Since 1964 City Dojo (a karate school) has been a presence in its community. 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. There is a lot of competition. The dojo is in a critical moment of its existence. City Dojo is currently operated part-time (for the love and enjoyment of the art) and offers little income to its owner. To identify potential, the following business plan (the first for City Dojo) was developed. 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 plan will illustrate how the dojo can grow from its current breakeven point of 65 members to 200 (80% of capacity), in just three years. Based on an expanded membership, sales growth would increase from $65,000 per year in 2001 to $198,000 annually by 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.
For this growth to occur, the dojo will need a $20,000 loan, which must be repaid over eight year periods. This loan will be secured by the collateral of the house that is owned by the owner.
1.1 Objectives
- Remodel and upgrade the dojo by 2002.
- Payed membership should be increased to 200 by the end of 2004 (equivalent 80% dojo capacity).
- To reduce membership turnover of 30% by the year-end 2004, measure by number students taking belt testing, from white to bleu.
- You should create a cash flow that allows you to make investments in the future.
1.2 Mission
City Dojo was established to provide a place where one can learn the art of karate, have fun in the experience, make a commitment to that learning and to use the knowledge as a “stepping stone” to an improved self, family and community. Students will leave the dojo, with an experience that will last a lifetime.
1.3 Keys for Success
- A unique, safe and modern dojo environment is possible.
- Establishment, implementation, and tracking of a business and budget plan.
- The dojo needs a solid Board of Advisors to help with both business and karate training.