number from 25 and now they're at 50 two months later because they started doing something you know they actually started marketing and they get to 50 and they're like you know you maybe get to 55 they're like two more months they're still at 55 and they're like why aren't we growing you know 100 like we were it's like well what it what it took you to get to 55 it's gonna take something different get to the next level to get to the next level and then the next and there's a level past that um and there's not a lot of good examples that's a problem in the martial arts center i mean most the owners do you know are they seeking out other owners that are doing better than they are and asking them questions a small minority um a very small minority right because it's ego do you think it's because i don't know what it is ego or just like you said they just too engulfed in the gym that they can't even look to get help you know they can't even ask to get rescued like hey help me like they're just yeah they're just treading water yeah they're going under to come back up they're just trying to keep their head above water yeah there was no there was no good plan from that onset so um there's a need and i i mean for me i want to see i want to see it get better because it's it's my sport right it's something i've spent 23 years now 23 years now doing how does it feel because you've helped schools you know prosper and then like how do you feel matt like it's um i don't get so personally tied up in it as i as i did those those those times um because it hurts right it's like you you put a lot of you put a lot of motion and energy into helping and the and they got you know uh a couple of different got much much bigger and then they were you know come back down but it was really there's gonna be ebbs and flows in business you're gonna go up you're gonna come back a little go up but you should constantly be kind of you know see-sawing towards the top you know a little a little slight angle mainly it's just because often their dreams often their dreams are what their idea and picture of success was was not my picture of success if that makes sense and sometimes i think a lot of like looking back it's basically poor communication right maybe i could communicate with you in them yeah maybe i could have communicated better what does success actually look like for you is success 10 grand a month and cleared money income you know because it's not really 10 grand because you're gonna have to reinvest right to keep going because there's always competition behind you coming for you so you don't if you if you pay all your bills and you've got 10 grand left you really don't have 10 grand left because you're going to have to allot some of that money to go back into the marketing budgets so that you can just keep up to keep the 10 grand right and then it's 20 and then some get to 30 40 50 60 whatever it is but what it took you to get to that point it's going to take you more to do so it is aggravating watching it it's just aggravating sometimes watching what uh what they don't keep on doing and they many of them also don't understand the importance of real estate they don't understand that at the end whenever that end is for some of them sooner than others right but they don't understand that your entire profit can often be the real estate that you're sitting in so what they wind up doing is they wind up leasing space from some place forever they never own it so they're just constantly paying a rent and that's fine if you've got huge amounts of cash flow and you have if you've got good cash flow and you have multiple locations because that cash flow in those multiple locations can equivalent it can come up to be a large stack of money at the end but most people if they have one location you're going to have some stat money stacked up but your real windfall is going to be a sell of that building at the end when you're done with it or more important i mean there's there's different financing financing terms that you can do don't sell your building and people say what are you talking about and i'm like well you know i've been in conversations before where um you can create something that's called a sinking fund for your business what's that i'm like well large businesses do it all the time but martial arts centers could do it too because a lot of them employ their wife in the martial arts center or employ their husband in the martial arts center because you can pay that person a salary bank yeah it'll take time for you to replace that so a business can pay like life insurance policies on all these people at the top oh wow and that's created and that's an expense so if let's say it'll cost you 150 000 a year for life insurance policy on these top people right well the smaller company probably not that much but let's say say it's a hundred thousand for easy math well if they're paying those policies the company owns the policies not those individuals right so at the end see the company's paying it you're not paying taxes on that hundred thousand dollars oh okay wow because it's considered an expense but if you do that 10 15 years what do you got jesus hey you've got a million and a half a million dollars a million and a half dollars and it's not really that because on most of these insurance policies on cash value policies like that they're paying like six percent seven percent interest compounded so you compound that every year all of a sudden this company is setting with these this sinking fund meaning a fund sitting there that is just cash rich so you don't ever have to take a loan anymore and so what happens if at the end you want to sell your business right well you can take a loan from that policy and you can take a million and a half to me whatever's out you can take 90 percent of that policy out for you to fund yourself right to sell and then own or finance your business away so they're paying you every month okay yeah it's there's millio there's several different ways to uh to do it where you can own the business forever or maybe a separate business actually owns a building and then your business martial arts center exists on the outside leasing the space from your other business see how that works now there's tax advantages there so yeah a lot of i've just i've brought a big picture like very big picture that year you got to look years there's there's this asset there right and the asset in most people situation is their time and their knowledge right they're teaching martial arts they're teaching jiu jitsu right that's all they see well what they see is oh i've got 300 students and they're paying me 300 100 a month and that's it that's all we got that's what i can afford it and then i'm going to pay my bills and this is what's going to be left over you've got to think if you really are a business person this is your business you have to think bigger okay i have this money that's great but how do i grow and how do i become how do i own my own real estate how do i structure the real estate to sit within my business how am i going to pay for this real estate is the business going to pay for it am i going to pay for it how do i what's my exit strategy do i you know do i create a sinking fund like what i like what i've talked about or do i do i create ghost stock so that my instructors have ownership in the business which you know we could change it from llc to an escort to a c corp so now they have ownership in the business by the time they work there instead because most instructors don't have the money anyway so if you give me five years of instructing you're going to get so much stock of this c court right now you could leave me and if you leave me you know you can keep your stock and if this c-corp ever sells then you'll get your stock you know you'll get your amount later you there's so many different ways that you can do this but until they start mark these martial arts centers our friends jujitsu place to start thinking bigger picture it's going to continue to be exactly the way it is yeah and if you want an instructor good instruction that doesn't leave you that doesn't you know pack up in the middle of the night and move you know what's your number what's your non-compete was 20 miles well move 21 miles away from you and set up a new school and you know pull whatever 50 of your students over there then you're going to have to create some teeth in your business model to keep them there and that teeth is well i could go over here and set up my own school and have all the risk and all the expenses and all that or i could keep what i got right here which is pretty good and i'm gaining ownership in this and at some point maybe i want to buy this c corp maybe i want to buy this business yeah that's way but

2022-04-21 03:00

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