Most school owners who want to run multiple schools shouldn’t. The only real justification for a second location is that you are busting at the seams with quality staff and need to give them a career path. If your goal is more money or more students, you can almost certainly get both by growing the school you already have.
Key Takeaways
- The only real justification for a second location is providing a career path for quality staff who are being stifled.
- Single locations exist with over 1,000 active students, and at least one school nets $500,000 per year.
- If you have not exceeded those numbers, you probably have not maxed out your current location.
- A school that grinds to a halt when you take a week off is personality driven, not systems driven, and is not ready to be duplicated.
- Staff who do not know active count, dropout rate, enrollments, renewals and gross revenue cannot contribute effectively to growth.
- Going from one school to several means giving up the role of doer and moving into the role of trainer and supervisor.
What My Boot Camp Panel Concluded
I’ve just been listening to the audiotapes from my boot camp, “The Summit of Martial Arts Millionaires.” As I sit here listening to over 22 hours of tapes, I am blown away by the incredible content.
As I facilitated this discussion of how to most effectively run multiple locations, one theme surfaced early: Most school owners who want to do multiple schools — shouldn’t!
Before you even consider opening a second location, ask yourself some penetrating questions:
Why Do I Want Another Location?
Is your motivation to make more money, have more students, or is it to provide a career path for very competent staff members who are being stifled in the current situation? The only real justification is that you are busting at the seams with quality staff and want to provide a career path for them.
If you want to make more money or have more students, you can do that by growing your existing school. I know of single school locations with over 1,000 active students and know of at least one school that NETS $500,000 per year. If you haven’t exceeded those numbers, you probably haven’t maxed out your current location.
Am I Capable of Managing Multiple Locations?
Step back and look at your current school operation. Is it systems driven or purely personality driven? What happens when you take a week off? (Do you ever?) When you are gone, do things just keep clicking along, or does your operation grind to a halt until you get back and make things happen?
Document, organize and systematize your existing school. Train your staff. Teach them to follow processes that have been proven while striving for the monthly goals of your school.
Is My Existing Staff Focused on Our Growth Objectives?
Do you have a strong team that implements well-developed systems and strives to hit your growth objectives? If not, get to work on sharing the numbers for the school and creating a team that is focused on your goals rather than carrying all of the weight yourself.
If your staff members don’t know active count, dropout rate, enrollments, renewals, gross, and other significant numbers, how can they effectively contribute? I would never have an instructor who wasn’t focused on the active count and who didn’t know how many people dropped out, who they were, how many enrollments we added and how many students upgraded or renewed in a given period. I would never have a program director who was not intimately aware of intro flow, conversion ratios-to-enrollment, gross revenue and renewal rates.
Am I Capable of Managing a Large Staff?
Many school owners are excellent motivators and salespeople with students, but aren’t good at teaching employees those same traits. Once you go from a single school operator to a multiple school operator, you give up the role of “doer” and move to the role of trainer and supervisor.
It’s very important that you evaluate your interests, temperament and perspective to determine if people management and staff development is a strength that you have developed.
Frequently Asked Questions
Should I open a second martial arts school?
Only if you are busting at the seams with quality staff and need to provide them a career path. If you want more money or more students, growing your existing location is almost always the better route.
How many students can one martial arts school hold?
There are single locations operating with over 1,000 active students, and at least one school that nets $500,000 per year. If your school has not passed those numbers, you have not maxed out your current location.
How do I know if my school is ready to be duplicated?
Take a week off and see what happens. If the operation keeps clicking along without you it is systems driven; if it grinds to a halt until you return, it is personality driven and not ready to duplicate.
What numbers should my staff know?
Instructors should know active count, dropout rate and who dropped out, enrollments added, and upgrades and renewals for the period. Program directors should know intro flow, conversion ratios to enrollment, gross revenue and renewal rates.
What changes about my job when I run more than one school?
You give up the role of doer and move into the role of trainer and supervisor. Evaluate your interests, temperament and perspective honestly to determine whether people management and staff development is a strength you have actually developed.
