Martial Arts Business Plan
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Below is a template to help you create each section of your Martial Arts business plan.
Executive Summary
Business Overview
Master Mike’s Martial Arts is a new martial art academy located in Spokane, Washington. We teach students of all ages a wide range of martial arts, including judo, karate, and taekwondo. We split our lessons based on skill level, so we have classes for beginners, intermediate learners, and advanced learners. We also divide our classes by age range, offering separate classes for learners ages 9 to 12 and adults 13 and up.
Master Mike’s is founded and run by Mike Conway. Mike has been a martial artist since childhood, having won several tournaments and earning black belts in taekwondo, judo, and karate. He is passionate about teaching martial arts and has already trained dozens of students while working for another local martial arts studio. Mike has the skills, experience, and knowledge to make Master Mike’s the most successful martial arts studio in the Spokane area.
Product Offering
Master Mike’s Martial Arts will provide martial arts lessons for children and adults. The children’s classes will be for young students ages 9-12, and the adult classes will be for anyone 13 and older. We will offer lessons in multiple forms of martial arts, including taekwondo, karate, judo, krav maga, and general self-defense. For each martial art, we will offer separate courses for beginners, intermediate students, and advanced students.
Customer Focus
Master Mike’s Martial Arts offers martial arts lessons to anyone age 9 and older. We have classes designed specifically for kids ages 9 to 12 and adults (anyone 13 and older). Everyone in these age ranges is welcome to try out our martial arts studio, but we expect our customers will primarily consist of adolescents, families, and young adults.
Management Team
Master Mike’s Martial Arts is run by Mike Conway. Mike has been a martial artist for most of his life, having begun his lessons at a very young age. He has a black belt in several martial arts and has won several championships. Though he has never run his own martial arts studio, he has worked at one for several years. Therefore, he understands how to run the general operations of such a business and has extensive experience teaching students martial arts.
Success Factors
Master Mike’s Martial Arts will be able to achieve success by offering the following competitive advantages:
- Welcoming and family-friendly environment.
- Knowledgeable and friendly staff of martial arts instructors.
- Affordable rates and membership pricing.
- Convenient hours of operation.
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Financial Highlights
Master Mike’s Martial Arts is seeking $350,000 in debt financing to launch the business. The funding will be dedicated to securing the studio space, build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include the payroll of the staff, rent, and working capital. The breakout of the funding is below:
- Securing studio space, build-out, and design: $200,000
- Equipment and supplies: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $50,000
- Marketing & advertising: $25,000
- Working capital: $25,000
The following graph below outlines the pro forma financial projections for Master Mike’s Martial Arts.
Company Overview
Who is Master Mike’s Martial Arts?
Master Mike’s Martial Arts is a new martial arts studio located in the heart of Spokane, Washington. Our mission is to become the #1 martial arts academy in the area by providing a diverse selection of classes that are trained by fun, compassionate, and highly skilled instructors. We will offer lessons in several forms of martial arts (including taekwondo, judo, and karate) and offer lessons geared towards children (ages 9 to 12) as well as adults (13 and older). Classes will be further divided by skill level (beginner, intermediate, and advanced) so that all students get plenty of experience training with others at their skill level.
Master Mike’s Martial Arts is owned and operated by Mike Conway, an experienced martial arts champion and master. Mike is a dedicated leader with the ability to effectively manage a team of instructors, build rapport with students, and maintain a fun, safe, and profitable operation. These skills will help him quickly attract customers and employees to the studio.
Master Mike’s Martial Arts History
Mike incorporated Master Mike’s as an S Corporation on July 1st, 2023. Since incorporation, the company has achieved the following milestones:
- Found a studio space and signed a Letter of Intent to lease it
- Developed the company’s name, logo, social media accounts, and website
- Determined equipment and fixture requirements
- Began recruiting key employees
Master Mike’s Martial Arts Services
Master Mike’s Martial Arts offers a wide variety of martial arts lessons, including the following:
- Taekwondo
- Karate
- Krav Maga
- Judo
- Mixed Martial Arts
- General Self Defense
Our lessons will be divided by age and skill level. We will have lessons for students who are ages 9 to 12 as well as adults who are 13 or older. After that, lessons are divided by skill level depending on if they are a beginner, intermediate, or advanced student.
Industry Analysis
Revenue for the martial arts industry is expected to increase substantially over the next several years. According to Gitnux, the martial arts industry was valued at about $90.25 billion in 2020 and is expected to reach a value of $171.14 billion by 2028.
This growth is affected by multiple factors. First, the increasing popularity of health trends is encouraging millions of people to find new ways to stay active and fit. Martial arts provide a fun way for people to get healthy and make friends.
Second, post-pandemic, many people were eager to find fun ways to interact with others, get fit, and get out of their homes. The martial arts industry suffered during the pandemic years but is seeing a resurgence now that it is safe for people to partake in group indoor activities again.
Finally, the increase in per capita disposable income will help the industry. Many people will use their income increase on sports and similar activities. We expect many people will choose to spend their money on martial arts lessons.
Martial arts studios fare better when they offer lessons to both students and adults. About 50% of martial arts students are under the age of 18, so offering lessons that appeal to all age groups helps martial arts studios stand out against the competition.
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Customer Analysis
Demographic Profile of Target Market
Master Mike’s Martial Arts offers martial arts lessons to anyone age 9 and older. We have classes designed specifically for kids ages 9 to 12 and adults (anyone 13 and older). Everyone in these age ranges is welcome to try out our martial arts studio, but we expect our customers will primarily consist of adolescents, families, and young adults.
Customer Segmentation
Master Mike’s Martial Arts will primarily target the following customer profiles:
- Adolescents
- Families
- Young Adults
Competitive Analysis
Direct and Indirect Competitors
Master Mike’s Martial Arts will face competition from other companies with similar business profiles. A description of each competitor company is below.
Spokane Taekwondo
Spokane Taekwondo is the city’s largest taekwondo academy. It is run by a master taekwondo artist who has been perfecting his skills for several decades. Spokane Taekwondo offers affordable rates, compassionate staff, and a fun setting for students of all ages to learn Taekwondo. Though Spokane Taekwondo will continue to thrive, the studio will only be a minor competitor as it only offers taekwondo lessons, while Master Mike’s will offer lessons in several martial arts.
Lilac City Kids Martial Arts School
Lilac City Kids Martial Arts School is the most popular martial arts studio for children ages 4 to 12. The studio offers classes in several martial arts (judo, karate, taekwondo, etc.) and divides classes into several age ranges. The school is designed for those who want to be lifelong students of martial arts, helping them learn the basics in early childhood and as well as hone their skills as they grow into adolescence and adulthood. We expect Lilac City to be our biggest competitor for young martial artists.
Spokane Martial Arts Academy
Spokane Martial Arts Academy is the largest martial arts studio in the city. It offers lessons in multiple forms of martial arts, including krav maga, judo, jujitsu, karate, and mixed martial arts. They target a wide demographic base, offering lessons for children 4 and up as well as adults. Since Spokane Martial Arts Academy is the most popular studio in the city, we expect that it will be our biggest overall competitor.
Download the Martial Arts business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Master Mike’s Martial Arts will be able to offer the following advantages over their competition:
- Affordable pricing: Master Mike’s Martial Arts will offer its services for a more affordable rate than the competition.
- Friendly staff: Master Mike’s Martial Arts will only hire martial arts instructors who are friendly and compassionate. All of our instructors will positively encourage our customers to train harder and improve their skills.
- Management: Master Mike’s Martial Arts is run by a professional martial artist who is famous in the industry. Mike’s presence and popularity will entice many novice and professional martial artists to visit Master Mike’s Martial Arts.
Marketing Plan
Brand & Value Proposition
Master Mike’s Martial Arts will offer a unique value proposition to its clientele:
- Large, clean, spacious, and well-equipped studio.
- Family-friendly atmosphere.
- Dedicated team of martial arts instructors.
- Affordable membership pricing plans.
- Convenient hours of operation.
Promotions Strategy
The promotions strategy for Master Mike’s Martial Arts is as follows:
Social Media Marketing Strategy
Master Mike’s Martial Arts will invest in advertising the martial arts studio on social media platforms such as Facebook and Instagram. By using targeted social media marketing, Master Mike’s Martial Arts will be able to reach the appropriate target audience in Spokane. Before opening, Mike will hire a marketing manager to develop the branding and photography needed to create captivating social media posts.
Billboards
Mike will invest in two billboards strategically located at busy intersections that receive thousands of traffic daily. The Marketing Manager will develop the print for the billboard design.
Website/SEO Marketing Strategy
Master Mike’s Martial Arts will invest in a strong SEO presence so that when someone enters “Spokane martial arts” or “local martial arts near me” in their Google or Bing search bar, Master Mike’s Martial Arts will show up at the top of the list. The website will list Master Mike’s Martial Arts’ services, location, pricing, and contact information.
Word of Mouth
Word quickly spreads around town, and once a few people experience the fun lessons and professional staff at Master Mike’s Martial Arts, more people will come in to experience our lessons for themselves and sign up for a membership plan.
Pricing
The pricing of Master Mike’s Martial Arts will be moderate and on par with competitors so customers feel they receive value when attending classes and purchasing memberships.
Operations Plan
The following will be the operations plan for Master Mike’s Martial Arts.
Operation Functions:
- Mike Conway will be the sole owner of Master Mike’s Martial Arts. He will oversee the general operations of the studio and teach several martial arts lessons. Mike will spend the next several months hiring the following:
- An Accountant who will provide all budgeting, accounting, tax payments, and financial reporting.
- A Marketing Manager who will provide all sales, marketing, and PR campaigns.
- Several instructors who will teach martial arts to students of all ages.
Download the Martial Arts business plan template (including a customizable financial model) to your computer here <–
Milestones:
Master Mike’s Martial Arts will have the following milestones completed in the next six months.
- 8/1/2023 – Finalize contract to lease studio space.
- 8/15/2023 – Begin build-out and studio design.
- 9/1/2023 – Order all equipment and supplies.
- 9/15/2023 – Hire staff and martial arts instructors.
- 10/1/2023 – Begin marketing campaign.
- 10/15/2023 – Grand opening of Master Mike’s Martial Arts.
Management Team
Master Mike’s Martial Arts is run by Mike Conway. Mike has been a martial artist for most of his life, having begun his lessons at a very young age. He has a black belt in several martial arts and has won several championships. Though he has never run his own martial arts studio, he has worked at one for several years. Therefore, he understands how to run the general operations of such a business and has extensive experience teaching students martial arts.
Financial Plan
Key Revenue & Costs
The revenue drivers for Master Mike’s Martial Arts are the rates charged to students to sign up for our classes and the membership fees we will charge to each student who wants to become a member. Memberships can either be paid monthly or annually.
The cost drivers will include the payroll for the staff, rent, utilities, supplies, and equipment. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Funding Requirements and Use of Funds
Master Mike’s Martial Arts is seeking $350,000 in debt financing to launch the business. The funding will be dedicated to securing the studio space, build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include the payroll of the staff, rent, and working capital. The breakout of the funding is below:
- Securing studio space, build-out, and design: $200,000
- Equipment and supplies: $50,000
- Three months of overhead expenses (payroll, rent, utilities): $50,000
- Marketing & advertising: $25,000
- Working capital: $25,000
Download the Martial Arts business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of students per month: 100
- Average monthly membership fee: $150
- Average class drop-in rate: $30
- Annual lease: $50,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Martial Arts Business Plan FAQs
A martial arts business plan is a plan to start and/or grow your martial arts business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Martial Arts business plan using our Martial Arts Business Plan Template here.
There are a number of different kinds of martial arts businesses, some examples include: Boutique-Boxing, Japanese Martial Arts, Chinese Martial Arts, Korean Martial Arts, and Mixed Martial Arts (MMA).
Martial Arts businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting a martial arts business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Martial Arts Business Plan - The first step in starting a business is to create a detailed martial arts business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your martial arts business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your martial arts business is in compliance with local laws.
3. Register Your Martial Arts Business - Once you have chosen a legal structure, the next step is to register your martial arts business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your martial arts business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Martial Arts Equipment & Supplies - In order to start your martial arts business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your martial arts business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.